Test Bank for Fundamentals of Human Resource Management, 7th Edition by Noe by ACADEMIAMILL

Chapter 01 Managing Human Resources

True / False Questions

1. Managers and economists traditionally have seen human resource management as a source of value to their organizations. True

False

2. The concept of "human resource management" implies that employees in an organization cannot be considered as a resource and hence are interchangeable. True

False

3. Human resources cannot be imitated. True

False

4. High-performance work systems have been essential in making organizations strong enough to weather the storm of a recession and remain profitable when the economy begins to expand after the recession. True

False

5. No two human resource departments have precisely the same roles and responsibilities. True

False

6. Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. True

False

7. An organization makes selection decisions in order to add employees to its workforce, as well as to transfer existing employees to new positions. True

False

8. Establishing and administering personnel policies allows a company to handle problematic situations more fairly and objectively than if it addressed such incidents on a case-by-case basis. True

False

9. When a person evaluating performance is not familiar with the details of a job, outcomes tend to be easier to evaluate than specific behaviors. True

False

10. Human resource management requires the ability to communicate through a variety of channels. True

False

11. Greater use of electronic databases has increased concerns about how employers protect employees' privacy. True

False

12. Human resource management is increasingly becoming a purely administrative function. True

False

13. Evidence-based HR refers to the practice of initiating disciplinary action against employees only in the presence of clear and demonstrable proof of undesirable behavior. True

False

14. In organizations with sustainable strategies, the HR departments focus on employee development and empowerment rather than short-term costs. True

False

15. HR competencies are the sets of knowledge and skills associated with successful human resource management. True

False

16. The clusters of competencies needed by human resource professionals include technical, interpersonal, business, and leadership competencies. True

False

17. HR activities are exclusively carried out by an HR specialist in small organizations. True

False

18. The supervisors in an organization play a key role in employee relations because they are most often the voice of management for the employees. True

False

19. The right of free consent states that employers can conceal the nature of a job while hiring an employee for a particular position. True

False

20. Kira feels that being denied a promotion has more to do with being a woman than with her overall performance. However, her supervisors and the HR department are refusing to hear her case. This suggests that Kira has been denied her right to due process. True

False

21. In companies that are ethical and successful, senior executives are the only stakeholders who are responsible for the actions of the company. True

False

22. For human resource practices to be considered ethical, they must result in the greatest good for the largest number of people. True

False

23. The role of an HR generalist is essentially limited to recruitment and selection. True

False

24. The vast majority of HRM professionals have a college degree. True

False

25. The Society for Human Resource Management is the primary professional organization for HRM and the world's largest human resource management association. True

False

Multiple Choice Questions

26. The concept of "human resource management" implies that employees are

A. a secondary component of a business. B. troublesome and need to be monitored. C. resources of the employer. D. an unnecessary cost to an employer. E. a rare component of the business world. 27. In the context of human resource management, human capital refers to the

A. wages, benefits, and other costs incurred in support of HR functions in an organization. B. cash, equipment, technology, and facilities that an organization uses. C. tax-deferred value of an employee's 401(k) plan. D. organization's employees, which add economic value to the company. E. total budget allocated to the HR department in an organization. 28. Which of the following describes the employees of an organization in terms of their training, experience, judgment, intelligence, relationships, and insight?

A. performance management B. human capital C. tangible capital D. traditional management E. working capital

29. Daniel, the director of operations, strongly believes that human resource management (HRM) is critical to the success of organizations. Melissa, the CFO of the organization, opposes Daniel's view because she thinks HRM is an unnecessary expense for the company. Which of the following statements weakens Melissa's belief?

A. HRM is highly substitutable and interchangeable. B. HRM is easily available for all companies to utilize. C. HRM helps an organization imitate human resources at a high-performing competitor. D. HRM ensures that persons with high levels of the needed skills and knowledge are easily found. E. HRM is indispensable for building a competitive advantage. 30. How do human resources professionals provide an organization with a sustainable competitive advantage?

A. They manage commonly available resources. B. They help the organization do what competitors are doing. C. They keep the organization focused on the short term. D. They hire high-quality employees who provide a needed service as they perform many critical functions. E. They hire employees who are very enthusiastic despite lacking job experience and training. 31. In the context of today's organizations, which of the following statements is true of employees?

A. Employees are not easily the replaced parts of a system; they are the source of a company's success or failure. B. Employees have good substitutes when the substitutes are well trained and highly motivated. C. Employees with high levels of the required skills and knowledge can be easily imitated. D. Employees within an organization seldom perform critical functions. E. Employees do not have the right to refuse to do what violates their moral beliefs.

32. Identify the correct statement regarding human resources.

A. Human resources can be imitated. B. Human resources are commonly found. C. Human resources have no good substitutes. D. Human resources seldom perform critical functions. E. Human resources are interchangeable, easily replaced parts of a system. 33. Montero Inc., an automobile manufacturing company, had the largest number of employees in the manufacturing sector last year. Instead of hiring more employees, the company decided to invest heavily in training its employees on automotive maintenance and design. Which of the following beliefs has most likely led the company to take this decision?

A. The employees in the company are interchangeable. B. The employees are the source of the company's success or failure. C. The union employees in the company will resign once their contract expires. D. A majority of the employees own shares in the company. E. A majority of the employees in the company have an automotive engineering background. 34. Joshua, the human resource manager at Potter Inc., has a clear understanding of the firm's business. This enables him to comprehend the various needs of the business and help the company meet its goals for attracting, keeping, and developing employees with the required skills. This scenario indicates Joshua's responsibility of

A. providing administrative services. B. preparing a job analysis. C. providing business partner services. D. creating a job design. E. maintaining positive employee relations.

35. Kathleen is a member of the human resource department at Jade Corp. Setting a goal to enhance the firm's strategy, Kathleen works to attain it by understanding the current human resources. Through a series of surveys, interviews, and observations, she learns what talents the various departments of Jade Corp. are currently in need of, and attracts new human resources according to those requirements. What kind of HRM responsibility does this example illustrate?

A. HRM's responsibility to handle administrative tasks B. HRM's responsibility to serve as a strategic partner C. HRM's responsibility to carry out transactions D. HRM's responsibility to develop effective systems E. HRM's responsibility to answer questions 36. How can an HR department that is considered its company's strategic partner help the company gain a competitive advantage?

A. by handling administrative tasks with a commitment to quality B. by providing business partner services to meet the company's goals C. by providing skills training and career development programs D. by understanding the existing human resources and providing new ones E. by answering questions on employee hiring and benefits 37. Olivia works in the human resource department at Hercules Corp. Her chief responsibilities include administering salaries, determining incentives, managing group insurance, and employee vacation and leave. Which human resource management function is being performed by Olivia?

A. performance management B. employee relations C. selection D. training and development E. compensation and benefits

38. Which of the following is a responsibility that is specifically associated with the HR function of employee relations?

A. conducting attitude surveys B. analyzing work C. creating HR information systems D. planning and forecasting human resources E. creating a job design 39. Which of the following responsibilities is specifically associated with the HR function of support for strategy?

A. temporary labor recruitment and record keeping B. human resource planning and forecasting C. wage and salary administration D. development of employee handbooks and company publications E. development of an HR information system 40. In a recent trend, some companies are doing away with their human resource departments altogether because they

A. prefer to have vertical organizational structures. B. want to establish a centralized decision-making system. C. need more narrowly-defined jobs due to greater concern for innovation and quality. D. do not need HR for recruitment as they rely heavily on promotions from within and applicants referred by current employees. E. want to encourage department managers and other employees to handle HR issues as they arise.

41. Which of the following refers to the process of getting detailed information about jobs?

A. job rotation B. supply chain management C. job analysis D. policy creation E. job orientation 42. Which of the following best describes job design?

A. It is the process of defining the way work will be performed and the tasks that a given job requires. B. It is the process of generating a pool of potential candidates for a job. C. It is the process of identifying suitable candidates for jobs. D. It is the technique of enabling employees to learn job-related knowledge, skills, and behavior. E. It is the technique of presenting candidates with detailed information about a job. 43. At Tech Scale Inc., a company that deals in software products, employees often complain about the lack of clarity regarding the tasks they are required to perform. Often there are two employees working on overlapping tasks, while some tasks are not designated to any employee. Though employees are satisfied with the pay and work culture, this aspect of their work environment has led to a lot of conflict in the workplace. From the information provided, this complaint of the employees can be closely linked to which of the following HR functions?

A. compliance with laws B. analysis and design of work C. compensation and benefits D. maintenance of employee relations E. recruitment and selection

44. Which of the following is responsible for the shift in the job trend, from the use of narrowly defined jobs to the use of broadly defined jobs in organizations?

A. emphasis on innovation and quality B. increased demand for low skilled workers C. increased focus on simplifying jobs D. lack of competition E. reduced use of team-based projects 45. Identify the process through which an organization seeks applicants for potential employment.

A. orientation B. training C. recruitment D. work analysis E. job design 46. The process by which an organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals is referred to as

A. orientation. B. selection. C. compensation. D. work analysis. E. performance management.

47. Edgar works at Alpha Inc. He is responsible for identifying individuals with skills required for the various roles in the organization. Which of the following human resource management practices is being performed by Edgar?

A. performance management B. employee relations C. selection D. training E. compensation 48. Which of the following describes a planned effort to enable employees to learn job-related knowledge, skills, and behavior?

A. selection B. performance appraisal C. training D. compensation E. recruitment 49. Which HR function involves offering programs through which employees acquire knowledge, skills, and behavior that improve their ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs?

A. recruitment B. personnel policy C. development D. employee relations E. selection

50. If a company, as part of its job redesign program, plans to set up teams to manufacture products, which of the following programs might it offer to help employees learn the ins and outs of effective teamwork?

A. development programs B. recruitment programs C. orientation programs D. selection programs E. performance management programs 51. In the context of HRM functions, the activities of training and development include

A. making decisions whether an organization will emphasize enabling employees to perform their current jobs, preparing them for future jobs, or both. B. keeping track of how well employees are performing relative to objectives such as job descriptions and goals for a particular position. C. attempting to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. D. preparing and distributing employee handbooks that detail company policies and, in large organizations, company publications such as a monthly newsletter or a website on the organization's intranet. E. establishing policies related to hiring, discipline, promotions, and benefits. 52. Which of the following is defined as the process of ensuring employees' activities and outputs match an organization's goals?

A. job analysis B. supply chain management C. employee development D. performance management E. career planning

53. The employees at Circa Financial often complain that they are not provided feedback about their work. They feel that they do not get proper information as to how they have performed and the areas in which they need to improve. They also claim that the performance goals are vague and not measurable. Which of the following HR functions does Circa Financial need to specifically improve upon to resolve the complaints put forth by its employees?

A. recruitment B. employee selection C. training and development D. performance management E. planning and administering pay and benefits 54. Julie works at Matrix Inc. Her primary role in the company is to create self-rating, job-related questionnaires for the employees. Which of the following human resource management practices is being performed by Julie?

A. performance management B. employee relations C. selection D. training E. compensation

55. In the context of HRM functions, the activities of performance management include

A. identifying applicants with the necessary knowledge and abilities that will help an organization achieve its goals. B. making a planned effort to enable employees to learn job-related knowledge, skills, and behavior. C. specifying the tasks and outcomes of a job that contribute to an organization's success. D. acquiring knowledge and skills that improve employees' ability to meet the challenges of a variety of new or existing jobs. E. seeking applicants for potential employment. 56. Jonathan is a part of the HR department in an advertising firm that has recently brought in employees specializing in analysis of large volumes of data about consumer behavior. The manager to whom these analysts report does not share their knowledge of quantitative methods, but wants them to develop recommendations for better decision making. Jonathan is supporting the department by developing a form the manager will follow in measuring the analysts' performance. What kinds of performance measures should Jonathan focus on?

A. The form should measure outcomes, such as timely and useful recommendations, because the manager will not be able to evaluate specific technical behaviors. B. The form should measure specific technical behaviors, because the methods used by the analysts will determine the usefulness of their recommendations. C. The form should measure both outcomes and behaviors, because both are essential to success in the job. D. The form should measure personal traits, such as getting along with others, because Jonathan and the manager don't understand the technical requirements. E. The form should ask broad questions, so the manager can discuss whatever they think is important.

57. In an attempt to motivate its current employees and to attract skilled professionals, Labyrinth Inc. decides to increase salaries as well as year-end bonuses for its best performers. Which of the following HR functions is demonstrated in this scenario?

A. performance management B. training and development C. recruitment D. planning and administering pay and benefits E. maintaining positive employee relations 58. Which of the following HR functions includes preparing and distributing employee handbooks that detail company policies?

A. recruitment and selection B. maintaining positive employee relations C. ensuring compliance with labor laws D. performance management E. planning and administering pay and benefits 59. Nicole, an employee at Neo Corp., develops and distributes newsletters that announce upcoming events in the company. Which of the following human resource management practices is being performed by Nicole?

A. performance management B. employee relations C. selection D. training E. compensation

60. Some of the employees of RVZ Services are unhappy with their supervisor's comments and remarks. They feel they are being unduly discriminated against by the supervisor, and so they turn to the HR department for help. Addressing such problems is a part of the HR function of

A. recruitment and selection. B. employee relations. C. training and development of employees. D. performance management. E. planning and administration of pay and benefits. 61. The HR function of maintaining positive employee relations includes

A. maintaining performance measures on outcomes. B. offering training programs on effective teamwork. C. selecting only those applicants that are referred by employees. D. maintaining communication with union representatives. E. planning employee pay and benefits. 62. What is the advantage of establishing and administering policies in organizations?

A. It allows companies to handle situations more fairly and objectively. B. It allows companies to address issues on a case-by-case basis. C. It eliminates the need for documentation and record keeping. D. It encourages employees to defend themselves by claiming ignorance of disciplinary norms. E. It leaves a lot of room for subjective decision-making.

63. _____ refers to the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals.

A. Conjoint analysis B. Performance management C. Workforce analytics D. Career development E. Task analysis 64. Fiona, a manager at Norman Corp., is responsible for workforce analytics in the organization. Her supervisor, Martin, argues it is an unnecessary expense as he believes that collecting employeerelated information is just an administrative responsibility. Which of the following statements, if true, would weaken Martin's argument?

A. Fiona established policies regarding violations of company regulations. B. Fiona identified subordinates who showed the potential to become leaders in the company based on the data. C. Fiona prepared and distributed company publications on the organization's intranet. D. Fiona was able to actively recruit candidates from external sources, such as Internet job postings and college recruiting events. E. Fiona was able to specify the tasks and outcomes of a job that contributed to the organization's success.

65. Albright Corp. uses a set of quantitative tools to assess employee data such as performance, compensation, designations, and benefits. This is done to arrive at decisions based on accurate findings from analyses that can help the firm achieve its goals. Albright is engaging in the practice of _____.

A. training and development B. job design C. employee relations D. talent management E. workforce analytics 66. When a manufacturer experienced a slowdown in sales, it laid off the two employees with the poorest attendance. One of the employees sued the company, saying it should have laid off the most recently hired workers. What defense would the company most likely offer?

A. The layoffs were not discriminatory. B. The company was forced to make the layoffs. C. There are no federal laws that apply to this situation. D. The layoffs were instances of employment at will. E. The age of the company's workforce has been rising. 67. Costabin Inc., a company in the recycling business, has revamped its management and business criteria. It has also added new objectives that would require recruitment of new and skilled labor. The responsibility of identifying the numbers and the kinds of employees lies with the HR department of the firm. This responsibility of the HR department is known as

A. supply chain management. B. performance management. C. human resource planning. D. utilization analysis. E. performance planning.

68. Which of the following is defined as a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers?

A. work flow analysis B. job analysis C. conjoint analysis D. talent management E. performance management 69. Which of the following best describes evidence-based HR?

A. It is the exclusive use of statistical models for planning, forecasting, and other related HR activities. B. It refers to establishing overlapping performance goals and desired outcomes during performance management. C. It refers to demonstrating that human resource practices have a positive influence on a company's profits or key stakeholders. D. It is the process of ensuring that employees' activities and outputs match an organization's goals. E. It is the organization-wide planned effort to enable employees to learn job-related knowledge, rather than teamwork or communication skills. 70. An organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community, is called

A. adjustability. B. absorbability. C. substitutability. D. sustainability. E. credibility.

71. Blandings Corp., an apparel manufacturer, has been profitable for a long time without depleting its resources—raw materials, employees, and the support of the local community. The company also caters to the needs of all its stakeholders. Which of the following characteristics is illustrated in this scenario?

A. sustainability B. strategic architecture C. compliance with law D. talent management E. workforce analytics 72. The parties with an interest in a company's success—typically, shareholders, the community, customers, and employees—constitute which members of the company?

A. advisors B. stakeholders C. management D. personnel E. strategic partners 73. Joanna, a local farmer, buys her equipment exclusively from the manufacturer Wooster. Inc. Because of this, Joanna is affected by Wooster Inc.'s operations. This indicates that Joanna is a _____.

A. stakeholder B. business partner C. workforce analyst D. talent manager E. strategic partner

74. Identify the correct statement regarding sustainable organizations.

A. They primarily focus on maximizing profits and delivering high returns to investors. B. They focus on smooth turnover and outsourcing rather than long-term planning. C. They are more concerned about justice and fairness rather than short-term profits. D. They are less concerned about employee development and empowerment. E. They are more concerned with the quantum of output than quality standards. 75. An HR manager can demonstrate competency in communication by excelling at which of the following behaviors?

A. setting a vision for the HR function B. listening effectively C. supporting inclusiveness D. maintaining confidentiality E. applying knowledge of business principles 76. A human resource professional of a company exhibits the competency of business acumen when he or she

A. acquires knowledge of other cultures. B. responds to reports of unethical conduct. C. applies statistical knowledge to understand data. D. applies knowledge of how HR functions contribute to business success. E. uses HR technology correctly.

77. What clusters of competencies are necessary for success in human resource management?

A. hiring, compensation, event planning, and training B. technical, interpersonal, business, and leadership C. technical, hiring, motivation, and compensation D. business, development, leadership, and interpersonal E. technical, business, training, and hiring 78. According to the SHRM competency model, which of the following competencies is part of the interpersonal cluster?

A. leadership B. human resource expertise C. business acumen D. critical evaluation E. global and cultural effectiveness 79. According to your text, it is not enough for HR professionals to know how to perform tasks specific to human resource management. HR professionals also must be able to work effectively with others, contribute to business success, and

A. keep up-to-date on technology laws. B. Instruct others in the use of HR technology. C. lead others ethically. D. occasionally gather relevant data. E. ensure policies remain unchanged.

80. Heather is a benefits specialist at McCoy Manufacturing. She negotiates contracts for insurance, retirement plans, and other employee benefits in order to get the best possible deal while meeting all legal requirements. She understands the details of each benefit and is able to help employees understand the value of their benefits. This scenario illustrates Heather's competency in the area of

A. consultation. B. human resource expertise. C. relationship management. D. ethical practice. E. business acumen. 81. Ellie is a human resource manager at Harris Corp. She skillfully handles personal interactions with her staff and the other department managers. She is highly admired by others in the organization because she treats others with respect and builds trust. This scenario indicates Ellie has strengths in the HR success competency of

A. consultation. B. relationship management. C. leadership and navigation. D. global and cultural effectiveness. E. critical evaluation. 82. Acme Manufacturing wants to build a new factory and is comparing locations in three states. How could an HR professional use consultation competencies to support this effort?

A. by handling the personal interactions among the decision makers B. by encouraging people to collaborate on a decision C. by setting a vision for the HR function D. by gathering data about labor supply and demand in the states E. by gaining knowledge of business principles

83. Reese, the human resource manager at Axis Inc., has developed an inspiring vision of how the HR function should contribute to employees' well-being and the company's success. She models the values and behaviors supporting that vision, and she gets her staff excited to be part of realizing the vision. This indicates that Reese has competencies in the area of

A. global and cultural effectiveness. B. critical evaluation. C. relationship management. D. leadership and navigation. E. human resource expertise. 84. Nikita heads the human resource team at Strait Corp., a marketing firm with a diverse group of employees in three countries. She has knowledge about the cultures of the employees and applies that knowledge to build cooperation and resolve conflicts. She appreciates that all her employees bring different strengths to the company, and she helps to foster a climate in which all are encouraged to contribute. This scenario illustrates Nikita's competency in the area of

A. ethical practice. B. critical evaluation. C. business acumen. D. global and cultural effectiveness. E. human resource expertise.

85. Charles heads the human resource department at technology development company Schultz Inc. There, he monitors trends of the labor markets in Schultz's industry. Studying the trends, Charles realizes the company is likely going to need more sources of employees skilled in robotics. He gathers information about the best robotics training programs in the regions where the company operates. Then he applies that information to build connections with selected schools, thereby resolving a recruitment problem before it becomes serious. This scenario illustrates Charles's competency in

A. global and cultural effectiveness. B. communication. C. critical evaluation. D. leadership and navigation. E. relationship management. 86. Jacob is the human resource manager at Platinum Corp. He clearly understands the company's strategy. He has a solid understanding of business principles, and he applies these to help the HR department contribute to Platinum's success. This scenario indicates that Jacob has competency in the area of

A. business acumen. B. ethical practice. C. communication. D. leadership and navigation. E. relationship management.

87. Which of the following is the correct statement about the HR responsibilities of supervisors?

A. Supervisors do not interview job candidates. B. In large organizations, all HR activities are carried out by supervisors. C. Supervisors do not need to be familiar with the basics of HRM. D. Job analysis and job design are techniques that lie outside the purview of supervisors. E. Supervisors typically have responsibilities related to all the HR functions. 88. Craig, one of the senior managers at Clayton Inc., insists that company supervisors handle employee relations as part of their jobs. Which of the following statements strengthens Craig's argument?

A. The supervisors represent the company on a day-to-day basis. B. The supervisors have the business experience to take up additional responsibilities. C. The supervisors do not hold any stakes in the organization. D. The supervisors are not a part of the employees' union. E. The supervisors are responsible for any action taken by the employees. 89. Which of the following is TRUE of ethics in human resource management?

A. evidence shows that HRM practices are invariably ethical B. the general public has a positive perception of the ethical conduct of U.S. businesses C. HR managers must view employees as having basic rights D. most managers have a positive perception of the ethical conduct of U.S. businesses E. most people believe that individuals apply values they hold in their personal lives to their professional activities

90. Which of the following views on employment reflects the ethical principles embodied in the U.S. Constitution and Bill of Rights?

A. HR managers must view employees as having basic rights. B. HR managers have the right to lifetime employment. C. HR managers have the right to hire whoever they deem best suited for a job. D. HR managers must view employees as a necessary expense. E. HR managers must set aside quotas for minorities. 91. According to the philosopher Immanuel Kant, the right of employees to know the nature of the job they are being hired to do and the obligation of a company not to deceive them in this respect is mainly reflective of the basic right of

A. privacy. B. free consent. C. freedom of speech. D. freedom of conscience. E. first refusal. 92. Jarvis, a manager at Carmile Inc., is rigid with his employees and does not allow them to voice their opinions or criticisms about their superiors. On the other hand, Michelle, another manager at the same firm, encourages her subordinates to communicate with her openly. Which of the following statements uses basic rights to argue in favor of Michelle's practice over that of Jarvis's?

A. It enables Michelle to keep a tab on the grapevine communication in the company. B. It engages the employees in expressing constructive criticisms and opinions. C. It reduces the possibility of any whistle blowers in the company. D. It enhances the chances of more employees being promoted. E. It curbs the privacy and confidential requirements of an employee.

93. Which of the following scenarios demonstrates a violation of the right of freedom of conscience in a workplace environment?

A. A supervisor shares the previous employment details of an employee with a colleague. B. An interviewer does not specify the details of a job to a prospective employee. C. A supervisor coerces an employee to use unsafe practices to keep a project on schedule. D. An employee complains about his supervisor during a conference call with a client. E. A supervisor does not provide a fair hearing when an employee complains about a colleague. 94. Which of Kant's basic human rights is violated when a supervisor requires an employee to do something that is unsafe or environmentally damaging, in spite of the employee clearly objecting to the order?

A. right of freedom of speech B. right of equal opportunity employment C. right to due process D. right of freedom of conscience E. right of privacy 95. According to your text, the right of privacy is the right to

A. know the nature of the job a person is being hired for. B. autonomy in how a person carries out their work. C. control what a person reveals about their private life. D. a fair and impartial hearing. E. fight against a wrongful discharge.

96. By keeping employees' personal records confidential, an employer respects their right of

A. autonomy. B. freedom of conscience. C. equal opportunity. D. freedom of speech. E. privacy. 97. Patrick, an employee at Jones Inc., was unhappy with the firm's existing project management system. Hence, he communicated this to the top management by expressing his complaints in an e-mail. According to the work of philosopher Immanuel Kant, Patrick applied his right of

A. freedom of conscience. B. first refusal. C. freedom of speech. D. privacy. E. free consent. 98. Kurt, a manager at Marshall Inc., was asked by his supervisor to sign a contract with a new supplier. The contract stated that the industrial waste released by the company would be released into a local river. Kurt was against this idea of polluting the river with the waste, so he refused to sign the contract. In this scenario, Kurt exercised his right of

A. freedom of conscience. B. first refusal. C. freedom of speech. D. privacy. E. free consent.

99. If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic human right to

A. lifetime employment. B. privacy. C. due process. D. free consent. E. freedom of conscience. 100.Which of the following describes companies that are ethical and successful?

A. They are solely concerned about the benefits of the company while making business decisions. B. The owners most often assume responsibility for the actions of the company, rather than the employees. C. They are less concerned about the interests of the people involved in the business. D. Their main aim is to maximize profits in all their transactions. E. They have a sense of purpose and vision that the employees value and use in their day-to-day work. 101.Which of the following is a standard that human resource managers must satisfy for HRM practices to be ethical?

A. Managers must treat employees as family. B. Human resource practices must result in the greatest good for the largest number of people. C. Employment practices must respect employees' right of lifetime employment. D. Managers must always maintain that customers are right. E. Employment practices must limit the application of the principle of employment-at-will as it is unfair to employees.

102.Which of the following is one of the four principles that guides how ethical companies act?

A. short change customers and vendors B. perform only in ways that benefit the company C. have a sense of purpose or vision that employees value and use D. only permit top management to take responsibility for the company E. emphasize fairness only if it suits the company 103.When Ulysses Corp., a travel insurance company, decided to introduce new goals for its internal management, there was a rift regarding what should be implemented. Group A emphasized short-term goals that would benefit the company, while Group B believed in introducing policies that would create more mutually-beneficial relationships with client businesses, such as major airlines. Which of the following results would prove Group B's decision to be ideal?

A. rival businesses going bankrupt due to a slow economy B. an increase of quarterly bonuses offered to executives C. studies showing a rise in the number of consumers looking to take a vacation D. an increase of airline customers purchasing Ulysses' insurance E. a steady decline of unhappy employees at Ulysses Corp. due to new healthcare benefits 104.Which of the following statements is true about the HR profession?

A. A degree in law is the sole requirement for those who wish to choose HRM as a profession. B. All HRM professionals have a postgraduate degree. C. Professional certification in HRM continues to be the only way to get into the field. D. Usually, HR generalists get paid substantially more than HR training directors. E. HR generalists usually perform the full range of HRM activities.

105.Which of the following is the primary professional organization for HRM that provides education and information services, and is also the world's largest human resource management association?

A. the Collective for Strategic Human Resource Management B. the Foundation for the Recognition of Professionals International C. the Society for Human Resource Management D. the Human Resource Certification Institute E. the Association for Human Resource Professionals

Essay Questions

106.List the qualities associated with human resources that help an organization gain a sustainable competitive advantage.

107.List five of the HRM functions, briefly describing the specific activities associated with each.

108.Differentiate between training and development of employees.

109.Discuss the responsibility of HR with regard to planning and administering pay and benefits. Also, analyze the impact of this function on an organization.

110.Explain human resource planning and evidence-based HR. How do these concepts help HR in supporting an organization's strategy?

111.In an organization with a sustainable strategy, human resource departments focus on employee development and empowerment rather than short-term costs. Define the typical stakeholders in an organization. Then explain how sustainability positively affects both a company and its stakeholders.

112.Briefly describe the nine categories of HRM competencies that the Society for Human Resource Management found to be associated with success. Provide an example of a behavior for each.

113.Explain why supervisors and non-HR managers are expected to be familiar with the basics of HRM. List five examples of the types of HR responsibilities supervisors are expected to perform.

114.List and provide an example of the basic human rights suggested by the work of Immanuel Kant.

115.List the four principles followed by ethical, successful companies.

116.How would you describe a career in human resource management? Cite the type of positions available, degree requirements, the nature of the work, and salary levels.

Chapter 01 Managing Human Resources Answer Key

True / False Questions

Managers and economists traditionally have seen human resource management as a source of value to their organizations. FALSE

Managers and economists traditionally have seen human resource management as a necessary expense rather than as a source of value to their organizations.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-01 Define human resource management, and explain how HRM contributes to an organization's performance. Level of Difficulty: 1 Easy Topic: Understanding Human Resource Management

The concept of "human resource management" implies that employees in an organization cannot be considered as a resource and hence are interchangeable. FALSE

The concept of "human resource management" implies that employees are resources of an employer. This view means employees in today's organizations are not interchangeable, easily replaced parts of a system, but the source of the company's success or failure.

Human resources cannot be imitated. TRUE

Human resources cannot be imitated. To imitate human resources at a high-performing competitor, one would have to figure out which employees are providing the advantage and how. Then, one would have to recruit people who can do precisely the same thing and set up the systems that enable those people to imitate one's competitor.

High-performance work systems have been essential in making organizations strong enough to weather the storm of a recession and remain profitable when the economy begins to expand after the recession. TRUE

High-performance work systems have been essential in making organizations strong enough to weather the storm of a recent recession and remain profitable when the economy slowly begins to expand again. Maintaining a high-performance work system may include development of training programs, recruitment of people with new skill sets, and establishment of rewards for such behaviors as teamwork, flexibility, and learning.

No two human resource departments have precisely the same roles and responsibilities. TRUE

No two human resource departments have precisely the same roles because of differences in organization sizes and characteristics of the workforce, the industry, and management's values. Many HR tasks may be performed by supervisors or others inside or outside the organization.

Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. TRUE

In general, jobs can vary from having a narrow range of simple tasks to having a broad array of complex tasks requiring multiple skills. In the past, many companies have emphasized the use of narrowly defined jobs to increase efficiency. However, greater concern for innovation and quality has shifted the trend to more use of broadly defined jobs.

An organization makes selection decisions in order to add employees to its workforce, as well as to transfer existing employees to new positions. TRUE

Selection refers to the process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. An organization makes selection decisions in order to add employees to its workforce, as well as to transfer existing employees to new positions.

Establishing and administering personnel policies allows a company to handle problematic situations more fairly and objectively than if it addressed such incidents on a case-by-case basis. TRUE

Organizations depend on their HR department to help establish policies related to hiring, discipline, promotions, and benefits. Establishing and administering personnel policies allows the company to handle problematic situations more fairly and objectively than if it addressed such incidents on a case-by-case basis.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 2 Medium Topic: The Role of Human Resource Managers

When a person evaluating performance is not familiar with the details of a job, outcomes tend to be easier to evaluate than specific behaviors. TRUE

The human resource department may be responsible for developing or obtaining questionnaires and other devices for measuring performance. The performance measures may emphasize observable behaviors or both. When a person evaluating performance is not familiar with the details of a job, outcomes tend to be easier to evaluate than specific behaviors. The evaluation may focus on the short term or long term and on individual employees or groups.

10.

Human resource management requires the ability to communicate through a variety of channels. TRUE

For employees to comply with policies in an organization, they have to know and understand the policies. Therefore, human resource management requires the ability to communicate through a variety of channels. Examples include teaching policies by giving presentations at meetings, posting documents online, writing e-mail messages, and setting up social-media pages for employees.

11.

Greater use of electronic databases has increased concerns about how employers protect employees' privacy. TRUE

The increased use of and access to electronic databases by employees and employers suggest that in the near future legislation will be needed to protect employee privacy rights. Currently, no federal laws outline how to use employee databases in such a way as to protect employees' privacy while also meeting employers' and society's concern for security.

12.

Human resource management is increasingly becoming a purely administrative function. FALSE

At one time, human resource management was primarily an administrative function. As more organizations have come to appreciate the significance of highly skilled human resources, however, many human resource departments have taken on a more active role in supporting an organization's strategy.

13.

Evidence-based HR refers to the practice of initiating disciplinary action against employees only in the presence of clear and demonstrable proof of undesirable behavior. FALSE

Evidence-based human resource refers to demonstrating that human resource practices have a positive influence on a company's profits or key stakeholders (employees, customers, community, shareholders).

14.

In organizations with sustainable strategies, the HR departments focus on employee development and empowerment rather than short-term costs. TRUE

In an organization with a sustainable strategy, human resource departments focus on employee development and empowerment rather than short-term costs, on long-term planning rather than smooth turnover and outsourcing, and on justice and fairness over short-term profits.

15.

HR competencies are the sets of knowledge and skills associated with successful human resource management. TRUE

The Society for Human Resource Management has defined sets of knowledge and skills associated with success, grouping these into nine categories it calls HR success competencies.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 1 Easy Topic: The Role of Human Resource Managers

16.

The clusters of competencies needed by human resource professionals include technical, interpersonal, business, and leadership competencies. TRUE

Success competencies fall into four clusters of competencies: technical, interpersonal, business, and leadership. In other words, it is not enough to know how to perform tasks specific to human resource management. HR professionals also must be able to work effectively with others, contribute to business success, and lead others ethically.

17.

HR activities are exclusively carried out by an HR specialist in small organizations. FALSE

In large organizations, HR departments advise and support the activities of the other departments. In small organizations, there may be an HR specialist, but many HR activities are carried out by line supervisors. Either way, non-HR managers need to be familiar with the basics of HRM and their role with regard to managing human resources.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-04 Explain the role of supervisors in human resource management. Level of Difficulty: 1 Easy Topic: Human Resource Management in Small Businesses

18.

The supervisors in an organization play a key role in employee relations because they are most often the voice of management for the employees. TRUE

Supervisors play a key role in employee relations, because they are most often the voice of management for their employees, representing the company on a day-to-day basis. In their activities, supervisors can participate in HRM by taking into consideration the ways decisions and policies will affect their employees.

19.

The right of free consent states that employers can conceal the nature of a job while hiring an employee for a particular position. FALSE

People have the right to be treated only as they knowingly and willingly consent to be treated. An example that applies to employees would be that employees should know the nature of the job they are being hired to do; the employer should not deceive them.

20.

Kira feels that being denied a promotion has more to do with being a woman than with her overall performance. However, her supervisors and the HR department are refusing to hear her case. This suggests that Kira has been denied her right to due process. TRUE

In this scenario, Kira has been denied her right to due process. The right to due process states that if people believe their rights are being violated, they have the right to a fair and impartial hearing.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

21.

In companies that are ethical and successful, senior executives are the only stakeholders who are responsible for the actions of the company. FALSE

In ethical, successful companies, all employees assume responsibility for the actions of the company.

22.

For human resource practices to be considered ethical, they must result in the greatest good for the largest number of people. TRUE

For human resource practices to be considered ethical, they must satisfy the three basic standards. First, HRM practices must result in the greatest good for the largest number of people. Second, employment practices must respect basic human rights of privacy, due process, consent, and free speech. Third, managers must treat employees and customers equitably and fairly.

23.

The role of an HR generalist is essentially limited to recruitment and selection. FALSE

HR generalists usually perform the full range of HRM activities, including recruiting, training, compensation, and employee relations.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-06 Describe typical careers in human resource management. Level of Difficulty: 1 Easy Topic: Understanding Human Resource Management

24.

The vast majority of HRM professionals have a college degree. TRUE

The vast majority of HRM professionals have a college degree, and many also have completed postgraduate work. The typical field of study is business (especially human resources or industrial relations), but some HRM professionals have degrees in social sciences, the humanities, and law programs.

25.

The Society for Human Resource Management is the primary professional organization for HRM and the world's largest human resource management association. TRUE

The primary professional organization for HRM is the Society for Human Resource Management (SHRM). SHRM is the world's largest human resource management association, with more than 250,000 professional and student members throughout the world.

Multiple Choice Questions

26.

The concept of "human resource management" implies that employees are

A. a secondary component of a business. B. troublesome and need to be monitored. C. resources of the employer.

D. an unnecessary cost to an employer. E. a rare component of the business world. The concept of "human resource management" implies that employees are resources of the employer.

Level of Difficulty: 1 Easy Topic: Understanding Human Resource Management

27.

In the context of human resource management, human capital refers to the

E. total budget allocated to the HR department in an organization. As a type of resource, human capital means the organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight—the employee characteristics that can add economic value to the organization.

28.

Which of the following describes the employees of an organization in terms of their training, experience, judgment, intelligence, relationships, and insight?

A. performance management B. human capital

C. tangible capital D. traditional management E. working capital As a type of resource, human capital means the organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight—the employee characteristics that can add economic value to the organization.

29.

Daniel, the director of operations, strongly believes that human resource management (HRM) is critical to the success of organizations. Melissa, the CFO of the organization, opposes Daniel's view because she thinks HRM is an unnecessary expense for the company. Which of the following statements weakens Melissa's belief?

In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage (is better than competitors at something and can hold that advantage over a sustained period of time). Human resources that are valuable, rare, inimitable, and hard to replace will give a company such an advantage.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 01-01 Define human resource management, and explain how HRM contributes to an organization's performance. Level of Difficulty: 3 Hard Topic: How HRM Helps to Build a Sustainable Competitive Advantage?

30.

How do human resources professionals provide an organization with a sustainable competitive advantage?

critical functions. E. They hire employees who are very enthusiastic despite lacking job experience and training. Human resources can provide companies with a sustainable competitive advantage because human resources are valuable, rare, inimitable, and irreplaceable. An organization realizes the potential of these human resources through the ways it practices human resource management.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-01 Define human resource management, and explain how HRM contributes to an organization's performance. Level of Difficulty: 2 Medium Topic: How HRM Helps to Build a Sustainable Competitive Advantage?

31.

In the context of today's organizations, which of the following statements is true of employees?

A. Employees are not easily the replaced parts of a system; they are the source of a

company's success or failure. B. Employees have good substitutes when the substitutes are well trained and highly motivated. C. Employees with high levels of the required skills and knowledge can be easily imitated. D. Employees within an organization seldom perform critical functions. E. Employees do not have the right to refuse to do what violates their moral beliefs. Human capital means the organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight—the employee characteristics that can add economic value to the organization. In other words, for an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience. This view means employees in today's organizations are not interchangeable, easily replaced parts of a system but the source of the company's success or failure.

32.

Identify the correct statement regarding human resources.

A. Human resources can be imitated. B. Human resources are commonly found. C. Human resources have no good substitutes.

D. Human resources seldom perform critical functions. E. Human resources are interchangeable, easily replaced parts of a system. Human resources have no good substitutes. When people are well trained and highly motivated, they learn, develop their abilities, and care about customers. It is difficult to imagine another resource that can match committed and talented employees.

33.

Montero Inc., an automobile manufacturing company, had the largest number of employees in the manufacturing sector last year. Instead of hiring more employees, the company decided to invest heavily in training its employees on automotive maintenance and design. Which of the following beliefs has most likely led the company to take this decision?

A. The employees in the company are interchangeable. B. The employees are the source of the company's success or failure.

C. The union employees in the company will resign once their contract expires. D. A majority of the employees own shares in the company. E. A majority of the employees in the company have an automotive engineering background. Human capital means the organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight—the employee characteristics that can add economic value to the organization. In other words, for an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience. This view means employees in today's organizations are not interchangeable, easily replaced parts of a system but the source of the company's success or failure. In this case, Montero Inc. decided to invest heavily in training its employees on automotive maintenance and design instead of hiring more employees because employees are the source of the company's success or failure.

34.

Joshua, the human resource manager at Potter Inc., has a clear understanding of the firm's business. This enables him to comprehend the various needs of the business and help the company meet its goals for attracting, keeping, and developing employees with the required skills. This scenario indicates Joshua's responsibility of

A. providing administrative services. B. preparing a job analysis. C. providing business partner services.

D. creating a job design. E. maintaining positive employee relations. In this case, Joshua executes his responsibility of providing business partner services. This involves developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs. For the systems to be effective, HR people must understand the business so it can understand what the business needs.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 3 Hard Topic: Understanding Human Resource Management

35.

Kathleen is a member of the human resource department at Jade Corp. Setting a goal to enhance the firm's strategy, Kathleen works to attain it by understanding the current human resources. Through a series of surveys, interviews, and observations, she learns what talents the various departments of Jade Corp. are currently in need of, and attracts new human resources according to those requirements. What kind of HRM responsibility does this example illustrate?

A. HRM's responsibility to handle administrative tasks B. HRM's responsibility to serve as a strategic partner

C. HRM's responsibility to carry out transactions D. HRM's responsibility to develop effective systems E. HRM's responsibility to answer questions One way to define the responsibilities of HR departments is to think of HR as a business within the company with three product lines: administrative services and transactions, business partner services, and strategic partner. Being a strategic partner involves contributing to the company's strategy through an understanding of its existing and needed human resources and ways HR practices can give the company a competitive advantage. For strategic ideas to be effective, HR people must understand the business, its industry, and its competitors.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 3 Hard Topic: Understanding Human Resource Management

36.

How can an HR department that is considered its company's strategic partner help the company gain a competitive advantage?

E. by answering questions on employee hiring and benefits Contributing to a company's strategy through an understanding of its existing and needed human resources are ways HR practices can give the company a competitive advantage. For strategic ideas to be effective, HR people must understand the business, its industry, and its competitors.

37.

Olivia works in the human resource department at Hercules Corp. Her chief responsibilities include administering salaries, determining incentives, managing group insurance, and employee vacation and leave. Which human resource management function is being performed by Olivia?

A. performance management B. employee relations C. selection D. training and development E. compensation and benefits

In this case, Olivia is executing the HRM function of compensation and benefits. The responsibilities of the HRM function of compensation and benefits include wage and salary administration; incentive pay; insurance; vacation and leave administration; retirement plans; profit sharing; and stock plans.

38.

Which of the following is a responsibility that is specifically associated with the HR function of employee relations?

A. conducting attitude surveys

B. analyzing work C. creating HR information systems D. planning and forecasting human resources E. creating a job design The HR function of employee relations involves taking attitude surveys; managing labor relations; developing employee handbooks and company publications; ensuring labor law compliance; and relocation and outplacement services.

39.

Which of the following responsibilities is specifically associated with the HR function of support for strategy?

A. temporary labor recruitment and record keeping B. human resource planning and forecasting

C. wage and salary administration D. development of employee handbooks and company publications E. development of an HR information system Human resource planning and forecasting, talent management, and change management help provide support for an organization's overall strategy.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-02 Identify the responsibilities of human resource departments. 1-62 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Describe Human Resource Planning and the Categories of HRM Activities

40.

In a recent trend, some companies are doing away with their human resource departments altogether because they

they arise. No two human resource departments have precisely the same roles, because there are differences in organization sizes and characteristics of the workforce, the industry, and management's values. In a recent trend, some companies are doing away with their HR departments altogether, preferring to flatten their organizational structure and to encourage department managers and other employees to handle HR issues as they arise.

41.

Which of the following refers to the process of getting detailed information about jobs?

A. job rotation B. supply chain management C. job analysis

D. policy creation E. job orientation Job analysis is the process of getting detailed information about jobs.

42.

Which of the following best describes job design?

A. It is the process of defining the way work will be performed and the tasks that a given job

requires. B. It is the process of generating a pool of potential candidates for a job. C. It is the process of identifying suitable candidates for jobs. D. It is the technique of enabling employees to learn job-related knowledge, skills, and behavior. E. It is the technique of presenting candidates with detailed information about a job. Job design is the process of defining the way work will be performed and the tasks that a given job requires.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design 1-64 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

43.

At Tech Scale Inc., a company that deals in software products, employees often complain about the lack of clarity regarding the tasks they are required to perform. Often there are two employees working on overlapping tasks, while some tasks are not designated to any employee. Though employees are satisfied with the pay and work culture, this aspect of their work environment has led to a lot of conflict in the workplace. From the information provided, this complaint of the employees can be closely linked to which of the following HR functions?

A. compliance with laws B. analysis and design of work

C. compensation and benefits D. maintenance of employee relations E. recruitment and selection Job analysis is the process of getting detailed information about jobs. Job design is the process of defining the way work will be performed and the tasks that a given job requires. These processes help to group tasks in ways that help the organization to operate efficiently and to obtain people with the right qualifications to do the jobs well.

44.

Which of the following is responsible for the shift in the job trend, from the use of narrowly defined jobs to the use of broadly defined jobs in organizations?

A. emphasis on innovation and quality

B. increased demand for low skilled workers C. increased focus on simplifying jobs D. lack of competition E. reduced use of team-based projects With many simple jobs, a company can easily find workers who can quickly be trained to perform the jobs at relatively low pay. However, greater concern for innovation and quality has shifted the trend to use of more broadly defined jobs.

45.

Identify the process through which an organization seeks applicants for potential employment.

A. orientation B. training C. recruitment

D. work analysis E. job design Recruitment is the process through which an organization seeks applicants for potential employment. Organizations may use internal or external sources for their recruitment process.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 1 Easy 1-66 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Steps in the Recruitment and Selection Process

46.

The process by which an organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals is referred to as

A. orientation. B. selection.

C. compensation. D. work analysis. E. performance management. Selection refers to the process by which an organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. An organization makes selection decisions in order to add employees to its workforce, as well as to transfer existing employees to new positions.

47.

Edgar works at Alpha Inc. He is responsible for identifying individuals with skills required for the various roles in the organization. Which of the following human resource management practices is being performed by Edgar?

A. performance management B. employee relations C. selection

D. training E. compensation In this scenario, Edgar is involved in selecting potential employees for his organization. Selection refers to the process by which an organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. An organization makes selection decisions in order to add employees to its workforce, as well as to transfer existing employees to new positions.

48.

Which of the following describes a planned effort to enable employees to learn job-related knowledge, skills, and behavior?

A. selection B. performance appraisal C. training

D. compensation E. recruitment Training is a planned effort to enable employees to learn job-related knowledge, skills, and behavior. For example, many organizations offer safety training to teach employees safe work habits.

49.

Which HR function involves offering programs through which employees acquire knowledge, skills, and behavior that improve their ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs?

A. recruitment B. personnel policy C. development

D. employee relations E. selection Most organizations provide ways for their employees to broaden or deepen their knowledge, skills, and abilities through training and development. Development involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs. Development programs often focus on preparing employees for management responsibility.

50.

If a company, as part of its job redesign program, plans to set up teams to manufacture products, which of the following programs might it offer to help employees learn the ins and outs of effective teamwork?

A. development programs

B. recruitment programs C. orientation programs D. selection programs E. performance management programs Development involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs. Development programs often focus on preparing employees for management responsibility. Likewise, if a company plans to set up teams to manufacture products, it might offer a development program to help employees learn the ins and outs of effective teamwork.

51.

In the context of HRM functions, the activities of training and development include

A. making decisions whether an organization will emphasize enabling employees to perform

their current jobs, preparing them for future jobs, or both. B. keeping track of how well employees are performing relative to objectives such as job descriptions and goals for a particular position. C. attempting to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. D. preparing and distributing employee handbooks that detail company policies and, in large organizations, company publications such as a monthly newsletter or a website on the organization's intranet. E. establishing policies related to hiring, discipline, promotions, and benefits. Decisions related to training and development include whether an organization will emphasize enabling employees to perform their current jobs, preparing them for future jobs, or both. The organization may offer programs to a few employees in whom the organization wants to invest, or it may have a philosophy of investing in the training of all its workers. Some organizations, especially large ones, may have extensive formal training programs, including classroom sessions and training programs online.

52.

Which of the following is defined as the process of ensuring employees' activities and outputs match an organization's goals?

A. job analysis B. supply chain management C. employee development D. performance management

E. career planning The process of ensuring that employees' activities and outputs match an organization's goals is called performance management. The activities of performance management include specifying the tasks and outcomes of a job that contribute to the organization's success. Then various measures are used to compare the employee's performance over some time period with the desired performance.

53.

The employees at Circa Financial often complain that they are not provided feedback about their work. They feel that they do not get proper information as to how they have performed and the areas in which they need to improve. They also claim that the performance goals are vague and not measurable. Which of the following HR functions does Circa Financial need to specifically improve upon to resolve the complaints put forth by its employees?

A. recruitment B. employee selection C. training and development D. performance management

E. planning and administering pay and benefits Circa Financial needs to specifically improve upon the performance management function of HR to resolve the employees' complaints. The process of ensuring that employees' activities and outputs match an organization's goals is called performance management. The activities of performance management include specifying the tasks and outcomes of a job that contribute to the organization's success. Then various measures are used to compare the employee's performance over some time period with the desired performance.

54.

Julie works at Matrix Inc. Her primary role in the company is to create self-rating, job-related questionnaires for the employees. Which of the following human resource management practices is being performed by Julie?

A. performance management

B. employee relations C. selection D. training E. compensation In this scenario, Julie is involved in performance management. The process of ensuring that employees' activities and outputs match an organization's goals is called performance management. The activities of performance management include specifying the tasks and outcomes of a job that contribute to the organization's success. The human resource department may be responsible for developing or obtaining questionnaires and other devices for measuring performance.

55.

In the context of HRM functions, the activities of performance management include

D. acquiring knowledge and skills that improve employees' ability to meet the challenges of a variety of new or existing jobs. E. seeking applicants for potential employment. The activities of performance management include specifying the tasks and outcomes of a job that contribute to the organization's success. Then various measures are used to compare the employee's performance over some time period with the desired performance.

56.

Jonathan is a part of the HR department in an advertising firm that has recently brought in employees specializing in analysis of large volumes of data about consumer behavior. The manager to whom these analysts report does not share their knowledge of quantitative methods, but wants them to develop recommendations for better decision making. Jonathan is supporting the department by developing a form the manager will follow in measuring the analysts' performance. What kinds of performance measures should Jonathan focus on?

A. The form should measure outcomes, such as timely and useful recommendations,

because the manager will not be able to evaluate specific technical behaviors. B. The form should measure specific technical behaviors, because the methods used by the analysts will determine the usefulness of their recommendations. C. The form should measure both outcomes and behaviors, because both are essential to success in the job. D. The form should measure personal traits, such as getting along with others, because Jonathan and the manager don't understand the technical requirements. E. The form should ask broad questions, so the manager can discuss whatever they think is important. Performance measures may emphasize observable behaviors (for example, answering the phone by the second ring), outcomes (number of customer complaints and compliments), or both. When the person evaluating performance is not familiar with the details of the job, outcomes tend to be easier to evaluate than specific behaviors. Jonathan should consult with the manager to identify the outcomes that are needed for the department's success.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 3 Hard Topic: Characteristics of Effective Performance Appraisals

57.

In an attempt to motivate its current employees and to attract skilled professionals, Labyrinth Inc. decides to increase salaries as well as year-end bonuses for its best performers. Which of the following HR functions is demonstrated in this scenario?

A. performance management B. training and development C. recruitment D. planning and administering pay and benefits

E. maintaining positive employee relations The pay and benefits that employees earn play an important role in motivating them. A company that wants to provide an exceptional level of service or be exceptionally innovative might pay significantly more than competitors in order to attract and keep the best employees.

58.

Which of the following HR functions includes preparing and distributing employee handbooks that detail company policies?

A. recruitment and selection B. maintaining positive employee relations

C. ensuring compliance with labor laws D. performance management E. planning and administering pay and benefits Organizations often depend on human resource professionals to help them maintain positive relations with employees. This function includes preparing and distributing employee handbooks that detail company policies and, in large organizations, company publications such as a monthly newsletter or a website on the organization's intranet.

59.

Nicole, an employee at Neo Corp., develops and distributes newsletters that announce upcoming events in the company. Which of the following human resource management practices is being performed by Nicole?

A. performance management B. employee relations

C. selection D. training E. compensation In this scenario, Nicole's role in the organization is to maintain employee relations. Organizations often depend on human resource professionals to help them maintain positive relations with employees. This function includes preparing and distributing employee handbooks that detail company policies and, in large organizations, company publications such as a monthly newsletter or a website on the organization's intranet.

60.

Some of the employees of RVZ Services are unhappy with their supervisor's comments and remarks. They feel they are being unduly discriminated against by the supervisor, and so they turn to the HR department for help. Addressing such problems is a part of the HR function of

A. recruitment and selection. B. employee relations.

C. training and development of employees. D. performance management. E. planning and administration of pay and benefits. Organizations often depend on human resource professionals to help them maintain positive relations with employees. Employees turn to the HR department for answers to questions about benefits and company policy and for communicating grievances. Members of the department should be prepared to address such problems.

61.

The HR function of maintaining positive employee relations includes

E. planning employee pay and benefits. In organizations where employees belong to a union, employee relations entail additional responsibilities. The organization periodically conducts collective bargaining to negotiate an employment contract with union members. The HR department maintains communication with union representatives to ensure that problems are resolved as they arise.

62.

What is the advantage of establishing and administering policies in organizations?

A. It allows companies to handle situations more fairly and objectively.

B. It allows companies to address issues on a case-by-case basis. C. It eliminates the need for documentation and record keeping. D. It encourages employees to defend themselves by claiming ignorance of disciplinary norms. E. It leaves a lot of room for subjective decision-making. With a policy in place, a company can handle situations more fairly and objectively than if it addressed such incidents on a case-by-case basis.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-02 Identify the responsibilities of human resource departments. 1-82 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: International HRM Policies and Procedures

63.

_____ refers to the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals.

A. Conjoint analysis B. Performance management C. Workforce analytics

D. Career development E. Task analysis Organizations engage in workforce analytics, which is the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals.

64.

Fiona, a manager at Norman Corp., is responsible for workforce analytics in the organization. Her supervisor, Martin, argues it is an unnecessary expense as he believes that collecting employee-related information is just an administrative responsibility. Which of the following statements, if true, would weaken Martin's argument?

A. Fiona established policies regarding violations of company regulations. B. Fiona identified subordinates who showed the potential to become leaders in the company

based on the data. C. Fiona prepared and distributed company publications on the organization's intranet. D. Fiona was able to actively recruit candidates from external sources, such as Internet job postings and college recruiting events. E. Fiona was able to specify the tasks and outcomes of a job that contributed to the organization's success. Employee-related information is not just an administrative responsibility, thanks to computer tools. It also can be the basis for knowledge that gives organizations an edge over their competitors. They may engage in workforce analytics, which is the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals. In this case, as Fiona enforced workforce analytics at Norman Corp., it helped her spot subordinates who could be made leaders in the future with the data.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 2 Medium Topic: Technology's Role in HRM Activities

65.

Albright Corp. uses a set of quantitative tools to assess employee data such as performance, compensation, designations, and benefits. This is done to arrive at decisions based on accurate findings from analyses that can help the firm achieve its goals. Albright is engaging in the practice of _____.

A. training and development B. job design C. employee relations D. talent management E. workforce analytics

Workforce analytics is the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals. In this scenario, Albright Corp. is using workforce analytics as it arrives at decisions based on accurate findings from analyses using quantitative tools that can help the firm achieve its goals.

66.

When a manufacturer experienced a slowdown in sales, it laid off the two employees with the poorest attendance. One of the employees sued the company, saying it should have laid off the most recently hired workers. What defense would the company most likely offer?

A. The layoffs were not discriminatory. B. The company was forced to make the layoffs. C. There are no federal laws that apply to this situation. D. The layoffs were instances of employment at will.

E. The age of the company's workforce has been rising. Because economic or competitive conditions can force companies to close facilities and lay off employees, cases dealing with the illegal discharge of employees have increased. The issue of "employment at will"—that is, the principle that an employer may terminate employment at any time without notice—will be debated.

67.

Costabin Inc., a company in the recycling business, has revamped its management and business criteria. It has also added new objectives that would require recruitment of new and skilled labor. The responsibility of identifying the numbers and the kinds of employees lies with the HR department of the firm. This responsibility of the HR department is known as

A. supply chain management. B. performance management. C. human resource planning.

D. utilization analysis. E. performance planning. This responsibility of Costabin's HR department is known as human resource planning. Human resource planning involves identifying the numbers and types of employees an organization will require in order to meet its objectives. Using these estimates, the human resource department helps the organization forecast its needs for hiring, training, and reassigning employees.

68.

Which of the following is defined as a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers?

A. work flow analysis B. job analysis C. conjoint analysis D. talent management

E. performance management Talent management is a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers. When managers are clear about the kinds of people they will need to achieve an organization's goals, talent management combines recruiting, selection, training, and motivational practices to meet those needs.

69.

Which of the following best describes evidence-based HR?

company's profits or key stakeholders. D. It is the process of ensuring that employees' activities and outputs match an organization's goals. E. It is the organization-wide planned effort to enable employees to learn job-related knowledge, rather than teamwork or communication skills. Evidence-based HR refers to demonstrating that human resource practices have a positive influence on the company's profits or key stakeholders (employees, customers, community, shareholders). This practice helps show that the money invested in HR programs is justified and that HRM is contributing to the company's goals and objectives.

70.

An organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community, is called

A. adjustability. B. absorbability. C. substitutability. D. sustainability.

E. credibility. Sustainability is broadly defined as an organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community. Sustainability seeks profits in ways that communities, customers, and suppliers will support in the long run.

71.

Blandings Corp., an apparel manufacturer, has been profitable for a long time without depleting its resources—raw materials, employees, and the support of the local community. The company also caters to the needs of all its stakeholders. Which of the following characteristics is illustrated in this scenario?

A. sustainability

B. strategic architecture C. compliance with law D. talent management E. workforce analytics Sustainability is broadly defined as an organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community. Success at sustainability comes from meeting the needs of the organization's stakeholders—all the parties who have an interest in the organization's success.

72.

The parties with an interest in a company's success—typically, shareholders, the community, customers, and employees—constitute which members of the company?

A. advisors B. stakeholders

C. management D. personnel E. strategic partners Stakeholders of a company are the parties who have an interest in the company's success; typically, they include shareholders, the community, customers, and employees. Success at sustainability comes from meeting the needs of the organization's stakeholders, all the parties who have an interest in the organization's success.

73.

Joanna, a local farmer, buys her equipment exclusively from the manufacturer Wooster. Inc. Because of this, Joanna is affected by Wooster Inc.'s operations. This indicates that Joanna is a _____.

A. stakeholder

B. business partner C. workforce analyst D. talent manager E. strategic partner Stakeholders are all the parties who have an interest in the company's success (typically, shareholders, the community, customers, and employees). In this case, Joanna is a stakeholder because she purchases her equipment from Wooster Inc. This means she has an interest in the success of the company.

74.

Identify the correct statement regarding sustainable organizations.

D. They are less concerned about employee development and empowerment. E. They are more concerned with the quantum of output than quality standards. Sustainable organizations meet the stakeholders' needs by minimizing their environmental impact, providing high-quality products and services, ensuring workplace safety, offering fair compensation, and delivering an adequate return to investors. In an organization with a sustainable strategy, HR departments focus on employee development and empowerment rather than short-term costs, on long-term planning rather than smooth turnover and outsourcing, and on justice and fairness over short-term profits.

75.

An HR manager can demonstrate competency in communication by excelling at which of the following behaviors?

A. setting a vision for the HR function B. listening effectively

C. supporting inclusiveness D. maintaining confidentiality E. applying knowledge of business principles Communication involves the skills needed to exchange information with others inside and outside the organization. Behavior examples include expressing information clearly, providing constructive feedback, and listening effectively.

76.

A human resource professional of a company exhibits the competency of business acumen when he or she

E. uses HR technology correctly. Business acumen involves understanding how information can be used to support the organization's strategy. Behaviors include gaining and applying knowledge of business principles and how HR functions relate to business success.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 2 Medium Topic: The Role of Human Resource Managers

77.

What clusters of competencies are necessary for success in human resource management?

A. hiring, compensation, event planning, and training B. technical, interpersonal, business, and leadership

C. technical, hiring, motivation, and compensation D. business, development, leadership, and interpersonal E. technical, business, training, and hiring The Society for Human Resource Management has defined sets of knowledge and skills associated with success, grouping these into nine categories it calls HR success competencies. These fall into four clusters of competencies: technical, interpersonal, business, and leadership.

78.

According to the SHRM competency model, which of the following competencies is part of the interpersonal cluster?

A. leadership B. human resource expertise C. business acumen D. critical evaluation E. global and cultural effectiveness

The Society for Human Resource Management has defined sets of knowledge and skills associated with success, grouping these into nine categories it calls HR success competencies. These fall into four clusters of competencies: technical, interpersonal, business, and leadership. The interpersonal cluster includes relationship management, communication, and global and cultural effectiveness.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 2 Medium Topic: The Role of Human Resource Managers

79.

According to your text, it is not enough for HR professionals to know how to perform tasks specific to human resource management. HR professionals also must be able to work effectively with others, contribute to business success, and

A. keep up-to-date on technology laws. B. Instruct others in the use of HR technology. C. lead others ethically.

D. occasionally gather relevant data. E. ensure policies remain unchanged. It is not enough to know how to perform tasks specific to human resource management. HR professionals also must be able to work effectively with others, contribute to business success, and lead others ethically.

80.

Heather is a benefits specialist at McCoy Manufacturing. She negotiates contracts for insurance, retirement plans, and other employee benefits in order to get the best possible deal while meeting all legal requirements. She understands the details of each benefit and is able to help employees understand the value of their benefits. This scenario illustrates Heather's competency in the area of

A. consultation. B. human resource expertise.

C. relationship management. D. ethical practice. E. business acumen. This scenario illustrates Heather's human resource expertise. This competency essentially involves understanding and carrying out the functions of human resource management. These behaviors involve using HR technology, applying policies and procedures, and keeping up-todate on HR laws.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 3 Hard Topic: The Role of Human Resource Managers

81.

Ellie is a human resource manager at Harris Corp. She skillfully handles personal interactions with her staff and the other department managers. She is highly admired by others in the organization because she treats others with respect and builds trust. This scenario indicates Ellie has strengths in the HR success competency of

A. consultation. B. relationship management.

C. leadership and navigation. D. global and cultural effectiveness. E. critical evaluation. In this case, Ellie is displaying competency associated with relationship management. Relationship management involves handling the personal interactions necessary for providing services and supporting the organization's goals.

82.

Acme Manufacturing wants to build a new factory and is comparing locations in three states. How could an HR professional use consultation competencies to support this effort?

E. by gaining knowledge of business principles Consultation refers to the ways HR employees guide others in the organization. They do this through behaviors such as coaching, gathering data to support business decisions, and especially at a senior level, designing solutions in support of business strategy. Gathering data about the labor market would be an example of using consultation competencies.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 2 Medium Topic: Labor Supply and Demand

83.

Reese, the human resource manager at Axis Inc., has developed an inspiring vision of how the HR function should contribute to employees' well-being and the company's success. She models the values and behaviors supporting that vision, and she gets her staff excited to be part of realizing the vision. This indicates that Reese has competencies in the area of

A. global and cultural effectiveness. B. critical evaluation. C. relationship management. D. leadership and navigation.

E. human resource expertise. In this scenario, Reese demonstrates competency in leadership and navigation. This area of competency refers to direction the organization's processes and programs. Depending on one's level in the organization, the necessary behaviors would include behaving consistently with the organization's culture, encouraging people to collaborate, or setting a vision for the HR function or entire organization.

84.

Nikita heads the human resource team at Strait Corp., a marketing firm with a diverse group of employees in three countries. She has knowledge about the cultures of the employees and applies that knowledge to build cooperation and resolve conflicts. She appreciates that all her employees bring different strengths to the company, and she helps to foster a climate in which all are encouraged to contribute. This scenario illustrates Nikita's competency in the area of

A. ethical practice. B. critical evaluation. C. business acumen. D. global and cultural effectiveness.

E. human resource expertise. This scenario illustrates Nikita's competency in global and cultural effectiveness. This competency means valuing and considering various people's perspectives. Behaviors include acquiring knowledge of other cultures, resolving conflicts, and supporting inclusiveness so that all can contribute to their fullest.

85.

Charles heads the human resource department at technology development company Schultz Inc. There, he monitors trends of the labor markets in Schultz's industry. Studying the trends, Charles realizes the company is likely going to need more sources of employees skilled in robotics. He gathers information about the best robotics training programs in the regions where the company operates. Then he applies that information to build connections with selected schools, thereby resolving a recruitment problem before it becomes serious. This scenario illustrates Charles's competency in

A. global and cultural effectiveness. B. communication. C. critical evaluation.

D. leadership and navigation. E. relationship management. This scenario illustrates Charles's competency in critical evaluation. That competency refers to the interpretation of information needed for making business decisions. Behaviors include gathering relevant data, applying statistical knowledge to understand the data, and finding root causes or problems.

86.

Jacob is the human resource manager at Platinum Corp. He clearly understands the company's strategy. He has a solid understanding of business principles, and he applies these to help the HR department contribute to Platinum's success. This scenario indicates that Jacob has competency in the area of

A. business acumen.

B. ethical practice. C. communication. D. leadership and navigation. E. relationship management. In this scenario, Jacob exhibits strength in the area of business acumen. Business acumen involves understanding how information can be used to support the organization's strategy. Behaviors include gaining and applying knowledge of business principles and how HR functions relate to business success.

87.

Which of the following is the correct statement about the HR responsibilities of supervisors?

Supervisors typically have responsibilities related to all the HR functions. Job analysis and design; HR planning; interviewing job candidates and participating in hiring decisions; training employees; conducting performance appraisals and recommending pay increases; and playing a key role in employee relations are some of the ways in which supervisors participate in HR functions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-04 Explain the role of supervisors in human resource management. Level of Difficulty: 2 Medium Topic: Understanding Human Resource Management

88.

Craig, one of the senior managers at Clayton Inc., insists that company supervisors handle employee relations as part of their jobs. Which of the following statements strengthens Craig's argument?

A. The supervisors represent the company on a day-to-day basis.

B. The supervisors have the business experience to take up additional responsibilities. C. The supervisors do not hold any stakes in the organization. D. The supervisors are not a part of the employees' union. E. The supervisors are responsible for any action taken by the employees. In this case, Craig insists that the supervisors of Clayton Inc. handle employee relations because supervisors play a key role in employee relations. They are most often the voice of management for their employees, and represent a company on a day-to-day basis.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 01-04 Explain the role of supervisors in human resource management. Level of Difficulty: 3 Hard Topic: Understanding Human Resource Management

89.

Which of the following is TRUE of ethics in human resource management?

D. most managers have a positive perception of the ethical conduct of U.S. businesses E. most people believe that individuals apply values they hold in their personal lives to their professional activities Ethics refers to fundamental principles of right and wrong. Ethical behavior is behavior that is consistent with those principles. In the context of ethical human resource management, HR managers must view employees as having basic rights. Business decisions, including HRM decisions, should be ethical, but the evidence suggests that is not always what happens. As a result, recent surveys indicate that the general public and managers do not have positive perceptions of the ethical conduct of U.S. businesses.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 2 Medium Topic: The Role of Ethics in Human Resource Management

90.

Which of the following views on employment reflects the ethical principles embodied in the U.S. Constitution and Bill of Rights?

A. HR managers must view employees as having basic rights.

B. HR managers have the right to lifetime employment. C. HR managers have the right to hire whoever they deem best suited for a job. D. HR managers must view employees as a necessary expense. E. HR managers must set aside quotas for minorities. In the context of ethical human resource management, HR managers must view employees as having basic rights. Such a view reflects ethical principles embodied in the U.S. Constitution and Bill of Rights.

91.

According to the philosopher Immanuel Kant, the right of employees to know the nature of the job they are being hired to do and the obligation of a company not to deceive them in this respect is mainly reflective of the basic right of

A. privacy. B. free consent.

C. freedom of speech. D. freedom of conscience. E. first refusal. The right of free consent states that people have the right to be treated only as they knowingly and willingly consent to be treated. An example that applies to employees would be that employees should know the nature of the job they are being hired to do; the employer should not deceive them.

92.

Jarvis, a manager at Carmile Inc., is rigid with his employees and does not allow them to voice their opinions or criticisms about their superiors. On the other hand, Michelle, another manager at the same firm, encourages her subordinates to communicate with her openly. Which of the following statements uses basic rights to argue in favor of Michelle's practice over that of Jarvis's?

A. It enables Michelle to keep a tab on the grapevine communication in the company. B. It engages the employees in expressing constructive criticisms and opinions.

C. It reduces the possibility of any whistle blowers in the company. D. It enhances the chances of more employees being promoted. E. It curbs the privacy and confidential requirements of an employee. The right of freedom of speech states that people have the right to criticize an organization's ethics if they do so in good conscience and their criticism does not violate the rights of individuals in the organization. Many organizations address this right by offering hot lines or policies and procedures designed to handle complaints from employees.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

93.

Which of the following scenarios demonstrates a violation of the right of freedom of conscience in a workplace environment?

D. An employee complains about his supervisor during a conference call with a client. E. A supervisor does not provide a fair hearing when an employee complains about a colleague. The scenario given above exemplifies the violation of the right of freedom of conscience in the workplace environment. According to the right of freedom of conscience, people have the right to refuse to do what violates their moral beliefs, as long as these beliefs reflect commonly accepted norms. A supervisor who demands that an employee do something that is unsafe or environmentally damaging may be violating this right if the task conflicts with the employee's values.

94.

Which of Kant's basic human rights is violated when a supervisor requires an employee to do something that is unsafe or environmentally damaging, in spite of the employee clearly objecting to the order?

A. right of freedom of speech B. right of equal opportunity employment C. right to due process D. right of freedom of conscience

E. right of privacy Right of freedom of conscience implies that people have the right to refuse to do what violates their moral beliefs, as long as these beliefs reflect commonly accepted norms.

95.

According to your text, the right of privacy is the right to

A. know the nature of the job a person is being hired for. B. autonomy in how a person carries out their work. C. control what a person reveals about their private life.

D. a fair and impartial hearing. E. fight against a wrongful discharge. The right of privacy holds that people have the right to do as they wish in their private lives, and they have the right to control what they reveal about private activities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 1 Easy 1-113 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: The Role of Ethics in Human Resource Management

96.

By keeping employees' personal records confidential, an employer respects their right of

A. autonomy. B. freedom of conscience. C. equal opportunity. D. freedom of speech. E. privacy.

The right of privacy holds that people have the right to do as they wish in their private lives, and they have the right to control what they reveal about private activities.

97.

Patrick, an employee at Jones Inc., was unhappy with the firm's existing project management system. Hence, he communicated this to the top management by expressing his complaints in an e-mail. According to the work of philosopher Immanuel Kant, Patrick applied his right of

A. freedom of conscience. B. first refusal. C. freedom of speech.

D. privacy. E. free consent. In this case, Patrick applied his right of freedom of speech. According to the work of philosopher Immanuel Kant, every person has certain basic rights. One of them is right of freedom of speech. According to this right, people have the right to criticize an organization's ethics if they do so in good conscience and their criticism does not violate the rights of individuals in the organization.

98.

Kurt, a manager at Marshall Inc., was asked by his supervisor to sign a contract with a new supplier. The contract stated that the industrial waste released by the company would be released into a local river. Kurt was against this idea of polluting the river with the waste, so he refused to sign the contract. In this scenario, Kurt exercised his right of

A. freedom of conscience.

B. first refusal. C. freedom of speech. D. privacy. E. free consent. According to the work of philosopher Immanuel Kant, every person has certain basic rights. One of them is the right of freedom of conscience. According to this right, people have the right to refuse to do what violates their moral beliefs, as long as these beliefs reflect commonly accepted norms. A supervisor who demands that an employee do something that is unsafe or environmentally damaging may be violating this right if the task conflicts with the employee's values.

99.

If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic human right to

A. lifetime employment. B. privacy. C. due process.

D. free consent. E. freedom of conscience. Right to due process implies that if people believe their rights are being violated, they have the right to a fair and impartial hearing.

100.

Which of the following describes companies that are ethical and successful?

day work. Ethical, successful companies act according to four principles. First, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of the company. Third, such companies have a sense of purpose or vision that employees value and use in their dayto-day work. Finally, they emphasize fairness; that is, another person's interests count as much as their own.

101.

Which of the following is a standard that human resource managers must satisfy for HRM practices to be ethical?

A. Managers must treat employees as family. B. Human resource practices must result in the greatest good for the largest number of

people. C. Employment practices must respect employees' right of lifetime employment. D. Managers must always maintain that customers are right. E. Employment practices must limit the application of the principle of employment-at-will as it is unfair to employees. For human resource practices to be considered ethical, they must satisfy three basic standards. First, HRM practices must result in the greatest good for the largest number of people. Second, employment practices must respect basic human rights of privacy, due process, consent, and free speech. Third, managers must treat employees and customers equitably and fairly.

102.

Which of the following is one of the four principles that guides how ethical companies act?

A. short change customers and vendors B. perform only in ways that benefit the company C. have a sense of purpose or vision that employees value and use

D. only permit top management to take responsibility for the company E. emphasize fairness only if it suits the company Ethical, successful companies act according to four principles. First, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of the company. Third, such companies have a sense of purpose or vision that employees value and use in their dayto-day work. Finally, they emphasize fairness; that is, another person's interests count as much as their own.

103.

When Ulysses Corp., a travel insurance company, decided to introduce new goals for its internal management, there was a rift regarding what should be implemented. Group A emphasized short-term goals that would benefit the company, while Group B believed in introducing policies that would create more mutually-beneficial relationships with client businesses, such as major airlines. Which of the following results would prove Group B's decision to be ideal?

E. a steady decline of unhappy employees at Ulysses Corp. due to new healthcare benefits Ethical, successful companies act according to four principles. First, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of the company. Third, such companies have a sense of purpose or vision that employees value and use in their dayto-day work. Finally, they emphasize fairness; that is, another person's interests count as much as their own.

104.

Which of the following statements is true about the HR profession?

HR generalists usually perform the full range of HRM activities, including recruiting, training, compensation, and employee relations. The vast majority of HRM professionals have a college degree, and many also have completed postgraduate work. The typical field of study for HR professionals is business.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 01-06 Describe typical careers in human resource management. Level of Difficulty: 2 Medium Topic: Understanding Human Resource Management

105.

Which of the following is the primary professional organization for HRM that provides education and information services, and is also the world's largest human resource management association?

A. the Collective for Strategic Human Resource Management B. the Foundation for the Recognition of Professionals International C. the Society for Human Resource Management

D. the Human Resource Certification Institute E. the Association for Human Resource Professionals The primary professional organization for HRM is the Society for Human Resource Management (SHRM). SHRM is the world's largest human resource management association, with more than 250,000 professional and student members throughout the world. It provides education and information services, conferences and seminars, government and media representation, and online services and publications.

Essay Questions

106.

List the qualities associated with human resources that help an organization gain a sustainable competitive advantage.

Human resources have the following four necessary qualities that help an organization gain a sustainable competitive advantage: 1) Human resources are valuable. High-quality employees provide a needed service as they perform many critical functions. 2) Human resources are rare. A person with high levels of the needed skills and knowledge is not common. 3) Human resources cannot be imitated. To imitate human resources at a high-performing competitor, one would have to first figure out which employees are providing the advantage and how. Then people would need to be recruited who can do precisely the same thing. Finally, systems would have to be set up to enable those people to imitate the competitor. 4) Human resources have no good substitutes. When people are well trained and highly motivated, they learn, develop their abilities, and care about customers. It is difficult for another resource to match committed and talented employees.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 01-01 Define human resource management, and explain how HRM contributes to an organization's performance. Level of Difficulty: 3 Hard Topic: How HRM Helps to Build a Sustainable Competitive Advantage?

107.

List five of the HRM functions, briefly describing the specific activities associated with each.

Some of the important HR responsibilities include: 1) Analysis and design of work: Work analysis, job design, and job descriptions. 2) Recruitment and selection: Recruiting, job postings, interviewing, testing, and coordinating use of temporary labor. 3) Training and development: Orientation, skills training, and career development programs. 4) Performance management: Performance measures; preparation and administration of performance appraisals; and discipline. 5) Compensation and benefits: Wage and salary administration, incentive pay, insurance, vacation leave administration, retirement plans, profit sharing, and stock plans. 6) Employee relations: Attitude surveys, labor relations, employee handbooks, company publications, labor law compliance, and relocation and outplacement services. 7) Personnel policies: Policy creation and policy communication. 8) Employee data and information systems: Record keeping, HR information systems, and workforce analytics. 9) Compliance with laws: Policies to ensure lawful behavior, reporting, posting information, safety inspections, and accessibility accommodations. 10) Support for strategy: Human resource planning and forecasting, talent management, and change management.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 1 Easy Topic: Understanding Human Resource Management

108.

Differentiate between training and development of employees.

Training is a planned effort to enable employees to learn job-related knowledge, skills, and behavior. For example, many organizations offer safety training to teach employees safe work habits. Development involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs. Development programs often focus on preparing employees for management responsibility. Likewise, if a company plans to set up teams to manufacture products, it might offer a development program to help employees learn the ins and outs of effective teamwork.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 2 Medium Topic: Employee Training

109.

Discuss the responsibility of HR with regard to planning and administering pay and benefits. Also, analyze the impact of this function on an organization.

The pay and benefits that employees earn play an important role in motivating them. This is especially true when rewards such as bonuses are linked to an individual's or group's achievements. Decisions about pay and benefits can also support other aspects of an organization's strategy. For example, the decision regarding whether to pay employees above market rates or to pursue a low-cost strategy may affect the type of potential employees attracted to the company. Planning pay and benefits involves many decisions, often complex and based on knowledge of a multitude of legal requirements. An important decision is how much to offer in salary or wages, as opposed to bonuses, commissions, and other performance-related pay. Other decisions involve which benefits to offer, from retirement plans to various kinds of insurance to time off with pay. All such decisions have implications for the organization's bottom line, as well as for employee motivation. Administering pay and benefits is another big responsibility. Organizations need systems for keeping track of each employee's earnings and benefits. Employees need information about their health plan, retirement plan, and other benefits. Keeping track of this involves extensive record keeping and reporting to management, employees, the government, and others.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 2 Medium Topic: Pay-for-Performance Systems

110.

Explain human resource planning and evidence-based HR. How do these concepts help HR in supporting an organization's strategy?

Human resource planning involves identifying the numbers and types of employees an organization will require in order to meet its objectives. Using these estimates, the human resource department helps the organization forecast its needs for hiring, training, and reassigning employees. Planning also may show that the organization will need fewer employees to meet anticipated needs. In that situation, human resource planning includes how to handle or avoid layoffs. Human resource planning provides important information for talent management—a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers. When managers are clear about the kinds of people they will need to achieve the organization's goals, talent management combines recruiting, selection, training, and motivational practices to meet those needs. Approaching these tasks in terms of talent management is one way HR managers are making the link to organizational strategy. Evidence-based HR refers to demonstrating that human resource practices have a positive influence on the company's profits or key stakeholders (employees, customers, community, shareholders). This practice helps show that the money invested in HR programs, such as talent management, is justified and that HRM is contributing to the company's goals and objectives.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 3 Hard Topic: Describe Human Resource Planning and the Categories of HRM Activities

111.

In an organization with a sustainable strategy, human resource departments focus on employee development and empowerment rather than short-term costs. Define the typical stakeholders in an organization. Then explain how sustainability positively affects both a company and its stakeholders.

Stakeholders are all the parties who have an interest in the organization's success. Typically an organization's stakeholders include shareholders, the community, customers, and employees. Sustainability is broadly defined as an organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community. Sustainable organizations meet their needs by minimizing their environmental impact, providing high-quality products and services, ensuring workplace safety, offering fair compensation, and delivering an adequate return to investors. Sustainability delivers a strategic advantage when it boosts the organization's image with customers, opens access to new markets, and helps attract and retain talented employees. In an organization with a sustainable strategy, HR departments focus on employee development and empowerment rather than short-term costs, on long-term planning rather than smooth turnover and outsourcing, and on justice and fairness over short-term profits.

AACSB: Reflective Thinking Blooms: Analyze Learning Objective: 01-02 Identify the responsibilities of human resource departments. Level of Difficulty: 3 Hard Topic: Understanding Human Resource Management

112.

Briefly describe the nine categories of HRM competencies that the Society for Human Resource Management found to be associated with success. Provide an example of a behavior for each.

(1) Human resource expertise essentially involves understanding and carrying out the functions of human resource management. Behaviors can include the use of HR technology, applying policies and procedures, and keeping up-to-date on HR laws. (2) Relationship management involves handling the personal interactions necessary for providing services and supporting the organization's goals. Behaviors can include treating employees respectfully, building trust, and providing great customer service to those served by HR functions. (3) Consultation refers to the ways HR employees guide others in the organization. This can be done through behaviors such as coaching, gathering data to support business decisions, and especially at a senior level, designing solutions in support of business strategy. (4) Leadership and navigation refer to directing the organization's processes and programs. Depending on one's level in the organization, the necessary behaviors could include behaving consistently with the organization's culture, encouraging people to collaborate, or setting a vision for the HR function or entire organization. (5) Communication involves the skills needed to exchange information with others inside and outside the organization. Behavior examples can include expressing information clearly, providing constructive feedback, and listening effectively. (6) Global and cultural effectiveness means valuing and considering various people's perspectives. Behaviors can include acquiring knowledge of other cultures, resolving conflicts, and supporting inclusiveness so that all can contribute to their fullest. (7) Ethical practice involves applying integrity, accountability, and other core values. Behavior examples can include maintaining confidentiality, rewarding ethical behavior, and responding to reports of unethical conduct. (8) Critical evaluation refers to the interpretation of information needed for making business decisions. Behaviors can include gathering relevant data, applying statistical knowledge to understand the data, and finding root causes of problems. (9) Business acumen involves understanding how information can be used to support the organization's strategy. Behaviors can include gaining and applying knowledge of business principles and how HR functions relate to business success.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 01-03 Summarize the types of skills needed for human resource management. Level of Difficulty: 3 Hard Topic: The Role of Human Resource Managers

113.

Explain why supervisors and non-HR managers are expected to be familiar with the basics of HRM. List five examples of the types of HR responsibilities supervisors are expected to perform.

Although many organizations have human resource departments, HR activities are by no means limited to HR specialists. Non-HR managers need to be familiar with the basics of HRM and their role with regard to managing human resources. In small organizations, there may be an HR specialist, but many HR activities are carried out by line supervisors. Supervisors typically have responsibilities related to all the HR functions. Organizations depend on supervisors to help them determine what kinds of work need to be done (job analysis and design) and in what quantities (HR planning). Supervisors typically interview job candidates and participate in the decisions about which candidates to hire. Many organizations expect supervisors to train employees in some or all aspects of the employees' jobs. Supervisors conduct performance appraisals and may recommend pay increases. Also, supervisors play a key role in employee relations because they are most often the voice of management for their employees, representing the company on a day-to-day basis. In all these activities, supervisors can participate in HRM by taking into consideration the ways that decisions and policies will affect their employees. Understanding the principles of communication, motivation, and other elements of human behavior can help supervisors inspire the best from the organization's human resources.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 01-04 Explain the role of supervisors in human resource management. Level of Difficulty: 3 Hard Topic: Understanding Human Resource Management

114.

List and provide an example of the basic human rights suggested by the work of Immanuel Kant.

1) Right of free consent: People have the right to be treated only as they knowingly and willingly consent to be treated. An example that applies to employees would be that employees should know the nature of the job they are being hired to do; the employer should not deceive them. 2) Right of privacy: People have the right to do as they want in their private lives, and they have the right to control what they reveal about their private activities. One way an employer respects this right is by keeping employees' personal records confidential. 3) Right of freedom of conscience: People have the right to refuse to do what violates their moral beliefs, as long as these beliefs reflect commonly accepted norms. A supervisor who demands that an employee do something that is unsafe or environmentally damaging may be violating this right if the task conflicts with the employee's values. (Such behavior could be illegal as well as unethical.) 4) Right of freedom of speech: People have the right to criticize an organization's ethics, if they do so in good conscience and their criticism does not violate the rights of individuals in the organization. Many organizations address this right by offering hot lines or policies and procedures designed to handle complaints from employees. 5) Right to due process: If people believe their rights are being violated, they have the right to a fair and impartial hearing. Congress has addressed this right in some circumstances by establishing agencies to hear complaints when employees believe their employer has not provided a fair hearing. For example, the Equal Employment Opportunity Commission may prosecute complaints of discrimination if it believes the employer did not fairly handle the problem.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

115.

List the four principles followed by ethical, successful companies.

Ethical, successful companies act according to four principles. First, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of their company. Third, such companies have a sense of purpose or vision that employees value and use in their dayto-day work. Finally, they emphasize fairness; that is, another person's interests count as much as their own.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 01-05 Discuss ethical issues in human resource management. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

116.

How would you describe a career in human resource management? Cite the type of positions available, degree requirements, the nature of the work, and salary levels.

There are many different types of jobs in the HRM profession. Some HRM positions are director of human resources, human resource information system supervisor, HR generalist, campus recruiter, human resource assistant, and HR service center representative. The salaries vary depending on education and experience, as well as the type of industry in which a person works. Some positions involve work in specialized areas of HRM such as recruiting, training, or labor and industrial relations. Usually, HR generalists earn between $50,000 and $80,000, depending on their experience and education level. Generalists usually perform the full range of HRM activities, including recruiting, training, compensation, and employee relations. The vast majority of HRM professionals have a college degree, and many also have completed postgraduate work. The typical field of study is business (especially human resources or industrial relations), but some HRM professionals have degrees in the social sciences (economics or psychology), the humanities, and law programs. Those who have completed graduate work have master's degrees in HR management, business management, or a similar field. A well-rounded educational background will serve a person well in an HRM position. Some HRM professionals have a professional certification in HRM, but many more are members of professional associations such as the Society for Human Resource Management.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 01-06 Describe typical careers in human resource management. Level of Difficulty: 2 Medium Topic: Career Categories

Chapter 02 Trends in Human Resource Management

True / False Questions

1. An individual who is actively seeking employment is a part of an organization's external labor market. True

False

2. The members of Generation X are characterized by their comfort with the latest technology, and the need to be noticed, respected, and involved. True

False

3. Individuals who arrive in the United States without meeting the legal requirements for immigration or asylum are referred to as undocumented immigrants. True

False

4. Most organizations are looking for educational achievements to find employees who can handle a variety of responsibilities, interact with customers, and think creatively. True

False

5. A large gap exists between the social system and the technical system in high-performance work systems. True

False

6. Knowledge workers in an organization do not work directly with customers. True

False

7. Skilled knowledge workers generally do not have job opportunities in a slow economy. True

False

8. Successful organizations treat all their workers as knowledge workers. True

False

9. The use of employee empowerment has shifted the recruiting focus away from general cognitive and interpersonal skills toward technical skills. True

False

10. Teamwork gives employees the authority and ability to decide on how to do their work. True

False

11. Virtual teams rely on communications technology such as videoconferences, e-mail, and cell phones to keep in touch and coordinate activities. True

False

12. Traditional management thinking treated human resource management primarily as a means to support a company's strategy. True

False

13. When two companies merge, HRM plays an important role that includes preparing employees to resolve conflicts. True

False

14. Laurie Corp., a major watch manufacturer, purchases Smith Inc., a smaller company that makes watch bands. Following this purchase, the watch band operations are performed by the Smith Division of Laurie Corp. This scenario is an example of an acquisition. True

False

15. When two firms in one industry join together to hold a greater share of the industry, it represents a consolidation. True

False

16. Total quality management is intended to bring about a continuous process of quality improvement. True

False

17. Total quality management proposes that every employee in the organization receive training in quality. True

False

18. Early-retirement programs are one of the most effective approaches to downsizing. True

False

19. An organization undergoes reengineering by reviewing the critical features of its product designs. True

False

20. A New York City-based company shifts its warehouses and operations to a low-rent area that is 50 miles away. This is an example of offshoring. True

False

21. Rajeev, an Indian citizen, works for an automobile company in India. Currently, he is in the United States to work on a project at the company's office in Salt Lake City, Utah. In this scenario, Rajeev is regarded as an expatriate. True

False

22. The processing and transmission of digitized human resource information is called electronic human resource management. True

False

23. Under the new type of psychological contract, organizations expect employees to contribute time, effort, skills, abilities, and loyalty in return for job security and opportunities for promotion within the organization. True

False

24. Employees' job security has increased as a result of the new psychological contract. True

False

25. In the context of alternative work arrangements, contract company workers are employed directly by a company. True

False

26. Best Appliances wants to improve the quality of and lower the costs in its service department. A strategy being considered involves directing technicians on exactly how to complete service calls, which should improve customer service in addition to lowering labor costs. In addition, the technicians will work under a contract so the company doesn't have to pay the employer's share of Social Security for those workers. Is this a possible strategy for Best Appliances to employ? True

False

Multiple Choice Questions

27. The external labor market consists of

A. contract workers in the organization. B. current employees of the organization. C. individuals who are actively seeking employment. D. employees who have direct contact with customers. E. employees of the immediate competitors of the organization. 28. Which of the following scenarios exemplifies an individual in the external labor market?

A. Katie, a contract worker, working for a certain period specified in a written contract. B. Andrew, a temporary worker, being paid by a company for his services. C. Jill, an engineering graduate, looking for a job. D. Hilary, an employee, going through training. E. Salim, an employee, securing his financial services certification. 29. Name the agency that is responsible for tracking changes in the composition of the U.S. labor force and forecasting employment trends.

A. the National Statistics Association B. the Occupational Outlook Bureau C. the U.S. Census Bureau D. the Bureau of Economic Analysis E. the Bureau of Labor Statistics

30. Mega Homes wants to expand rapidly by building homes in major markets throughout the United States. Which of the following forecasts by the Bureau of Labor Statistics presents the most significant challenge to rapid expansion?

A. whites continuing be the largest racial group B. more women participating in the paid labor force C. Asian-Americans being the fastest-growing racial group D. greater racial and ethnic diversity E. a slowing growth rate for the U.S. civilian labor force 31. Identify the correct statement regarding the composition of the U.S. labor force during the projected 2014-2024 period.

A. The labor force is expected to grow at a greater rate than at any other time in U.S. history. B. The largest proportion of the labor force is expected to be in the 16- to 25-year age group. C. The segment of the workforce nearing retirement age will hold steady. D. Despite a small increase in the number of young workers, the overall workforce will be aging. E. The total workforce of the United States will considerably decrease. 32. Anne, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future. Her colleague Nick argues that organizations will not have to increase their spending on employee health care benefits. Which of the following statements weakens Nick's argument?

A. The labor force is expected to grow at a greater rate by 2024 than at any other time in U.S. history. B. The largest proportion of the labor force is expected to be in the 16- to 25-year age group. C. The fastest-growing age group is workers 16-25, who are prone to having accidents. D. The fastest-growing share of the workforce is at least 55 years old. E. The total cost of labor in the United States will decrease considerably in the near future.

33. Which of the following racial groups will form the majority of the U.S. labor force according to the 2014-2024 Employment Projections from the Bureau of Labor Statistics?

A. African Americans B. Whites C. Hispanics D. Asians E. Native Americans 34. In high-tech industries, such as computer software development, employers press the federal government for immigration laws that allow for a greater supply of foreign-born workers. What is the main reason these companies cite for that effort?

A. There is a lack of adequate technology in the United States. B. Undocumented immigrants work harder than U.S. citizens. C. Qualified technical workers are scarce in the United States. D. U.S workers do not want this physically demanding work. E. The size of the U.S. workforce is declining. 35. Managing cultural diversity involves

A. forming different pay structures for various groups. B. creating separate career tracks for employees with families. C. avoiding the use of affirmative action policies. D. reducing cultural diversity by selective hiring. E. encouraging career development for women and minorities.

36. Given the increasing use of computers to do routine tasks, which of the following skills is most likely to be actively sought by U.S. employers today?

A. physical strength B. mastery of a particular piece of machinery C. interpersonal skills D. ability to perform routine tasks E. ability to work with a tool 37. According to the National Association of Manufacturers, manufacturing companies have difficulty finding enough people who can operate their computer-controlled machinery. Which of the following actions is the most reasonable response to that difficulty?

A. Hiring unqualified employees and hoping they will catch on eventually. B. Relying more on employees' physical strength than technical skills. C. Hiring high school students before they learn that manufacturing is not a desirable career. D. Paying tuition for employees to attend four-year colleges and universities. E. Working with community colleges to set up apprenticeship and training programs. 38. Which of the following refers to organizations that have the best possible fit between their social system and their technical system?

A. Workforce analysis systems B. Holistic management systems C. Supply chain systems D. High-performance work systems E. Total quality management systems

39. Moore Corp., a financial services company, specializes in customers' preferences and costefficient processes. They also encourage self-managing teams that make all decisions regarding business development and the sale of services to their customers. The firm ensures that there is a good fit between its work system and its people. This scenario implies that Moore has a

A. workforce analysis system. B. high-performance work system. C. supply chain system. D. total quality management system. E. holistic management system. 40. How has the requirement for creating high-performance work systems changed?

A. There is a drive toward low-cost strategy in the labor market. B. Employees prefer implementation of a 40-hour workweek. C. Competitors are looking for ways to standardize prices in their respective industries. D. Employers are looking for ways to tap people's creativity and interpersonal skills. E. Customers are demanding standardized products over customized products. 41. Which of the following is a characteristic of current-day high-performance work systems?

A. mismatches in technical system and social system B. employee empowerment in decision making C. increase in individual assignments D. centralized decision making E. reduced reliance on knowledge workers

42. The growth in e-commerce and the information economy has led to an increase in the demand for employees in

A. technical jobs. B. mining and resource extraction. C. agriculture. D. service occupations. E. manufacturing. 43. Which of the following is a correct statement regarding skilled knowledge workers?

A. They do not have considerable autonomy to make decisions. B. They are most likely to experience a lack of opportunities in a slow economy. C. They are not easily replaced because they own the knowledge that the company requires to produce its products. D. They are not expected to be technically efficient and are only involved in direct interactions with customers. E. They do not have a lot of job opportunities because employers can simply order these employees to perform tasks. 44. Oliver works at Tate Corp., an environmentally-conscious apparel manufacturing company. He primarily focuses on the tastes and needs of the firm's customers. He achieves this by managing a team that regularly interacts with customers through various promotional activities and events. He also provides insights on how to produce eco-friendly outfits through his specialized knowledge of cost-efficient manufacturing processes. This implies that Oliver

A. is an HR professional. B. encourages centralized decision making. C. is a knowledge worker. D. encourages a narrow business focus. E. belongs to the external labor market.

45. Rhea is an employee at Diaz Inc. She specializes in interacting with customers and understanding their preferences in order to design user interface products that meet their needs. Which of the following statements is true about Rhea?

A. She specializes in outsourcing. B. She is a part of the external labor market. C. She bases her work on the terms of a psychological contract. D. She is an on-call worker. E. She is a knowledge worker. 46. Which of the following statements is TRUE of employee empowerment?

A. Proper training must be provided only to supervisors so that they can exert their wider authority. B. Managers should ensure that employees are not linked to resources outside the organization, such as customers. C. Employee empowerment shifts the recruiting focus away from cognitive and interpersonal skills toward general technical skills. D. Employee empowerment prevents holding employees accountable for the products and services they developed. E. Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

47. Dave is the project manager at Arc Inc. He encourages his team members to have brainstorming sessions before initiating a project to determine the best method to deliver positive results. He provides his team members with complete authority to execute all production tasks independently. This scenario indicates that Dave promotes

A. centralized decision making. B. risk aversion. C. downsizing. D. outsourcing. E. employee empowerment. 48. Zino Inc., a marketing firm, has employees who work in different cities in different time zones around the country. They coordinate their work efficiently with the help of technology, such as videoconferencing, mobile phones, and e-mail, for the production of marketing activities. Which of the following statements is true of Zino?

A. It has a vertical organizational structure. B. It does not hold employees accountable for products and services. C. It encourages virtual teams. D. It encourages centralized decision-making. E. It has self-employed individuals with multiple clients.

49. Bright Sky Health Care Systems set up a program that encourages employees to share their ideas for patient satisfaction and cost savings. After a year of collecting these ideas, the HR department conducted an employee survey and learned that its employees did not feel very empowered. What else should Bright Sky do to improve the sense of empowerment?

A. Hold employees accountable for their results. B. Train employees to use information resources. C. Show that management is listening to the ideas and implementing the valuable ones. D. Train managers to link employees to resources within and outside the organization. E. Encourage employees to interact with staff throughout the organization. 50. Which of the following is necessary for the success of employee empowerment?

A. The jobs must be designed in such a manner that the managers have complete control over business processes. B. Employees must be properly trained to exert their wider authority and use information resources such as the Internet. C. Pay and other rewards should reflect employees' loyalty to the organization and not their authority. D. Employers should provide feedback only when employees resign and are about to leave the organization. E. Employers should create jobs that minimize the need for the employees to come up with innovative ideas and solutions.

51. Which of the following refers to full involvement in one's work and commitment to one's job and company?

A. job enhancement B. employee selection C. employee appraisal D. job specialization E. employee engagement 52. How has the use of employee empowerment affected the recruitment process in the U.S.?

A. It has enhanced the need for people with working knowledge of operating different kinds of machinery. B. It has substantially increased employment opportunities for workers with less education. C. It has shifted the focus away from technical skills to general cognitive and interpersonal skills. D. It has significantly reduced recruitment costs by using low-cost strategies, though it hinders innovation. E. It has made the recruitment process less time consuming. 53. In what way does teamwork make work more significant?

A. It centralizes authority so workers do not have to make decisions. B. Team members have less authority, so they can relax. C. Teams get to work on fast-moving assembly lines. D. Team members contribute to quality and assume many activities traditionally reserved for managers. E. Teams spare employees from having to work directly with customers.

54. Cody works at a machine production facility assembling small parts in a specialized division. In addition to his regular job duties, Cody works in tandem with his other coworkers to schedule work, select new team members, and carry out multiple assembly tasks. This style of work is best described as

A. centralized. B. a virtual team. C. teamwork. D. agile development. E. knowledge work. 55. Gilbert, the branch manager of a local bank, wants to initiate a teamwork system because he believes it will improve the performance of the branch. Which of the following statements provides valid support for Gilbert's idea?

A. Teamwork encourages centralized decision making, which will lower costs. B. Teamwork eliminates the need for quality control. C. Teamwork makes work motivating for employees and helps reduce labor costs. D. Teamwork simplifies each job to a few tasks, reducing errors. E. Teamwork reduces errors because team members must communicate face-to-face.

56. Finch Inc., a software company, uses an approach in which software developers and programmers interact directly with customers. The team asks the customers for their requirements, develops a sample, and sends it to them for feedback. The team continues production based on the feedback given by their clients. The firm spends less time on negotiating contracts and documenting processes. This scenario implies that Finch is using which of the following approaches?

A. just-in-time B. total quality management C. agile D. downsizing E. outsourcing 57. The specific ways in which human resource professionals support an organization's strategy vary according to

A. their level of involvement and the nature of the strategy. B. the location of the organization's corporate headquarters. C. the government regulations of the countries in which the organization does business. D. the mastery of a particular piece of machinery among the employees of the organization. E. the organization's market share in the industry. 58. Which of the following occurs when two companies join forces and become one entity?

A. an acquisition B. a merger C. a takeover D. a joint venture E. a strategic alliance

59. Milton Inc. is a large corporation preparing to acquire Quick Grow, a start-up business. Milton has many policies and procedures based on years of experience. Employees at Quick Grow are used to figuring out the best practices as they go along. How can Milton's HR professionals help the company prepare for the acquisition to succeed in spite of these differences?

A. by replacing Quick Grow's employees with new employees who will follow rules B. by reassuring everyone that any differences will disappear after the acquisition C. by identifying the differences and developing employees' skills in conflict resolution D. by planning systems to ensure there are no conflicts following the acquisition E. by training employees in how to set up new HR systems 60. Which of the following reflects a core value of total quality management?

A. providing quality training to specific employees B. detecting errors and correcting them as they appear in an error-prone product or service C. developing generalized methods and processes that only focus on meeting the needs of external customers D. encouraging cooperation with vendors, suppliers, and customers to improve quality E. measuring an employee's progress based on how productive the employee appears 61. Kelton Inc. produces large quantities of products for their customers within tight deadlines. Recently, customers have been returning their products to Kelton, citing errors and defects in the items they have received. Which of the following total quality management cores values does Kelton need to employ to correct this issue?

A. Kelton needs to promote cooperation with vendors, suppliers, and customers. B. Kelton managers need to measure progress. C. Kelton needs to ensure quality is designed into their products so errors are prevented from occurring. D. Kelton needs to hold down costs. E. Kelton needs to employ methods to meet the needs of internal customers.

62. Iris Corp. has made a name for itself by following long-standing methods to manufacture wooden furniture. Recently, competitors using more modern technology have appeared in the furniture market, and Iris has found its business suffering as a result. Using a TQM approach, which of the following might help Iris Corp. improve?

A. Iris should firmly resist engaging in any risk taking, instead continuing to follow its traditional methods and processes. B. Iris management should not involve subordinates when looking to solve the corporation's problems. C. Iris should create an atmosphere that promotes innovation. D. Iris should ignore its customer needs and requests. E. Iris should provide quality training only to those in top management. 63. According to the core values of total quality management,

A. the progress of employees should be measured through self-evaluation. B. external customers should not be given any importance while developing any process. C. only key personnel should receive training in quality. D. errors in a product or service should be prevented before occurrence. E. internal customers should be valued more than external customers. 64. A chemical company buying a medical equipment manufacturing company is an example of

A. an acquisition. B. a partnership. C. a consolidation. D. a joint venture. E. a strategic alliance.

65. Lewis Corp., an automobile manufacturer, purchases Vision Inc., a company that produces auto parts and accessories. This scenario exemplifies

A. consolidation. B. a partnership. C. an acquisition. D. a joint venture. E. a strategic alliance. 66. Mirth Inc., a cookie manufacturer, combines with Herge Corp., a chocolate manufacturer, to form a company called Hobbes Inc. This scenario illustrates

A. consolidation. B. a partnership. C. an acquisition. D. a merger. E. a strategic alliance. 67. Leo Corp., a large-scale cell phone manufacturer, buys Milo Inc., a small cell phone manufacturer, to secure a greater share of the cell phone industry. This scenario exemplifies

A. consolidation. B. a partnership. C. downsizing. D. a merger. E. a strategic alliance.

68. If two firms in one industry join to hold a greater share of the industry, it will be referred to as

A. consolidation. B. a takeover. C. an acquisition. D. a conglomerate. E. assimilation. 69. Neo Pharmaceuticals and Ayurva Medicines combined their businesses to create a new company, Ayurva Pharmaceuticals Inc. This is an example of

A. an acquisition. B. a takeover. C. a partnership. D. a strategic alliance. E. a merger. 70. According to your text, which of the following is a challenge for human resource management during mergers?

A. scrutinizing balance sheets B. evaluating the financial worth of the new company C. developing competitively priced products D. developing conflict resolution skills E. sustaining the brand image of the company

71. The HRM function during downsizing is to terminate the workers who

A. are performing multiple organizational roles. B. are less valuable in their performance. C. are a part of the external labor force. D. are older than the other employees. E. are being paid the highest salaries. 72. During downsizing, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. According to your text, which of the following is a reason for this being difficult to achieve?

A. the definition of "less valuable" is fluid and hard to define B. downsizing companies tend to have a strong, interconnected hierarchy C. the best workers may leave before the organization lays off anyone D. voluntary turnover is encouraged for all levels of employees E. decision making has become decentralized, leaving no department with the power to reduce the workforce 73. A downsizing strategy at Archer Corp. has resulted in negative stock returns and lower profitability following the layoffs. According to your text, which of the following best explains the reason for these negative results at Archer?

A. Downsizing tends to eliminate good performers instead of poor performers first. B. Downsizing demands the HR department have a third-party vendor provide services, which results in lower revenues. C. Downsizing conducts a complete review of the organization's critical work processes, which results in heavy expenditures. D. The HRM of a firm must provide downsized employees with multiple stock options. E. When labor costs fall after a downsizing, sales per employee also tend to fall.

74. Which of the following is true of early-retirement programs that are used as a method of downsizing?

A. they are the most effective B. they are linked to greater employee suffering and distress C. they offer a better alternative to the "grenade" approach D. they help in distinguishing between good and poor performers E. they are humane 75. Which of the following statements is true about downsizing?

A. HRM cannot, and should not, inform all employees why downsizing is necessary B. HRM should withhold information regarding downsizing rather than maintain open communication with remaining employees C. downsizing is associated with positive stock returns D. downsizing results in higher profitability following layoffs E. HRM can provide downsized employees with outplacement services to help them find new jobs 76. When an organization undertakes a complete review of its critical work processes to make them more efficient in an effort to deliver higher quality, it is engaging in

A. outsourcing. B. offshoring. C. reengineering. D. greenfield venturing. E. codetermining.

77. Which of the following observations about reengineering is TRUE?

A. it is primarily concerned with production processes B. critical processes are not altered during this process C. rapidly changing customer needs and technologies necessitate reengineering D. it has no impact on human resource practices and systems E. retaining the current work processes with minimal change requires reengineering 78. M&B Textiles Inc., a garment manufacturing company, implements a new technology to improve the speed of its production process. To do this effectively, the company decides to train its employees on how to use this new process. The company also implements new quality checks and efficiency measures, reducing the costs of production while delivering better quality products. This process of making changes to vital company technology to make it more efficient is known as

A. outsourcing. B. codetermining. C. downsizing. D. hedging. E. reengineering. 79. Brighton Corporation recently undertook a reengineering strategy to increase the efficiency of its processes. According to your text, will reengineering have any effect on Brighton's HR department?

A. No; the HR department will continue to accomplish its goals as it always has. B. Yes; the structure of pay and benefits will have to be redesigned. C. Yes; employees will require training, but only those in the top managerial positions. D. Yes; new employees with the same skill sets as current workers will need to be hired. E. No; employee levels will stay the same, with none being hired or laid off.

80. As part of a company-wide business strategy, Wright Inc. conducts a comprehensive examination of its critical work techniques to increase their efficiency. The results of the examination are used to create a strategy to provide high-quality goods and services to the firm's customers. Which of the following HRM practices does Wright use?

A. outsourcing B. reengineering C. downsizing D. merger E. acquisition 81. Carroll Inc., a cell phone manufacturer, has its assembly operations performed by Mortimer Corp., a firm that deals exclusively in assembling products for other companies. This scenario indicates that Carroll engages in the practice of

A. outsourcing. B. reengineering. C. downsizing. D. benchmarking. E. acquiring. 82. Miller Inc., a maker of chocolate products, assigns its packaging and labeling to Labels U.S.A., a firm that specializes in packaging and labeling other companies' products. Which of the following HRM practices is Miller Inc. using in this scenario?

A. acquiring B. reengineering C. downsizing D. benchmarking E. outsourcing

83. The practice of having another company provide services is known as

A. benchmarking. B. downsizing. C. codetermining. D. outsourcing. E. reengineering. 84. Daily Needs Inc. is a consumer goods company that provides the option of door-to-door delivery. The company has partnered with a packaging company for transporting its goods to the customers. This is an example of

A. cause marketing. B. outsourcing. C. reengineering. D. disinvesting. E. downsizing. 85. Companies are finding that to survive they must contend in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. Which of the following would help businesses in the United States meet these challenges?

A. They must focus on developing domestic markets rather than on developing global markets. B. They must hire only from a domestic labor pool. C. They must prepare employees for global assignments. D. They must eliminate reshoring—reestablishing operations in North America. E. They must reduce the workforce with a "grenade" approach—by eliminating an entire group of employees.

86. Which of the following is the most common reason why U.S. organizations hire employees in foreign countries?

A. lack of technology in the U.S. B. lack of demand for their products in the U.S. C. poor quality of labor in the U.S. D. governmental pressure E. low cost of labor in foreign countries 87. Palin Inc., an electronics manufacturer, is headquartered in Texas. The firm shifted its operations from Texas to China due to lower labor costs and the availability of required skills in China. This scenario indicates that Palin engaged in the practice of

A. downsizing. B. reengineering. C. offshoring. D. benchmarking. E. acquiring. 88. Which of the following best describes offshoring?

A. It is the practice of having another company provide services. B. It refers to moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. C. It is a method of staffing other than the traditional hiring of full-time employees. D. It is a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality of products and services. E. It refers to acquiring a new company in a distant location or another country in order to acquire higher market share or growth.

89. When large U.S. software companies open facilities in developing countries to take advantage of the highly skilled labor available there at lower pay rates, they are engaging in

A. consolidation. B. nationalization. C. crowdsourcing. D. codetermining. E. offshoring. 90. Employees who take assignments in other countries are called

A. host-country nationals. B. immigrants. C. external employees. D. expatriates. E. emigrants. 91. Which of the following is an advantage of using a human resource information system in an organization?

A. it can be used to scrutinize balance sheets B. it can be used to develop new lines of products C. it can be used to scout potential offshoring locations D. it can help avoid litigation and lawsuits E. it can be used by salespeople to improve sales

92. Which of the following technologies can be used to consolidate different HR functions into a single location, eliminate redundancy, and reduce administrative costs?

A. Internet portals B. application services C. shared service centers D. business intelligence systems E. electronic performance support systems 93. Identify the technology that lets a company rent space on a remote computer system and use the system's software to manage its human resource activities, including security and upgrades.

A. application service providers B. Internet portals C. shared service centers D. business intelligence systems E. electronic performance support systems 94. AlphaTech is a company that develops software to help businesses with data processing. Their software performs multiple businesses functions, including processing payrolls, generating tax information for employees, and managing performance evaluation reports. The software is hosted on a remote server maintained by AlphaTech, and client businesses can access it online. Which of the following technologies is being used by AlphaTech to perform the computing tasks for other businesses?

A. Intranet portal B. HR dashboard C. data mining D. cloud computing E. business Intelligence

95. Which of the following technologies provides insight into commercial trends and patterns and helps organizations improve decisions?

A. electronic performance support systems B. Internet portals C. shared service centers D. application service provider E. business intelligence 96. Which of the following describes an advantage of electronic human resource management (eHRM)?

A. employees in different geographic areas can receive the same training B. protecting privacy is not an issue C. it eliminates the need for a company intranet D. employees can get face-to-face answers instead of going online E. not many HRM activities have moved onto the Internet, so data will be secure 97. Which of the following is TRUE of an intranet?

A. It is a system that uses powerful computers to analyze large amounts of data, such as data about employee traits. B. It is a network that uses Internet tools but limits access to authorized users in the organization. C. It is a network that is used by a business to reach out to the customers and send them product information. D. It is a system that is used by outside suppliers to update inventories. E. It is a network universally used by business organizations to transfer data from one geographical location to the other.

98. The system in which employees have online access to information about human resource issues and go online to enroll themselves in programs and provide feedback through surveys is termed

A. social facilitation. B. payroll automation. C. cloud computing. D. data mining. E. self-service. 99. Amy is interested in a career in human resource management. She expected her first job to focus on giving employees access to information and enrollment forms for training, benefits, and other programs. However, she has since learned that HR employees spend less time doing that kind of work. Which of the following trends is behind that change?

A. employees can now get such information through self-service B. benefits have been cut from most company programs C. managers have taken over those HR duties D. lack of voluntary participation has led to the elimination of employee training programs E. due to privacy laws, human resources cannot obtain any sensitive employee information 100.The use of technology by HR departments in business organizations has resulted in

A. organizations becoming more restrictive about information pertaining to workplace policies. B. the elimination of the self-service approach toward information dissemination. C. the elimination of face-to-face meetings and training sessions. D. the collection of employees' opinions through online surveys. E. HR employees having greater responsibilities for record keeping.

101.What is an HR dashboard?

A. a messaging system used by HR managers to communicate with employees B. a display of how the company is performing on specific HR metrics C. a tool used to measure the profitability and growth rate of the organization D. a computer system used to acquire and distribute information about work schedules and job duties E. a system used to store, analyze, and process the information regarding the levels of demand and inventory 102.The relationship between an employer and an employee can be thought of in terms of a(n) _____, a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions.

A. employee contract B. offer letter C. psychological contract D. legal bond E. legal agreement 103.Which of the following terms refers to the intentional practice of changing jobs frequently?

A. job hopping B. moonlighting C. job enlargement D. job enrichment E. freelancing

104.The management of Holmes Inc. expects its employees to be enthusiastic about their work by seeking training, putting in long hours of work, initiating better work procedures, and maintaining a sound balance between professional life and personal life. In return, the firm's employees expect management to arrange for better incentives, flexible work schedules, and increased authority to execute their tasks. This scenario is an example of a(n)

A. employee contract. B. offer letter. C. legal agreement. D. legal bond. E. psychological contract. 105.Which of the following statements is TRUE of a psychological contract?

A. A psychological contract describes spoken expectations that are widely held by employers and employees. B. In the new version of the psychological contract, organizations manage the career paths for their employees. C. In the traditional version of the psychological contract, organizations expected employees to take more responsibility for their own careers, from seeking training to balancing work and family. D. A psychological contract is a display of how the company is performing on specific HR metrics, such as productivity and absenteeism. E. A psychological contract is not formally put into words.

106.The new type of psychological contract has resulted in reduced

A. creativity. B. employee compensation. C. flexibility. D. training and development opportunities. E. job security. 107.Employees realize that many companies are no longer able to provide long-term employment security. Instead, the employees now want

A. increased pay. B. less demanding work. C. employability. D. written employment contracts. E. additional benefits. 108.Kylie changes jobs on a regular basis. She does this to secure better career growth opportunities and to decrease boredom. Kylie engages in

A. freelancing. B. job enrichment. C. job hopping. D. benchmarking. E. moonlighting.

109.The use of independent contractors, on-call workers, temporary workers, and contract company workers, collectively constitutes

A. outsourcing. B. alternative work arrangements. C. consolidation. D. high-performance work systems. E. offshoring. 110.Independent contractors are

A. usually full-time company employees. B. self-employed individuals with multiple clients. C. people employed by a temporary agency. D. employed directly by a company for a specific time. E. people employed by a company to work on an independent project. 111.Abdul, a financial analyst, is not employed directly by any company. He works for several clients based on their requirements. Abdul would be classified as a(n)

A. permanent employee. B. independent contractor. C. part-time employee. D. contract company worker. E. temporary worker.

112.Which of the following is a type of person who works for an organization only when they are needed?

A. on-call workers B. moonlighting employees C. apprentices D. part-time employees E. trainees 113.A person that is employed directly by a company for a certain amount of time, specified in a formal agreement between the company and the workers, is referred to as a(n)

A. on-call worker. B. independent contractor. C. temporary worker. D. contract company worker. E. part-time worker. 114.Identify the correct statement about flexible work schedules.

A. Flexible work schedules prevent work demands from spilling over to employees' personal lives. B. Flexible work schedules require companies to be staffed 12 hours a day, five days a week. C. Employees in manufacturing environments and service call centers are being asked to work 16-hour days. D. The globalization of the world economy and the development of e-commerce have made the notion of a 40-hour workweek obsolete. E. Professional employees do not face long hours anymore due to flexible work schedules.

Essay Questions

115.Define the term labor force, distinguishing between the internal labor force and the external labor market.

116.List the activities involved in managing cultural diversity.

117.Explain the problem of skill deficiencies in the U.S. workforce. What companies are doing to address this issue?

118.Define the concept of knowledge workers and explain their impact on high-performance work systems.

119.What is employee empowerment? How can human resource departments help to make it effective?

120.List and explain the core values of total quality management.

121.What is outsourcing? What are the trends in human resource outsourcing?

122.What is a human resource information system (HRIS)? How does it help HR professionals?

123.Define electronic human resource management (e-HRM). List five ways creative organizations are applying social networking tools to human resource management.

124.Explain what a psychological contract is and compare the traditional version to the new type.

Chapter 02 Trends in Human Resource Management Answer Key

True / False Questions

An individual who is actively seeking employment is a part of an organization's external labor market. TRUE

An organization's external labor market refers to the individuals who are actively seeking employment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 1 Easy Topic: Internal and External Recruiting

The members of Generation X are characterized by their comfort with the latest technology, and the need to be noticed, respected, and involved. FALSE

Members of Generation X (1965-1980) tend to be pragmatic and cynical, and they have welldeveloped self-management skills. Those born from 1981 to 1995, often called Millennials or Generation Y, are comfortable with the latest technology, and they want to be noticed, respected, and involved.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 2 Medium Topic: Challenges Facing Human Resources Today

Individuals who arrive in the United States without meeting the legal requirements for immigration or asylum are referred to as undocumented immigrants. TRUE

More than 1 million immigrants come to the United States legally each year as relatives of U.S. citizens, on work- or study-related visas, and other means. Other foreign-born workers in the United States arrive in the country without meeting the legal requirements for immigration or asylum. These individuals, known as undocumented or illegal immigrants, likely number in the millions.

Most organizations are looking for educational achievements to find employees who can handle a variety of responsibilities, interact with customers, and think creatively. TRUE

Employees must be able to handle a variety of responsibilities, interact with customers, and think creatively. To find such employees, most organizations are looking for educational achievements. A college degree is a basic requirement for many jobs today.

A large gap exists between the social system and the technical system in high-performance work systems. FALSE

High-performance work systems refer to organizations that have the best possible fit between their social system and technical system.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-02 Summarize areas in which human resource management can support the goal of creating a highperformance work system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

Knowledge workers in an organization do not work directly with customers. FALSE

Many knowledge workers will have to be "technoservice" workers who not only know a specialized field such as computer programming or engineering, but also must be able to work directly with customers.

Skilled knowledge workers generally do not have job opportunities in a slow economy. FALSE

Knowledge workers are in a position of power, because they own the knowledge that the company needs to produce its products and services. Skilled knowledge workers have many job opportunities, even in a slow economy. If they choose, they can leave a company and take their knowledge to another employer.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-02 Summarize areas in which human resource management can support the goal of creating a highperformance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

Successful organizations treat all their workers as knowledge workers. TRUE

The idea that only some of an organization's workers are knowledge workers has come under criticism. To the critics, this definition is no longer realistic in a day of computerized information systems and computer-controlled production processes. For the company to excel, everyone must know how their work contributes to the organization's success. Successful organizations treat all their workers as knowledge workers. They let employees know how well the organization is performing, and they invite ideas about how the organization can do better.

The use of employee empowerment has shifted the recruiting focus away from general cognitive and interpersonal skills toward technical skills. FALSE

As with the need for knowledge workers, use of employee empowerment shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-03 Define employee empowerment, and explain its role in the modern organization. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

10.

Teamwork gives employees the authority and ability to decide on how to do their work. TRUE

Organizations need to set up work in a way that gives employees the authority and ability to make decisions to improve quality and provide customer service right at the point of sale or production. One of the most popular ways to increase employee responsibility and control is to assign work to teams.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-03 Define employee empowerment, and explain its role in the modern organization. Level of Difficulty: 1 Easy Topic: Employee Motivation

11.

Virtual teams rely on communications technology such as videoconferences, e-mail, and cell phones to keep in touch and coordinate activities. TRUE

Virtual teams are teams that rely on communications technology such as videoconferences, email, and cell phones to keep in touch and coordinate activities.

12.

Traditional management thinking treated human resource management primarily as a means to support a company's strategy. FALSE

Traditional management thinking treated human resource management primarily as an administrative function, but managers today are beginning to see a more central role for HRM. They are looking at HRM as a means to support a company's strategy. The HR professionals are expected to use their knowledge in business and of human resources to help the organization develop strategies and to align HRM practices and policies with those strategies.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 1 Easy Topic: Challenges Facing Human Resources Today

13.

When two companies merge, HRM plays an important role that includes preparing employees to resolve conflicts. TRUE

When two companies merge, or become one, HRM should have a significant role. Differences between the businesses make conflict inevitable. Training efforts should therefore include development of skills in conflict resolution.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

14.

Laurie Corp., a major watch manufacturer, purchases Smith Inc., a smaller company that makes watch bands. Following this purchase, the watch band operations are performed by the Smith Division of Laurie Corp. This scenario is an example of an acquisition. TRUE

An acquisition happens when one company buys another company. In this scenario, Laurie Corp. and Smith Inc. do not become one company. Smith Inc. becomes a part of Laurie Corp.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

15.

When two firms in one industry join together to hold a greater share of the industry, it represents a consolidation. TRUE

Some mergers and acquisitions result in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

16.

Total quality management is intended to bring about a continuous process of quality improvement. TRUE

Total quality management refers to a companywide effort to continually improve the ways people, machines, and systems accomplish work.

17.

Total quality management proposes that every employee in the organization receive training in quality. TRUE

Training in quality for each employee in an organization is a core value of total quality management.

18.

Early-retirement programs are one of the most effective approaches to downsizing. FALSE

Early-retirement programs are humane, but they essentially reduce the workforce with a grenade approach—not distinguishing good performers from poor performers, but instead eliminating an entire group of employees.

19.

An organization undergoes reengineering by reviewing the critical features of its product designs. FALSE

Reengineering involves a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality.

20.

A New York City-based company shifts its warehouses and operations to a low-rent area that is 50 miles away. This is an example of offshoring. FALSE

Offshoring refers to moving the operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

21.

Rajeev, an Indian citizen, works for an automobile company in India. Currently, he is in the United States to work on a project at the company's office in Salt Lake City, Utah. In this scenario, Rajeev is regarded as an expatriate. TRUE

Employees who take assignments in other countries are called expatriates. In this case, Rajeev is an expatriate because he is an Indian citizen working on a project at his company's office in Salt Lake City, Utah.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 3 Hard Topic: Staffing Issues for International Workers

22.

The processing and transmission of digitized human resource information is called electronic human resource management. TRUE

The processing and transmission of digitized human resource information is referred to as electronic human resource management (e-HRM).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 1 Easy Topic: How Technology Influences Human Resource Management?

23.

Under the new type of psychological contract, organizations expect employees to contribute time, effort, skills, abilities, and loyalty in return for job security and opportunities for promotion within the organization. FALSE

In the traditional version of a psychological contract, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty. In return, the organizations would provide job security and opportunities for promotion. Under the new type of psychological contract, however, companies expect employees to take more responsibility for their own careers, from seeking training to balancing work and family.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-07 Explain how the nature of the employment relationship is changing. Level of Difficulty: 2 Medium Topic: Challenges Facing Human Resources Today

24.

Employees' job security has increased as a result of the new psychological contract. FALSE

Under the new psychological contract, employers expect employees to take more responsibility for their own careers, from seeking training to balancing work and family. These expectations result in less job security for employees.

25.

In the context of alternative work arrangements, contract company workers are employed directly by a company. TRUE

In the context of alternative work arrangements, contract company workers are employed directly by a company for a specific time or on a specific project as stipulated in a written contract.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 1 Easy Topic: The Contingent Workforce

26.

Best Appliances wants to improve the quality of and lower the costs in its service department. A strategy being considered involves directing technicians on exactly how to complete service calls, which should improve customer service in addition to lowering labor costs. In addition, the technicians will work under a contract so the company doesn't have to pay the employer's share of Social Security for those workers. Is this a possible strategy for Best Appliances to employ? FALSE

In general, if employers direct workers in the details of how and when they do their jobs, these workers are legally defined as employees, not contractors. In that case, employers must meet the legal requirements for paying the employer's share of Social Security, Medicare, and unemployment insurance.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 3 Hard Topic: The Contingent Workforce

Multiple Choice Questions

27.

The external labor market consists of

A. contract workers in the organization. B. current employees of the organization. C. individuals who are actively seeking employment.

D. employees who have direct contact with customers. E. employees of the immediate competitors of the organization. The external labor market consists of individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization (and their cost).

28.

Which of the following scenarios exemplifies an individual in the external labor market?

D. Hilary, an employee, going through training. E. Salim, an employee, securing his financial services certification. The external labor market consists of individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization (and their cost). In this case, the example of Jill, an individual who is looking for a job, exemplifies a member of the external labor market.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 3 Hard Topic: Internal and External Recruiting

29.

Name the agency that is responsible for tracking changes in the composition of the U.S. labor force and forecasting employment trends.

A. the National Statistics Association B. the Occupational Outlook Bureau C. the U.S. Census Bureau D. the Bureau of Economic Analysis E. the Bureau of Labor Statistics

In the United States, the Bureau of Labor Statistics, an agency of the Department of Labor, tracks changes in the composition of the U.S. labor force and forecasts employment trends.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. 2-54 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Labor Relations

30.

Mega Homes wants to expand rapidly by building homes in major markets throughout the United States. Which of the following forecasts by the Bureau of Labor Statistics presents the most significant challenge to rapid expansion?

The Bureau of Labor Statistics has projected that from 2014 to 2024, the total U.S. civilian labor force will grow from 156 million to 164 million workers. This 5% increase in noticeably lower than the more than 12.5% increase experienced between 1994 and 2004. Slow growth in the labor force means more competition for employers in the labor markets.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 3 Hard Topic: Challenges Facing Human Resources Today

31.

Identify the correct statement regarding the composition of the U.S. labor force during the projected 2014-2024 period.

aging. E. The total workforce of the United States will considerably decrease. It is expected that despite a small increase in the number of young workers, the overall workforce will be aging. Young workers between the ages of 16 and 24 will actually be fewer in number. This combination of trends will cause the overall workforce to age.

32.

Anne, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future. Her colleague Nick argues that organizations will not have to increase their spending on employee health care benefits. Which of the following statements weakens Nick's argument?

E. The total cost of labor in the United States will decrease considerably in the near future. From 2014 to 2024, the fastest-growing age group is expected to be workers 55 and older. The 25- to 44-year-old group will increase its numbers only slightly, so its share of the total workforce will fall. With a growing share of the workforce nearing retirement age, human resource professionals will need to spend much of their time on concerns related to planning retirement, retraining older workers, and motivating workers whose careers have reached a plateau. Organizations will struggle with ways to control the rising costs of health care and other benefits, and many of tomorrow's managers will supervise employees much older than themselves.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 3 Hard Topic: Challenges Facing Human Resources Today

33.

Which of the following racial groups will form the majority of the U.S. labor force according to the 2014-2024 Employment Projections from the Bureau of Labor Statistics?

A. African Americans B. Whites

C. Hispanics D. Asians E. Native Americans Whites are expected to be the dominant group in the 2024 U.S. labor force, making up 77% of the workforce.

34.

In high-tech industries, such as computer software development, employers press the federal government for immigration laws that allow for a greater supply of foreign-born workers. What is the main reason these companies cite for that effort?

A. There is a lack of adequate technology in the United States. B. Undocumented immigrants work harder than U.S. citizens. C. Qualified technical workers are scarce in the United States.

D. U.S workers do not want this physically demanding work. E. The size of the U.S. workforce is declining. In industries such as computer software development, employers say they have difficulty finding enough qualified U.S. workers to fill technical jobs. These employers are pressing for immigration laws to allow a greater supply of foreign-born workers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 1 Easy Topic: Challenges Facing Human Resources Today

35.

Managing cultural diversity involves

Managing cultural diversity involves creating an organizational culture that values diversity; ensuring that human resource management systems are bias free; encouraging career development for women and minorities; promoting knowledge and acceptance of cultural differences; ensuring involvement in education both within and outside the organization; and dealing with employees' resistance to diversity.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 2 Medium Topic: Diversity Management

36.

Given the increasing use of computers to do routine tasks, which of the following skills is most likely to be actively sought by U.S. employers today?

A. physical strength B. mastery of a particular piece of machinery C. interpersonal skills

D. ability to perform routine tasks E. ability to work with a tool The increasing use of computers to do routine tasks has shifted the kinds of skills needed for employees in the U.S. economy. Qualities such as physical strength and mastery of a particular piece of machinery are no longer important for many jobs. More employers are looking for mathematical, verbal, and interpersonal skills, such as the ability to solve math or other problems or reach decisions as part of a team.

37.

According to the National Association of Manufacturers, manufacturing companies have difficulty finding enough people who can operate their computer-controlled machinery. Which of the following actions is the most reasonable response to that difficulty?

Jobs operating computer-controlled machinery rely at least as much on intelligence and teamwork as on physical strength. In some areas, companies and communities have set up apprenticeship and training programs to fix the worker shortage. Efforts such as these often extend outreach to high school students, who may not have recognized manufacturing work as a desirable career path.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 2 Medium Topic: Challenges Facing Human Resources Today

38.

Which of the following refers to organizations that have the best possible fit between their social system and their technical system?

A. Workforce analysis systems B. Holistic management systems C. Supply chain systems D. High-performance work systems

E. Total quality management systems High-performance work systems refer to organizations that have the best possible fit between their social system and technical system.

39.

Moore Corp., a financial services company, specializes in customers' preferences and costefficient processes. They also encourage self-managing teams that make all decisions regarding business development and the sale of services to their customers. The firm ensures that there is a good fit between its work system and its people. This scenario implies that Moore has a

A. workforce analysis system. B. high-performance work system.

C. supply chain system. D. total quality management system. E. holistic management system. High-performance work systems refer to organizations that have the best possible fit between their social system and technical system. Among the trends that are occurring in today's highperformance work systems are reliance on knowledge workers, empowerment of employees to make decisions, and use of teamwork. In this case, Moore Corp. has a high performance work system because it consists of empowered employee teams with specialized knowledge of customers' preferences and cost-efficient processes.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-02 Summarize areas in which human resource management can support the goal of creating a highperformance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

40.

How has the requirement for creating high-performance work systems changed?

E. Customers are demanding standardized products over customized products. As the nature of the workforce and the technology available to organizations changed, so have the requirements for creating a high-performance work system. Customers are demanding high quality and customized products, employees are seeking flexible work arrangements, and employers are looking for ways to tap people's creativity and interpersonal skills.

41.

Which of the following is a characteristic of current-day high-performance work systems?

A. mismatches in technical system and social system B. employee empowerment in decision making

C. increase in individual assignments D. centralized decision making E. reduced reliance on knowledge workers Among the trends that are occurring in today's high-performance work systems are reliance on knowledge workers, empowerment of employees to make decisions, and the use of teamwork.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-02 Summarize areas in which human resource management can support the goal of creating a high2-64 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

42.

The growth in e-commerce and the information economy has led to an increase in the demand for employees in

A. technical jobs. B. mining and resource extraction. C. agriculture. D. service occupations.

E. manufacturing. The growth in e-commerce, plus the shift from a manufacturing to a service and information economy, has changed the nature of employees that are most in demand. The Bureau of Labor Statistics forecasts that between 2014 and 2024, most new jobs will be in service occupations, especially health care.

43.

Which of the following is a correct statement regarding skilled knowledge workers?

to produce its products. D. They are not expected to be technically efficient and are only involved in direct interactions with customers. E. They do not have a lot of job opportunities because employers can simply order these employees to perform tasks. Knowledge workers are in a position of power, because they own the knowledge that the company needs in order to produce its products and services, and they must share their knowledge and collaborate with others in order for their employer to succeed. Replacing these employees is difficult and time consuming. They have many job opportunities even in a slow economy.

44.

Oliver works at Tate Corp., an environmentally-conscious apparel manufacturing company. He primarily focuses on the tastes and needs of the firm's customers. He achieves this by managing a team that regularly interacts with customers through various promotional activities and events. He also provides insights on how to produce eco-friendly outfits through his specialized knowledge of cost-efficient manufacturing processes. This implies that Oliver

A. is an HR professional. B. encourages centralized decision making. C. is a knowledge worker.

D. encourages a narrow business focus. E. belongs to the external labor market. Knowledge workers are employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession. In this case, Oliver is a knowledge worker because he primarily focuses on providing his expertise on both the tastes and needs of the firm's customers, as well as cost-efficient manufacturing processes.

45.

Rhea is an employee at Diaz Inc. She specializes in interacting with customers and understanding their preferences in order to design user interface products that meet their needs. Which of the following statements is true about Rhea?

Knowledge workers are employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession.

46.

Which of the following statements is TRUE of employee empowerment?

decisions. Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

47.

Dave is the project manager at Arc Inc. He encourages his team members to have brainstorming sessions before initiating a project to determine the best method to deliver positive results. He provides his team members with complete authority to execute all production tasks independently. This scenario indicates that Dave promotes

A. centralized decision making. B. risk aversion. C. downsizing. D. outsourcing. E. employee empowerment.

Employee empowerment refers to giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Employees are then held accountable for products and services. In return, they share the resulting losses and rewards.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-03 Define employee empowerment, and explain its role in the modern organization. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

48.

Zino Inc., a marketing firm, has employees who work in different cities in different time zones around the country. They coordinate their work efficiently with the help of technology, such as videoconferencing, mobile phones, and e-mail, for the production of marketing activities. Which of the following statements is true of Zino?

A. It has a vertical organizational structure. B. It does not hold employees accountable for products and services. C. It encourages virtual teams.

D. It encourages centralized decision-making. E. It has self-employed individuals with multiple clients. Teamwork is the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. In some organizations, technology is enabling teamwork even when workers are at different locations or work at different times. These organizations use virtual teams—teams that rely on communications technology such as videoconferences, mobile phones, and e-mail to keep in touch and coordinate activities.

49.

Bright Sky Health Care Systems set up a program that encourages employees to share their ideas for patient satisfaction and cost savings. After a year of collecting these ideas, the HR department conducted an employee survey and learned that its employees did not feel very empowered. What else should Bright Sky do to improve the sense of empowerment?

A. Hold employees accountable for their results. B. Train employees to use information resources. C. Show that management is listening to the ideas and implementing the valuable ones.

D. Train managers to link employees to resources within and outside the organization. E. Encourage employees to interact with staff throughout the organization. Employee empowerment can extend to innovation. Employees at all levels are encouraged to share their ideas for satisfying customers better and operating more efficiently and safely. This is empowering if management actually listens to the ideas, implements valuable ones, and rewards employees for their innovations.

50.

Which of the following is necessary for the success of employee empowerment?

A. The jobs must be designed in such a manner that the managers have complete control over business processes. B. Employees must be properly trained to exert their wider authority and use information

resources such as the Internet. C. Pay and other rewards should reflect employees' loyalty to the organization and not their authority. D. Employers should provide feedback only when employees resign and are about to leave the organization. E. Employers should create jobs that minimize the need for the employees to come up with innovative ideas and solutions. Jobs must be designed to give employees the necessary latitude for making a variety of decisions. Employees must be properly trained to exert their wider authority and use information resources such as the Internet as well as tools for communicating information.

51.

Which of the following refers to full involvement in one's work and commitment to one's job and company?

A. job enhancement B. employee selection C. employee appraisal D. job specialization E. employee engagement

Employee engagement refers to full involvement in one's work and commitment to one's job and company.

52.

How has the use of employee empowerment affected the recruitment process in the U.S.?

skills. D. It has significantly reduced recruitment costs by using low-cost strategies, though it hinders innovation. E. It has made the recruitment process less time consuming. Use of employee empowerment shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills. Employees who have responsibility for a final product or service must be able to listen to customers, adapt to changing needs, and creatively solve a variety of problems.

53.

In what way does teamwork make work more significant?

managers. E. Teams spare employees from having to work directly with customers. Work teams often assume many activities traditionally reserved for managers, such as selecting new team members, scheduling work, and coordinating work with customers and other units of the organization. Work teams also contribute to total quality by performing inspection and quality-control activities while the product or service is being completed.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-03 Define employee empowerment, and explain its role in the modern organization. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

54.

Cody works at a machine production facility assembling small parts in a specialized division. In addition to his regular job duties, Cody works in tandem with his other coworkers to schedule work, select new team members, and carry out multiple assembly tasks. This style of work is best described as

A. centralized. B. a virtual team. C. teamwork.

D. agile development. E. knowledge work. Teamwork is the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. Work teams often assume many activities traditionally reserved for managers, such as selecting new team members, scheduling work, and coordinating work with customers and other units of the organization.

55.

Gilbert, the branch manager of a local bank, wants to initiate a teamwork system because he believes it will improve the performance of the branch. Which of the following statements provides valid support for Gilbert's idea?

D. Teamwork simplifies each job to a few tasks, reducing errors. E. Teamwork reduces errors because team members must communicate face-to-face. Teamwork can motivate employees by making work more interesting and significant. At organizations that rely on teamwork, labor costs may be lower as well.

56.

Finch Inc., a software company, uses an approach in which software developers and programmers interact directly with customers. The team asks the customers for their requirements, develops a sample, and sends it to them for feedback. The team continues production based on the feedback given by their clients. The firm spends less time on negotiating contracts and documenting processes. This scenario implies that Finch is using which of the following approaches?

A. just-in-time B. total quality management C. agile

D. downsizing E. outsourcing In agile software development, self-directed teams of developers and programmers work directly with the business users of the software, using as much face-to-face communication as possible. Throughout the development process the team is open to changing requirements and computer code as a result of their communication with users.

57.

The specific ways in which human resource professionals support an organization's strategy vary according to

A. their level of involvement and the nature of the strategy.

B. the location of the organization's corporate headquarters. C. the government regulations of the countries in which the organization does business. D. the mastery of a particular piece of machinery among the employees of the organization. E. the organization's market share in the industry. The specific ways in which human resource professionals support the organization's strategy vary according to their level of involvement and the nature of the strategy. Strategic issues include emphasis on quality and decisions about growth and efficiency. Human resource management can support these strategies, including efforts such as quality improvement programs, mergers and acquisitions, and restructuring.

58.

Which of the following occurs when two companies join forces and become one entity?

A. an acquisition B. a merger

C. a takeover D. a joint venture E. a strategic alliance A merger occurs when two companies join forces to become one.

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Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 1 Easy Topic: Techniques in Implementing Strategy

59.

Milton Inc. is a large corporation preparing to acquire Quick Grow, a start-up business. Milton has many policies and procedures based on years of experience. Employees at Quick Grow are used to figuring out the best practices as they go along. How can Milton's HR professionals help the company prepare for the acquisition to succeed in spite of these differences?

D. by planning systems to ensure there are no conflicts following the acquisition E. by training employees in how to set up new HR systems HRM should have a significant role in carrying out a merger or acquisition. Differences between the businesses involved in the deal make conflict inevitable. Training efforts should therefore include development of skills in conflict resolution. Also, HR professionals have to sort out differences in the two companies' practices with regard to compensation, performance appraisal, and other HR systems.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

60.

Which of the following reflects a core value of total quality management?

E. measuring an employee's progress based on how productive the employee appears Organizations that engage in total quality management promote cooperation with vendors, suppliers, and customers to improve quality and hold down costs. All employees receive training in quality. The managers measure progress of the employees with feedback based on the data.

61.

Kelton Inc. produces large quantities of products for their customers within tight deadlines. Recently, customers have been returning their products to Kelton, citing errors and defects in the items they have received. Which of the following total quality management cores values does Kelton need to employ to correct this issue?

occurring. D. Kelton needs to hold down costs. E. Kelton needs to employ methods to meet the needs of internal customers. One of the core values of total quality management is that of quality. Quality should be designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected in an error-prone product or service.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

62.

Iris Corp. has made a name for itself by following long-standing methods to manufacture wooden furniture. Recently, competitors using more modern technology have appeared in the furniture market, and Iris has found its business suffering as a result. Using a TQM approach, which of the following might help Iris Corp. improve?

D. Iris should ignore its customer needs and requests. E. Iris should provide quality training only to those in top management. To promote quality, organizations need an environment that supports innovation, creativity, and risk taking to meet customer demands. Problem solving should bring together managers, employees, and customers. Employees should communicate with managers about customer needs.

63.

According to the core values of total quality management,

E. internal customers should be valued more than external customers. Total quality management has several core values. One value is that quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected in an error-prone product or service.

64.

A chemical company buying a medical equipment manufacturing company is an example of

A. an acquisition.

B. a partnership. C. a consolidation. D. a joint venture. E. a strategic alliance. An acquisition happens when one company buys another company.

Topic: Techniques in Implementing Strategy

65.

Lewis Corp., an automobile manufacturer, purchases Vision Inc., a company that produces auto parts and accessories. This scenario exemplifies

A. consolidation. B. a partnership. C. an acquisition.

D. a joint venture. E. a strategic alliance. An acquisition happens when one company buys another company.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

66.

Mirth Inc., a cookie manufacturer, combines with Herge Corp., a chocolate manufacturer, to form a company called Hobbes Inc. This scenario illustrates

A. consolidation. B. a partnership. C. an acquisition. D. a merger.

E. a strategic alliance. A merger occurs when two companies become one.

efficiency. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

67.

Leo Corp., a large-scale cell phone manufacturer, buys Milo Inc., a small cell phone manufacturer, to secure a greater share of the cell phone industry. This scenario exemplifies

A. consolidation.

B. a partnership. C. downsizing. D. a merger. E. a strategic alliance. Some mergers and acquisitions result in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

68.

If two firms in one industry join to hold a greater share of the industry, it will be referred to as

A. consolidation.

B. a takeover. C. an acquisition. D. a conglomerate. E. assimilation. Some mergers and acquisitions result in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 1 Easy Topic: Techniques in Implementing Strategy

69.

Neo Pharmaceuticals and Ayurva Medicines combined their businesses to create a new company, Ayurva Pharmaceuticals Inc. This is an example of

A. an acquisition. B. a takeover. C. a partnership. D. a strategic alliance. E. a merger.

A merger occurs when two companies become one.

70.

According to your text, which of the following is a challenge for human resource management during mergers?

A. scrutinizing balance sheets B. evaluating the financial worth of the new company C. developing competitively priced products D. developing conflict resolution skills

E. sustaining the brand image of the company Human resource management should have a significant role in carrying out a merger or acquisition. Differences between the businesses involved in the deal make conflict inevitable. Training efforts should therefore include development of skills in conflict resolution. Also, HR professionals have to sort out differences in the two companies' practices with regard to compensation, performance appraisal, and other HR systems.

71.

The HRM function during downsizing is to terminate the workers who

A. are performing multiple organizational roles. B. are less valuable in their performance.

C. are a part of the external labor force. D. are older than the other employees. E. are being paid the highest salaries. Downsizing presents a number of challenges and opportunities for HRM. In terms of challenges, the HRM function must surgically reduce the workforce by cutting only the workers who are less valuable in their performance.

72.

During downsizing, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. According to your text, which of the following is a reason for this being difficult to achieve?

D. voluntary turnover is encouraged for all levels of employees E. decision making has become decentralized, leaving no department with the power to reduce the workforce Downsizing presents a number of challenges and opportunities for HRM. In terms of challenges, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. Achieving this is difficult because the best workers are most able (and often willing) to find alternative employment and may leave voluntarily before the organization lays off anyone.

73.

A downsizing strategy at Archer Corp. has resulted in negative stock returns and lower profitability following the layoffs. According to your text, which of the following best explains the reason for these negative results at Archer?

Contrary to popular belief, research has found that downsizing is associated with negative stock returns and lower profitability following the layoffs. One reason may be that although labor costs fall after a downsizing, sales per employee also tend to fall.

74.

Which of the following is true of early-retirement programs that are used as a method of downsizing?

Early-retirement programs are humane, but they essentially reduce the workforce with a "grenade" approach—not distinguishing good performers from poor performers but rather eliminating an entire group of employees.

75.

Which of the following statements is true about downsizing?

jobs HRM can provide downsized employees with outplacement services to help them find new jobs. Such services are ways an organization can show that it cares about its employees, even though it cannot afford to keep all of them on the payroll.

76.

When an organization undertakes a complete review of its critical work processes to make them more efficient in an effort to deliver higher quality, it is engaging in

A. outsourcing. B. offshoring. C. reengineering.

D. greenfield venturing. E. codetermining. Reengineering refers to a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality.

AACSB: Analytical Thinking

77.

Which of the following observations about reengineering is TRUE?

A. it is primarily concerned with production processes B. critical processes are not altered during this process C. rapidly changing customer needs and technologies necessitate reengineering

D. it has no impact on human resource practices and systems E. retaining the current work processes with minimal change requires reengineering Rapidly changing customer needs and technologies have caused many organizations to rethink the way they get work done. This may lead to a reengineering process. Reengineering involves reviewing all the processes performed by all the organization's major functions, including production, sales, accounting, and human resources.

78.

M&B Textiles Inc., a garment manufacturing company, implements a new technology to improve the speed of its production process. To do this effectively, the company decides to train its employees on how to use this new process. The company also implements new quality checks and efficiency measures, reducing the costs of production while delivering better quality products. This process of making changes to vital company technology to make it more efficient is known as

A. outsourcing. B. codetermining. C. downsizing. D. hedging. E. reengineering.

Reengineering refers to a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality. In this case, M&B Textiles Inc. engages in reengineering as it implements new quality checks and efficiency measures, reducing the cost of production and delivering better quality products.

79.

Brighton Corporation recently undertook a reengineering strategy to increase the efficiency of its processes. According to your text, will reengineering have any effect on Brighton's HR department?

A. No; the HR department will continue to accomplish its goals as it always has. B. Yes; the structure of pay and benefits will have to be redesigned.

C. Yes; employees will require training, but only those in the top managerial positions. D. Yes; new employees with the same skill sets as current workers will need to be hired. E. No; employee levels will stay the same, with none being hired or laid off. Reengineering affects human resource management. The way the HR department itself accomplishes its goals may change dramatically. Employees may need training for their reengineered jobs. The organization may need to redesign the structure of its pay and benefits to make them more appropriate for its new way of operating. It also may need to recruit employees with a new set of skills. Reengineering often results in employees being laid off or reassigned to new jobs, as the organization's needs change. HR professionals should also help with this transition, as they do for downsizing.

80.

As part of a company-wide business strategy, Wright Inc. conducts a comprehensive examination of its critical work techniques to increase their efficiency. The results of the examination are used to create a strategy to provide high-quality goods and services to the firm's customers. Which of the following HRM practices does Wright use?

A. outsourcing B. reengineering

C. downsizing D. merger E. acquisition Rapidly changing customer needs and technology have caused many organizations to rethink the way they get work done. Therefore, many organizations have undertaken reengineering— a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality.

81.

Carroll Inc., a cell phone manufacturer, has its assembly operations performed by Mortimer Corp., a firm that deals exclusively in assembling products for other companies. This scenario indicates that Carroll engages in the practice of

A. outsourcing.

B. reengineering. C. downsizing. D. benchmarking. E. acquiring. Many organizations are increasingly outsourcing business activities. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services.

82.

Miller Inc., a maker of chocolate products, assigns its packaging and labeling to Labels U.S.A., a firm that specializes in packaging and labeling other companies' products. Which of the following HRM practices is Miller Inc. using in this scenario?

A. acquiring B. reengineering C. downsizing D. benchmarking E. outsourcing

Many organizations are increasingly outsourcing business activities. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services.

83.

The practice of having another company provide services is known as

A. benchmarking. B. downsizing. C. codetermining. D. outsourcing.

E. reengineering. The practice of having another company provide services is referred to as outsourcing.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and 2-100 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

efficiency. Level of Difficulty: 1 Easy Topic: Job Outsourcing

84.

Daily Needs Inc. is a consumer goods company that provides the option of door-to-door delivery. The company has partnered with a packaging company for transporting its goods to the customers. This is an example of

A. cause marketing. B. outsourcing.

C. reengineering. D. disinvesting. E. downsizing. The practice of having another company provide services is referred to as outsourcing. In this case, Daily Needs Inc. is outsourcing the delivery of its products to customers to a packaging company.

85.

Companies are finding that to survive they must contend in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. Which of the following would help businesses in the United States meet these challenges?

A. They must focus on developing domestic markets rather than on developing global markets. B. They must hire only from a domestic labor pool. C. They must prepare employees for global assignments.

D. They must eliminate reshoring—reestablishing operations in North America. E. They must reduce the workforce with a "grenade" approach—by eliminating an entire group of employees. Companies are finding that to survive they must compete in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. To meet these challenges, U.S. businesses must develop global markets, keep up with competition from overseas, hire from an international labor pool, and prepare employees for global assignments.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 3 Hard Topic: The Use of HR Initiatives in the Global Marketplace

86.

Which of the following is the most common reason why U.S. organizations hire employees in foreign countries?

A. lack of technology in the U.S. B. lack of demand for their products in the U.S. C. poor quality of labor in the U.S. D. governmental pressure E. low cost of labor in foreign countries

Organizations with international operations hire at least some of their employees in the foreign countries where they operate. In fact, regardless of where their customers are located, organizations are looking overseas to hire talented people willing to work for less pay than the U.S. labor market requires.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 2 Medium Topic: The Use of HR Initiatives in the Global Marketplace

87.

Palin Inc., an electronics manufacturer, is headquartered in Texas. The firm shifted its operations from Texas to China due to lower labor costs and the availability of required skills in China. This scenario indicates that Palin engaged in the practice of

A. downsizing. B. reengineering. C. offshoring.

D. benchmarking. E. acquiring. Offshoring refers to moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

88.

Which of the following best describes offshoring?

A. It is the practice of having another company provide services. B. It refers to moving operations from the country where a company is headquartered to a

country where pay rates are lower but the necessary skills are available. C. It is a method of staffing other than the traditional hiring of full-time employees. D. It is a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality of products and services. E. It refers to acquiring a new company in a distant location or another country in order to acquire higher market share or growth. Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available is referred to as offshoring.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 1 Easy Topic: The Use of HR Initiatives in the Global Marketplace

89.

When large U.S. software companies open facilities in developing countries to take advantage of the highly skilled labor available there at lower pay rates, they are engaging in

A. consolidation. B. nationalization. C. crowdsourcing. D. codetermining. E. offshoring.

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available is referred to as offshoring.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-05 Summarize ways in which human resource management can support organizations expanding internationally. Level of Difficulty: 2 Medium Topic: The Use of HR Initiatives in the Global Marketplace

90.

Employees who take assignments in other countries are called

A. host-country nationals. B. immigrants. C. external employees. D. expatriates.

E. emigrants. Employees who take assignments in other countries are called expatriates.

91.

Which of the following is an advantage of using a human resource information system in an organization?

E. it can be used by salespeople to improve sales A human resource information system (HRIS) can support strategic decision making, help the organization avoid lawsuits, provide data for evaluating programs or policies, and support dayto-day HR decisions.

92.

Which of the following technologies can be used to consolidate different HR functions into a single location, eliminate redundancy, and reduce administrative costs?

A. Internet portals B. application services C. shared service centers

D. business intelligence systems E. electronic performance support systems Shared service centers consolidate different HR functions into a single location, eliminate redundancy, reduce administrative costs, and process all HR transactions at one time.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. 2-107 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Technology's Role in HRM Activities

93.

Identify the technology that lets a company rent space on a remote computer system and use the system's software to manage its human resource activities, including security and upgrades.

A. application service providers

B. Internet portals C. shared service centers D. business intelligence systems E. electronic performance support systems Cloud computing, such as application service providers, let companies rent space on a remote computer system and use the system's software to manage its HR activities, including security and upgrades.

94.

AlphaTech is a company that develops software to help businesses with data processing. Their software performs multiple businesses functions, including processing payrolls, generating tax information for employees, and managing performance evaluation reports. The software is hosted on a remote server maintained by AlphaTech, and client businesses can access it online. Which of the following technologies is being used by AlphaTech to perform the computing tasks for other businesses?

A. Intranet portal B. HR dashboard C. data mining D. cloud computing

E. business Intelligence Cloud computing refers to generally refers to arrangements in which remote server computers do the user's computing tasks. Application service providers let companies rent a space on a remote computer system and use the system's software to manage its human resource activities, including security and upgrades.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 3 Hard Topic: Technology's Role in HRM Activities

95.

Which of the following technologies provides insight into commercial trends and patterns and helps organizations improve decisions?

A. electronic performance support systems B. Internet portals C. shared service centers D. application service provider E. business intelligence

Business intelligence provides insight into business trends and patterns and helps businesses improve decisions.

96.

Which of the following describes an advantage of electronic human resource management (eHRM)?

A. employees in different geographic areas can receive the same training

B. protecting privacy is not an issue C. it eliminates the need for a company intranet D. employees can get face-to-face answers instead of going online E. not many HRM activities have moved onto the Internet, so data will be secure Many human resource management activities have moved onto the Internet. For example, eHRM applications let employees enroll in and participate in training programs online.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 2 Medium 2-110 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Technology's Role in HRM Activities

97.

Which of the following is TRUE of an intranet?

organization. C. It is a network that is used by a business to reach out to the customers and send them product information. D. It is a system that is used by outside suppliers to update inventories. E. It is a network universally used by business organizations to transfer data from one geographical location to the other. A great deal of human resource information is confidential and not suitable for posting on a website for everyone to see. One solution is to set up an e-HRM system on an intranet, which is a network that uses Internet tools but limits access to authorized users in an organization.

98.

The system in which employees have online access to information about human resource issues and go online to enroll themselves in programs and provide feedback through surveys is termed

A. social facilitation. B. payroll automation. C. cloud computing. D. data mining. E. self-service.

Self-service is a system in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys.

99.

Amy is interested in a career in human resource management. She expected her first job to focus on giving employees access to information and enrollment forms for training, benefits, and other programs. However, she has since learned that HR employees spend less time doing that kind of work. Which of the following trends is behind that change?

A. employees can now get such information through self-service

B. benefits have been cut from most company programs C. managers have taken over those HR duties D. lack of voluntary participation has led to the elimination of employee training programs E. due to privacy laws, human resources cannot obtain any sensitive employee information Information technology is changing the way HR departments handle record keeping and information sharing. Today HR employees use technology to automate much of their work in managing employee records and giving employees access to information and enrollment forms for training, benefits, and other programs. As a result, HR employees play a smaller role in maintaining records, and employees now get information through self-service. This means employees have online access to information about HR issues such as training, benefits, compensation, and contracts; go online to enroll themselves in programs and services; and provide feedback through online surveys.

100.

The use of technology by HR departments in business organizations has resulted in

E. HR employees having greater responsibilities for record keeping. Information technology is changing the way human resource departments handle record keeping and information sharing. Through self-service, employees have online access to information about HR issues such as training, benefits, etc.; can go online to enroll themselves in programs and services; and can provide feedback through online surveys.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 3 Hard Topic: Technology's Role in HRM Activities

101.

What is an HR dashboard?

A. a messaging system used by HR managers to communicate with employees B. a display of how the company is performing on specific HR metrics

C. a tool used to measure the profitability and growth rate of the organization D. a computer system used to acquire and distribute information about work schedules and job duties E. a system used to store, analyze, and process the information regarding the levels of demand and inventory An HR dashboard is a display of how the company is performing on specific HR metrics, such as productivity and absenteeism.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 1 Easy Topic: Technology's Role in HRM Activities

102.

The relationship between an employer and an employee can be thought of in terms of a(n) _____, a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions.

A. employee contract B. offer letter C. psychological contract

D. legal bond E. legal agreement A psychological contract between an employer and an employee is a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. Unlike a written sales contract, the psychological contract is not formally put into words.

103.

Which of the following terms refers to the intentional practice of changing jobs frequently?

A. job hopping

B. moonlighting C. job enlargement D. job enrichment E. freelancing Some employees engage in job hopping, the intentional practice of changing jobs frequently— say, every year or two. Job hopping can be appealing to an employee as a way to stave off boredom and win some rapid increases in pay and responsibility.

104.

The management of Holmes Inc. expects its employees to be enthusiastic about their work by seeking training, putting in long hours of work, initiating better work procedures, and maintaining a sound balance between professional life and personal life. In return, the firm's employees expect management to arrange for better incentives, flexible work schedules, and increased authority to execute their tasks. This scenario is an example of a(n)

A. employee contract. B. offer letter. C. legal agreement. D. legal bond. E. psychological contract.

A psychological contract between an employer and an employee is a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. In the traditional version of this psychological contract, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty. In return, the organizations would provide job security and opportunities for promotion.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 02-07 Explain how the nature of the employment relationship is changing. Level of Difficulty: 3 Hard Topic: Challenges Facing Human Resources Today

105.

Which of the following statements is TRUE of a psychological contract?

Unlike a written sales contract, the psychological contract is not formally put into words. Instead it describes unspoken expectations that are widely held by employers and employees. In the traditional contract, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty. In return, the organizations would provide job security and opportunities for promotion. In the new contract, employees exchange top performance and working longer hours without job security for the company providing flexible work schedules, comfortable working conditions, more control over how the employees accomplish work, training and development opportunities, and financial incentives.

106.

The new type of psychological contract has resulted in reduced

A. creativity. B. employee compensation. C. flexibility. D. training and development opportunities. E. job security.

The new psychological contracts have resulted in reduced job security and longer work hours.

107.

Employees realize that many companies are no longer able to provide long-term employment security. Instead, the employees now want

A. increased pay. B. less demanding work. C. employability.

D. written employment contracts. E. additional benefits. Employees realize that companies cannot provide employment security, so they want employability. This means they want their company to provide training and job experiences to help ensure that they can find other employment opportunities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-07 Explain how the nature of the employment relationship is changing. Level of Difficulty: 1 Easy Topic: Challenges Facing Human Resources Today 2-119 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

108.

Kylie changes jobs on a regular basis. She does this to secure better career growth opportunities and to decrease boredom. Kylie engages in

A. freelancing. B. job enrichment. C. job hopping.

D. benchmarking. E. moonlighting. Some employees engage in job hopping, the intentional practice of changing jobs frequently— say, every year or two. Job hopping can be appealing to an employee as a way to stave off boredom and win some rapid increases in pay and responsibility.

109.

The use of independent contractors, on-call workers, temporary workers, and contract company workers, collectively constitutes

A. outsourcing. B. alternative work arrangements.

C. consolidation. D. high-performance work systems. E. offshoring. Alternative work arrangements are methods of staffing other than the traditional hiring of fulltime employees. Use of independent contractors, on-call workers, temporary workers, and contract company workers are all examples of alternative work arrangements.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 1 Easy Topic: The Contingent Workforce

110.

Independent contractors are

A. usually full-time company employees. B. self-employed individuals with multiple clients.

C. people employed by a temporary agency. D. employed directly by a company for a specific time. E. people employed by a company to work on an independent project. Independent contractors are self-employed individuals with multiple clients.

111.

Abdul, a financial analyst, is not employed directly by any company. He works for several clients based on their requirements. Abdul would be classified as a(n)

A. permanent employee. B. independent contractor.

C. part-time employee. D. contract company worker. E. temporary worker. Independent contractors are self-employed individuals with multiple clients.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply 2-121 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 3 Hard Topic: The Contingent Workforce

112.

Which of the following is a type of person who works for an organization only when they are needed?

A. on-call workers

B. moonlighting employees C. apprentices D. part-time employees E. trainees On-call workers are persons who work for an organization only when they are needed.

113.

A person that is employed directly by a company for a certain amount of time, specified in a formal agreement between the company and the workers, is referred to as a(n)

A. on-call worker. B. independent contractor. C. temporary worker. D. contract company worker.

E. part-time worker. Contract company workers are employed directly by a company for a specific time, specified in a written contract.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2-122 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 1 Easy Topic: The Contingent Workforce

114.

Identify the correct statement about flexible work schedules.

the notion of a 40-hour workweek obsolete. E. Professional employees do not face long hours anymore due to flexible work schedules. The globalization of the world economy and the development of e-commerce have made the notion of a 40-hour workweek obsolete. As a result, companies need to be staffed 24 hours a day, seven days a week.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-08 Discuss how the need for flexibility affects human resource management. Level of Difficulty: 2 Medium Topic: The Use of HR Initiatives in the Global Marketplace

Essay Questions

115.

Define the term labor force, distinguishing between the internal labor force and the external labor market.

The term labor force is a general way to refer to all the people willing and able to work. For an organization, the internal labor force consists of the organization's workers—its employees and the people who have contracts to work at the organization. This internal labor force has been drawn from the organization's external labor market. The external labor market consists of, individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 2 Medium Topic: Internal and External Recruiting

116.

List the activities involved in managing cultural diversity.

Managing cultural diversity involves many different activities. They include: 1. Creating an organizational culture that values diversity. 2. Ensuring that human resource management systems are bias free. 3. Encouraging career development for women and minorities. 4. Promoting knowledge and acceptance of cultural differences. 5. Ensuring involvement in education both within and outside the company. 6. Dealing with employees' resistance to diversity.

AACSB: Diversity Blooms: Understand Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 2 Medium Topic: Diversity Management

117.

Explain the problem of skill deficiencies in the U.S. workforce. What companies are doing to address this issue?

The increasing use of computers to do routine tasks has shifted the kinds of skills needed for employees in the U.S. economy. Such qualities as physical strength and mastery of a particular piece of machinery are no longer important for many jobs. More employers are looking for mathematical, verbal, and interpersonal skills, such as the ability to solve math or other problems or reach decisions as part of a team. Often, when organizations are looking for technical skills, they are looking for skills related to computers and using the Internet. Today's employees must be able to handle a variety of responsibilities, interact with customers, and think creatively. Competition for qualified college graduates in many fields is intense. Some companies are unable to find qualified employees and instead rely on training to correct skill deficiencies. Other companies team up with universities, community colleges, and high schools to design and teach courses ranging from basic reading to design blueprint reading. Not all the skills employers want require a college education. In some areas, companies and communities have set up apprenticeship and training programs to fix the worker shortage. In Rock Island, Illinois, BNSF Railway partnered with Carl Sandburg College to start a National Academy of Railway Sciences Program. The college acquired computer-controlled machinery to support its training. In Fridley, Minnesota, EJ Ajax Metal Forming Solutions supports programs at local technical colleges and pays tuition for employees earning two-year degrees. Efforts such as these often extend outreach to high school students, who may not have recognized manufacturing work as a desirable career path.

AACSB: Analytical Thinking Blooms: Analyze Learning Objective: 02-01 Describe trends in the labor force composition and how they affect human resource management. Level of Difficulty: 3 Hard Topic: Challenges Facing Human Resources Today

118.

Define the concept of knowledge workers and explain their impact on high-performance work systems.

As the nature of the workforce and the technology available to organizations have changed, so have the requirements for creating a high-performance work system. Customers are demanding high quality and customized products, employees are seeking flexible work arrangements, and employers are looking for ways to tap people's creativity and interpersonal skills. Such demands require that organizations make full use of their people's knowledge and skill. This has resulted in increased demand for knowledge workers. Employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession are referred to as knowledge workers. Knowledge workers are in a position of power, because they own the knowledge that the company needs in order to produce its products and services, and they must share their knowledge and collaborate with others in order for their employer to succeed. An employer cannot simply order these employees to perform tasks. Managers depend on the employees' willingness to share information. Furthermore, skilled knowledge workers have many job opportunities, even in a slow economy. If they choose, they can leave a company and take their knowledge to another employer. Replacing them may be difficult and time consuming. Recently, the idea that only some of an organization's workers are knowledge workers has come under criticism. To the critics, this definition is no longer realistic in a day of computerized information systems and computer-controlled production processes. For the company to excel, everyone must know how their work contributes to the organization's success. At the same time, employees—especially younger generations, which grew up with the Internet—will expect to have wide access to information. From this perspective, successful organizations treat all their workers as knowledge workers. They let employees know how well the organization is performing, and they invite ideas about how the organization can do better.

AACSB: Analytical Thinking Blooms: Analyze Learning Objective: 02-02 Summarize areas in which human resource management can support the goal of creating a highperformance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

119.

What is employee empowerment? How can human resource departments help to make it effective?

Employee empowerment means giving employees the responsibility and authority to make decisions regarding the aspects of product development or customer service under their control. Employees are held accountable for products and services; in return, they share in the resulting rewards and losses. For empowerment to succeed, listening to the employees with an open mind, getting employees fully engaged by communicating with them about how their jobs support the organization's mission, making sure that the employees have the skills and resources to succeed in their jobs, by rewarding the employees for their accomplishments. The HR departments can also help by encouraging the employees to come up with innovative ideas by showing them that the ideas are considered without regard for the employees' status in the organization and also by rewarding the creative ideas. They can also train the managers on how to get the employees fully engaged and to respect the ideas given by the employees. They can also encourage the managers by evaluating and rewarding the implementation of new ideas so that they can demonstrate that the organization is serious about innovation.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 02-03 Define employee empowerment, and explain its role in the modern organization. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

120.

List and explain the core values of total quality management.

The following are several of the core values of TQM: • Methods and processes are designed to meet the needs of internal and external customers (that is, whomever the process is intended to serve). • Every employee in the organization receives training in quality. • Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected in an error-prone product or service. • The organization promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. • Managers measure progress with feedback based on data.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

121.

What is outsourcing? What are the trends in human resource outsourcing?

Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services. Not only do HR departments help with a transition to outsourcing, but many HR functions are being outsourced. Outsourcing initially focused on routine transactions such as payroll processing and on complex technical specialties such as managing retirement accounts and, more recently, health care coverage. Today's outsourcing is moving more into areas that automate process and support decision making. Examples include recruitment process outsourcing and benefits administration. Small companies sometimes outsource all of their HR work.

AACSB: Analytical Thinking Blooms: Apply

Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. Level of Difficulty: 3 Hard Topic: Job Outsourcing

122.

What is a human resource information system (HRIS)? How does it help HR professionals?

A human resource information system (HRIS) is a computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization's human resources. An HRIS can support strategic decision making, help the organization avoid lawsuits, provide data for evaluating programs or policies, and support day-to-day HR decisions. The support of an HRIS can help HR professionals think strategically. As strategies are planned, implemented, and changed, the organization must be constantly prepared to have the right talent in place at all levels. This requires keeping track of an enormous amount of information related to employees' skills, experience, and training needs, as well as the organization's shifting needs for the future. An HRIS can support talent management by integrating data on recruiting, performance management, and training. Integrating the data means, for example, that the HRIS user can see how specific kinds of recruiting, hiring, and training decisions relate to performance success. This helps HR professionals identify how to develop the organization's talent and where to recruit new talent so that an ongoing supply of human resources is available to fill new positions or new openings in existing positions.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 02-06 Discuss how technological developments are affecting human resource management. Level of Difficulty: 3 Hard Topic: Technology's Role in HRM Activities

123.

Define electronic human resource management (e-HRM). List five ways creative organizations are applying social networking tools to human resource management.

Electronic human resource management (e-HRM) refers to the processing and transmission of digitized information used in HRM, including text, sound, and visual images, from one computer or electronic device to another. The HRM applications of social networking tools include: 1. Sites for capturing, sharing, and storing knowledge to preserve knowledge that otherwise could be lost when employees retire. 2. Online surveys to gather employees' opinions, which help increase employees' engagement with the jobs and the organization. 3. Networking tools to create online expert communities to identify employee expertise and make it available to those who can apply it. 4. Online discussions such as commenting tools to promote creativity and innovation. 5. Sites where users can post links to articles, webinars, training programs, and other information that helps to reinforce lessons learned during training and on-the-job experience. 6. Instant messaging and other communication tools to use with mentors and coaches, which help in employee development through mentoring and coaching. 7. Sites where the HR department posts job openings and responds to candidates' questions which helps to identify and connect with promising job candidates.

124.

Explain what a psychological contract is and compare the traditional version to the new type.

A psychological contract is a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. Unlike a written sales contract, the psychological contract is not formally put into words. Instead, it describes unspoken expectations that are widely held by employers and employees. In the traditional version of this psychological contract, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty. In return, the organizations would provide job security and opportunities for promotion. However, this arrangement is being replaced with a new type of psychological contract. Companies expect employees to take more responsibility for their own careers, from seeking training to balancing work and family. These expectations result in less job security for employees, who can count on working for several companies over. In exchange for top performance and working longer hours without job security, employees want companies to provide flexible work schedules, comfortable working conditions, more control over how they accomplish work, training and development opportunities, and financial incentives based on how the organization performs.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 02-07 Explain how the nature of the employment relationship is changing. Level of Difficulty: 3 Hard Topic: Challenges Facing Human Resources Today

Chapter 03 Providing Equal Employment Opportunity and a Safe Workplace

True / False Questions

1. The legislative branch of the U.S. government is responsible for enforcing the laws passed by Congress. True

False

2. The Civil Rights Act of 1991 was partly designed to overturn Supreme Court decisions. True

False

3. The Fourteenth Amendment abolished slavery in the United States. True

False

4. A person can file a claim under the Fourteenth Amendment on charges of racial discrimination if he or she is fired by a private employer. True

False

5. Under the Equal Pay Act of 1963, pay differences are permitted between men and women performing the same job if the difference arises from any factor other than sex. True

False

6. Title VII of the Civil Rights Act of 1964 states that employers may retaliate against employees for either opposing a perceived illegal employment practice. True

False

7. An employer's refusal to hire a pregnant woman is acceptable by law. True

False

8. The Americans with Disabilities Act covers people with problems arising from substance abuse. True

False

9. Executive Order 11478 requires the federal government to base all its employment policies on national origin. True

False

10. If an attempt at a settlement fails, the Equal Employment Opportunity Commission (EEOC) may issue a "right to sue" letter to the alleged victim. True

False

11. Organizations that are government contractors or subcontractors must file an Employer Information Report (EEO-1) with the Equal Employment Opportunity Commission (EEOC) every year. True

False

12. The Office of Federal Contract Compliance Programs audits government contractors to ensure they are actively pursuing the goals in their plans. True

False

13. Disparate treatment on the basis of sex is illegal even if it is a bona fide occupational qualification. True

False

14. To prove disparate impact in court, a plaintiff in a discrimination lawsuit must show an employer's intent. True

False

15. In employment law, reasonable accommodation refers to an employee's obligation to adjust and make compromises on their personal beliefs and practices, including completely disregarding them, if they conflict with an organization's policies. True

False

16. A manager who promises a raise to an employee only if they participate in sexual activities is said to be engaging in quid pro quo harassment. True

False

17. If an individual's behavior in the workplace creates an environment in which it is difficult for someone of a particular sex to work, it cannot be regarded as sexual harassment. True

False

18. The practice of valuing diversity has been written into law. True

False

19. The general-duty clause of the Occupational Safety and Health Act states that it is each employer's duty to furnish a place of employment free from recognized hazards. True

False

20. According to the Occupational Safety and Health Act (OSH Act), employers have the right to withhold an employee's access to records regarding exposure to hazards. True

False

21. If an Occupational Safety and Health Act violation results in citations, an employer must post each citation in a prominent place near the location of the violation. True

False

22. Office workers who encounter a chemical infrequently are covered by the requirements of the Occupational Safety and Health Act's Hazard Communication Standard. True

False

23. The Occupational Safety and Health Act directly regulates employee behavior in workplaces to ensure safety. True

False

24. Under the job hazard analysis technique, if a single job element has a high hazard potential, the entire job is not completed. True

False

25. Cultural differences are insignificant in a company promoting safety internationally. True

False

Multiple Choice Questions

26. Suppose you are a human resource executive, supporting strategy. Executives in your industry are concluding that a certain HR-related law no longer seems relevant in the Internet age. To which government branch would it be most effective to turn for addressing the need for a change in the legal environment?

A. the executive branch, requesting it not enforce the existing law B. the executive branch, requesting a new law in this area C. the judicial branch, requesting a new law in this area D. the legislative branch, requesting a new law in this area E. the legislative branch, requesting it not enforce the existing law 27. Which of the following agencies is primarily responsible for enforcing the laws passed by Congress?

A. the U.S. House of Representatives B. the U.S. Senate C. the executive branch of the government D. the legislative branch of the government E. the U.S. Cabinet 28. Which of the following actions is one of the ways in which the executive branch helps create the

legal environment for human resource management?

A. filing suit against violators of equal opportunity laws B. enacting laws governing worker safety and health C. interpreting federal laws D. overturning Supreme Court decisions E. holding trials concerning violations of equal opportunity laws

29. Which of the following actions could be an example of how the Occupational Safety and Health Administration plays a role in the legal environment for human resource management?

A. passing laws to protect workers' safety and health B. holding trials concerning alleged violations of its regulations C. holding trials concerning alleged violations of the Occupational Safety and Health Act D. filing lawsuits against alleged violators of the Occupational Safety and Health Act E. issuing executive orders related to worker safety and health 30. Victoria is a human resource specialist. To gain competency in her field, she keeps up with business news related to human resource management. One area of the news she pays attention to is coverage of the cases the Supreme Court hears each year. Why would stories about the Supreme Court be relevant for Victoria's career?

A. The Supreme Court may issue rulings that interpret employment law. B. The Supreme Court may pass laws regulating employment practices. C. The Supreme Court may issue executive orders related to employee safety. D. The Supreme Court may require federal contractors to engage in affirmative action. E. Decisions made by the Supreme Court cannot be overturned by the federal government.

31. Emma, a 24-year-old Hispanic woman, pressed charges of sexual harassment against Jonathan, a politician. The case became sensational because the accused was one of the strongest candidates in the upcoming elections. In the case's final stage, the United States Supreme Court issued a verdict that cleared Jonathan of all charges on the grounds of lack of evidence. The ruling spurred angry protests from many interest groups, especially Hispanic women, and they wanted the verdict reversed. According to the prevalent system, which among the following would overturn the verdict in this case?

A. a mass petition from the public B. an appeal from the minority population C. a law passed by Congress D. a ruling by the Equal Employment Opportunity Commission E. a petition from the United States Women Rights Council 32. Naomi, a white female applicant, is refused a job at a state university in favor of a less qualified minority applicant. She could consider suing the university on charges of reverse discrimination against her under the _____.

A. Thirteenth Amendment B. Fourteenth Amendment C. Twenty-Second Amendment D. Civil Rights Act of 1866 E. Occupational Safety and Health Act 33. Which of the following is enforced by the Equal Employment Opportunity Commission?

A. Thirteenth Amendment B. Rehabilitation Act of 1973 C. Fourteenth Amendment D. Executive Order 11246 E. Americans with Disabilities Act of 1990

34. Which of the following statements is true about the Civil Rights Acts of 1866 and 1871?

A. They denied plaintiffs any form of compensatory and punitive damages. B. They restricted the rights of entering into and enforcing contracts to white citizens only. C. They denied individuals the right to sue in federal court. D. They excluded other individuals from having the same property rights as white citizens. E. They were passed to further the Thirteenth Amendment's goal of abolishing slavery. 35. _____ granted all persons the same property rights as white citizens, as well as the right to enter into and enforce contracts.

A. The Thirteenth Amendment B. The Fourteenth Amendment C. The Civil Rights Act of 1866 D. Title VII of the Civil Rights Act E. Executive Order 11246 36. According to the Equal Pay Act of 1963, men and women performing the same job cannot have differences in pay on the basis of _____.

A. merit B. seniority C. education D. quality of production E. sex

37. Jonathan and Nicole hold the same position at an organization. However, Jonathan is paid more than Nicole. According to the Equal Pay Act of 1963, which of the following will strengthen the fact that the pay difference is a legal one?

A. Jonathan is more skilled than Nicole because he is a male. B. Nicole is not an American citizen. C. Jonathan is younger than Nicole. D. Nicole is pregnant. E. Jonathan works the night shift. 38. Which of the following is true about Title VII of the Civil Rights Act of 1964?

A. The act permits employers to hire job applicants belonging exclusively to a particular nationality. B. The act applies to organizations with 15 or more employees. C. The act permits employers to retaliate against employees participating in a proceeding against an employer. D. The act protects employers from an employee's opposition to an alleged illegal employment practice. E. The act permits employers to hire an individual based on his or her gender and race in the absence of a bona fide occupational qualification (BFOQ).

39. Alyssa thinks that her company is discriminating against a particular group of employees by denying them seniority or promotions. She expresses her concern to a senior human resources manager. This method of expressing concern about an instance of illegal employment through proper channels is known as _____.

A. opposition B. retaliation C. participation in a proceeding D. discrimination E. affirmative action 40. Which of the following represents an act of participation in a proceeding?

A. removing a whistleblower from employment B. implementing affirmative action measures C. expressing dissatisfaction over employment casually D. retaliating against a whistleblower E. testifying in an investigation 41. Identify the statement that characterizes the Age Discrimination in Employment Act.

A. It favors the idea of coercing employees to accept early-retirement incentives. B. It permits an employer to reduce the fringe benefits to all employees over 40. C. It permits companies to lay off older workers when the economy is slow. D. It outlaws making employment decisions based on a person's age being over 40. E. It recommends early-retirement incentive programs wherein employees agree not to sue the company for ageism.

42. The Age Discrimination in Employment Act protects only those workers who are over the age of _____.

A. 30 B. 25 C. 20 D. 40 E. 35 43. Which of the following statements reflects a violation of the Age Discrimination in Employment Act?

A. Older employees are permitted to work even after attaining the retirement age. B. Employees over the age of 40 are forced to retire as part of a company's downsizing program. C. An employee is denied employment because of the fact that he is a minor. D. Older workers in an organization are better compensated than the younger workers. E. An employee chooses voluntary retirement before attaining the retirement age. 44. The Vocational Rehabilitation Act of 1973 was introduced to enhance employment opportunity for _____.

A. women B. minors C. older employees D. individuals with disabilities E. minorities

45. Which of the following refers to an organization's active effort to find opportunities to hire or promote people in a particular group?

A. affirmative action B. disparate impact C. reasonable accommodation D. reverse discrimination E. adverse impact 46. Florence, a marketing executive in her late thirties, had worked at a reputable marketing firm for the last three years. However, she was fired from the company without any prior notice when she collapsed at work after experiencing an epileptic seizure. Following this, Florence sued the company under _____.

A. Executive Order 11246 B. Rehabilitation Act of 1973 C. Americans with Disabilities Act D. Occupational Safety and Health Act E. Executive Order 11478 47. The Americans with Disabilities Act protects individuals who

A. are obese. B. are severely disfigured. C. engage in substance abuse. D. are left-handed. E. are nearsighted.

48. Reese's use of illegal drugs limits her ability to walk properly. The elevator at her office was not working for many months, so Reese needed to climb two flights of stairs and had difficulty getting to her desk. She tried suing her company under the Americans with Disabilities Act, arguing that her company discriminates against individuals who cannot perform major life activities. Which of the following would weaken Reese's argument?

A. Reese is not a senior employee. B. The ADA prohibits discrimination only against workers who are over the age of 40. C. The ADA does not cover conditions of substance abuse. D. Reese is not pregnant. E. The ADA applies only to the decisions or actions of the government. 49. Identify the statement that accurately represents the Americans with Disabilities Act.

A. It permits an employer to cut down on fringe benefits of individuals with disabilities. B. It permits discrimination in areas such as layoffs and leaves. C. It goes beyond prohibiting discrimination to require that employers take steps to accommodate individuals covered under the legislation. D. It classifies a person who needs ordinary eyeglasses or contact lenses to perform each major life activity with little or no difficulty as disabled. E. It is used to protect individuals with conditions such as obesity and substance abuse.

50. Solar Energy Inc. is a company that produces solar panels for domestic use. It has 800 permanent employees working in different departments. Suppose the company gets involved in a case of intentional employee discrimination. What is the maximum amount of punitive damages it would have to pay under the Civil Rights Act of 1991?

A. $50,000 B. $100,000 C. $200,000 D. $250,000 E. $300,000 51. Select the statement that characterizes the Civil Rights Act of 1991.

A. It limits damage claims to attorney's fees and costs. B. It requires violators to pay punitive damages that specifically cover emotional pain and suffering. C. It prohibits violators from paying compensatory damages. D. It limits the maximum punitive damages allowed depending on the size of an organization. E. It limits the maximum punitive damages to $50,000 for all organizations even if the discrimination was intentional.

52. William, an employee with the U.S. Postal Service, was deployed to Afghanistan to serve in the U.S. Army for two years. After the completion of his military duties, he resumed work at the post office. He was reemployed with an increase in pay. Which of the following laws protected William by requiring that his employer reemploy him with the seniority, status, and pay rate he would have earned if he had stayed on the job during the time of his deployment?

A. Vocational Rehabilitation Act B. Uniformed Services Employment and Reemployment Rights Act (USERRA) C. Americans with Disabilities Act (ADA) D. Age Discrimination in Employment Act (ADEA) E. Occupational Safety and Health Act 53. Under the Uniformed Services Employment and Reemployment Rights Act of 1994, employers must reemploy workers who left jobs to fulfill military duties for up to _____ years.

A. five B. eight C. six D. seven E. nine

54. Sam leaves an organization for three years to fulfill military duties. Which of the following observations is true of his employer's obligation to reemploy Sam under the Uniformed Services Employment and Reemployment Rights Act?

A. The employer is not obligated to reemploy Sam. B. The employer must reemploy Sam with the same seniority and status he would have earned if his employment had not been interrupted. C. The employer must reemploy Sam, but is exempted from providing him any fringe benefits or retirement benefits. D. The employer must implement an early-retirement incentive program for Sam. E. The employer must reemploy Sam with a lower pay scale to compensate for his absence. 55. Which of the following requires the federal government to base all its employment policies on merit and fitness?

A. Executive Order 11246 B. Executive Order 11478 C. The Civil Rights Act of 1866 D. The Civil Rights Act of 1871 E. The Rehabilitation Act of 1973

56. Aaron has been a systems analyst at a software company for six years. Although he works hard, gets favorable performance reviews, takes night classes in business management, and has applied for promotions, his coworkers always get the promotions instead. Aaron started asking his coworkers about this, and one of them said, "Don't you realize? This management will never promote someone like you." This supports Aaron's concern that he may be a target of discrimination because he is black; other talented employees are black, but no black employees have moved into management positions. Aaron decides to discuss the problem with the human resource manager. If he can't find a satisfactory solution that way, with which federal agency could he file a complaint?

A. Anti-Discrimination Federal Agency B. Equal Employment Opportunity Commission C. Office of Federal Contract Compliance Programs D. Uniform Guidelines on Employee Selection Procedures E. Federal Register 57. After filing a discrimination complaint with the Equal Employment Opportunity Commission (EEOC) or other governmental agency, how long will an individual have to wait before having the right to sue in federal court?

A. 30 days B. 60 days C. 10 days D. 20 days E. 40 days

58. A _____ refers to an agreement between the Equal Employment Opportunity Commission and an organization that the organization will cease certain discriminatory practices and possibly institute additional affirmative-action practices to rectify its history of discrimination.

A. trust agreement B. good faith bargaining C. consent decree D. letter of indemnity E. judicial estoppel 59. The _____ is the set of guidelines issued by the Equal Employment Opportunity Commission (EEOC) and other agencies to identify how an organization should establish a recruitment process that is free and fair.

A. Uniform Commercial Code B. Equal Opportunity Legislation and Policy C. Code of Federal Regulations D. Uniform Guidelines on Employee Selection Procedures E. Equal Employment Opportunity Commission's Employer Information Report 60. What is the name of the agency that is responsible for enforcing the executive orders that cover companies doing business with the federal government?

A. the Occupational Safety and Health Administration B. the National Institute for Occupational Safety and Health C. the Office of Federal Contract Compliance Programs D. the Equal Employment Opportunity Commission E. the Federal Department of Employment and Workplace Relations

61. Carmen, a Hispanic female in the accounting department of a large retail chain, believes she has been the victim of race and sex discrimination. Why can't she turn to the Office of Federal Contract Compliance Programs (OFCCP) for assistance with this problem?

A. The injury to Carmen is under the $50,000 threshold. B. The OFCCP protection does not cover sex discrimination. C. Her employer doesn't have contracts with the federal government. D. A retail chain would not be affected by federal anti-discrimination laws. E. Her company does not have an affirmative-action plan on file. 62. According to the affirmative-action plan required by the Office of Federal Contract Compliance Programs, which of the following refers to a comparison of the race, sex, and ethnic composition of an employer's workforce with that of the available labor supply?

A. content analysis B. job analysis C. SWOT analysis D. utilization analysis E. applied behavior analysis 63. According to the affirmative-action plan required by the Office of Federal Contract Compliance Programs, _____ refer(s) to a plan identifying the ways in which an organization will meet its diversity goals.

A. action steps B. utilization analysis C. diversification D. affirmative action E. disparate impact

64. Differing conduct toward individuals, where the differences are clearly based on the individuals' race, color, religion, sex, national origin, age, or disability status is termed as _____.

A. sexual discrimination B. affirmative action C. disparate treatment D. reasonable accommodation E. reverse discrimination 65. Identify the case in which disparate treatment is considered legal.

A. In a particular retail outlet, male workers are employed to handle the sales. B. In an electrical company, male workers are exclusively employed to work as electricians. C. In a vehicle manufacturing company, male workers are exclusively employed in all departments. D. In a certain shopping mall, female workers are exclusively employed to clean the women's restroom. E. In a particular hospital, only female nurses are appointed. 66. Which of the following statements is TRUE of a bona fide occupational qualification?

A. it is considered illegal by a court B. it is a necessary qualification for a job C. it is strictly prohibited by organizations D. it is a preferred qualification for the job E. it is used to deem disparate treatment illegal

67. Select the case that would most likely be filed under disparate impact.

A. Hakeem is not permitted to train on a new manufacturing machine because he has not yet completed his company's mandatory workplace safety training course. B. Betsy's coworker, Candice, is up for a promotion. Both were hired at the same time for the same entry-level accounting positions, and both have the same level of education. However Candice consistently seeks to take on additional responsibilities, while Betsy barely turns her own work in on time. C. Chantel wants to be part of her local police force. Both men and women are encouraged to apply, but Chantel discovers the force has a minimum height requirement of 5'10''. She is 5'6''. D. Ralph is reviewing applications for an open position at his company. One step in the hiring process requires him to investigate conviction records for all of the job applicants. E. Heather, an HR employee at a university, is putting together a job listing for an open faculty position. Her listing specifies that interested applicants must have a doctoral degree. 68. A vehicle manufacturing company decides to hire 35 employees for its new servicing branch located in Texas. A total of 90 eligible applicants apply for the job, of which 40 are black and 50 are white. Assuming that the company decides to hire 10 blacks and 25 whites, what can be inferred using the four-fifths rule?

A. 0.5 < 0.8; this indicates that there is no evidence of discrimination. B. 2 > 0.8; this indicates that there is evidence of discrimination. C. The hiring rate for blacks is equal to four-fifth the hiring rate of whites; hence, there is no evidence of discrimination. D. 0.5 < 0.8; this indicates that there is evidence of discrimination. E. 2 > 0.8; this indicates that there is no evidence of discrimination.

69. Identify the type of case where most of the debate focuses on discriminatory consequences and the plaintiff need not prove an employer's intent to discriminate.

A. disparate impact B. disparate treatment C. reasonable accommodation D. affirmative action E. corrective action 70. Which of the following actions by employers can result in reverse discrimination?

A. affirmative action B. reasonable accommodation C. disparate treatment D. retaliation E. disparate impact 71. An accounting firm is in the processing of interviewing candidates for the position of receptionist. A job candidate arrives at an interview accompanied by a service dog. Which of the following actions by an employer would best meet the requirements of equal employment opportunity?

A. describing job requirements and asking the employee how she would meet them B. telling the candidate politely that a blind person can't be a receptionist C. explaining that the company has a no-pets rule D. making every possible accommodation for this person, at any cost E. hiring the candidate, whether or not she is qualified for the job

72. Identify the correct statement regarding reasonable accommodation.

A. Reasonable accommodation is the same as reverse discrimination. B. Reasonable accommodation exclusively compensates for the poor educational background that hampers the progress of employees. C. Reasonable accommodation is typically provided in situations involving individuals with disabilities or different religious needs. D. Reasonable accommodation is provided on a homogeneous basis without the provisions being tailored to the individual needs of employees. E. Reasonable accommodation is provided by an organization even if the requisite changes create undue hardship on the organization. 73. Logan, a blind man in his early twenties, was recently hired as a DJ at a local radio station in Miami. He was given permission by his manager to bring his guide dog to work. In this instance, Logan's employer makes a(n) _____.

A. disparate impact B. disparate treatment C. reverse discrimination D. reasonable accommodation E. undue hardship 74. Which of the following is true about avoiding discrimination?

A. A bona fide occupational qualification is a merely preferred qualification for performing a job. B. Proving disparate impact in court requires showing an employer's intent. C. Proving disparate treatment in court does not require the plaintiff showing an employer's intent. D. Reasonable accommodation is provided subject to the condition of undue hardship. E. If the four-fifths rule is satisfied, substantial evidence of discrimination exists.

75. What is the legal basis for considering sexual harassment to be illegal discrimination?

A. It is a threat to workplace safety. B. It is a form of disability-related discrimination. C. It is a form of sex discrimination. D. It is a form of age discrimination. E. It is a form of workplace violence. 76. Chelsea is a human resource manager at a construction company. Allison, an employee from one of the job sites, told Chelsea she is upset because her site supervisor has been flirting and asking her to go out with him, even after she asked him to stop. Chelsea meets with the supervisor and tells him the company could be sued for violating anti-discrimination laws. The supervisor says, "Aw, Allison knows I'm just joking! No worries, I'll give her a big raise when her performance review comes up, and then she'll know I'm a nice guy." Which of the following points does Chelsea need to stress with the supervisor?

A. The supervisor needs to give Allison a raise immediately, to calm the situation. B. Sexual harassment includes conduct that creates an offensive work environment. C. Sexual harassment includes physical contact. D. Sexual harassment includes requiring sexual favors as a basis for employment decisions. E. The supervisor must report his conduct to the Equal Employment Opportunity Commission. 77. When an individual is promised a positive outcome for submission to sex, or threatened with a negative outcome for failure to submit to sex, this is referred to as _____.

A. adverse impact B. disparate impact C. reverse discrimination D. undue hardship E. quid pro quo harassment

78. Which of the following is TRUE of quid pro quo harassment?

A. It involves mocking an individual's sexual orientation. B. It refers to an individual gaining benefit in return for a sexual favor. C. It involves making hiring decisions based on the gender of the applicant. D. It involves harassment against people based exclusively on the factor of age. E. It provides preferential treatment for the minority gender at the workplace. 79. When Nicole started working for Brawny Construction, two of her coworkers made a point of telling sex-related jokes around her, and they occasionally ran their fingers through her hair and suggested meeting up after work. Nicole feels uncomfortable. What grounds would she have for complaining to the human resource department about her coworkers?

A. Their behavior violates Executive Order 11246. B. Their behavior violates the Thirteenth Amendment. C. Their behavior probably violates the OSH Act. D. Their behavior could be considered quid pro quo harassment. E. Their behavior could be considered creation of a hostile working environment. 80. Liberty Eagle Enterprises has a policy statement making it clear that it does not tolerate sexual harassment. It set up an employee hot line for reporting harassment. When it received complaints about one of the maintenance workers, the company took action and corrected the problem immediately. However, two months later, it is receiving more complaints, this time about a supervisor on the night shift. What else should Liberty Eagle do to keep the workplace free from sexual harassment?

A. modify the complaint procedure so employees don't overuse it B. wait to investigate the new complaints C. file a complaint with the Equal Employment Opportunity Commission D. train all employees to identify inappropriate workplace behavior E. broaden the policy to include harassment of men, not just women

81. Which of the following statements is TRUE of an organizational policy of valuing diversity?

A. The practice of valuing diversity has a single form, written into business theory. B. Organizations that value diversity see a diverse workforce as a competitive advantage. C. Valuing diversity means learning respect for the organization's shared values, not each individual. D. The types of diversity that are valued are limited to the categories protected by law. E. Valuing diversity is an alternative to supporting equal employment opportunity. 82. Luis is an HR manager preparing a message to his company's employees, explaining the company's new policy of valuing diversity. Which of the following statements should he use to express the best business case for valuing diversity?

A. A diverse workforce makes the company more competitive by providing insights into its diverse customers. B. A diverse workforce is necessary to stay out of legal trouble related to equal employment opportunity. C. Valuing diversity takes many forms, including affirmative action and rewards for demonstrating respect. D. Valuing diversity need not be limited to employees in categories protected by law. E. Valuing diversity involves administrative decisions for the human resource department. 83. Which of the following is the most comprehensive U.S. law regarding worker safety?

A. the Thirteenth Amendment B. the Fourteenth Amendment C. the Occupational Safety and Health Act D. the Rehabilitation Act of 1973 E. the Civil Rights Act of 1991

84. Name the executive department that is responsible for conducting research to determine the criteria for specific operations or occupations and for training employers to comply with the Occupational Safety and Health Act.

A. the Department of Health B. the Department of Commerce C. the Department of Justice D. the Department of Labor E. the Department of Homeland Security 85. Tom Fender has worked for a small chemical manufacturing company for the past 10 years. As of late, he and the other workers have developed minor respiratory problems. They confronted management demanding proper ventilation at the factory because inhaling chemical fumes continuously could prove fatal. If management does not respond to their demands, they could sue the company under the _____.

A. Occupational Safety and Health Act B. Equal Pay Act of 1963 C. Title VII of the Civil Rights Act of 1964 D. Americans with Disabilities Act E. Age Discrimination in Employment Act 86. Logan has joined a start-up manufacturing company as its human resource manager. One of his first responsibilities is to make sure the company complies with the OSH Act. Under this law, what records must Logan keep?

A. a list of violations of the general-duty clause B. work-related injuries, plus an annual summary of employee illnesses C. work-related injuries and illnesses, with an annual summary of these D. schedule of employee-requested OSHA inspections E. responses to questions in OSHA's Small Business Handbook

87. Gabriel opened up a small business that prints custom T-shirts, mugs, and trophies. He trains his 15 employees carefully, and after two years, no employee has experienced an on-the-job injury or illness. Under the requirements of the Occupational Safety and Health Act, what must Gabriel post in the workplace?

A. OSHA Small Business Handbook B. OSHA Certificate of Compliance C. form 300A, Summary of Work-Related Injuries and Illnesses D. form 310A, Certification of Injury-Free Status E. general-duty clause 88. Vanessa started a new job in a print shop. She worries about the different chemicals in the workplace, so she requests information about them from her employer. Which employee right under the OSH Act is Vanessa exercising?

A. the right to request an OSHA inspection B. the right to have a representative present at an OSHA inspection C. the right to a workplace free of chemicals D. the right to have dangerous substances identified E. the right to have employer violations posted at the work site 89. An automobile painting facility experienced a breakdown in one of its ventilation fans, causing a buildup of fumes. What must the facility do in this situation to meet the employee rights under the OSH Act?

A. request an OSHA inspection B. provide an employee representative for an OSHA inspection C. promptly inform the affected employees about their exposure to hazards D. follow the steps in OSHA's "Compliance Assistance Quick Start" E. levy fines for safety violations

90. Megan is starting a new business and is worried about OSHA regulations because she has often heard that they are extremely complex. Which statement offers Megan the best advice for meeting the requirements of the OSH Act?

A. Don't worry about the regulations, because they apply only to large companies. B. Use the "Compliance Assistance Quick Start" on OSHA's website. C. Contact the Department of Labor to set up an appointment with a business representative. D. Use the job hazard analysis technique to meet all the requirements. E. Memorize the occupational health and safety standards published by NIOSH. 91. Given that the National Institute for Occupational Safety and Health (NIOSH) has published numerous standards, what is the significance of the OSH Act's general-duty clause?

A. It is extremely significant, because NIOSH standards are for government workers only. B. It is very significant, because NIOSH cannot anticipate all possible hazards. C. It is somewhat significant, because companies may not understand the NIOSH standards. D. It is slightly significant, because eventually the NIOSH standards may replace the general-duty clause. E. It is not at all significant, because the NIOSH standards have taken the place of the generalduty clause.

92. Forward Fuels is a chemicals manufacturer with a large research and development team searching for new alternatives to gasoline. Because it develops new chemicals and is constantly innovating, the Department of Labor cannot possibly keep up with specific safety and health standards for its workplace. Some of the managers are asking Destiny, the human resource manager, if that means they don't have to bother trying to comply with all the OSHA regulations. What should Destiny recommend?

A. ask NIOSH to anticipate all possible hazards that could occur B. focus on planning for emergency responses when injuries do occur C. under the general-duty clause, the company is exempt from specific regulations D. simply focus on the health and safety risks that are widely known E. be constantly alert for potential sources of harm and correct them 93. A meatpacking facility has been neglecting employee health and safety. If employees contact OSHA to request an inspection, what can the facility's management expect?

A. a form from OSHA requesting that management give permission for the visit B. a phone call from OSHA to schedule the inspection C. a letter from OSHA announcing an inspection within the next month D. no advance notification from OSHA E. a form signed by the employees requesting the inspection 94. Dakota is the human resource manager at a poultry-processing facility with 75 employees. He just received a call saying that an OSHA inspector has arrived at the facility. What can Dakota expect the company will need to do first?

A. send the employees home for the day B. provide the inspector with records of any deaths, injuries, and illnesses C. lead the inspector on a tour of the premises D. make the inspection officer aware of any health or safety problems E. temporarily halt all poultry processing until the inspection is over

95. An OSHA compliance officer visited a warehouse of ABC Worldwide to conduct an inspection. The inspector found several safety violations related to items that could tip over and fall. She discussed these violations with ABC Worldwide's facility supervisor and human resource manager. What is most likely to happen next?

A. the officer conducts employee interviews B. the officer conducts a "walkaround" tour of the employer's premises C. the company pays a $20,000 fine for each violation D. the company asks employees to notify management of any future OSHA inspections E. OSHA gives the company a time frame within which to correct the violations 96. An OSHA inspector completed her inspection of a mining operation, including a walkaround and employee interviews. Then the OSHA inspector sought a restraining order from a federal court. What can you infer from this action by the inspector?

A. the inspector is an attorney representing the employees of the mining company B. the inspector looked for violations of the general-duty clause C. the inspector is requesting to conduct a closing conference D. the inspector wants the company to have a reasonable time frame to correct violations E. the inspector found a violation that could cause serious injury or death

97. Identify the correct statement regarding the Occupational Safety and Health Act (OSHA).

A. In a closing conference, all the findings of the inspection are kept confidential with the concerned officers. B. OSHA compliance officers do not entertain any kind of input or complaints from employees during the inspection. C. OSHA compliance officers notify employers a month in advance before the inspection. D. The OSHA compliance officer will seek a restraining order from the U.S. District Court, even if the inspection reveals that the problem is minor. E. If an OSHA violation results in citations, an employer must post each citation in a prominent place near the location of the violation. 98. Which of the following actions associated with an OSHA inspection can result in criminal charges?

A. missing the walkaround B. falsifying records subject to the inspection C. allowing conditions that lead to an employee's injury D. failing to notify the employer of an upcoming inspection E. seeking a restraining order from a U.S. District Court 99. Under the Occupational Safety and Health Act's Hazard Communication Standard, organizations must have _____ for chemicals that employees are exposed to.

A. EEO-1 forms B. white papers C. material safety data sheets D. standard operating protocols E. action reports

100.Rachel is a human resource executive for a manufacturing company that makes a variety of consumer products in several facilities. She is studying U.S. injury and illness trends from the Bureau of Labor Statistics to identify issues the company should address in its human resource policies. As she looks at nationwide trends since 1990, Rachel identifies one that companies should correct. Which of the following trends represents a problem for U.S. employers to address?

A. number of claims of retaliation against employees who report injuries B. rate of injuries C. rate of illnesses D. illnesses as a share of total injuries and illnesses E. number of employees learning that the law forbids retaliation for filing a complaint 101.Identify the method that breaks down jobs into basic elements to rate them for their potential for harm or injury.

A. job hazard analysis technique B. utilization analysis C. technic of operations review D. action plan analysis E. diversity plan 102.Select the method that promotes safety by determining which specific element of a job led to a past accident.

A. reasonable accommodation B. affirmation action C. technic of operations review D. job hazard analysis technique E. utilization analysis

103.After a large fire at Rowen Mills Inc., the company called the employees together at the facility to investigate the incident. Management began by asking each of the employees to describe their understanding of what happened. Once all employees had given their views individually, they discussed the situation until they could agree on the single systemic failure that caused the fire. Which of the following methods is Rowen Mills using?

A. operations cycle review B. standard protocol review C. technic of operations review D. job hazard analysis technique E. utilization analysis 104.At a supermarket chain, back injuries are a recurring problem around the loading docks, because employees in a rush forget to use proper lifting techniques. How could safety posters help the company improve safety?

A. by establishing direct communications between supervisors and their employees B. by creating a paper trail to document a history of the employer's concern C. by serving as a constant reminder of how to lift safely D. by replacing mobile devices, which should not be present on a loading dock E. by delivering a message that varies based on employees' languages and age groups

105.Zeus Trucking had its human resource department set up an online suggestion program, and employees submitted 376 ideas for improving workers' safety and health. An assistant in the department entered all the responses into a database. What additional step would be most important to add to this safety program?

A. distributing the survey results to the employees B. creating a database where employees can look up the ideas submitted C. expanding the program to include more wide-ranging, long-term goals D. employing the job hazard analysis technique E. working with management to ensure the company acts on the suggestions

Essay Questions

106.Describe the provisions of Americans with Disabilities Act (ADA) of 1990. How is it different from other Equal Employment Opportunity (EEO) laws? Consider that Regina is visually impaired to the extent that she cannot read without her glasses, while Ed has had leukemia but has now gone into remission. Will both of them be eligible for accommodations under the provisions of ADA? Justify your answer with appropriate reasons.

107.What is affirmative action? Do you think this will lead to reverse discrimination? Explain your answer.

108.Disparate treatment is considered a sign of discrimination. Why is this so? Can it ever be legal? If so, in what kind of situations? Substantiate your answer with examples.

109.Why is disparate impact considered a sign of discrimination despite being a condition in which a company's employment practices lack obvious discriminatory content? Substantiate this with examples. How is it different from disparate treatment? How is it related to the four-fifths rule?

110.Martha's boss, Bill, constantly uses sexually explicit language while communicating with his female subordinates. Though many female employees were bothered with this behavior, no one ever complained for fear of negative repercussions. However, Martha files a complaint against Bill with the Equal Employment Opportunity Commission (EEOC). Will this be considered as discriminatory behavior? Why or why not? Explain the prohibitions under Title VII for related behavior with examples.

111.Valuing diversity, especially in support of an organization's mission and strategy, need not be limited to the categories protected by law. Reflect on this statement with examples.

112.Eduardo works at Hanson Engineering Works as a welder. Although he is provided with protective goggles and a face mask, overalls and other types of protective clothing are not provided. After three months of work at Hanson, Eduardo notices his skin becoming drier and gradually changing color. Alarmed with this development, he approaches his supervisor asking for details of the materials he works with. The supervisor declines to reveal any kind of information. In this case, can Eduardo file a case against his supervisor? If so, elaborate on which authority and laws can help him.

113.Do you think the Occupational Safety and Health Act been successful? Explain.

114.Compare how the age of different employees influences various practices to be adopted in the context of safety concerns at work.

115."Cultural differences may make promoting safety internationally more difficult than it seems." Elaborate on this statement and substantiate it with examples.

Chapter 03 Providing Equal Employment Opportunity and a Safe Workplace Answer Key

True / False Questions

The legislative branch of the U.S. government is responsible for enforcing the laws passed by Congress. FALSE

The executive branch, including many regulatory agencies that the president oversees, is responsible for enforcing the laws passed by Congress.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-01 Explain how the three branches of government regulate human resource management. Level of Difficulty: 1 Easy Topic: The Role of Government in Human Resource Management

The Civil Rights Act of 1991 was partly designed to overturn Supreme Court decisions. TRUE

Decisions made by the Supreme Court are binding; they can be overturned only through laws passed by Congress. The Civil Rights Act of 1991 was partly designed to overturn Supreme Court decisions.

The Fourteenth Amendment abolished slavery in the United States. FALSE

The Thirteenth Amendment abolished slavery in the United States. This Amendment has been applied in cases where discrimination involved the "badges" (symbols) and "incidents" of slavery.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Human Resource Management

A person can file a claim under the Fourteenth Amendment on charges of racial discrimination if he or she is fired by a private employer. FALSE

The Fourteenth Amendment applies only to the decisions or actions of the government or of private groups whose activities are deemed government actions. A person could file a claim under the Fourteenth Amendment if he or she had been fired from a state university (a government organization), but not if the person had been fired by a private employer.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 2 Medium Topic: Federal Laws Affecting Human Resource Management

Under the Equal Pay Act of 1963, pay differences are permitted between men and women performing the same job if the difference arises from any factor other than sex. TRUE

Under the Equal Pay Act of 1963, if men and women in an organization are doing equal work, the employer must pay them equally. If the pay differences result from differences in seniority, merit, quantity or quality of production, or any factor other than sex, then the differences are legal.

Title VII of the Civil Rights Act of 1964 states that employers may retaliate against employees for either opposing a perceived illegal employment practice. FALSE

Title VII of the Civil Rights Act of 1964 states that employers may not retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding" related to an alleged illegal employment practice. Opposition refers to expressing to someone through proper channels that you believe an illegal employment act has taken place or is taking place. Participation in a proceeding refers to testifying in an investigation, hearing, or court proceeding regarding an illegal employment act.

An employer's refusal to hire a pregnant woman is acceptable by law. FALSE

The Pregnancy Discrimination Act of 1978 defines discrimination on the basis of pregnancy, childbirth, or related medical conditions to be a form of illegal sex discrimination. An employer may not refuse to hire a woman because she is pregnant.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Human Resource Management

The Americans with Disabilities Act covers people with problems arising from substance abuse. FALSE

Conditions not covered by the Americans with Disabilities Act include obesity, substance abuse, irritability, and poor judgment.

Executive Order 11478 requires the federal government to base all its employment policies on national origin. FALSE

Executive Order 11478 requires the federal government to base all its employment policies on merit and fitness. It specifies that race, color, sex, religion, and national origin may not be considered.

10.

If an attempt at a settlement fails, the Equal Employment Opportunity Commission (EEOC) may issue a "right to sue" letter to the alleged victim. TRUE

If an attempt at a settlement fails, the Equal Employment Opportunity Commission (EEOC) has two options. It may issue a "right to sue" letter to the alleged victim. This letter certifies that the agency has investigated the victim's allegations and found them to be valid.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-03 Identify the federal agencies that enforce equal employment opportunity, and describe the role of each. Level of Difficulty: 1 Easy Topic: Equal Employment Opportunity

11.

Organizations that are government contractors or subcontractors must file an Employer Information Report (EEO-1) with the Equal Employment Opportunity Commission (EEOC) every year. TRUE

Each year organizations that are government contractors or subcontractors or have 100 or more employees must file an Employer Information Report (EEO-1) with the EEOC. It helps the EEOC monitor the hiring practices of different organizations.

12.

The Office of Federal Contract Compliance Programs audits government contractors to ensure they are actively pursuing the goals in their plans. TRUE

The Office of Federal Contract Compliance Programs is the agency responsible for enforcing the executive orders that cover companies doing business with the federal government. Each year, the OFCCP audits government contractors to ensure they are actively pursuing the goals in their plans.

13.

Disparate treatment on the basis of sex is illegal even if it is a bona fide occupational qualification. FALSE

The courts have held that in some situations, a factor such as sex or religion may be a bona fide occupational qualification, that is, a necessary (not merely preferred) qualification for performing a job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 1 Easy Topic: Adverse Impact and Disparate Treatment

14.

To prove disparate impact in court, a plaintiff in a discrimination lawsuit must show an employer's intent. FALSE

An important distinction between disparate treatment and disparate impact is the role of the employer's intent. Proving disparate treatment in court requires showing that the employer intended the disparate treatment, but a plaintiff need not show intent in the case of disparate impact. It is enough to show that the result of the treatment was unequal.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 2 Medium Topic: Adverse Impact and Disparate Treatment

15.

In employment law, reasonable accommodation refers to an employee's obligation to adjust and make compromises on their personal beliefs and practices, including completely disregarding them, if they conflict with an organization's policies. FALSE

In employment law, reasonable accommodation refers to employers' obligation to do something to enable an otherwise qualified person to perform a particular job. The employer has to make provisions such that the employee's personal beliefs and practices are not utterly disregarded. Especially in situations involving religion and individuals with disabilities, equal employment opportunity may require that an employer make reasonable accommodation.

16.

A manager who promises a raise to an employee only if they participate in sexual activities is said to be engaging in quid pro quo harassment. TRUE

Quid pro quo harassment indicates that a person makes a benefit (or punishment) contingent on an employee's submitting to (or rejecting) sexual advances. For example, a manager who promises a raise to an employee who will participate in sexual activities is engaging in quid pro quo harassment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 1 Easy Topic: Sexual Harassment

17.

If an individual's behavior in the workplace creates an environment in which it is difficult for someone of a particular sex to work, it cannot be regarded as sexual harassment. FALSE

18.

The practice of valuing diversity has been written into law. FALSE

The practice of valuing diversity has no single form; it is not written into law or business theory.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 1 Easy Topic: Diversity Management

19.

The general-duty clause of the Occupational Safety and Health Act states that it is each employer's duty to furnish a place of employment free from recognized hazards. TRUE

The main provision of the OSH Act states that each employer has a general duty to furnish each employee a place of employment free from recognized hazards that cause or are likely to cause death or serious physical harm. This is called the act's general-duty clause.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3-48 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

20.

According to the Occupational Safety and Health Act (OSH Act), employers have the right to withhold an employee's access to records regarding exposure to hazards. FALSE

The OSH Act grants specific rights; for example, employees have the right to be promptly informed about exposure to hazards and be given access to accurate records regarding exposure.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

21.

If an Occupational Safety and Health Act violation results in citations, an employer must post each citation in a prominent place near the location of the violation. TRUE

If an Occupational Safety and Health Act violation results in citations, the employer must post each citation in a prominent place near the location of the violation. If a violation could cause serious injury or death, the compliance officer may seek a restraining order from a U.S. District Court.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

22.

Office workers who encounter a chemical infrequently are covered by the requirements of the Occupational Safety and Health Act's Hazard Communication Standard. FALSE

Under the Occupational Safety and Health Act's Hazard Communication Standard, organizations must have material safety data sheets for chemicals that employees are exposed to. Office workers who encounter a chemical infrequently (such as an office worker who occasionally changes the toner in a copier) are not covered by these requirements.

23.

The Occupational Safety and Health Act directly regulates employee behavior in workplaces to ensure safety. FALSE

The Occupational Safety and Health Act does not directly regulate employee behavior, thus little behavior change can be expected unless the employees are convinced of the standards' importance.

24.

Under the job hazard analysis technique, if a single job element has a high hazard potential, the entire job is not completed. FALSE

Under the job hazard analysis technique, if there is agreement that some job element has high hazard potential, the group isolates the element and considers possible technological or behavior changes to reduce or eliminate the hazard.

25.

Cultural differences are insignificant in a company promoting safety internationally. FALSE

Multiple Choice Questions

26.

Suppose you are a human resource executive, supporting strategy. Executives in your industry are concluding that a certain HR-related law no longer seems relevant in the Internet age. To which government branch would it be most effective to turn for addressing the need for a change in the legal environment?

E. the legislative branch, requesting it not enforce the existing law The legislative branch, consisting of the two houses of Congress, has enacted laws governing human resource activities. U.S. senators and representatives generally develop these laws in response to perceived societal needs. The executive branch is responsible for enforcing the laws passed by Congress. The judicial branch interprets the law and holds trials concerning violations of the law.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-01 Explain how the three branches of government regulate human resource management. Level of Difficulty: 1 Easy Topic: The Role of Government in Human Resource Management

27.

Which of the following agencies is primarily responsible for enforcing the laws passed by Congress?

A. the U.S. House of Representatives B. the U.S. Senate C. the executive branch of the government

D. the legislative branch of the government E. the U.S. Cabinet All three branches of the U.S. government—legislative, executive, and judicial—play an important role in creating a legal environment for human resource management. The executive branch, including the many regulatory agencies that the president oversees, is responsible for enforcing the laws passed by Congress.

28.

Which of the following actions is one of the ways in which the executive branch helps create the legal environment for human resource management?

A. filing suit against violators of equal opportunity laws

B. enacting laws governing worker safety and health C. interpreting federal laws D. overturning Supreme Court decisions E. holding trials concerning violations of equal opportunity laws The executive branch is responsible for enforcing the laws passed by Congress. Agencies do this through a variety of actions, from drawing up regulations detailing how to abide by the laws to filing suit against alleged violators. In addition, the president may issue executive orders.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-01 Explain how the three branches of government regulate human resource management. Level of Difficulty: 2 Medium Topic: The Role of Government in Human Resource Management

29.

Which of the following actions could be an example of how the Occupational Safety and Health Administration plays a role in the legal environment for human resource management?

E. issuing executive orders related to worker safety and health The executive branch, including many regulatory agencies that the president oversees, is responsible for enforcing the laws passed by Congress. Agencies, including the Occupational Safety and Health Administration, do this through a variety of actions, from drawing up regulations detailing how to abide by the laws to filing suit against alleged violators.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-01 Explain how the three branches of government regulate human resource management. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

30.

Victoria is a human resource specialist. To gain competency in her field, she keeps up with business news related to human resource management. One area of the news she pays attention to is coverage of the cases the Supreme Court hears each year. Why would stories about the Supreme Court be relevant for Victoria's career?

A. The Supreme Court may issue rulings that interpret employment law.

B. The Supreme Court may pass laws regulating employment practices. C. The Supreme Court may issue executive orders related to employee safety. D. The Supreme Court may require federal contractors to engage in affirmative action. E. Decisions made by the Supreme Court cannot be overturned by the federal government. The judicial branch, the federal court system, influences employment law by interpreting the law and holding trials concerning violations of the law. The U.S. Supreme Court, at the head of the judicial branch, is the court of final appeal. Decisions made by the Supreme Court are binding; they can be overturned only through laws passed by Congress.

31.

Emma, a 24-year-old Hispanic woman, pressed charges of sexual harassment against Jonathan, a politician. The case became sensational because the accused was one of the strongest candidates in the upcoming elections. In the case's final stage, the United States Supreme Court issued a verdict that cleared Jonathan of all charges on the grounds of lack of evidence. The ruling spurred angry protests from many interest groups, especially Hispanic women, and they wanted the verdict reversed. According to the prevalent system, which among the following would overturn the verdict in this case?

A. a mass petition from the public B. an appeal from the minority population C. a law passed by Congress

D. a ruling by the Equal Employment Opportunity Commission E. a petition from the United States Women Rights Council In this case, the verdict can be overturned only by a law passed by Congress stating otherwise. The U.S. Supreme Court, as the head of the judicial branch, is the court of final appeal. Decisions made by the Supreme Court are binding; they can be overturned only through laws passed by Congress.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-01 Explain how the three branches of government regulate human resource management. Level of Difficulty: 3 Hard Topic: The Role of Government in Human Resource Management

32.

Naomi, a white female applicant, is refused a job at a state university in favor of a less qualified minority applicant. She could consider suing the university on charges of reverse discrimination against her under the _____.

A. Thirteenth Amendment B. Fourteenth Amendment

C. Twenty-Second Amendment D. Civil Rights Act of 1866 E. Occupational Safety and Health Act The Fourteenth Amendment forbids the states from taking life, liberty, or property without due process of law and prevents the states from denying equal protection of the laws. Recently it has been applied to the protection of whites in charges of reverse discrimination.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 3 Hard Topic: Equal Employment Opportunity

33.

Which of the following is enforced by the Equal Employment Opportunity Commission?

A. Thirteenth Amendment B. Rehabilitation Act of 1973 C. Fourteenth Amendment D. Executive Order 11246 E. Americans with Disabilities Act of 1990

The Americans with Disabilities Act of 1990 is administered by the Equal Employment Opportunity Commission (EEOC). It prohibits discrimination against individuals with disabilities and requires that employers take steps to accommodate individuals covered under the act.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 1 Easy Topic: Equal Employment Opportunity

34.

Which of the following statements is true about the Civil Rights Acts of 1866 and 1871?

During Reconstruction, Congress passed two Civil Rights Acts to further the Thirteenth Amendment's goal of abolishing slavery.

35.

_____ granted all persons the same property rights as white citizens, as well as the right to enter into and enforce contracts.

A. The Thirteenth Amendment B. The Fourteenth Amendment C. The Civil Rights Act of 1866

D. Title VII of the Civil Rights Act E. Executive Order 11246 The Civil Rights Act of 1866 granted all persons the same property rights as white citizens, as well as the right to enter into and enforce contracts. Courts have interpreted the latter right as including employment contracts.

36.

According to the Equal Pay Act of 1963, men and women performing the same job cannot have differences in pay on the basis of _____.

A. merit B. seniority C. education D. quality of production E. sex

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Human Resource Management

37.

Jonathan and Nicole hold the same position at an organization. However, Jonathan is paid more than Nicole. According to the Equal Pay Act of 1963, which of the following will strengthen the fact that the pay difference is a legal one?

A. Jonathan is more skilled than Nicole because he is a male. B. Nicole is not an American citizen. C. Jonathan is younger than Nicole. D. Nicole is pregnant. E. Jonathan works the night shift.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 3 Hard Topic: Federal Laws Affecting Human Resource Management

38.

Which of the following is true about Title VII of the Civil Rights Act of 1964?

A. The act permits employers to hire job applicants belonging exclusively to a particular nationality. B. The act applies to organizations with 15 or more employees.

C. The act permits employers to retaliate against employees participating in a proceeding against an employer. D. The act protects employers from an employee's opposition to an alleged illegal employment practice. E. The act permits employers to hire an individual based on his or her gender and race in the absence of a bona fide occupational qualification (BFOQ). Title VII of the Civil Rights Act of 1964 applies to organizations that employ 15 or more persons working 20 or more weeks a year and that are involved in interstate commerce, as well as state and local governments, employment agencies, and labor organizations.

39.

Alyssa thinks that her company is discriminating against a particular group of employees by denying them seniority or promotions. She expresses her concern to a senior human resources manager. This method of expressing concern about an instance of illegal employment through proper channels is known as _____.

A. opposition

B. retaliation C. participation in a proceeding D. discrimination E. affirmative action Opposition refers to expressing to someone through proper channels that you believe an illegal employment act has taken place or is taking place. In this case, Alyssa is engaging in opposition by expresses her concern that her company is discriminating against a particular group of employees by denying them seniority or promotions.

40.

Which of the following represents an act of participation in a proceeding?

Participation in a proceeding refers to testifying in an investigation, hearing, or court proceeding regarding an illegal employment act. The purpose of this provision is to protect employees from employers' threats and other forms of intimidation aimed at discouraging employees from bringing to light acts they believe to be illegal.

41.

Identify the statement that characterizes the Age Discrimination in Employment Act.

E. It recommends early-retirement incentive programs wherein employees agree not to sue the company for ageism. In 1967, Congress passed the Age Discrimination in Employment Act (ADEA), which prohibits discrimination against workers who are over the age of 40. Similar to Title VII, the ADEA outlaws hiring, firing, setting compensation rates, or other employment decisions based on a person's age being over 40.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 2 Medium Topic: Federal Laws Affecting Human Resource Management

42.

The Age Discrimination in Employment Act protects only those workers who are over the age of _____.

A. 30 B. 25 C. 20 D. 40

E. 35 In 1967, Congress passed the Age Discrimination in Employment Act, which prohibits discrimination against workers who are over the age of 40.

43.

Which of the following statements reflects a violation of the Age Discrimination in Employment Act?

A. Older employees are permitted to work even after attaining the retirement age. B. Employees over the age of 40 are forced to retire as part of a company's downsizing

program. C. An employee is denied employment because of the fact that he is a minor. D. Older workers in an organization are better compensated than the younger workers. E. An employee chooses voluntary retirement before attaining the retirement age. In 1967, Congress passed the Age Discrimination in Employment Act (ADEA), which prohibits discrimination against workers who are over the age of 40. Similar to Title VII, the ADEA outlaws hiring, firing, setting compensation rates, or other employment decisions based on a person's age being over 40.

44.

The Vocational Rehabilitation Act of 1973 was introduced to enhance employment opportunity for _____.

A. women B. minors C. older employees D. individuals with disabilities

E. minorities In 1973, Congress passed the Vocational Rehabilitation Act to enhance employment opportunity for individuals with disabilities.

45.

Which of the following refers to an organization's active effort to find opportunities to hire or promote people in a particular group?

A. affirmative action

B. disparate impact C. reasonable accommodation D. reverse discrimination E. adverse impact Affirmative action refers to an organization's active effort to find opportunities to hire or promote people in a particular group.

46.

Florence, a marketing executive in her late thirties, had worked at a reputable marketing firm for the last three years. However, she was fired from the company without any prior notice when she collapsed at work after experiencing an epileptic seizure. Following this, Florence sued the company under _____.

A. Executive Order 11246 B. Rehabilitation Act of 1973 C. Americans with Disabilities Act

D. Occupational Safety and Health Act E. Executive Order 11478 The Americans with Disabilities Act (ADA) protects individuals with disabilities from being discriminated against in the workplace. It prohibits discrimination based on disability in all employment practices such as job application procedures, hiring, firing, promotions, compensation, and training.

47.

The Americans with Disabilities Act protects individuals who

A. are obese. B. are severely disfigured.

C. engage in substance abuse. D. are left-handed. E. are nearsighted. Someone who is severely disfigured is covered under the Americans with Disabilities Act (ADA). Conditions not covered include obesity, substance abuse, irritability, and poor judgment. Also, if a person needs ordinary eyeglasses or contact lenses to perform each major life activity with little or no difficulty, the person is not considered disabled under the ADA.

48.

Reese's use of illegal drugs limits her ability to walk properly. The elevator at her office was not working for many months, so Reese needed to climb two flights of stairs and had difficulty getting to her desk. She tried suing her company under the Americans with Disabilities Act, arguing that her company discriminates against individuals who cannot perform major life activities. Which of the following would weaken Reese's argument?

A. Reese is not a senior employee. B. The ADA prohibits discrimination only against workers who are over the age of 40. C. The ADA does not cover conditions of substance abuse.

D. Reese is not pregnant. E. The ADA applies only to the decisions or actions of the government. The Americans with Disabilities Act (ADA) protects individuals with disabilities from being discriminated against in the workplace. It prohibits discrimination based on disability in all employment practices such as job application procedures, hiring, firing, promotions, compensation, and training. Conditions not covered include obesity, substance abuse, irritability, and poor judgment. In this case, since Reese's ability to walk properly is limited due to her drug abuse, she cannot sue her company under the ADA.

49.

Identify the statement that accurately represents the Americans with Disabilities Act.

accommodate individuals covered under the legislation. D. It classifies a person who needs ordinary eyeglasses or contact lenses to perform each major life activity with little or no difficulty as disabled. E. It is used to protect individuals with conditions such as obesity and substance abuse. In contrast to other Equal Employment Opportunity Commission laws, the Americans with Disabilities Act goes beyond prohibiting discrimination to require that employers take steps to accommodate individuals covered under the act.

50.

Solar Energy Inc. is a company that produces solar panels for domestic use. It has 800 permanent employees working in different departments. Suppose the company gets involved in a case of intentional employee discrimination. What is the maximum amount of punitive damages it would have to pay under the Civil Rights Act of 1991?

A. $50,000 B. $100,000 C. $200,000 D. $250,000 E. $300,000

The limits for punitive damage range from $50,000 per violation at a small company (14 to 100 employees) to $300,000 at a company with more than 500 employees. A company has to pay punitive damages only if it discriminated intentionally or with malice or reckless indifference to the employee's federally protected rights.

51.

Select the statement that characterizes the Civil Rights Act of 1991.

E. It limits the maximum punitive damages to $50,000 for all organizations even if the discrimination was intentional. Recognizing that one or a few discrimination cases could put an organization out of business, and so harm many innocent employees, Congress has limited the amount of punitive damages depending on the size of the organization.

52.

William, an employee with the U.S. Postal Service, was deployed to Afghanistan to serve in the U.S. Army for two years. After the completion of his military duties, he resumed work at the post office. He was reemployed with an increase in pay. Which of the following laws protected William by requiring that his employer reemploy him with the seniority, status, and pay rate he would have earned if he had stayed on the job during the time of his deployment?

A. Vocational Rehabilitation Act B. Uniformed Services Employment and Reemployment Rights Act (USERRA)

C. Americans with Disabilities Act (ADA) D. Age Discrimination in Employment Act (ADEA) E. Occupational Safety and Health Act According to the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers must reemploy workers who left jobs to fulfill military duties for up to five years. When service members return from active duty, the employer must reemploy them in the job they would have held if they had not left to serve in the military, providing them with the same seniority, status, and pay rate they would have earned if their employment had not been interrupted.

53.

Under the Uniformed Services Employment and Reemployment Rights Act of 1994, employers must reemploy workers who left jobs to fulfill military duties for up to _____ years.

A. five

B. eight C. six D. seven E. nine Under the Uniformed Services Employment and Reemployment Rights Act of 1994, employers must reemploy workers who left jobs to fulfill military duties for up to five years.

54.

Sam leaves an organization for three years to fulfill military duties. Which of the following observations is true of his employer's obligation to reemploy Sam under the Uniformed Services Employment and Reemployment Rights Act?

A. The employer is not obligated to reemploy Sam. B. The employer must reemploy Sam with the same seniority and status he would have

earned if his employment had not been interrupted. C. The employer must reemploy Sam, but is exempted from providing him any fringe benefits or retirement benefits. D. The employer must implement an early-retirement incentive program for Sam. E. The employer must reemploy Sam with a lower pay scale to compensate for his absence. Under Uniformed Services Employment and Reemployment Rights Act of 1994, employers must reemploy workers who left jobs to fulfill military duties for up to five years. When service members return from active duty, the employer must reemploy them in the job they would have held if they had not left to serve in the military, including the same seniority, status, and pay rate they would have earned if their employment had not been interrupted.

55.

Which of the following requires the federal government to base all its employment policies on merit and fitness?

A. Executive Order 11246 B. Executive Order 11478

C. The Civil Rights Act of 1866 D. The Civil Rights Act of 1871 E. The Rehabilitation Act of 1973 Executive Order 11478 requires the federal government to base all its employment policies on merit and fitness.

56.

Aaron has been a systems analyst at a software company for six years. Although he works hard, gets favorable performance reviews, takes night classes in business management, and has applied for promotions, his coworkers always get the promotions instead. Aaron started asking his coworkers about this, and one of them said, "Don't you realize? This management will never promote someone like you." This supports Aaron's concern that he may be a target of discrimination because he is black; other talented employees are black, but no black employees have moved into management positions. Aaron decides to discuss the problem with the human resource manager. If he can't find a satisfactory solution that way, with which federal agency could he file a complaint?

A. Anti-Discrimination Federal Agency B. Equal Employment Opportunity Commission

C. Office of Federal Contract Compliance Programs D. Uniform Guidelines on Employee Selection Procedures E. Federal Register To enforce laws equal employment opportunity, the executive branch of the federal government uses the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs. The EEOC is responsible for enforcing most of the EEO laws. To do this, the EEOC investigates and resolves complaints about discrimination, gathers information, and issues guidelines.

57.

After filing a discrimination complaint with the Equal Employment Opportunity Commission (EEOC) or other governmental agency, how long will an individual have to wait before having the right to sue in federal court?

A. 30 days B. 60 days

C. 10 days D. 20 days E. 40 days After the Equal Employment Opportunity Commission (EEOC) receives a charge of discrimination, it has 60 days to investigate the complaint. If the EEOC either does not believe the complaint to be valid or fails to complete the investigation within 60 days, the individual has the right to sue in federal court.

58.

A _____ refers to an agreement between the Equal Employment Opportunity Commission and an organization that the organization will cease certain discriminatory practices and possibly institute additional affirmative-action practices to rectify its history of discrimination.

A. trust agreement B. good faith bargaining C. consent decree

D. letter of indemnity E. judicial estoppel Sometimes the Equal Employment Opportunity Commission enters into a consent decree with the discriminating organization. This decree is an agreement between the agency and the organization that the organization will cease certain discriminatory practices and possibly institute additional affirmative-action practices to rectify its history of discrimination.

59.

The _____ is the set of guidelines issued by the Equal Employment Opportunity Commission (EEOC) and other agencies to identify how an organization should establish a recruitment process that is free and fair.

A. Uniform Commercial Code B. Equal Opportunity Legislation and Policy C. Code of Federal Regulations D. Uniform Guidelines on Employee Selection Procedures

E. Equal Employment Opportunity Commission's Employer Information Report The Uniform Guidelines on Employee Selection Procedures is a set of guidelines issued by the Equal Employment Opportunity Commission (EEOC) and other government agencies. The guidelines identify ways an organization should develop and administer its system for selecting employees so as not to violate Title VII.

60.

What is the name of the agency that is responsible for enforcing the executive orders that cover companies doing business with the federal government?

A. the Occupational Safety and Health Administration B. the National Institute for Occupational Safety and Health C. the Office of Federal Contract Compliance Programs

D. the Equal Employment Opportunity Commission E. the Federal Department of Employment and Workplace Relations The Office of Federal Contract Compliance Programs (OFCCP) is the agency responsible for enforcing the executive orders that cover companies doing business with the federal government.

61.

Carmen, a Hispanic female in the accounting department of a large retail chain, believes she has been the victim of race and sex discrimination. Why can't she turn to the Office of Federal Contract Compliance Programs (OFCCP) for assistance with this problem?

A. The injury to Carmen is under the $50,000 threshold. B. The OFCCP protection does not cover sex discrimination. C. Her employer doesn't have contracts with the federal government.

D. A retail chain would not be affected by federal anti-discrimination laws. E. Her company does not have an affirmative-action plan on file. The Office of Federal Contract Compliance Programs (OFCCP) is the agency responsible for enforcing the executive orders that cover companies doing business with the federal government. Businesses with contracts for more than $50,000 may not discriminate in employment based on race, color, religion, national origin, or sex, and they must have a written affirmative-action plan on file.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-03 Identify the federal agencies that enforce equal employment opportunity, and describe the role of each. Level of Difficulty: 3 Hard Topic: Affirmative Action

62.

According to the affirmative-action plan required by the Office of Federal Contract Compliance Programs, which of the following refers to a comparison of the race, sex, and ethnic composition of an employer's workforce with that of the available labor supply?

A. content analysis B. job analysis C. SWOT analysis D. utilization analysis

E. applied behavior analysis Utilization analysis is a comparison of the race, sex, and ethnic composition of the employer's workforce with that of the available labor supply. The percentages in the employer's workforce should not be greatly lower than the percentages in the labor supply.

63.

According to the affirmative-action plan required by the Office of Federal Contract Compliance Programs, _____ refer(s) to a plan identifying the ways in which an organization will meet its diversity goals.

A. action steps

B. utilization analysis C. diversification D. affirmative action E. disparate impact Action steps refer to a plan for how an organization will meet its diversity goals. Each year, the Office of Federal Contract Compliance Programs audits government contractors to ensure they are actively pursuing the goals in their plans.

64.

Differing conduct toward individuals, where the differences are clearly based on the individuals' race, color, religion, sex, national origin, age, or disability status is termed as _____.

A. sexual discrimination B. affirmative action C. disparate treatment

D. reasonable accommodation E. reverse discrimination Differing treatment of individuals, where the differences are based on the individuals' race, color, religion, sex, national origin, age, or disability status is termed disparate treatment. To avoid disparate treatment, companies can evaluate the questions and investigations they use in making employment decisions.

65.

Identify the case in which disparate treatment is considered legal.

restroom. E. In a particular hospital, only female nurses are appointed. The courts have held that in some situations, a factor such as sex or religion may be a bona fide occupational qualification, that is, a necessary (not merely preferred) qualification for performing a job. In this instance, where female workers are exclusively employed to clean the women's restroom, disparate treatment is considered legal.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 3 Hard Topic: Adverse Impact and Disparate Treatment

66.

Which of the following statements is TRUE of a bona fide occupational qualification?

A. it is considered illegal by a court B. it is a necessary qualification for a job

C. it is strictly prohibited by organizations D. it is a preferred qualification for the job E. it is used to deem disparate treatment illegal The courts have held that in some situations, a factor such as sex or religion may be a bona fide occupational qualification, that is, a necessary (not merely preferred) qualification for performing a job. In such cases, disparate treatment is legal.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 2 Medium Topic: Equal Employment Opportunity

67.

Select the case that would most likely be filed under disparate impact.

apply, but Chantel discovers the force has a minimum height requirement of 5'10''. She is 5'6''. D. Ralph is reviewing applications for an open position at his company. One step in the hiring process requires him to investigate conviction records for all of the job applicants. E. Heather, an HR employee at a university, is putting together a job listing for an open faculty position. Her listing specifies that interested applicants must have a doctoral degree. Disparate impact refers to a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment. Examples of employment practices that might result in disparate impact include pay, hiring, promotions, or training. In this scenario, since the police force's height requirement excludes more women than men from being hired, it has a disparate impact on women.

68.

A vehicle manufacturing company decides to hire 35 employees for its new servicing branch located in Texas. A total of 90 eligible applicants apply for the job, of which 40 are black and 50 are white. Assuming that the company decides to hire 10 blacks and 25 whites, what can be inferred using the four-fifths rule?

E. 2 > 0.8; this indicates that there is no evidence of discrimination. The four-fifths rule finds evidence of discrimination. If an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group, there is evidence of discrimination. In this case, the hiring rate is 0.5 < 0.8, indicating that there is evidence of discrimination.

69.

Identify the type of case where most of the debate focuses on discriminatory consequences and the plaintiff need not prove an employer's intent to discriminate.

A. disparate impact

B. disparate treatment C. reasonable accommodation D. affirmative action E. corrective action Proving disparate treatment in court requires showing that the employer intended the disparate treatment, but a plaintiff need not show intent in the case of disparate impact. It is enough to show that the result of the treatment was unequal.

70.

Which of the following actions by employers can result in reverse discrimination?

A. affirmative action

B. reasonable accommodation C. disparate treatment D. retaliation E. disparate impact By increasing the proportion of minority or female candidates hired or promoted, there is a reduction in the proportion of white or male candidates hired or promoted. In such cases, white and/or male individuals have fought against affirmative action and quotas, alleging reverse discrimination.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 1 Easy Topic: Affirmative Action

71.

An accounting firm is in the processing of interviewing candidates for the position of receptionist. A job candidate arrives at an interview accompanied by a service dog. Which of the following actions by an employer would best meet the requirements of equal employment opportunity?

A. describing job requirements and asking the employee how she would meet them

B. telling the candidate politely that a blind person can't be a receptionist C. explaining that the company has a no-pets rule D. making every possible accommodation for this person, at any cost E. hiring the candidate, whether or not she is qualified for the job Especially in situations involving religion and individuals with disabilities, equal employment opportunity may require that an employer make reasonable accommodations. In employment law, this term refers to an employer's obligation to do something to enable an otherwise qualified person to perform a job. For employees with disabilities, reasonable accommodations vary according to the individual's needs. An accommodation is considered "reasonable" if it does not impose an undue hardship on the employer, such as an expense that is large in relation to a company's resources.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 3 Hard Topic: Equal Employment Opportunity

72.

Identify the correct statement regarding reasonable accommodation.

disabilities or different religious needs. D. Reasonable accommodation is provided on a homogeneous basis without the provisions being tailored to the individual needs of employees. E. Reasonable accommodation is provided by an organization even if the requisite changes create undue hardship on the organization. Especially in situations involving religion and individuals with disabilities, equal employment opportunity may require that an employer make reasonable accommodation. In employment law, this term refers to an employer's obligation to do something to enable an otherwise qualified person to perform a job.

73.

Logan, a blind man in his early twenties, was recently hired as a DJ at a local radio station in Miami. He was given permission by his manager to bring his guide dog to work. In this instance, Logan's employer makes a(n) _____.

A. disparate impact B. disparate treatment C. reverse discrimination D. reasonable accommodation

E. undue hardship For employees with disabilities, reasonable accommodations vary according to the individuals' needs. In some situations, a disabled individual may provide his or her own accommodation, which the employer allows, as in the case of a blind worker who brings a guide dog to work.

74.

Which of the following is true about avoiding discrimination?

E. If the four-fifths rule is satisfied, substantial evidence of discrimination exists. If accommodating a disability would require significant expense or difficulty, an employer may be exempt from the reasonable accommodation requirement (although the employer may have to defend this position in court). An accommodation is considered "reasonable" if it does not impose an undue hardship on the employer, such as an expense that is large in relation to a company's resources.

75.

What is the legal basis for considering sexual harassment to be illegal discrimination?

A. It is a threat to workplace safety. B. It is a form of disability-related discrimination. C. It is a form of sex discrimination.

D. It is a form of age discrimination. E. It is a form of workplace violence. Based on Title VII's prohibition of sex discrimination, the EEOC defines sexual harassment of employees as unlawful employment discrimination. For example, creation of a hostile work environment creates an environment in which it is difficult for someone of a particular sex to work. These behaviors treat individuals differently based on their sex.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 2 Medium Topic: Sexual Harassment

76.

Chelsea is a human resource manager at a construction company. Allison, an employee from one of the job sites, told Chelsea she is upset because her site supervisor has been flirting and asking her to go out with him, even after she asked him to stop. Chelsea meets with the supervisor and tells him the company could be sued for violating anti-discrimination laws. The supervisor says, "Aw, Allison knows I'm just joking! No worries, I'll give her a big raise when her performance review comes up, and then she'll know I'm a nice guy." Which of the following points does Chelsea need to stress with the supervisor?

A. The supervisor needs to give Allison a raise immediately, to calm the situation. B. Sexual harassment includes conduct that creates an offensive work environment.

C. Sexual harassment includes physical contact. D. Sexual harassment includes requiring sexual favors as a basis for employment decisions. E. The supervisor must report his conduct to the Equal Employment Opportunity Commission. Sexual harassment refers to unwelcome sexual advances. According to the EEOC, unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when (1) submission to such contact is made either explicitly or implicitly a term or condition of an individual's employment; (2) submission to or reject of such conduct is used as the basis for employment decisions affecting the individual; or (3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive work environment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 3 Hard Topic: Sexual Harassment

77.

When an individual is promised a positive outcome for submission to sex, or threatened with a negative outcome for failure to submit to sex, this is referred to as _____.

A. adverse impact B. disparate impact C. reverse discrimination D. undue hardship E. quid pro quo harassment

In general, the most obvious examples of sexual harassment involve quid pro quo harassment, meaning that a person makes a benefit (or punishment) contingent on an employee's submitting to (or rejecting) sexual advances.

78.

Which of the following is TRUE of quid pro quo harassment?

A. It involves mocking an individual's sexual orientation. B. It refers to an individual gaining benefit in return for a sexual favor.

C. It involves making hiring decisions based on the gender of the applicant. D. It involves harassment against people based exclusively on the factor of age. E. It provides preferential treatment for the minority gender at the workplace. The most obvious examples of sexual harassment involve quid pro quo harassment, meaning that a person makes a benefit (or punishment) contingent on an employee's submitting to (or rejecting) sexual advances.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. 3-97 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Sexual Harassment

79.

When Nicole started working for Brawny Construction, two of her coworkers made a point of telling sex-related jokes around her, and they occasionally ran their fingers through her hair and suggested meeting up after work. Nicole feels uncomfortable. What grounds would she have for complaining to the human resource department about her coworkers?

A more subtle, and possibly more pervasive, form of sexual harassment is to create or permit a "hostile working environment." This occurs when someone's behavior in the workplace creates an environment in which it is difficult for someone of a particular sex to work. Common complaints in sexual harassment lawsuits include claims that harassers ran their fingers through the plaintiff's hair, made suggestive remarks, touched intimate body parts, posted pictures with sexual content in the workplace, and used sexually explicit language or told sexrelated jokes.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 2 Medium Topic: Sexual Harassment

80.

Liberty Eagle Enterprises has a policy statement making it clear that it does not tolerate sexual harassment. It set up an employee hot line for reporting harassment. When it received complaints about one of the maintenance workers, the company took action and corrected the problem immediately. However, two months later, it is receiving more complaints, this time about a supervisor on the night shift. What else should Liberty Eagle do to keep the workplace free from sexual harassment?

E. broaden the policy to include harassment of men, not just women To ensure a workplace free from sexual harassment, organizations can follow some important steps. First, the organization can develop a policy statement making it very clear that sexual harassment will not be tolerated in the workplace. Second, all employees, new and old, can be trained to identify inappropriate workplace behavior. In addition, the organization can develop a mechanism for reporting sexual harassment in a way that encourages people to speak out. Finally, management can prepare to act promptly to discipline those who engage in sexual harassment, as well as to protect the victims.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 2 Medium Topic: Sexual Harassment

81.

Which of the following statements is TRUE of an organizational policy of valuing diversity?

A. The practice of valuing diversity has a single form, written into business theory. B. Organizations that value diversity see a diverse workforce as a competitive advantage.

C. Valuing diversity means learning respect for the organization's shared values, not each individual. D. The types of diversity that are valued are limited to the categories protected by law. E. Valuing diversity is an alternative to supporting equal employment opportunity. Some managers define a diverse workforce as a competitive advantage that brings them a wider pool of talent and greater insight into the needs and behaviors of their diverse customers. These organizations say they have a policy of valuing diversity. The practice of valuing diversity has no single form; it is not written into law or business theory. Organizations may try to hire, reward, and promote employees who demonstrate respect for others. Whatever their form, these efforts are intended to make each individual feel respected. Also, these actions can support equal employment opportunity. Valuing diversity, especially in support of an organization's mission and strategy, need not be limited to the categories protected by law.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 2 Medium Topic: Diversity Management

82.

Luis is an HR manager preparing a message to his company's employees, explaining the company's new policy of valuing diversity. Which of the following statements should he use to express the best business case for valuing diversity?

A. A diverse workforce makes the company more competitive by providing insights into its

diverse customers. B. A diverse workforce is necessary to stay out of legal trouble related to equal employment opportunity. C. Valuing diversity takes many forms, including affirmative action and rewards for demonstrating respect. D. Valuing diversity need not be limited to employees in categories protected by law. E. Valuing diversity involves administrative decisions for the human resource department. The United States is a diverse nation, and becoming more so. In addition, many U.S. companies have customers and operations in more than one country. Managers who value diversity define a diverse workforce as a competitive advantage that brings them a wider pool of talent and greater insight into the needs and behaviors of their diverse customers.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 3 Hard Topic: Diversity Management

83.

Which of the following is the most comprehensive U.S. law regarding worker safety?

A. the Thirteenth Amendment B. the Fourteenth Amendment C. the Occupational Safety and Health Act

D. the Rehabilitation Act of 1973 E. the Civil Rights Act of 1991 The Occupational Safety and Health Act (OSH Act) is the most comprehensive U.S. law regarding worker safety. It was enacted in 1970.

84.

Name the executive department that is responsible for conducting research to determine the criteria for specific operations or occupations and for training employers to comply with the Occupational Safety and Health Act.

A. the Department of Health

B. the Department of Commerce C. the Department of Justice D. the Department of Labor E. the Department of Homeland Security The Department of Health is responsible for conducting research to determine the criteria for specific operations or occupations and for training employers to comply with the Occupational Safety and Health Act.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. 3-102 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

85.

Tom Fender has worked for a small chemical manufacturing company for the past 10 years. As of late, he and the other workers have developed minor respiratory problems. They confronted management demanding proper ventilation at the factory because inhaling chemical fumes continuously could prove fatal. If management does not respond to their demands, they could sue the company under the _____.

A. Occupational Safety and Health Act

B. Equal Pay Act of 1963 C. Title VII of the Civil Rights Act of 1964 D. Americans with Disabilities Act E. Age Discrimination in Employment Act The main provision of the Occupational Safety and Health Act (OSH Act) states that each employer has a general duty to furnish each employee a place of employment free from recognized hazards that cause or are likely to cause death or serious physical harm. This is called the act's general-duty clause.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

86.

Logan has joined a start-up manufacturing company as its human resource manager. One of his first responsibilities is to make sure the company complies with the OSH Act. Under this law, what records must Logan keep?

A. a list of violations of the general-duty clause B. work-related injuries, plus an annual summary of employee illnesses C. work-related injuries and illnesses, with an annual summary of these

D. schedule of employee-requested OSHA inspections E. responses to questions in OSHA's Small Business Handbook Employers must keep records of work-related injuries and illnesses and post an annual summary of these records from February 1 to April 30 in the following year. OSHA's Form 300A is the annual summary that must be posted, even if no injuries or illnesses occurred.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

87.

Gabriel opened up a small business that prints custom T-shirts, mugs, and trophies. He trains his 15 employees carefully, and after two years, no employee has experienced an on-the-job injury or illness. Under the requirements of the Occupational Safety and Health Act, what must Gabriel post in the workplace?

A. OSHA Small Business Handbook B. OSHA Certificate of Compliance C. form 300A, Summary of Work-Related Injuries and Illnesses

D. form 310A, Certification of Injury-Free Status E. general-duty clause Employers must keep records of work-related injuries and illnesses and post an annual summary of these records from February 1 to April 30 in the following year. OSHA's Form 300A is the annual summary that must be posted, even if no injuries or illnesses occurred.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

88.

Vanessa started a new job in a print shop. She worries about the different chemicals in the workplace, so she requests information about them from her employer. Which employee right under the OSH Act is Vanessa exercising?

E. the right to have employer violations posted at the work site The OSH Act grants specific rights to employees. For example, they have the right to request an inspection, to have a representative present at the inspection, to have dangerous substances identified, to be promptly informed about exposure to hazards and be given access to accurate records regarding exposure, and to have employer violations posted at the work site.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

89.

An automobile painting facility experienced a breakdown in one of its ventilation fans, causing a buildup of fumes. What must the facility do in this situation to meet the employee rights under the OSH Act?

A. request an OSHA inspection B. provide an employee representative for an OSHA inspection C. promptly inform the affected employees about their exposure to hazards

D. follow the steps in OSHA's "Compliance Assistance Quick Start" E. levy fines for safety violations The OSH Act grants specific rights, such as the right to request an inspection, to have a representative present at the inspection, to have dangerous substances identified, to be promptly informed about exposure to hazards and be given access to accurate records regarding exposure, and to have employer violations posted at the work site.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

90.

Megan is starting a new business and is worried about OSHA regulations because she has often heard that they are extremely complex. Which statement offers Megan the best advice for meeting the requirements of the OSH Act?

A. Don't worry about the regulations, because they apply only to large companies. B. Use the "Compliance Assistance Quick Start" on OSHA's website.

C. Contact the Department of Labor to set up an appointment with a business representative. D. Use the job hazard analysis technique to meet all the requirements. E. Memorize the occupational health and safety standards published by NIOSH. Although OSHA regulations have a (sometimes justifiable) reputation for being complex, a company can get started in meeting these requirements by visiting OSHA's website and looking up resources such as the agency's Small Business Handbook and its step-by-step guide called "Compliance Assistance Quick Start."

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

91.

Given that the National Institute for Occupational Safety and Health (NIOSH) has published numerous standards, what is the significance of the OSH Act's general-duty clause?

A. It is extremely significant, because NIOSH standards are for government workers only. B. It is very significant, because NIOSH cannot anticipate all possible hazards.

C. It is somewhat significant, because companies may not understand the NIOSH standards. D. It is slightly significant, because eventually the NIOSH standards may replace the generalduty clause. E. It is not at all significant, because the NIOSH standards have taken the place of the general-duty clause. Although NIOSH publishes numerous standards, it is impossible for regulators to anticipate all possible hazards that could occur in the workplace. Thus, the general-duty clause requires employers to be constantly alert for potential sources of harm in the workplace and to correct them.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

92.

Forward Fuels is a chemicals manufacturer with a large research and development team searching for new alternatives to gasoline. Because it develops new chemicals and is constantly innovating, the Department of Labor cannot possibly keep up with specific safety and health standards for its workplace. Some of the managers are asking Destiny, the human resource manager, if that means they don't have to bother trying to comply with all the OSHA regulations. What should Destiny recommend?

Although NIOSH publishes numerous standards, it is impossible for regulators to anticipate all possible hazards that could occur in the workplace. Thus, the general-duty clause of the Occupational Safety and Health Act requires employers to be constantly alert for potential sources of harm in the workplace (as defined by the standard of what a reasonably prudent person would do) and to correct them.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-06 Explain employers' duties under the Occupational Safety and Health Act. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

93.

A meatpacking facility has been neglecting employee health and safety. If employees contact OSHA to request an inspection, what can the facility's management expect?

E. a form signed by the employees requesting the inspection To enforce the OSH Act, the Occupational Safety and Health Administration conducts inspections. OSHA compliance officers typically arrive at a workplace unannounced; for obvious reasons, OSHA regulations prohibit notifying employers of inspections in advance.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

94.

Dakota is the human resource manager at a poultry-processing facility with 75 employees. He just received a call saying that an OSHA inspector has arrived at the facility. What can Dakota expect the company will need to do first?

A. send the employees home for the day B. provide the inspector with records of any deaths, injuries, and illnesses

C. lead the inspector on a tour of the premises D. make the inspection officer aware of any health or safety problems E. temporarily halt all poultry processing until the inspection is over An OSHA inspection has four major components. First, the compliance officer reviews the company's records of deaths, injuries, and illnesses. OSHA requires this kind of record keeping at all firms with 11 or more full- or part-time employees.

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

95.

An OSHA compliance officer visited a warehouse of ABC Worldwide to conduct an inspection. The inspector found several safety violations related to items that could tip over and fall. She discussed these violations with ABC Worldwide's facility supervisor and human resource manager. What is most likely to happen next?

In the final step of an OSHA inspection, the compliance officer discusses the findings with the employer, noting any violations. Following an inspection, OSHA gives the employer a reasonable time frame within which to correct the violations identified.

96.

An OSHA inspector completed her inspection of a mining operation, including a walkaround and employee interviews. Then the OSHA inspector sought a restraining order from a federal court. What can you infer from this action by the inspector?

Following an inspection, OSHA gives the employer a reasonable time frame within which to correct the violations identified. If a violation could cause serious injury or death, the officer may seek a restraining order from a U.S. District Court. The restraining order compels the employer to correct the problem immediately.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

97.

Identify the correct statement regarding the Occupational Safety and Health Act (OSHA).

prominent place near the location of the violation. If a violation of the Occupational Safety and Health Act results in citations, the employer must post each citation in a prominent place near the location of the violation.

98.

Which of the following actions associated with an OSHA inspection can result in criminal charges?

A. missing the walkaround B. falsifying records subject to the inspection

C. allowing conditions that lead to an employee's injury D. failing to notify the employer of an upcoming inspection E. seeking a restraining order from a U.S. District Court Besides correcting violations identified during the inspection, employers may have to pay fines. Penalties include criminal charges for falsifying records that are subject to OSHA inspection or for warning an employer of an OSHA inspection without permission from the Department of Labor.

99.

Under the Occupational Safety and Health Act's Hazard Communication Standard, organizations must have _____ for chemicals that employees are exposed to.

A. EEO-1 forms B. white papers C. material safety data sheets

D. standard operating protocols E. action reports Under the Occupational Safety and Health Act's Hazard Communication Standard, organizations must have material safety data sheets for chemicals that employees are exposed to.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 1 Easy Topic: Occupational Safety and Health Act (OSHA)

100.

Rachel is a human resource executive for a manufacturing company that makes a variety of consumer products in several facilities. She is studying U.S. injury and illness trends from the Bureau of Labor Statistics to identify issues the company should address in its human resource policies. As she looks at nationwide trends since 1990, Rachel identifies one that companies should correct. Which of the following trends represents a problem for U.S. employers to address?

A. number of claims of retaliation against employees who report injuries

B. rate of injuries C. rate of illnesses D. illnesses as a share of total injuries and illnesses E. number of employees learning that the law forbids retaliation for filing a complaint The combined rate of injuries and illnesses has shown a steady downward trend since 1990, and illnesses remain a small share of the total, at around 5%. A more troubling trend is an increase in the number of claims of retaliation against employees who report injuries. The data do not indicate whether more employers are actually retaliating, however, or more employees are learning that the law forbids retaliation.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 3 Hard Topic: Occupational Safety and Health Act (OSHA)

101.

Identify the method that breaks down jobs into basic elements to rate them for their potential for harm or injury.

A. job hazard analysis technique

B. utilization analysis C. technic of operations review D. action plan analysis E. diversity plan The job hazard analysis technique is a safety promotion technique that involves breaking down a job into basic elements, then rating each element for its potential for harm or injury.

102.

Select the method that promotes safety by determining which specific element of a job led to a past accident.

A. reasonable accommodation B. affirmation action C. technic of operations review

D. job hazard analysis technique E. utilization analysis The technic of operations review is a method of promoting safety by determining which specific element of a job led to a past accident.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 03-08 Discuss ways employers promote worker safety and health. Level of Difficulty: 1 Easy 3-117 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Accidents in the Workplace

103.

After a large fire at Rowen Mills Inc., the company called the employees together at the facility to investigate the incident. Management began by asking each of the employees to describe their understanding of what happened. Once all employees had given their views individually, they discussed the situation until they could agree on the single systemic failure that caused the fire. Which of the following methods is Rowen Mills using?

A. operations cycle review B. standard protocol review C. technic of operations review

D. job hazard analysis technique E. utilization analysis The technic of operations review is an analysis method for determining which specific element of a job led to a past accident. In this case, Rowen Mills used the technic of operations review: all involved employees put forth their views about the incident individually, the incident and the employee's views were discussed in a group, and the single systemic failure that caused the fire was determined.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-08 Discuss ways employers promote worker safety and health. Level of Difficulty: 3 Hard Topic: How to Create a Safe and Healthy Work Site?

104.

At a supermarket chain, back injuries are a recurring problem around the loading docks, because employees in a rush forget to use proper lifting techniques. How could safety posters help the company improve safety?

D. by replacing mobile devices, which should not be present on a loading dock E. by delivering a message that varies based on employees' languages and age groups To communicate with employees about job hazards, managers should talk directly with their employees about safety. Memos also are important because the written communication helps establish a paper trail that can later document a history of the employer's concern about the job hazard. Posters, especially if placed near the hazard, serve as a constant reminder, reinforcing other messages.

105.

Zeus Trucking had its human resource department set up an online suggestion program, and employees submitted 376 ideas for improving workers' safety and health. An assistant in the department entered all the responses into a database. What additional step would be most important to add to this safety program?

To ensure safe behaviors, employers should not only define how to work safely but reinforce the desired behavior. Surprisingly, one of the most obvious ways to reinforce behavior often does not occur: when employees report unsafe conditions or behavior, the employer should take action to correct the problem. This response signals that the organization is serious when it says it values safety.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 03-08 Discuss ways employers promote worker safety and health. Level of Difficulty: 2 Medium Topic: How to Create a Safe and Healthy Work Site?

Essay Questions

106.

Describe the provisions of Americans with Disabilities Act (ADA) of 1990. How is it different from other Equal Employment Opportunity (EEO) laws? Consider that Regina is visually impaired to the extent that she cannot read without her glasses, while Ed has had leukemia but has now gone into remission. Will both of them be eligible for accommodations under the provisions of ADA? Justify your answer with appropriate reasons.

The ADA defines disability as a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment. The ADA covers specific physiological disabilities such as cosmetic disfigurement and anatomical loss affecting the body's systems. In addition, it covers mental and psychological disorders such as mental retardation, organic brain syndrome, emotional or mental illness, and learning disabilities. Conditions not covered include obesity, substance abuse, irritability, and poor judgment. The ADA is different from the other EEO laws as it goes beyond prohibiting discrimination to require that employers take steps to accommodate individuals covered under the act. If a disabled person is selected to perform a job, the employer (perhaps in consultation with the disabled employee) determines what accommodations are necessary for the employee to perform the job. Examples include using ramps and lifts to make facilities accessible, redesigning job procedures, and providing technology such as TDD lines for hearing-impaired employees. In the given scenario, Regina's case will not be covered under the ADA. If a person needs ordinary eyeglasses or contact lenses to perform each major life activity with little or no difficulty, the person is not considered disabled under the ADA. On the other hand, Ed's condition will be covered under the ADA. The second part of the definition of disability in the Act—"a record of having such an impairment," refers to individuals who have a history of disability, such as someone who has had cancer but is currently in remission, someone with a history of mental illness, or someone with a history of heart disease.

AACSB: Knowledge Application Blooms: Apply Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 3 Hard Topic: Federal Laws Affecting Human Resource Management

107.

What is affirmative action? Do you think this will lead to reverse discrimination? Explain your answer.

Affirmative action is an organization's active effort to find opportunities to hire or promote people in a particular group. Thus, Congress passed the Vocational Rehabilitation Act of 1973 to encourage employers to recruit qualified individuals with disabilities and to make reasonable accommodations to all those people to become active members of the labor market. The Department of Labor's Employment Standards Administration enforces this act. In its original form, affirmative action was meant as taking extra effort to attract and retain minority employees. These efforts have included extensively recruiting minority candidates on college campuses, advertising in minority-oriented publications, and providing educational and training opportunities to minorities. However, many organizations have resorted to quotas, or numerical goals for the proportion of certain minority groups, to ensure that their workforce mirrors the proportions of the labor market. Sometimes these organizations act voluntarily; in other cases, the quotas are imposed by the courts or the Equal Employment Opportunity Commission (EEOC). By increasing the proportion of minority or female candidates hired or promoted, they could reduce the proportion of white or male candidates hired or promoted. This could lead to reverse discrimination.

AACSB: Reflective Thinking Blooms: Analyze Learning Objective: 03-02 Summarize the major federal laws requiring equal employment opportunity. Level of Difficulty: 3 Hard Topic: Affirmative Action

108.

Disparate treatment is considered a sign of discrimination. Why is this so? Can it ever be legal? If so, in what kind of situations? Substantiate your answer with examples.

Disparate treatment is differing treatment of individuals, where the differences are based on the individuals' race, color, religion, sex, national origin, age, or disability status. It includes actions like hiring or promoting one person over an equally qualified person because of the individual's race or sex. In a situation wherein a company fails to recruit women with schoolage children (claiming that women will be frequently absent), but recruits men with a similar background, women are the victims of disparate treatment. This violates the ground rule of equal employment opportunity for all. But, there are situations when disparate treatment can be legal. It will be a case of bona fide occupational qualification (BFOQ). It is when a particular feature is a necessary (not merely preferred) qualification for performing a job. A typical example is a job that includes handing out towels in a locker room. Requiring that employees who perform this job in the women's locker room be female is a BFOQ. In a widely publicized case from the 1990s, Johnson Controls, a manufacturer of car batteries, instituted a "fetal protection" policy that excluded women of childbearing age from jobs that would expose them to lead, which can cause birth defects. Johnson Controls argued that the policy was intended to provide a safe workplace and that sex was a BFOQ for jobs that involved exposure to lead. However, the Supreme Court disagreed, ruling that BFOQs are limited to policies directly related to a worker's ability to do the job.

AACSB: Reflective Thinking Blooms: Analyze Learning Objective: 03-04 Describe ways employers can avoid illegal discrimination and provide reasonable accommodation. Level of Difficulty: 3 Hard Topic: Adverse Impact and Disparate Treatment

109.

Why is disparate impact considered a sign of discrimination despite being a condition in which a company's employment practices lack obvious discriminatory content? Substantiate this with examples. How is it different from disparate treatment? How is it related to the four-fifths rule?

Though disparate impact is seemingly neutral toward all the employees, it is still considered discriminatory because it is a situation in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities. Examples of employment practices that might result in disparate impact include pay, hiring, promotions, or training. In the area of hiring, for example, many companies encourage their employees to refer friends and family members for open positions. These referrals can produce a pool of well-qualified candidates who would be a good fit with an organization's culture and highly motivated to work with people they already know. However, given people's tendency to associate with others like themselves, this practice also can have an unintentional disparate impact on groups not already well represented at the employer. Disparate impact differs from disparate treatment in the case of employer's intent. Proving disparate treatment in court requires showing that the employer intended the disparate treatment, but a plaintiff need not show intent in the case of disparate impact. It is enough to show that the result of the treatment was unequal. The four-fifths rule is a commonly used test of disparate impact, which finds evidence of potential discrimination if the hiring rate for a minority group is less than four-fifths the hiring rate for the majority group. According to it, there is evidence of potential discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.

110.

Martha's boss, Bill, constantly uses sexually explicit language while communicating with his female subordinates. Though many female employees were bothered with this behavior, no one ever complained for fear of negative repercussions. However, Martha files a complaint against Bill with the Equal Employment Opportunity Commission (EEOC). Will this be considered as discriminatory behavior? Why or why not? Explain the prohibitions under Title VII for related behavior with examples.

Martha's case against Bill will be considered discriminatory behavior. Bill's demeanor is a subtle and pervasive form of sexual harassment by creating a "hostile working environment." This occurs when someone's behavior in the workplace creates an environment in which it is difficult for someone of a particular sex to work. Common examples include claims that harassers ran their fingers through the plaintiffs' hair, made suggestive remarks, touched intimate body parts, posted pictures with sexual content in the workplace, and used sexually explicit language or told sex-related jokes. The reason that these behaviors are considered discrimination is that they treat individuals differently based on their sex. Based on Title VII's prohibition of sex discrimination, the EEOC defines sexual harassment of employees as unlawful employment discrimination. Sexual harassment refers to unwelcome sexual advances. The EEOC has defined the types of behavior and the situations under which this behavior constitutes sexual harassment: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when 1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment, 2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or 3. Such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment. Under these guidelines, preventing sexual discrimination includes managing the workplace in a way that does not permit anybody to threaten or intimidate employees through sexual behavior.

AACSB: Knowledge Application

Blooms: Apply Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 3 Hard Topic: Sexual Harassment

111.

Valuing diversity, especially in support of an organization's mission and strategy, need not be limited to the categories protected by law. Reflect on this statement with examples.

The practice of valuing diversity has no single form; it is not written into law or business theory. Whatever their form, such efforts are intended to make each individual in an organization feel respected. Also, such actions can support equal employment opportunity by cultivating an environment in which individuals feel welcome and able to do their best. For example, many organizations provide family-friendly benefits and policies when they see workers struggling to meet the demands of family and career. Managers and human resource professionals also are concerned about learning how to treat transgender employees respectfully and appropriately. Transgender individuals who are transitioning to the opposite sex would typically change their names. This change involves administrative decisions for a human resource department. Some of these—for example, changing e-mail addresses and business cards—are a simple matter of calling employees by the names they wish to use. Other aspects of the change must meet legal requirements. Even so, employers can respect diversity by demanding no more documentation for name changes in this situation than in other types of name changes (for example, for a woman who wishes to change her name after getting married). These actions thus support in providing equal employment opportunity by cultivating an environment in which individuals feel welcome and able to do their best.

AACSB: Diversity Blooms: Analyze Learning Objective: 03-05 Define sexual harassment, and tell how employers can eliminate or minimize it. Level of Difficulty: 3 Hard Topic: Diversity Management

112.

Eduardo works at Hanson Engineering Works as a welder. Although he is provided with protective goggles and a face mask, overalls and other types of protective clothing are not provided. After three months of work at Hanson, Eduardo notices his skin becoming drier and gradually changing color. Alarmed with this development, he approaches his supervisor asking for details of the materials he works with. The supervisor declines to reveal any kind of information. In this case, can Eduardo file a case against his supervisor? If so, elaborate on which authority and laws can help him.

Eduardo may file a complaint against his supervisor with the Occupational Safety and Health Administration (OSHA) and request an OSHA inspection of the workplace. His employer may not retaliate against Eduardo for complaining. He also has a right to receive information about any hazardous chemicals he handles in the course of his job. OSHA's Hazard Communication Standard and many states' right-to-know laws require employers to provide employees with information about the health risks associated with exposure to substances considered hazardous. State right-to-know laws may be more stringent than federal standards, so organizations should obtain requirements from their state's health and safety agency, as well as from OSHA. Under OSHA's Hazard Communication Standard, organizations must have material safety data sheets (MSDSs) for chemicals that employees are exposed to. Employers must also ensure that all containers of hazardous chemicals are labeled with information about the hazards, and they must train employees in safe handling of the chemicals.

AACSB: Knowledge Application Blooms: Apply Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 3 Hard Topic: Workplace Health Hazards

113.

Do you think the Occupational Safety and Health Act been successful? Explain.

The Occupational Safety and Health (OSH) Act has undoubtedly been successful in raising awareness about occupational safety. The combined rate of injuries and illnesses has showed a steady downward trend since 1990, and illnesses remain a small share of the total, at around 5%. A more troubling trend is an increase in the number of claims of retaliation against employees who report injuries. There is no data to indicate whether more employers are actually retaliating, however, or more employees are learning that the law forbids retaliation. Because the act does not directly regulate employee behavior, little behavior change can be expected unless employees are convinced of the standards' importance. Conforming to the law alone does not necessarily guarantee their employees will be safe, so many employers go beyond the letter of the law. Such practices have to be promoted to ensure the efficiency of the legislation.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 03-07 Describe the role of the Occupational Safety and Health Administration. Level of Difficulty: 2 Medium Topic: Occupational Safety and Health Act (OSHA)

114.

Compare how the age of different employees influences various practices to be adopted in the context of safety concerns at work.

Safety concerns and safety training needs vary drastically by age group. According to the Bureau of Labor Statistics, injuries and illnesses requiring time off from work occurred at the highest rate among workers between the ages of 45 and 54; workers aged 55 to 64 were the next highest group. However, patterns vary according to type of injury. Consider the safety risks associated with the time changes related to daylight savings time. When clocks are set ahead, people can have trouble falling asleep on time and can become sleep deprived, making injuries more likely. The adjustment is particularly difficult for those who tend to stay up late—typically younger workers. For people with a strong pattern of getting up early, setting the clocks back in the fall might provide more of a safety risk. The need for training on driving in the dark might be especially great among older workers.

AACSB: Analytical Thinking Blooms: Analyze Learning Objective: 03-08 Discuss ways employers promote worker safety and health. Level of Difficulty: 3 Hard Topic: Accidents in the Workplace

115.

"Cultural differences may make promoting safety internationally more difficult than it seems." Elaborate on this statement and substantiate it with examples.

Organizations need to consider how to ensure the safety of their employees regardless of the nation in which they operate. Cultural differences may make this more difficult than it seems. For example, a study examined the impact of one standardized corporation-wide safety policy on employees in three different countries: the United States, France, and Argentina. The results of this study indicate that employees in the three countries interpreted the policy differently because of cultural differences. The individualistic, control-oriented culture of the United States stressed the role of top management in ensuring safety in a top-down fashion. However, this policy failed to work in Argentina, where the culture is more "collectivist" (emphasizing the group). Argentine employees tend to feel that safety is everyone's joint concern, so the safety programs needed to be defined from the bottom of the organization up. Thus, they may adapt communications and training to the needs of different employees, such as differences in experience levels or cultural differences from one country to another. Another challenge is that laws, enforcement practices, and political climate vary from country to country. Many companies that use offshoring have operations in countries where labor standards are far less strict that U.S. standards, so more communication and oversight will be necessary.

AACSB: Reflective Thinking Blooms: Analyze Learning Objective: 03-08 Discuss ways employers promote worker safety and health. Level of Difficulty: 3 Hard Topic: Diversity Management

Chapter 04 Analyzing Work and Designing Jobs

True / False Questions

1. Through the process of work flow design, managers analyze the tasks needed to produce a product or service. True

False

2. Work processes are the activities that a work unit's members engage in to produce a given output. True

False

3. Jobs that involve teamwork or broad responsibility tend to require a structure based on functions. True

False

4. Job analysis can only be performed by certified external analysts of the U.S. Department of Labor. True

False

5. The tasks, duties, and responsibilities (TDRs) of a job are non-observable actions. True

False

6. All job descriptions within an organization should follow the same format. True

False

7. In a job specification, a skill refers to a general enduring capability that an individual possesses. True

False

8. Incumbents are the best source of information for a job analysis. True

False

9. The Occupational Information Network relies on fixed job titles and narrow task descriptions to describe the occupational requirements. True

False

10. The Position Analysis Questionnaire (PAQ) is meant to be completed by job incumbents. True

False

11. The Fleishman Job Analysis System asks subject-matter experts to evaluate a job in terms of the abilities required to perform the job. True

False

12. Jobs that have survived downsizing tend to have a narrower scope of responsibilities coupled with increased supervision. True

False

13. The expanded use of "project-based" organizational structures has reduced the need for analysis of work flows. True

False

14. Job design is the process of defining how work will be performed and what tasks will be required in a given job. True

False

15. Applying industrial engineering to a job essentially increases its complexity. True

False

16. Industrial engineering provides the best way to motivate employees by adding meaning to their jobs. True

False

17. In the Job Characteristics Model, task significance defines the degree to which a job requires completing a "whole" piece of work from beginning to end. True

False

18. Job extension refers to empowering workers by adding more decision-making authority to their jobs. True

False

19. According to Herzberg's two-factor theory, individuals are motivated more by the extrinsic aspects of work than the intrinsic rewards. True

False

20. Job sharing is a work option in which several relatively simple jobs are combined to form a job with a wider range of tasks. True

False

21. Jack has opted for a different work schedule in which he works 40 hours over four days a week, instead of working eight hours a day for five days a week. Jack's schedule can be termed a compressed workweek. True

False

22. A telework arrangement is easiest to implement for manufacturing workers. True

False

23. The primary goal of ergonomics is to reduce the information-processing requirements of a job. True

False

24. The role of the Occupational Safety and Health Administration in occupational settings ergonomics is restricted to setting guidelines and inspecting instances of violation. True

False

25. One method to simplify a job's mental demands is to limit the amount of memorization required for the job. True

False

Multiple Choice Questions

26. Which of the following processes involves analyzing the tasks necessary for the production of a product or service?

A. ergonomics B. work flow design C. utilization analysis D. Industrial engineering E. break-even analysis

27. In the context of work flow design, which of the following best describes a position?

A. the set of duties performed by a person B. a set of related duties fulfilled by many employees C. an aggregate of similar jobs D. the set of skills and abilities that is required of a person in a job E. the collection of tasks that constitute the complete organizational process 28. Dave wants to set up a manufacturing unit, so he meets with Rodney, a human resource manager at his company. Rodney explains that in order to decide on the human resource needs for the unit, they should conduct a work flow analysis. He suggests they start by defining the outputs of the process. To do this, which of the following should Dave define?

A. the processes that will be involved in manufacturing B. the number of people required for production C. the type of products that will need to be manufactured D. the special equipment, facilities, and systems needed for production E. the data and information needed by the work unit 29. Which of the following statements is true of work flow analysis?

A. Information cannot be considered to be an input because it is not tangible. B. All outputs must be strictly measured in terms of quantity. C. Outputs may be tangible or intangible products of the work processes. D. Quality standards are not a key criterion in the process of work flow analysis. E. Inputs and outputs are only the two stages required to represent a complete work flow cycle.

30. Samcys Services Inc. specializes in providing round-the-clock building security services to multinational companies. Samcys selects security guards, conducts background checks, provides them with uniforms and training, and schedules guards to patrol and monitor security at clients' facilities. In the work flow analysis for Samcys, which of the following terms best describes the security services?

A. outputs B. inputs C. resources D. jobs E. processes 31. Joe's Restaurant, a pizza chain, is known for its quick service. To make a pizza, employees must prepare the dough and add the sauce and toppings. Cooking happens next, followed by packaging. In this scenario, the employees of Joe's Restaurant are engaged in _____.

A. work processes B. task identities C. group dynamics D. job analyses E. ergonomic activities

32. Kidzi Inc. is a toy manufacturing company. As the new production manager, Andrew notices that the production unit has been underperforming. In an attempt to streamline the existing work flow, Andrew brings in an HR specialist to help him conduct a work flow analysis. Andrew describes to specialist the quantity and quality of products to be produced. What will the HR specialist have Andrew define next?

A. the raw materials required B. the number of employees needed C. the work processes used to generate the end product D. an inventory of equipment, facilities, and systems E. the data and information required by the production unit 33. Bitstar Global Inc. is a soft-drink manufacturing company. Kelly, the production manager, works with a human resource consultant to design a new work flow for the production unit. Together they define the necessary inputs. These include raw materials, information, human resources, and _____.

A. skills B. outputs C. work processes D. equipment E. activity

34. Koland Corp. is an interior design firm based in California. The firm has a team of interior designers working closely with manufacturers to create home décor products. In the context of a work flow analysis, the interior designers, manufacturers, and home décor products required to provide interior design services collectively constitute the _____.

A. outputs B. jobs C. work processes D. operating procedures E. inputs 35. The structure of HealthCo Hospital is strongly based on function. Which statement is most describes staff positions at this hospital?

A. positions require more cognitive ability than at other hospitals B. most positions are structured around teamwork C. employees have broad authority for decision making D. employees work in teams to care for groups of patients E. positions are highly specialized 36. LRPN Consulting is a business consulting firm based in Nevada. The departments in the organization are based on the functions carried out by employees, such as customer service, marketing, tech support, and business consulting. Which of the following is most likely true of the organizational structure of LRPN Consulting?

A. Management jobs are not affected by the organizational structure. B. The jobs mostly involve teamwork or broad responsibilities. C. The focus is primarily on products or customer groups within LRPN. D. The workers work alone at highly specialized jobs. E. The workers have more authority and are involved in decision making.

37. Brianna and Natalie are planning an e-commerce company for business travelers. They want to be sure that all the employees have a wide scope of decision-making authority. Which kind of organizational structure is most appropriate for this kind of work?

A. divisions focused on customer groups B. a highly centralized structure C. highly specialized departments D. employees grouped according to function E. authority concentrated in a few people at the top 38. Next Tech applies research into physics and biochemistry to create advanced surgical instruments and implants. Its research department attracts some of the most talented professionals in these disciplines, each with a passion for his or her specialty. Next year, the position of vice president of research will be vacant, so the executive team is working with the HR department to define selection criteria for a new vice president. Given the company's structure, which of the following qualities will be important for the new vice president to possess?

A. experience in setting up divisions based on customer groups B. experience in leading employees with broad responsibilities C. skill in setting up structures and jobs D. the ability to align researchers' work with the company's strategy E. the ability to motivate employees to identify more heavily with their profession

39. A manager of a functional department would require skills in aligning employees' efforts with the organization's higher-level goals. This is a valid statement because

A. employees in a functional department need to work in a team. B. broad responsibilities are assigned to employees working in a functional department. C. employees in functional departments tend to identify more with their own departments. D. employees expect their managers to empower them by allowing them to work in self-managing teams. E. employees in such departments tend to work in cross-functional teams. 40. Jenny is a line manager at Maxvin Corp. She is assigned the task of understanding and gathering detailed information about the requirements of carrying out a certain job. Information gathered by Jenny will be used to provide essential knowledge for staffing, training, performance appraisal, and other HR activities. Which of the following most likely corresponds to the task undertaken by Jenny?

A. job analysis B. job definition C. job training D. job swapping E. job rotation 41. A list of the tasks, duties, and responsibilities that a job entails is called a _____.

A. job evaluation B. job description C. utilization analysis D. conjoint analysis E. job standardization

42. Marjorie has joined the HR department of Thomas Johnson Inc. as an intern. The organization plans on giving all newly hired site engineers copies of their job descriptions to help them understand what the organization expects of them. Marjorie has been given the task of conducting job analyses and creating job descriptions for the site engineers. Which of the following should Marjorie consider while creating the job descriptions?

A. Job descriptions do not include the job title. B. Job descriptions focus on the qualities or requirements a person performing a job must possess. C. Job descriptions contain only a brief statement that represents the set of responsibilities. D. Job descriptions contain detailed specifications of the tasks involved in carrying out each duty. E. Job descriptions are lists of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a job. 43. Leeding Engines Inc. specializes in manufacturing internal combustion engines. Recently, Leeding has decided to create a division for the flexible fuel field. During this time, Mark, the HR manager, has been reviewing and updating job descriptions. With the knowledge that a new division of jobs will be created, what would be the appropriate course of action for Mark to take next?

A. Mark should amend the original job descriptions to say they all will eventually take on flexible fuel responsibilities. B. Mark should take care to avoid including the titles of the jobs while formulating new job descriptions. C. Mark should wait until the new employees are hired before creating the new job descriptions. D. Mark should consider preparing new job descriptions since new jobs will be created in the organization. E. Mark should reuse the old job descriptions for the new jobs, instead of creating new ones.

44. N-Pax Technology Corp., a microchip manufacturing company, is hiring for the position of marketing manager for its new division. Nathan, the HR manager, considers the requirements of the job, including the necessary knowledge, level of proficiency, enduring capabilities, and other personality traits, such as persistence or motivation to achieve. Which of the following documents includes these considerations to help Nathan in selecting a candidate?

A. job description B. job definition C. job evaluation D. job scope E. job specification 45. What is a basic difference between job specifications and job descriptions?

A. Job specifications define tasks, and job descriptions define responsibilities. B. Job specifications list observable actions, and job descriptions describe general qualities. C. Job specifications look at a job's activities, and job descriptions look at the qualities needed to do the job. D. Job descriptions define tasks, and job specifications define responsibilities. E. Job descriptions look at a job's activities, and job specifications look at the qualities needed to do the job.

46. Catherine is an HR executive looking for a new job. She comes across an advertisement in a newspaper seeking applications for the position of an HR manager. The advertisement exclusively highlights requirements such as strong communications skills, excellent teamwork abilities, and leadership skills. These requirements constitute a _____.

A. job evaluation B. job analysis C. job description D. job specification E. job orientation 47. INRT Software Solutions is a firm that builds information systems for banks and other financial institutions. In its presentations to prospective clients, the firm claims to have skilled employees. What does INRT Software Solutions mean by this?

A. Its employees have previous experience in performing similar jobs. B. It has factual or procedural information that is necessary for successfully performing a task. C. Its employees have a significant level of proficiency required to perform a particular task. D. Its employees are highly motivated. E. Its employees have software certifications. 48. Which of the following is a true statement regarding KSAOs?

A. KSAOs are characteristics of people and are not directly observable. B. KSAOs and TDRs are the same thing. C. In developing job specifications, considering all elements of KSAOs is unimportant. D. The term stands for knowledge, skill, adaptability, and other characteristics. E. KSAOs detail the tasks, duties, and responsibilities of a job.

49. Henry has been newly appointed as the head of the HR team at AAS Technologies. In an attempt to establish a more efficient and reliable workflow, Henry has taken up the responsibility of creating job descriptions and job specifications for the newly hired and current engineers within the organization. While doing so, Henry gathers information about the knowledge, skills, abilities, and other characteristics (KSAOs) required for an engineer to successfully perform the job. How will determining the KSAOs most benefit the organization?

A. KSAOs will show engineers the work to be performed on the job. B. KSAOs will be a resource for writing job descriptions. C. KSAOs play a significant role in interviews and selection decisions. D. KSAOs will enable line managers to carry out job analysis. E. KSAOs should limit the number of factors listed in job specifications. 50. Information from observers should be used as a supplement to information from incumbents. Identify the statement that is most likely to support this argument.

A. Incumbents are a logical source of information; however, they may not be able to provide precise information. B. Incumbents provide accurate estimates of the importance of job duties, whereas supervisors provide accurate information about the time spent on safety-related risk factors. C. Incumbents provide accurate information, but they may have an incentive to exaggerate what they do to appear more valuable to the organization. D. Depending on external job analysts to supplement incumbents' information could be risky due to the relative inexperience of the analysts involved. E. Information provided by observers who look for a match between what incumbents are doing and what they are supposed to do may be unreliable.

51. Orange Banking Group, a corporation that has a global presence, is seeking to hire employees for its IT team. Among the available job positions are those of system administrators and chief technology officer. Who among the following is most likely to be the best source for preparing an analysis of skills needed to fill these important technical positions?

A. HR executives B. incumbents C. supervisors D. line managers E. external job analysts 52. In the 1930s, the U.S. Department of Labor created the _____ as a vehicle for helping the new public employment system link the demand for skills and the supply of skills in the U.S. workforce.

A. Career Development Facilitator (CDF) B. Dictionary of Occupational Titles (DOT) C. Occupational Information Network (O*NET) D. Standard Occupational Classification (SOC) E. Selected Characteristics of Occupations (SCO) 53. Which of the following is true of the Occupational Information Network (O*NET)?

A. It provides listings of fixed job titles and narrow task descriptions. B. It uses a common language that generalizes across jobs to describe the abilities, work styles, work activities, and work context required for various occupations. C. It represents the first attempt made by the U.S. Department of Labor to match the demand and supply of labor. D. It uses an online platform to provide information about available federal jobs. E. It was created by the U.S. Department of Labor in the 1930s as a vehicle for helping the new public employment system link the demand and supply of skills in the U.S. workforce.

54. ALTS Infosystems is a software consulting firm based in Redmond. The firm uses a standardized job analysis questionnaire containing 194 questions about work behaviors, work conditions, and job characteristics that apply to a wide variety of jobs. In this scenario, ALTS Infosystems is using _____.

A. a utilization analysis B. the Fleishman Job Analysis System C. a work flow design D. a conjoint analysis E. the Position Analysis Questionnaire 55. Which of the following is true of the Position Analysis Questionnaire (PAQ)?

A. It considers only the inputs of a work process, ignoring the outputs. B. PAQ reports are very useful for writing job descriptions or redesigning jobs. C. PAQ ratings cannot be used to compare dissimilar jobs. D. The descriptions in the PAQ reports are very clear and specific. E. The PAQ is meant to be completed only by job analysts trained in this method. 56. Josh, a human resource manager at a manufacturing company, recommends that the company use the Position Analysis Questionnaire (PAQ) for conducting job analysis. Which of the following statements best supports Josh's recommendation?

A. The PAQ considers the whole work process, from inputs through outputs. B. The PAQ can be easily scored without a computer. C. The PAQ is based on 52 categories of abilities. D. The PAQ can be completed by untrained personnel. E. A person who fills out the PAQ does not need college-level reading skills.

57. Identify the disadvantage of using the Position Analysis Questionnaire (PAQ).

A. It applies exclusively to similar job profiles. B. It measures only the inputs of a work process. C. It fails to provide computerized reports. D. It only deals with the mental processes involved in performing a job. E. It results in abstract reports that are of limited use. 58. Sharon, an HR manager, is considering methods of job analysis to introduce at her organization in order to improve the process of writing job descriptions. One option she is considering is the Position Analysis Questionnaire (PAQ). Which of the following statements best explains a drawback of the PAQ that would be relevant to her objectives?

A. This method considers only the inputs of a work process, ignoring the outputs. B. This method relies on fixed job titles and narrow task descriptions. C. This method cannot be used to compare dissimilar jobs. D. This method allows people with very basic reading skills to fill out the questionnaire. E. This method provides descriptions that are rather abstract. 59. Which of the following job analysis methods requires subject-matter experts to evaluate a job in terms of abilities required to perform the job?

A. Work Sampling Technique B. Participant Observation Technique C. Fleishman Job Analysis System D. Position Analysis Questionnaire E. Conjoint Analysis Technique

60. To gather information about worker requirements, the Fleishman Job Analysis System typically asks _____ to evaluate a job in terms of the abilities required to perform the job.

A. subject-matter experts B. supervisors C. HR specialists D. external analysts E. CEOs 61. Which of the following HR activities is similar to analyzing a job that does not yet exist?

A. human resource planning B. performance appraisal C. job evaluation D. work redesign E. selection 62. Aaron, an HR manager, observes that the number of employees quitting their jobs has been steadily increasing over the last six months. On closer inspection, he finds that a majority of the employees who quit were unhappy with the pay structures. Aaron assesses the significance of each job to the organization, which helps him set up fair pay structures. This in turn helps the organization retain valuable employees. Which of the following most likely relates to the task undertaken by Aaron?

A. job evaluation B. career planning C. job training D. performance appraisal E. selection

63. Which of the following best defines a competency?

A. It is the set of duties performed by a particular team. B. It is the list of tasks, duties, and responsibilities (TDRs) that a particular job entails. C. It is a set of related duties for accomplishing work. D. It is the activity that a work unit's members engage in to produce a given output. E. It is an area of personal capability that enables employees to perform successfully. 64. Which of the following is true of competency models?

A. They help HR professionals ensure that all aspects of talent management are aligned with an organization's strategy. B. They identify and describe a few competencies required for success in a particular occupation or set of jobs. C. They are only applicable to middle managers of an organization. D. They focus more on tasks and outcomes and not on how people work. E. They are only created for different occupational groups in an organization.

65. All-Best Milling is a small machine shop that makes custom parts for manufacturers in the metropolitan area where it is located. For 20 years, Monica was the office assistant. She was hired to fill a position that involved keeping track of customers' orders and purchasing supplies. After Monica retired, the company hired another office assistant to perform the same tasks. Soon afterward, however, the company's owner began hearing from frustrated customers complaining that when they called the company with questions and problems, no one was taking responsibility and helping them as Monica had. What problem with job analysis is most likely to have occurred when Monica retired?

A. All-Best should have engaged in downsizing so fewer employees could get the work done. B. When hiring the new employee, All-Best failed to use the fixed job description found on O*Net. C. All-Best Milling wasn't adaptable, although its environment was subject to change. D. Monica took on customer service duties, but the job description didn't reflect the change. E. The company didn't prevent Monica from changing her job based on personal preferences. 66. Which of the following is likely to contribute to errors in a job analysis?

A. use of multiple analysis methods to obtain a detailed job analysis B. inputs from multiple sources such as incumbents and supervisors C. fixed and unchanging job descriptions for various jobs D. a combination of internal and external sources of information for job analysis E. the creation of comprehensive and detailed job descriptions 67. Steve contends that a manager conducting a job analysis is required not only to define jobs when they are created but also to detect changes in jobs. What is the validity of Steve's argument?

A. Errors in job analysis have multiple sources, but most result from outdated job descriptions. B. Today's workplace is more or less inflexible and is not constantly subject to change. C. People imagine jobs to be unstable, whereas jobs actually do not change or evolve over time. D. Changes in jobs occur only when there is a change in the descriptions of jobs. E. Steve's argument is incorrect because new jobs do not have job descriptions.

68. Maxwin Infomatics Corp., a nationwide logistics company, has announced the opening of a new unit for the manufacturing division. Alex, the HR manager, has been asked to help plan for the creation of the new unit. Which of the following relates to the task undertaken by Alex, if he is involved in the process of explaining how an employee will execute his or her tasks?

A. job rotation B. job evaluation C. job design D. job enrichment E. job extension 69. Clean N Green is a two-year-old company that makes wind turbines. The business owner, Janelle, is struggling to compete. Finding enough employees who know how to do the work has been difficult, and Janelle believes that her labor costs are too high because she cannot afford to match the prices of her nearest competitors. To help with these problems, Janelle hires a new HR manager, Dylan. Dylan recommends they start by bringing in an industrial engineer. How is this approach to job design most likely to help Clean N Green?

A. by reducing injuries among workers B. by giving employees feedback about performance effectiveness C. by simplifying work and increasing output per worker D. by motivating workers to do their best E. by enlarging employees' jobs

70. Javier, a regional manager for a leading automobile company in the U.S., decides to design a manufacturing job based on the principles of industrial engineering. Following its successful implementation, which of the following outcomes should he expect?

A. increased efficiency B. increased complexity C. decreased repetitiveness D. increased skill requirements E. decreased specialization 71. Natalie, a manager at a construction company, contends that applying industrial engineering is the simplest way to structure work and maximize efficiency. Which of the following statements supports Natalie's argument?

A. Applying industrial engineering reduces the complexity of work. B. Applying industrial engineering makes jobs more dynamic. C. Organizations cannot combine industrial engineering with other approaches to job design. D. Applying industrial engineering makes training people extremely difficult and time consuming. E. Applying industrial engineering to a job increases its complexity. 72. The industrial engineering approach is most likely to emphasize _____.

A. defining work arrangements and reporting requirements B. streamlining jobs to make them simpler and more efficient C. designing jobs in such a way that they require minimal specialization D. exploring new and diverse ways of doing the same job E. creating complex and challenging jobs that require innovative employees

73. Which of the following would be a benefit to the company if it plans on applying industrial engineering to existing jobs?

A. Industrial engineering will increase the complexity of the work. B. Industrial engineering will eliminate the need for specialization in the job. C. Industrial engineering will make jobs less specialized and less repetitive. D. Industrial engineering will provide measurable and practical benefits. E. Industrial engineering will represent the best way to make jobs more meaningful. 74. Name the model that was developed by Richard Hackman and Greg Oldham to describe ways to make jobs more motivating.

A. the Cognitive Dissonance Model B. the Situational Leadership Model C. the Job Characteristics Model D. the Fleishman Job Analysis Model E. the Motivation-Hygiene Model 75. According to the Job Characteristics Model, which of the following best describes task identity?

A. the extent to which a job requires a variety of skills to carry out the tasks involved B. the degree to which a job allows an individual to make decisions about the way the work will be carried out C. the extent to which a person receives clear information about performance effectiveness from the work itself D. the degree to which a job requires completing a "whole" piece of work from beginning to end E. the extent to which a job has an important impact on the lives of other people

76. Which of the following scenarios reflects a job lacking the characteristic of task significance?

A. a job requiring a variety of skills to be performed B. a job requiring completion of the whole piece of work from beginning to end C. a job that has minimal impact on the lives of other people D. a job allowing individuals to make autonomous decisions about the job E. a job where a person receives clear information about performance effectiveness from the work itself 77. According to the Job Characteristics Model, _____ refers to the job characteristic that reflects the degree to which a job allows an individual to make decisions about the way the work is carried out.

A. task knowledge B. task ability C. skill variety D. autonomy E. feedback 78. In terms of the Job Characteristics Model, feedback refers to the extent to which _____.

A. a job requires a variety of skills to carry out the tasks involved in the job and its duties B. employees are given the authority to make decisions C. performance appraisals are perceived as transparent and fair by employees D. a job requires a variety of skills to carry out the tasks involved E. a person receives clear information about performance effectiveness from the work itself

79. Which of the following is the objective of job enlargement?

A. to make jobs less repetitive and more interesting B. to increase efficiency by identifying the best way to perform a job C. to decrease the burden of decision-making responsibilities for employees D. to assess the relative dollar value of each job to an organization E. to decrease the impact a job has on the lives of other people 80. Creations Media Inc., a publishing company, conducted an internal survey on employee satisfaction. The results indicated that a majority of its support staff considered their jobs to be monotonous. In order to change this, management decided to combine the job duties of assistants, typists, and file clerks into a single job that requires all three kinds of work. Which of the following techniques of job design did this move constitute?

A. job analysis B. job review C. job identification D. job evaluation E. job extension 81. Which of the following arrangements would qualify as job rotation?

A. a receptionist hired to perform the jobs of file clerk and typist B. support staff being trained in front-office functions through periods of alternating work arrangements C. members of the production team making decisions regarding how to resolve problems with customers D. a manager participating in a meeting while on vacation with his family E. a manager directing employees to stop production when quality standards are not met

82. Job enrichment differs from job rotation in that job enrichment

A. empowers workers by adding more decision-making authority to their jobs. B. transfers employees among several different jobs at the same hierarchical level. C. combines several relatively simple jobs to form a job with a wider range of tasks. D. allows employees to mutually exchange work roles at the same organizational level. E. assesses the relative dollar value of each job to an organization. 83. Which of the following job design techniques involving the addition of decision-making authorities to a job is credited to Frederick Herzberg?

A. job extension B. job rotation C. job enrichment D. job enlargement E. job sharing 84. According to Herzberg's two-factor theory, which of the following factors would motivate individuals the most?

A. meaningfulness of a job B. fringe benefits of a job C. shares of company stock D. salary and allowances E. periodic bonuses

85. Identify the step that can be taken by an organization to enrich manufacturing jobs for its employees.

A. Divide tasks among employees in greater detail. B. Carry out time-and-motion studies to identify the best way to perform a job. C. Make the tasks repetitive and simple to avoid errors. D. Give employees more authority to manage the production process. E. Establish a centralized decision-making process. 86. Pamela, the manager of an electronics store in California, gives her staff the authority to resolve customer complaints. She lets the staff decide whether to issue refunds or replace merchandise in case of consumer grievances. Which of the following job design techniques is Pamela implementing in her store?

A. job sharing B. job extension C. job rotation D. job enrichment E. job evaluation 87. Richard, a researcher, is of the opinion that organizations should empower employees, and suggests this should be done by designing work to be done by self-managing teams. Which of the following statements would validate Richard's argument?

A. Self-managing teams are highly involved in decision making. B. Self-managing teams do not have the authority to schedule work or hire team members. C. Organizations do not have to incur additional training expenditures. D. Team members do not have to perform a wide variety of tasks, and they view their effort as significant. E. Self-managing teams consume more time and result in lower productivity.

88. Which of the following is true of self-managing work teams?

A. Team members' job duties are narrowly defined. B. Team members usually share work assignments. C. Team members' joint responsibilities are minimal. D. Team members only have the authority to schedule work. E. Team members are only responsible for their individual tasks. 89. DigiAd Inc., an advertising firm, requires its employees to be at work between the hours of 11:00 a.m. and 2:00 p.m. This work rule allows employees to work additional hours before or after the time period in order to work the full day. Identify the job design method implemented in this scenario.

A. zero-hour contract B. flextime C. compressed workweek D. telework E. retroactive overtime 90. Which of the following best describes job sharing?

A. It is a work option in which two part-time employees carry out the tasks associated with a single job. B. It is a work option that allows full-time employees to choose start and end times within the guidelines specified by an organization. C. It is a work option that empowers individual workers by adding more opportunities for specialization in their current job duties. D. It is a work option that enlarges jobs by combining several relatively simple jobs to form a job with a wider range of tasks. E. It is a work option that enlarges jobs in an organization by moving employees among several different jobs.

91. Employees in a company's accounting department work 10 hours a day for 4 days a week, while employees in the other departments work 8 hours a day for 5 days a week. The flexible work schedule option affecting the accounting department is known as _____.

A. a zero-hour contract B. a compressed workweek C. a flexible workweek D. retroactive overtime E. telework 92. Which of the following would qualify as a compressed workweek?

A. Employees are required to be at work from 10:00 a.m. to 3:00 p.m. and can choose additional hours before or after this period. B. Two part-time employees work in different shifts and share the tasks of a specific job. C. Employees work in the office two days a week and work from home the other three days. D. Employees can choose to work away from a centrally located work area. E. Employees work 10 hours a day so that they work fewer days per week. 93. The human resource department of Revlay Corp, wants to improve worker motivation, so it is investigating changes to job design. The department invites employees to suggest ideas related to scheduling. One of the most popular is a schedule in which full-time workers complete their weekly hours in fewer than five days. For example, instead of working eight hours a day for five days, the employees could complete 40 hours of work in four 10-hour days. Staffers in the HR department recognize the idea as being the flexible work arrangement known as _______.

A. a zero-hour contract B. telework C. retroactive overtime D. flextime E. a compressed workweek

94. Adam, an HR executive observes that telework or telecommuting has been a rising trend. He considers developing a policy to allow telecommuting at his company. Which of the following statements is a fact about telecommuting that would support implementing this policy?

A. Telecommuting may support a strategy of corporate social responsibility. B. Organizations that use telecommuting require more office space. C. Employees telecommuting may have greater absences from work. D. A telework arrangement is easy to set up for manufacturing workers. E. A telework arrangement is difficult to set up for people in managerial, professional, or sales jobs. 95. Which of the following is true of telework arrangements?

A. They are the most difficult to implement for people in managerial or professional jobs. B. They are the easiest to set up for manufacturing workers. C. They support the strategy of corporate social responsibility by reducing an employee's need to commute using a vehicle. D. They are limited to employees who are disabled or need to be available for children or elderly relatives. E. They are only provided for employees who hold key strategic positions in a company.

96. Penta Toy Corp. is a firm that manufactures toys. Very often, employees of the firm are on leave, citing physical strain as the cause. An expert hired by the company investigates the situation and recommends investing in an ergonomics study of the work environment. In this scenario, the expert is recommending

A. a study of the interface between individuals' physiology and the characteristics of the physical work environment. B. a study of jobs to find the simplest way to structure work in order to maximize efficiency. C. a study of the tasks, duties, and responsibilities of employees in a new job. D. a study of the knowledge, skills, and abilities necessary to perform a job. E. a study of the relationship between intrinsic rewards and employee motivation in the context of human resource management. 97. Sairs Info Solutions is a firm that develops software applications for other companies. After the company moves into a new office space, most of the employees complain about the lack of comfortable seating arrangements. Following up on the complaint, the HR department advises management to invest in studying the ergonomics of the new office space. Which of the following would serve as an incentive for the company to invest in the study of ergonomics?

A. Ergonomics empowers employees by giving them decision-making authority. B. Ergonomics reduces the physical strain on employees performing a job. C. Ergonomics reduces the number of reporting relationships in a job. D. Ergonomics enlarges jobs by moving employees among different jobs. E. Ergonomics increases a job's mental demands.

98. The manager of a local grocery store introduces a short conveyor belt that allows customers to place items on it prior to checking out. This saves the cashier from the physical strain of bending forward and reaching into the carts to retrieve the items. This change is an example of the _____ approach to job design.

A. telecommuting B. job enrichment C. ergonomic D. flextime E. job sharing 99. Walters & Williams, a consulting firm, equips all of its employees with laptop computers, which they use at their desks and carry to client meetings. What ergonomic challenge may result from employees using these devices throughout the day?

A. shoulder strain from carrying them around B. pain from the tactile feedback of pressing keys C. fatigue from taking frequent breaks to move around D. physical strain to wrists from improper positioning for typing E. distraction from paying attention to posture

100.Which of the following is a strategy used by the Occupational Safety and Health Administration to increase ergonomic job design?

A. issuing regulations rather than guidelines for industries B. penalizing companies that allow employee participation in ergonomic redesign C. enforcing violations of its requirement that employers have a general duty to protect workers from hazards, including ergonomic hazards D. levying fines on employers who issue computers with keyboards instead of touchscreen tablets E. working with organizations to design workspaces in such a manner that they meet the standards of ergonomics 101.Anthony, an HR manager at Synergy Inc., wishes to design jobs that do not exceed the mental capabilities and limitations of employees. To do so, Anthony would most likely have to ______.

A. allow employees to opt for a compact workweek schedule B. control autonomy and stress error-free work C. increase the amount of reporting requirements and documentation D. train employees to multitask and self-manage teams E. reduce the information-processing requirements of a job

102.In the past, hospitals deferred to physicians' judgments in how they carry out their work. More recently, hospitals have begun asking surgical teams to use pre-surgical checklists aimed at avoiding miscommunications and oversights. From a job design perspective, why is this aspect of work flow an appropriate one for a hospital to focus on?

A. Simplifying work is especially beneficial when jobs are challenging and the costs of error are severe. B. Simplifying work is especially important when jobs are challenging and employees are poorly trained. C. When jobs are complex and challenging, job design should focus on motivational issues such as autonomy. D. Simplifying the mental demands of the jobs may enable a hospital to replace high-priced physicians with technicians. E. Use of checklists will limit the amount of memorization and information required by a surgical team. 103.A survey of employee satisfaction among a county's 9-1-1 dispatchers found that employees struggle to keep up with calls, feel little or no control over their situation, and constantly worry about making mistakes. A suggestion is made to simplify the jobs in order to deal with these sources of dissatisfaction. Why would simplifying the jobs be beneficial in this case?

A. The employees face few challenges already. B. The costs of employee errors are severe. C. The scope for employee errors is minimal. D. The employees do not engage in multitasking. E. The information-processing requirements of the job are minimal.

104.The employees at NeiFra Infosystems Inc., a website design company, have been struggling to provide quality services to clients. An investigation reveals that employees feel dissatisfied and mentally fatigued due to the challenging nature of their jobs. Ellen, the HR manager, suggests simplifying jobs in order to reduce errors and increase accuracy. Which of the following options would be a way to simplify the mental demands of employees' jobs?

A. imposing rigorous quality control standards B. training employees to multitask between different job responsibilities C. using software that helps with tracking progress D. providing comfortably designed office chairs E. increasing the information-processing requirements of the job 105.In which of the following uses of information technology is the technology reducing mental demands and the likelihood of errors?

A. Email notifications popping up on a clerk's screen while he is entering data B. Software that creates a graph of daily production levels for a supervisor C. Text messages arriving on a salesperson's phone while she is meeting with a client D. Searches for office supplies that generate 12,000 results to compare E. Instant messages from a supervisor who expects responses within a few minutes

Essay Questions

106.Discuss the steps in a work flow analysis.

107.Describe the relationship between work flow design and an organization's structure.

108.Compare and contrast tasks, duties, and responsibilities (TDRs) and knowledge, skills, abilities, and other characteristics (KSOAs) as they relate to different processes of job analysis.

109.Briefly describe the Position Analysis Questionnaire (PAQ). What are the advantages and disadvantages of using the PAQ as source of job information?

110.Job analysis is so important to HR managers that it has been called the building block of everything that personnel do. List and describe the instances that demonstrate the advantages of using job analysis in various HR activities.

111.How does the use of competencies in job analysis support business success?

112.Discuss how employers use industrial engineering to design jobs with a view of maximizing efficiency.

113.Describe self-managing work teams. How is right job design associated with effective team work?

114.How does the Occupational Safety and Health Administration (OSHA) encourage organizations to adopt ergonomic job design?

115.Describe some ways in which organizations can simplify the mental demands of a job.

Chapter 04 Analyzing Work and Designing Jobs Answer Key

True / False Questions

Through the process of work flow design, managers analyze the tasks needed to produce a product or service. TRUE

Through the process of work flow design, managers analyze the tasks needed to produce a product or service. With this information, they assign these tasks to specific jobs and positions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-01 Summarize the elements of work flow analysis. Level of Difficulty: 1 Easy Topic: Work-Flow Analysis

Work processes are the activities that a work unit's members engage in to produce a given output. TRUE

Work processes are the activities that a work unit's members engage in to produce a given output. They are described in terms of operating procedures for every task performed by each employee at each stage of a process.

Jobs that involve teamwork or broad responsibility tend to require a structure based on functions. FALSE

If an organization's structure is strongly based on function, workers tend to have low authority and to work alone at highly specialized jobs. Jobs that involve teamwork or broad responsibility tend to require a structure based on divisions other than functions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 1 Easy Topic: Work-Flow Analysis

Job analysis can only be performed by certified external analysts of the U.S. Department of Labor. FALSE

In very small organizations, line managers may perform a job analysis, but usually the work is done by a human resource professional.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

The tasks, duties, and responsibilities (TDRs) of a job are non-observable actions. FALSE

A job description is a list of the tasks, duties, and responsibilities (TDRs) that a job entails. TDRs are observable actions.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 1 Easy Topic: Explain Job Descriptions and Job Specifications

All job descriptions within an organization should follow the same format. TRUE

All job descriptions within an organization should follow the same format. This helps the organization make consistent decisions about such matters as pay and promotions. It also helps the organization show that it makes human resource decisions fairly.

In a job specification, a skill refers to a general enduring capability that an individual possesses. FALSE

A skill is an individual's level of proficiency at performing a particular task—that is, the capability to perform it well. Ability, in contrast to skill, refers to a more general enduring capability that an individual possesses.

Incumbents are the best source of information for a job analysis. FALSE

A drawback of relying solely on incumbents' information is that they may have an incentive to exaggerate what they do in order to appear more valuable to an organization. Information from incumbents should therefore be supplemented with information from observers, such as supervisors, who look for a match between what incumbents are doing and what they are supposed to do.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

The Occupational Information Network relies on fixed job titles and narrow task descriptions to describe the occupational requirements. FALSE

Instead of relying on fixed job titles and narrow task descriptions, the Occupational Information Network (O*NET) uses a common language that generalizes across jobs to describe the abilities, work styles, work activities, and work context required for 1,000 broadly defined occupations.

10.

The Position Analysis Questionnaire (PAQ) is meant to be completed by job incumbents. FALSE

The Position Analysis Questionnaire (PAQ) is meant to be completed only by job analysts trained in this method. In fact, the ratings of job incumbents tend to be less reliable than ratings by supervisors and trained analysts.

11.

The Fleishman Job Analysis System asks subject-matter experts to evaluate a job in terms of the abilities required to perform the job. TRUE

To gather information about worker requirements, the Fleishman Job Analysis System asks subject-matter experts (typically job incumbents) to evaluate a job in terms of the abilities required to perform the job.

12.

Jobs that have survived downsizing tend to have a narrower scope of responsibilities coupled with increased supervision. FALSE

Research suggests that successful downsizing efforts almost always entail changes in the nature of jobs, not just their number. Jobs that have survived downsizing tend to have a broader scope of responsibilities coupled with less supervision.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 1 Easy Topic: Implementing an Effective Downsizing Program

13.

The expanded use of "project-based" organizational structures has reduced the need for analysis of work flows. FALSE

The expanded use of "project-based" organizational structures requires the type of broader understanding that comes from an analysis of work flows.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 1 Easy Topic: Work-Flow Analysis

14.

Job design is the process of defining how work will be performed and what tasks will be required in a given job. TRUE

Job design is the process of defining how work will be performed and what tasks will be required in a given job. To design jobs effectively, a person must thoroughly understand the job itself and its place in the larger work unit's work flow process.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

15.

Applying industrial engineering to a job essentially increases its complexity. FALSE

Typically, applying industrial engineering to a job reduces the complexity of the work, making it so simple that almost anyone can be trained quickly and easily to perform the job.

16.

Industrial engineering provides the best way to motivate employees by adding meaning to their jobs. FALSE

Industrial engineering provides measurable and practical benefits. However, a focus on efficiency alone can create jobs that are so simple and repetitive that workers get bored. Workers performing these jobs may feel their work is meaningless.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

17.

In the Job Characteristics Model, task significance defines the degree to which a job requires completing a "whole" piece of work from beginning to end. FALSE

The Job Characteristics Model describes jobs in terms of five characteristics. In this model, task identity relates to the degree to which a job requires completing a "whole" piece of work from beginning to end. Task significance refers to the extent to which the job has an important impact on the lives of other people.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

18.

Job extension refers to empowering workers by adding more decision-making authority to their jobs. FALSE

Job extension is enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks. Job enrichment refers to empowering workers by adding more decisionmaking authority to their jobs.

19.

According to Herzberg's two-factor theory, individuals are motivated more by the extrinsic aspects of work than the intrinsic rewards. FALSE

According to Herzberg's two-factor theory, individuals are motivated more by the intrinsic aspects of work (for example, the meaningfulness of a job) than by extrinsic rewards such as pay.

20.

Job sharing is a work option in which several relatively simple jobs are combined to form a job with a wider range of tasks. FALSE

Job sharing is a work option in which two part-time employees carry out the tasks associated with a single job. Job extension is enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks.

21.

Jack has opted for a different work schedule in which he works 40 hours over four days a week, instead of working eight hours a day for five days a week. Jack's schedule can be termed a compressed workweek. TRUE

A compressed workweek is a schedule in which full-time workers complete their weekly hours in fewer than five days. For example, instead of working eight hours a day for five days, the employees could complete 40 hours of work in four 10-hour days.

22.

A telework arrangement is easiest to implement for manufacturing workers. FALSE

Telework is easiest to implement for people in managerial, professional, or sales jobs, especially those that involve working and communicating on a computer. A telework arrangement is generally difficult to set up for manufacturing workers.

23.

The primary goal of ergonomics is to reduce the information-processing requirements of a job. FALSE

The study of the interface between individuals' physiology and the characteristics of the physical work environment is called ergonomics. The goal of ergonomics is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-08 Explain how organizations apply ergonomics to design safe jobs. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

24.

The role of the Occupational Safety and Health Administration in occupational settings ergonomics is restricted to setting guidelines and inspecting instances of violation. FALSE

The Occupational Safety and Health Administration has a "four-pronged" strategy for encouraging ergonomic job design: issuing guidelines, inspecting violations, performing advisory functions, and directing future research.

25.

One method to simplify a job's mental demands is to limit the amount of memorization required for the job. TRUE

There are several ways to simplify a job's mental demands. One is to limit the amount of information and memorization that the job requires.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-09 Discuss how organizations can plan for the mental demands of a job. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

Multiple Choice Questions

26.

Which of the following processes involves analyzing the tasks necessary for the production of a product or service?

A. ergonomics B. work flow design

C. utilization analysis D. Industrial engineering E. break-even analysis Through the process of work flow design, managers analyze the tasks needed to produce a product or service. With this information, they assign these tasks to specific jobs and positions.

27.

In the context of work flow design, which of the following best describes a position?

A. the set of duties performed by a person

B. a set of related duties fulfilled by many employees C. an aggregate of similar jobs D. the set of skills and abilities that is required of a person in a job E. the collection of tasks that constitute the complete organizational process A position is the set of duties performed by one person.

28.

Dave wants to set up a manufacturing unit, so he meets with Rodney, a human resource manager at his company. Rodney explains that in order to decide on the human resource needs for the unit, they should conduct a work flow analysis. He suggests they start by defining the outputs of the process. To do this, which of the following should Dave define?

A. the processes that will be involved in manufacturing B. the number of people required for production C. the type of products that will need to be manufactured

D. the special equipment, facilities, and systems needed for production E. the data and information needed by the work unit Before designing a work flow, the organization's planners need to analyze what work needs to be done. For each type of work, such as producing a product line or providing a support service (accounting, legal support, and so on), the analysis identifies the output of the process. Outputs are the products of any work unit—the product, information, or service provided, defined in terms of both quantity and quality.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-01 Summarize the elements of work flow analysis. Level of Difficulty: 2 Medium Topic: Work-Flow Analysis

29.

Which of the following statements is true of work flow analysis?

D. Quality standards are not a key criterion in the process of work flow analysis. E. Inputs and outputs are only the two stages required to represent a complete work flow cycle. Outputs are the products of any work unit, say, a department or team. Outputs may be tangible, as in the case of a restaurant meal or finished part. They may be intangible, such as building security or an answered question about employee benefits.

30.

Samcys Services Inc. specializes in providing round-the-clock building security services to multinational companies. Samcys selects security guards, conducts background checks, provides them with uniforms and training, and schedules guards to patrol and monitor security at clients' facilities. In the work flow analysis for Samcys, which of the following terms best describes the security services?

A. outputs

B. inputs C. resources D. jobs E. processes Outputs are the products of any work unit, such as a department, team, or individual. Outputs may be tangible, as in the case of a restaurant meal or finished part. They may be intangible, such as building security or an answered question about employee benefits.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-01 Summarize the elements of work flow analysis. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

31.

Joe's Restaurant, a pizza chain, is known for its quick service. To make a pizza, employees must prepare the dough and add the sauce and toppings. Cooking happens next, followed by packaging. In this scenario, the employees of Joe's Restaurant are engaged in _____.

A. work processes

B. task identities C. group dynamics D. job analyses E. ergonomic activities Work processes are the activities that a work unit's members engage in to produce a given output. They are described in terms of operating procedures for every task performed by each employee at each stage of the process.

32.

Kidzi Inc. is a toy manufacturing company. As the new production manager, Andrew notices that the production unit has been underperforming. In an attempt to streamline the existing work flow, Andrew brings in an HR specialist to help him conduct a work flow analysis. Andrew describes to specialist the quantity and quality of products to be produced. What will the HR specialist have Andrew define next?

A. the raw materials required B. the number of employees needed C. the work processes used to generate the end product

D. an inventory of equipment, facilities, and systems E. the data and information required by the production unit The work flow analysis next examines the work processes used to generate outputs. Work processes are the activities that members of a work unit engage in to produce a given output.

33.

Bitstar Global Inc. is a soft-drink manufacturing company. Kelly, the production manager, works with a human resource consultant to design a new work flow for the production unit. Together they define the necessary inputs. These include raw materials, information, human resources, and _____.

A. skills B. outputs C. work processes D. equipment

E. activity The final stage in work flow analysis identifies the inputs required to carry out the work processes. Inputs fall into three categories: raw inputs (materials and information), equipment, and human resources (knowledge, skills, and abilities).

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-01 Summarize the elements of work flow analysis. Level of Difficulty: 2 Medium Topic: Work-Flow Analysis

34.

Koland Corp. is an interior design firm based in California. The firm has a team of interior designers working closely with manufacturers to create home décor products. In the context of a work flow analysis, the interior designers, manufacturers, and home décor products required to provide interior design services collectively constitute the _____.

A. outputs B. jobs C. work processes D. operating procedures E. inputs

Inputs fall into three categories: raw inputs (materials and information), equipment, and human resources (knowledge, skills, and abilities).

35.

The structure of HealthCo Hospital is strongly based on function. Which statement is most describes staff positions at this hospital?

If an organization's structure is strongly based on function, workers tend to have low authority and to work alone at highly specialized jobs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Analyze Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

36.

LRPN Consulting is a business consulting firm based in Nevada. The departments in the organization are based on the functions carried out by employees, such as customer service, marketing, tech support, and business consulting. Which of the following is most likely true of the organizational structure of LRPN Consulting?

E. The workers have more authority and are involved in decision making. An organization may group jobs according to functions (for example, welding, painting, packaging), or it may set up divisions to focus on products or customer groups. According to your text, if an organization structure is strongly based on function, workers tend to have low authority and work alone at highly specialized jobs. The organization's structure will also affect managers' jobs. Managing a functional department requires skill in managing conflicts and aligning employees' efforts with higher-level goals, because these employees tend to identify heavily with their department or profession.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

37.

Brianna and Natalie are planning an e-commerce company for business travelers. They want to be sure that all the employees have a wide scope of decision-making authority. Which kind of organizational structure is most appropriate for this kind of work?

A. divisions focused on customer groups

B. a highly centralized structure C. highly specialized departments D. employees grouped according to function E. authority concentrated in a few people at the top When the goal is to empower employees, companies need to set up structures and jobs that enable broad responsibility, such as jobs that involve employees in serving a particular group of customers or producing a particular product, rather than performing a narrowly defined function.

38.

Next Tech applies research into physics and biochemistry to create advanced surgical instruments and implants. Its research department attracts some of the most talented professionals in these disciplines, each with a passion for his or her specialty. Next year, the position of vice president of research will be vacant, so the executive team is working with the HR department to define selection criteria for a new vice president. Given the company's structure, which of the following qualities will be important for the new vice president to possess?

E. the ability to motivate employees to identify more heavily with their profession Managing a functional department requires skill in managing conflicts and aligning employees' efforts with higher-level goals, because these employees tend to identify heavily with their department or profession.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

39.

A manager of a functional department would require skills in aligning employees' efforts with the organization's higher-level goals. This is a valid statement because

D. employees expect their managers to empower them by allowing them to work in selfmanaging teams. E. employees in such departments tend to work in cross-functional teams. Managing a division responsible for a product or customer group tends to require more experience and cognitive (thinking) ability than managing a department that handles a particular function. In contrast, managing a functional department requires skill in managing conflicts and aligning employees' efforts with higher-level goals, because these employees tend to identify heavily with their department or profession.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 3 Hard Topic: Functional Level Strategy

40.

Jenny is a line manager at Maxvin Corp. She is assigned the task of understanding and gathering detailed information about the requirements of carrying out a certain job. Information gathered by Jenny will be used to provide essential knowledge for staffing, training, performance appraisal, and other HR activities. Which of the following most likely corresponds to the task undertaken by Jenny?

A. job analysis

B. job definition C. job training D. job swapping E. job rotation Job analysis is the process of getting detailed information about jobs. Analyzing jobs and understanding what is required to carry out a job provide essential knowledge for staffing, training, performance appraisal, and many other HR activities. In this scenario, Jenny is conducting a job analysis.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

41.

A list of the tasks, duties, and responsibilities that a job entails is called a _____.

A. job evaluation B. job description

C. utilization analysis D. conjoint analysis E. job standardization A job description is a list of the tasks, duties, and responsibilities (TDRs) that a job entails. TDRs are observable actions.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 1 Easy Topic: Explain Job Descriptions and Job Specifications

42.

Marjorie has joined the HR department of Thomas Johnson Inc. as an intern. The organization plans on giving all newly hired site engineers copies of their job descriptions to help them understand what the organization expects of them. Marjorie has been given the task of conducting job analyses and creating job descriptions for the site engineers. Which of the following should Marjorie consider while creating the job descriptions?

duty. E. Job descriptions are lists of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a job. A job description typically includes the job title; a brief description of the tasks, duties, and responsibilities (TDRs); and a list of the essential duties with detailed specifications of the tasks involved in carrying out each duty.

43.

Leeding Engines Inc. specializes in manufacturing internal combustion engines. Recently, Leeding has decided to create a division for the flexible fuel field. During this time, Mark, the HR manager, has been reviewing and updating job descriptions. With the knowledge that a new division of jobs will be created, what would be the appropriate course of action for Mark to take next?

organization. E. Mark should reuse the old job descriptions for the new jobs, instead of creating new ones. Whenever an organization creates a new job, it needs a new job description. Job descriptions should then be reviewed periodically (say, once a year) and updated if necessary.

44.

N-Pax Technology Corp., a microchip manufacturing company, is hiring for the position of marketing manager for its new division. Nathan, the HR manager, considers the requirements of the job, including the necessary knowledge, level of proficiency, enduring capabilities, and other personality traits, such as persistence or motivation to achieve. Which of the following documents includes these considerations to help Nathan in selecting a candidate?

A. job description B. job definition C. job evaluation D. job scope E. job specification

A job specification looks at the qualities or requirements the person performing the job must possess. It is a list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform the job.

45.

What is a basic difference between job specifications and job descriptions?

to do the job. A job description focuses on the activities involved in carrying out a job, whereas a job specification looks at the qualities or requirements the person performing the job must possess.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 2 Medium Topic: Explain Job Descriptions and Job Specifications

46.

Catherine is an HR executive looking for a new job. She comes across an advertisement in a newspaper seeking applications for the position of an HR manager. The advertisement exclusively highlights requirements such as strong communications skills, excellent teamwork abilities, and leadership skills. These requirements constitute a _____.

A. job evaluation B. job analysis C. job description D. job specification

E. job orientation Job specification is the list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform a particular job.

47.

INRT Software Solutions is a firm that builds information systems for banks and other financial institutions. In its presentations to prospective clients, the firm claims to have skilled employees. What does INRT Software Solutions mean by this?

D. Its employees are highly motivated. E. Its employees have software certifications. A skill is an individual's level of proficiency at performing a particular task—that is, the capability to perform it well.

48.

Which of the following is a true statement regarding KSAOs?

A. KSAOs are characteristics of people and are not directly observable.

B. KSAOs and TDRs are the same thing. C. In developing job specifications, considering all elements of KSAOs is unimportant. D. The term stands for knowledge, skill, adaptability, and other characteristics. E. KSAOs detail the tasks, duties, and responsibilities of a job. KSAOs are a list of the knowledge, skills, abilities, and other characteristics that an individual must have to perform the job. In developing job specifications, it is important to consider all of the elements of KSAOs. In contrast to tasks, duties, and responsibilities, KSAOs are characteristics of people and are not directly observable. They are observable only when individuals are carrying out the TDRs of the job and afterward.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 3 Hard Topic: Explain Job Descriptions and Job Specifications

49.

Henry has been newly appointed as the head of the HR team at AAS Technologies. In an attempt to establish a more efficient and reliable workflow, Henry has taken up the responsibility of creating job descriptions and job specifications for the newly hired and current engineers within the organization. While doing so, Henry gathers information about the knowledge, skills, abilities, and other characteristics (KSAOs) required for an engineer to successfully perform the job. How will determining the KSAOs most benefit the organization?

A. KSAOs will show engineers the work to be performed on the job. B. KSAOs will be a resource for writing job descriptions. C. KSAOs play a significant role in interviews and selection decisions.

D. KSAOs will enable line managers to carry out job analysis. E. KSAOs should limit the number of factors listed in job specifications. A manager attempting to fill a position needs information about the characteristics required and about the characteristics of each applicant. Interviews and selection decisions should therefore focus on KSAOs.

50.

Information from observers should be used as a supplement to information from incumbents. Identify the statement that is most likely to support this argument.

what they do to appear more valuable to the organization. D. Depending on external job analysts to supplement incumbents' information could be risky due to the relative inexperience of the analysts involved. E. Information provided by observers who look for a match between what incumbents are doing and what they are supposed to do may be unreliable. A drawback of relying solely on incumbents' information is that they may have an incentive to exaggerate what they do in order to appear more valuable to the organization. Information from incumbents should therefore be supplemented with information from observers, such as supervisors, who look for a match between what incumbents are doing and what they are supposed to do.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

51.

Orange Banking Group, a corporation that has a global presence, is seeking to hire employees for its IT team. Among the available job positions are those of system administrators and chief technology officer. Who among the following is most likely to be the best source for preparing an analysis of skills needed to fill these important technical positions?

A. HR executives B. incumbents C. supervisors D. line managers E. external job analysts

For analyzing skill levels, the best source may be external job analysts who have more experience rating a wide range of jobs than incumbents.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

52.

In the 1930s, the U.S. Department of Labor created the _____ as a vehicle for helping the new public employment system link the demand for skills and the supply of skills in the U.S. workforce.

A. Career Development Facilitator (CDF) B. Dictionary of Occupational Titles (DOT)

C. Occupational Information Network (O*NET) D. Standard Occupational Classification (SOC) E. Selected Characteristics of Occupations (SCO) In the 1930s, the U.S. Department of Labor created the Dictionary of Occupational Titles (DOT) as a vehicle for helping the new public employment system link the demand for skills and the supply of skills in the U.S. workforce. The DOT described over 12,000 jobs, as well as some of the requirements of successful job holders.

53.

Which of the following is true of the Occupational Information Network (O*NET)?

A. It provides listings of fixed job titles and narrow task descriptions. B. It uses a common language that generalizes across jobs to describe the abilities, work

styles, work activities, and work context required for various occupations. C. It represents the first attempt made by the U.S. Department of Labor to match the demand and supply of labor. D. It uses an online platform to provide information about available federal jobs. E. It was created by the U.S. Department of Labor in the 1930s as a vehicle for helping the new public employment system link the demand and supply of skills in the U.S. workforce. The Occupational Information Network (O*NET) uses a common language that generalizes across jobs to describe the abilities, work styles, work activities, and work context required for 1,000 broadly defined occupations. Users can visit (O*NET) Online to review jobs' tasks, work styles and context, and requirements including skills, training, and experience.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 2 Medium Topic: Describe O*NET

54.

ALTS Infosystems is a software consulting firm based in Redmond. The firm uses a standardized job analysis questionnaire containing 194 questions about work behaviors, work conditions, and job characteristics that apply to a wide variety of jobs. In this scenario, ALTS Infosystems is using _____.

A. a utilization analysis B. the Fleishman Job Analysis System C. a work flow design D. a conjoint analysis E. the Position Analysis Questionnaire

55.

Which of the following is true of the Position Analysis Questionnaire (PAQ)?

A person who fills out the Position Analysis Questionnaire (PAQ) must have college-level reading skills, and the PAQ is meant to be completed only by job analysts trained in this method.

56.

Josh, a human resource manager at a manufacturing company, recommends that the company use the Position Analysis Questionnaire (PAQ) for conducting job analysis. Which of the following statements best supports Josh's recommendation?

A. The PAQ considers the whole work process, from inputs through outputs.

B. The PAQ can be easily scored without a computer. C. The PAQ is based on 52 categories of abilities. D. The PAQ can be completed by untrained personnel. E. A person who fills out the PAQ does not need college-level reading skills. Using the Position Analysis Questionnaire (PAQ) provides an organization with information that helps in comparing jobs, even when they are dissimilar. The PAQ also has the advantage that it considers the whole work process, from inputs through outputs.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation

Blooms: Analyze Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

57.

Identify the disadvantage of using the Position Analysis Questionnaire (PAQ).

The PAQ reports are rather abstract, so they may not be useful for writing job descriptions or redesigning jobs.

58.

Sharon, an HR manager, is considering methods of job analysis to introduce at her organization in order to improve the process of writing job descriptions. One option she is considering is the Position Analysis Questionnaire (PAQ). Which of the following statements best explains a drawback of the PAQ that would be relevant to her objectives?

The descriptions in the Position Analysis Questionnaire (PAQ) reports are rather abstract, so the reports may not be useful for writing job descriptions or redesigning jobs.

59.

Which of the following job analysis methods requires subject-matter experts to evaluate a job in terms of abilities required to perform the job?

A. Work Sampling Technique B. Participant Observation Technique C. Fleishman Job Analysis System

D. Position Analysis Questionnaire E. Conjoint Analysis Technique To gather information about worker requirements, the Fleishman Job Analysis System asks subject-matter experts (typically job incumbents) to evaluate a job in terms of the abilities required to perform the job.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

60.

To gather information about worker requirements, the Fleishman Job Analysis System typically asks _____ to evaluate a job in terms of the abilities required to perform the job.

A. subject-matter experts

B. supervisors C. HR specialists D. external analysts E. CEOs To gather information about worker requirements, the Fleishman Job Analysis System asks subject-matter experts—typically job incumbents—to evaluate a job in terms of the abilities required to perform the job.

61.

Which of the following HR activities is similar to analyzing a job that does not yet exist?

A. human resource planning B. performance appraisal C. job evaluation D. work redesign

E. selection Often an organization seeks to redesign work to make it more efficient or to improve quality. The redesign requires detailed information about the existing job(s). In addition, preparing the redesign is similar to analyzing a job that does not yet exist.

62.

Aaron, an HR manager, observes that the number of employees quitting their jobs has been steadily increasing over the last six months. On closer inspection, he finds that a majority of the employees who quit were unhappy with the pay structures. Aaron assesses the significance of each job to the organization, which helps him set up fair pay structures. This in turn helps the organization retain valuable employees. Which of the following most likely relates to the task undertaken by Aaron?

A. job evaluation

B. career planning C. job training D. performance appraisal E. selection The process of job evaluation involves assessing the relative dollar value of each job to the organization in order to set up fair pay structures. To put dollar values on jobs, it is necessary to get information about different jobs and compare them. In this scenario, Aaron is engaging in job evaluation.

63.

Which of the following best defines a competency?

A competency is an area of personal capability that enables employees to perform their work successfully. For example, success in a job or career path might require leadership strength, skill in coaching others, and the ability to bring out the best in each member of a diverse team of employees.

64.

Which of the following is true of competency models?

A. They help HR professionals ensure that all aspects of talent management are aligned with

an organization's strategy. B. They identify and describe a few competencies required for success in a particular occupation or set of jobs. C. They are only applicable to middle managers of an organization. D. They focus more on tasks and outcomes and not on how people work. E. They are only created for different occupational groups in an organization. Competency models help HR professionals ensure that all aspects of talent management are aligned with the organization's strategy. They focus more on how people work, whereas job analysis focuses more on work tasks and outcomes.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

65.

All-Best Milling is a small machine shop that makes custom parts for manufacturers in the metropolitan area where it is located. For 20 years, Monica was the office assistant. She was hired to fill a position that involved keeping track of customers' orders and purchasing supplies. After Monica retired, the company hired another office assistant to perform the same tasks. Soon afterward, however, the company's owner began hearing from frustrated customers complaining that when they called the company with questions and problems, no one was taking responsibility and helping them as Monica had. What problem with job analysis is most likely to have occurred when Monica retired?

E. The company didn't prevent Monica from changing her job based on personal preferences. Although we tend to think of "jobs" as something stable, they actually tend to change and evolve over time. Those who occupy or manage jobs often make minor adjustments to match personal preferences or changing conditions. Indeed, although errors in job analysis can have many sources, most inaccuracy is likely to result from job descriptions being outdated.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

66.

Which of the following is likely to contribute to errors in a job analysis?

A. use of multiple analysis methods to obtain a detailed job analysis B. inputs from multiple sources such as incumbents and supervisors C. fixed and unchanging job descriptions for various jobs

D. a combination of internal and external sources of information for job analysis E. the creation of comprehensive and detailed job descriptions Although errors in job analysis can have many sources, most inaccuracy is likely to result from job descriptions being outdated. For this reason, job analysis must not only define jobs when they are created but also detect changes in jobs as time passes.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

67.

Steve contends that a manager conducting a job analysis is required not only to define jobs when they are created but also to detect changes in jobs. What is the validity of Steve's argument?

A. Errors in job analysis have multiple sources, but most result from outdated job descriptions.

B. Today's workplace is more or less inflexible and is not constantly subject to change. C. People imagine jobs to be unstable, whereas jobs actually do not change or evolve over time. D. Changes in jobs occur only when there is a change in the descriptions of jobs. E. Steve's argument is incorrect because new jobs do not have job descriptions. Although errors in job analysis can have many sources, most inaccuracy is likely to result from job descriptions being outdated. For this reason, job analysis must not only define jobs when they are created but also detect changes in jobs as time passes.

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

68.

Maxwin Infomatics Corp., a nationwide logistics company, has announced the opening of a new unit for the manufacturing division. Alex, the HR manager, has been asked to help plan for the creation of the new unit. Which of the following relates to the task undertaken by Alex, if he is involved in the process of explaining how an employee will execute his or her tasks?

A. job rotation B. job evaluation C. job design

D. job enrichment E. job extension Job design is the process of defining how work will be performed and what tasks will be required in a given job.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

69.

Clean N Green is a two-year-old company that makes wind turbines. The business owner, Janelle, is struggling to compete. Finding enough employees who know how to do the work has been difficult, and Janelle believes that her labor costs are too high because she cannot afford to match the prices of her nearest competitors. To help with these problems, Janelle hires a new HR manager, Dylan. Dylan recommends they start by bringing in an industrial engineer. How is this approach to job design most likely to help Clean N Green?

A. by reducing injuries among workers B. by giving employees feedback about performance effectiveness C. by simplifying work and increasing output per worker

D. by motivating workers to do their best E. by enlarging employees' jobs If workers perform tasks as efficiently as possible, not only does the organization benefit from lower costs and greater output per worker, but workers should be less fatigued. This point of view has for years formed the basis of classical industrial engineering, which looks for the simplest way to structure work in order to maximize efficiency. Typically, applying industrial engineering to a job reduces the complexity of the work, making it so simple that almost anyone can be trained quickly and easily to perform the job. If industrial engineering achieves these goals at Clean N Green, Janelle should have an easier time filling positions, and labor costs should decline as greater efficiency rises.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

70.

Javier, a regional manager for a leading automobile company in the U.S., decides to design a manufacturing job based on the principles of industrial engineering. Following its successful implementation, which of the following outcomes should he expect?

A. increased efficiency

B. increased complexity C. decreased repetitiveness D. increased skill requirements E. decreased specialization Industrial engineering looks for the simplest way to structure work in order to maximize efficiency.

71.

Natalie, a manager at a construction company, contends that applying industrial engineering is the simplest way to structure work and maximize efficiency. Which of the following statements supports Natalie's argument?

A. Applying industrial engineering reduces the complexity of work.

B. Applying industrial engineering makes jobs more dynamic. C. Organizations cannot combine industrial engineering with other approaches to job design. D. Applying industrial engineering makes training people extremely difficult and time consuming. E. Applying industrial engineering to a job increases its complexity. Applying industrial engineering to a job reduces the complexity of the work, making it so simple that almost anyone can be trained quickly and easily to perform the job. Such jobs tend to be highly specialized and repetitive.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

72.

The industrial engineering approach is most likely to emphasize _____.

A. defining work arrangements and reporting requirements B. streamlining jobs to make them simpler and more efficient

C. designing jobs in such a way that they require minimal specialization D. exploring new and diverse ways of doing the same job E. creating complex and challenging jobs that require innovative employees Industrial engineering looks for the simplest way to structure work in order to maximize efficiency. Such jobs tend to be highly specialized and repetitive.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

73.

Which of the following would be a benefit to the company if it plans on applying industrial engineering to existing jobs?

E. Industrial engineering will represent the best way to make jobs more meaningful. Industrial engineering provides measurable and practical benefits. However, a focus on efficiency alone can create jobs that are so simple and repetitive that workers get bored.

74.

Name the model that was developed by Richard Hackman and Greg Oldham to describe ways to make jobs more motivating.

A. the Cognitive Dissonance Model B. the Situational Leadership Model C. the Job Characteristics Model

D. the Fleishman Job Analysis Model E. the Motivation-Hygiene Model A model that shows how to make jobs more motivating is the Job Characteristics Model, developed by Richard Hackman and Greg Oldham.

75.

According to the Job Characteristics Model, which of the following best describes task identity?

end E. the extent to which a job has an important impact on the lives of other people The Job Characteristics Model describes jobs in terms of five characteristics. In this model, task identity refers to the degree to which a job requires completing a "whole" piece of work from beginning to end (for example, building an entire component or resolving a customer's complaint).

76.

Which of the following scenarios reflects a job lacking the characteristic of task significance?

A. a job requiring a variety of skills to be performed B. a job requiring completion of the whole piece of work from beginning to end C. a job that has minimal impact on the lives of other people

D. a job allowing individuals to make autonomous decisions about the job E. a job where a person receives clear information about performance effectiveness from the work itself According to the Job Characteristics Model, task significance relates to the impact the job has on the lives of other people.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 3 Hard Topic: Employee Motivation

77.

According to the Job Characteristics Model, _____ refers to the job characteristic that reflects the degree to which a job allows an individual to make decisions about the way the work is carried out.

A. task knowledge B. task ability C. skill variety D. autonomy

E. feedback The Job Characteristics Model describes jobs in terms of five characteristics. In this model, the characteristic of autonomy relates to the degree to which the job allows an individual to make decisions about the way the work will be carried out.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

78.

In terms of the Job Characteristics Model, feedback refers to the extent to which _____.

The Job Characteristics Model describes jobs in terms of five characteristics. In this model, the characteristic of feedback reflects the extent to which a person receives clear information about performance effectiveness from the work itself.

79.

Which of the following is the objective of job enlargement?

A. to make jobs less repetitive and more interesting

B. to increase efficiency by identifying the best way to perform a job C. to decrease the burden of decision-making responsibilities for employees D. to assess the relative dollar value of each job to an organization E. to decrease the impact a job has on the lives of other people In a job design, job enlargement refers to broadening the types of tasks performed. The objective of job enlargement is to make jobs less repetitive and more interesting.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

80.

Creations Media Inc., a publishing company, conducted an internal survey on employee satisfaction. The results indicated that a majority of its support staff considered their jobs to be monotonous. In order to change this, management decided to combine the job duties of assistants, typists, and file clerks into a single job that requires all three kinds of work. Which of the following techniques of job design did this move constitute?

A. job analysis B. job review C. job identification D. job evaluation E. job extension

Job extension involves enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

81.

Which of the following arrangements would qualify as job rotation?

A. a receptionist hired to perform the jobs of file clerk and typist B. support staff being trained in front-office functions through periods of alternating work

arrangements C. members of the production team making decisions regarding how to resolve problems with customers D. a manager participating in a meeting while on vacation with his family E. a manager directing employees to stop production when quality standards are not met Job rotation does not actually redesign the jobs themselves but moves employees among several different jobs.

82.

Job enrichment differs from job rotation in that job enrichment

A. empowers workers by adding more decision-making authority to their jobs.

B. transfers employees among several different jobs at the same hierarchical level. C. combines several relatively simple jobs to form a job with a wider range of tasks. D. allows employees to mutually exchange work roles at the same organizational level. E. assesses the relative dollar value of each job to an organization. Job enrichment is the idea of empowering workers by adding more decision-making authority to their jobs. Job rotation moves employees among several different jobs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 2 Medium 4-98 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Job Analysis and Job Design

83.

Which of the following job design techniques involving the addition of decision-making authorities to a job is credited to Frederick Herzberg?

A. job extension B. job rotation C. job enrichment

D. job enlargement E. job sharing The idea of job enrichment, or empowering workers by adding more decision-making authority to their jobs, comes from the work of Frederick Herzberg. According to Herzberg's two-factor theory, individuals are motivated more by the intrinsic aspects of work (for example, the meaningfulness of a job) than by extrinsic rewards such as pay.

84.

According to Herzberg's two-factor theory, which of the following factors would motivate individuals the most?

A. meaningfulness of a job

B. fringe benefits of a job C. shares of company stock D. salary and allowances E. periodic bonuses According to Herzberg's two-factor theory, individuals are motivated more by the intrinsic aspects of work (for example, the meaningfulness of a job) than by extrinsic rewards such as pay.

85.

Identify the step that can be taken by an organization to enrich manufacturing jobs for its employees.

E. Establish a centralized decision-making process. According to your text, ways to enrich a manufacturing job might include giving employees authority to stop production when quality standards are not being met and having each employee perform several tasks to complete a particular stage of the process rather than dividing up the tasks among the employees.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 1 Easy Topic: Job Analysis and Job Design

86.

Pamela, the manager of an electronics store in California, gives her staff the authority to resolve customer complaints. She lets the staff decide whether to issue refunds or replace merchandise in case of consumer grievances. Which of the following job design techniques is Pamela implementing in her store?

A. job sharing B. job extension C. job rotation D. job enrichment

E. job evaluation Job enrichment involves empowering workers by adding more decision-making authority to jobs. For a salesperson in a store, job enrichment might involve the authority to resolve customer problems, including the authority to decide whether to issue refunds or replace merchandise.

87.

Richard, a researcher, is of the opinion that organizations should empower employees, and suggests this should be done by designing work to be done by self-managing teams. Which of the following statements would validate Richard's argument?

A. Self-managing teams are highly involved in decision making.

B. Self-managing teams do not have the authority to schedule work or hire team members. C. Organizations do not have to incur additional training expenditures. D. Team members do not have to perform a wide variety of tasks, and they view their effort as significant. E. Self-managing teams consume more time and result in lower productivity. Instead of merely enriching individual jobs, some organizations empower employees by designing work to be done by self-managing work teams. These teams have authority for an entire work process or segment. Team members typically have authority to schedule work, hire team members, resolve problems related to the team's performance, and perform other duties traditionally handled by management.

88.

Which of the following is true of self-managing work teams?

A. Team members' job duties are narrowly defined. B. Team members usually share work assignments.

C. Team members' joint responsibilities are minimal. D. Team members only have the authority to schedule work. E. Team members are only responsible for their individual tasks. In a self-managing team, members' responsibilities are great. Their jobs usually are defined broadly and include sharing of work assignments.

89.

DigiAd Inc., an advertising firm, requires its employees to be at work between the hours of 11:00 a.m. and 2:00 p.m. This work rule allows employees to work additional hours before or after the time period in order to work the full day. Identify the job design method implemented in this scenario.

A. zero-hour contract B. flextime

C. compressed workweek D. telework E. retroactive overtime Flextime is a scheduling policy in which full-time employees may choose starting and ending times within guidelines specified by an organization. The flextime policy may require that employees be at work between certain hours, say, 10:00 a.m. and 3:00 p.m. Employees work additional hours before or after this period in order to work the full day.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

90.

Which of the following best describes job sharing?

A. It is a work option in which two part-time employees carry out the tasks associated with a

single job. B. It is a work option that allows full-time employees to choose start and end times within the guidelines specified by an organization. C. It is a work option that empowers individual workers by adding more opportunities for specialization in their current job duties. D. It is a work option that enlarges jobs by combining several relatively simple jobs to form a job with a wider range of tasks. E. It is a work option that enlarges jobs in an organization by moving employees among several different jobs. Job sharing is a work option in which two part-time employees carry out the tasks associated with a single job. Such arrangements can enable an organization to attract or retain valued employees who want more time to attend school or to care for family members.

91.

Employees in a company's accounting department work 10 hours a day for 4 days a week, while employees in the other departments work 8 hours a day for 5 days a week. The flexible work schedule option affecting the accounting department is known as _____.

A. a zero-hour contract B. a compressed workweek

C. a flexible workweek D. retroactive overtime E. telework A compressed workweek is a schedule in which full-time workers complete their weekly hours in fewer than five days. The accounting department is using the option of a compressed workweek, because the employees work 10 hours a day for 4 days a week, while their colleagues in other departments work a standard 8 hours a day for 5 days a week.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

92.

Which of the following would qualify as a compressed workweek?

93.

The human resource department of Revlay Corp, wants to improve worker motivation, so it is investigating changes to job design. The department invites employees to suggest ideas related to scheduling. One of the most popular is a schedule in which full-time workers complete their weekly hours in fewer than five days. For example, instead of working eight hours a day for five days, the employees could complete 40 hours of work in four 10-hour days. Staffers in the HR department recognize the idea as being the flexible work arrangement known as _______.

A. a zero-hour contract B. telework C. retroactive overtime D. flextime E. a compressed workweek

94.

Adam, an HR executive observes that telework or telecommuting has been a rising trend. He considers developing a policy to allow telecommuting at his company. Which of the following statements is a fact about telecommuting that would support implementing this policy?

A. Telecommuting may support a strategy of corporate social responsibility.

B. Organizations that use telecommuting require more office space. C. Employees telecommuting may have greater absences from work. D. A telework arrangement is easy to set up for manufacturing workers. E. A telework arrangement is difficult to set up for people in managerial, professional, or sales jobs. Telecommuting can support a strategy of corporate social responsibility because these employees do not produce the greenhouse gas emissions that result from commuting by car.

95.

Which of the following is true of telework arrangements?

need to commute using a vehicle. D. They are limited to employees who are disabled or need to be available for children or elderly relatives. E. They are only provided for employees who hold key strategic positions in a company. Telecommuting supports the strategy of corporate social responsibility because telecommuting employees do not produce the greenhouse gas emissions that result from commuting by car.

96.

Penta Toy Corp. is a firm that manufactures toys. Very often, employees of the firm are on leave, citing physical strain as the cause. An expert hired by the company investigates the situation and recommends investing in an ergonomics study of the work environment. In this scenario, the expert is recommending

A. a study of the interface between individuals' physiology and the characteristics of the

physical work environment. B. a study of jobs to find the simplest way to structure work in order to maximize efficiency. C. a study of the tasks, duties, and responsibilities of employees in a new job. D. a study of the knowledge, skills, and abilities necessary to perform a job. E. a study of the relationship between intrinsic rewards and employee motivation in the context of human resource management. The study of the interface between individuals' physiology and the characteristics of the physical work environment is called ergonomics. The goal of ergonomics is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-08 Explain how organizations apply ergonomics to design safe jobs. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

97.

Sairs Info Solutions is a firm that develops software applications for other companies. After the company moves into a new office space, most of the employees complain about the lack of comfortable seating arrangements. Following up on the complaint, the HR department advises management to invest in studying the ergonomics of the new office space. Which of the following would serve as an incentive for the company to invest in the study of ergonomics?

A. Ergonomics empowers employees by giving them decision-making authority. B. Ergonomics reduces the physical strain on employees performing a job.

C. Ergonomics reduces the number of reporting relationships in a job. D. Ergonomics enlarges jobs by moving employees among different jobs. E. Ergonomics increases a job's mental demands. The goal of ergonomics is to minimize physical strain on a worker by structuring the physical work environment around the way the human body works. Ergonomics therefore focuses on outcomes such as reducing physical fatigue, aches and pains, and health complaints.

98.

The manager of a local grocery store introduces a short conveyor belt that allows customers to place items on it prior to checking out. This saves the cashier from the physical strain of bending forward and reaching into the carts to retrieve the items. This change is an example of the _____ approach to job design.

A. telecommuting B. job enrichment C. ergonomic

D. flextime E. job sharing The study of the interface between individuals' physiology and the characteristics of the physical work environment is called ergonomics. The goal of ergonomics is to minimize physical strain on a worker by structuring the physical work environment around the way the human body works.

99.

Walters & Williams, a consulting firm, equips all of its employees with laptop computers, which they use at their desks and carry to client meetings. What ergonomic challenge may result from employees using these devices throughout the day?

E. distraction from paying attention to posture A recent ergonomic challenge comes from the popularity of mobile devices. As workers find more and more uses for these devices, they are at risk from repetitive-stress injuries (RSIs). Laptop and notebook computers are handy to carry, but because the screen and keyboard are attached in a single device, the computer can't be positioned to the ergonomically correct standards of screen at eye level and keyboard low enough to type with arms bent at a 90degree angle. Heavy users of these devices must therefore trade off eyestrain against physical strain to wrists, unless they can hook up their device to an extra, properly positioned keyboard or monitor.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 04-08 Explain how organizations apply ergonomics to design safe jobs. Level of Difficulty: 2 Medium Topic: How to Create a Safe and Healthy Work Site?

100.

Which of the following is a strategy used by the Occupational Safety and Health Administration to increase ergonomic job design?

workers from hazards, including ergonomic hazards D. levying fines on employers who issue computers with keyboards instead of touchscreen tablets E. working with organizations to design workspaces in such a manner that they meet the standards of ergonomics The Occupational Safety and Health Administration (OSHA) has a "four-pronged" strategy for encouraging ergonomic job design. The first prong is to issue guidelines (rather than regulations) for specific industries. Second, OSHA enforces violations of its requirement that employers have a general duty to protect workers from hazards, including ergonomic hazards. Third, OSHA works with industry groups to advise employers in those industries. And finally, OSHA established a National Advisory Committee on Ergonomics to define needs for further research.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-08 Explain how organizations apply ergonomics to design safe jobs. Level of Difficulty: 2 Medium Topic: How to Create a Safe and Healthy Work Site?

101.

Anthony, an HR manager at Synergy Inc., wishes to design jobs that do not exceed the mental capabilities and limitations of employees. To do so, Anthony would most likely have to ______.

Besides hiring people with certain mental skills, organizations can design jobs so that they can be accurately and safely performed given the way the brain processes information. Generally, this means reducing the information-processing requirements of a job.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-09 Discuss how organizations can plan for the mental demands of a job. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

102.

In the past, hospitals deferred to physicians' judgments in how they carry out their work. More recently, hospitals have begun asking surgical teams to use pre-surgical checklists aimed at avoiding miscommunications and oversights. From a job design perspective, why is this aspect of work flow an appropriate one for a hospital to focus on?

A. Simplifying work is especially beneficial when jobs are challenging and the costs of error

are severe. B. Simplifying work is especially important when jobs are challenging and employees are poorly trained. C. When jobs are complex and challenging, job design should focus on motivational issues such as autonomy. D. Simplifying the mental demands of the jobs may enable a hospital to replace high-priced physicians with technicians. E. Use of checklists will limit the amount of memorization and information required by a surgical team. Just as the human body has capabilities and limitations, addressed by ergonomics, the mind, too, has capabilities and limitations. Besides hiring people with certain mental skills, organizations can design jobs so that they can be accurately and safely performed given the way the brain processes information. It can be most beneficial to simplify jobs where employees will most appreciate having the mental demands reduced (as in a job that is extremely challenging) or where the costs of errors are severe (as in the job of a surgeon or air-traffic controller).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 04-09 Discuss how organizations can plan for the mental demands of a job. Level of Difficulty: 3 Hard Topic: Job Analysis and Job Design

103.

A survey of employee satisfaction among a county's 9-1-1 dispatchers found that employees struggle to keep up with calls, feel little or no control over their situation, and constantly worry about making mistakes. A suggestion is made to simplify the jobs in order to deal with these sources of dissatisfaction. Why would simplifying the jobs be beneficial in this case?

A. The employees face few challenges already. B. The costs of employee errors are severe.

C. The scope for employee errors is minimal. D. The employees do not engage in multitasking. E. The information-processing requirements of the job are minimal. It can be most beneficial to simplify jobs where employees will most appreciate having the mental demands reduced (as in a job that is extremely challenging) or where the costs of errors are severe (as in the job of a surgeon).

104.

The employees at NeiFra Infosystems Inc., a website design company, have been struggling to provide quality services to clients. An investigation reveals that employees feel dissatisfied and mentally fatigued due to the challenging nature of their jobs. Ellen, the HR manager, suggests simplifying jobs in order to reduce errors and increase accuracy. Which of the following options would be a way to simplify the mental demands of employees' jobs?

A. imposing rigorous quality control standards B. training employees to multitask between different job responsibilities C. using software that helps with tracking progress

D. providing comfortably designed office chairs E. increasing the information-processing requirements of the job There are several ways to simplify a job's mental demands. For project management, teamwork, and work done by employees in different locations, organizations may provide software that helps with tracking progress.

105.

In which of the following uses of information technology is the technology reducing mental demands and the likelihood of errors?

A. Email notifications popping up on a clerk's screen while he is entering data B. Software that creates a graph of daily production levels for a supervisor

C. Text messages arriving on a salesperson's phone while she is meeting with a client D. Searches for office supplies that generate 12,000 results to compare E. Instant messages from a supervisor who expects responses within a few minutes Changes in technology sometimes reduce job demands and errors, but in some cases, technology has made the problem worse. Some employees try to juggle information from several sources at once. In these cases, the sources are distracting the employees from their primary task. They may convey important information, but they also break the employee's train of thought, reducing performance and increasing the likelihood of errors. Organizations probably can't design interruption-free jobs, but employers can design jobs that empower workers to manage their time. In this question, email, text, and instant messages are the kinds of interruptions described. In contrast, the software provides an easy way for the supervisor to interpret progress toward production goals.

Essay Questions

106.

Discuss the steps in a work flow analysis.

For each type of work, such as producing a product line or providing a support service (accounting, legal support, and so on), workflow analysis identifies the output of the process, the activities involved, and the three categories of inputs (materials and information, equipment, and human resources). Outputs are the products of any work unit, such as a department, team, or individual. Outputs may be tangible, as in the case of a restaurant meal or finished part, or they may be intangible, such as building security or an answered question about employee benefits. In identifying the outputs of particular work units, work flow analysis considers both quantity and quality. Work flow analysis next considers the work processes used to generate the outputs identified. Work processes are the activities that a work unit's members engage in to produce a given output. They are described in terms of operating procedures for every task performed by each employee at each stage of the process. Finally, work flow analysis identifies the inputs required to carry out the work processes. Inputs fall into three categories: raw inputs (materials and information), equipment, and human resources (knowledge, skills, and abilities).

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 04-01 Summarize the elements of work flow analysis. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

107.

Describe the relationship between work flow design and an organization's structure.

Work flow takes place in the context of an organization's structure. It requires the cooperation of individuals and groups. Ideally, the organization's structure brings together the people who must collaborate to create the desired outputs efficiently. The structure may do this in a way that is highly centralized or decentralized. The organization may group jobs according to functions, or it may set up divisions to focus on products or customer groups. If the structure is strongly based on function, workers tend to have low authority and work alone at highly specialized jobs. Jobs that involve teamwork or broad responsibility tend to require a structure based on divisions other than functions. When the goal is to empower employees, companies therefore need to set up structures and jobs that enable broad responsibility, such as jobs that involve employees in serving a particular group of customers or producing a particular product, rather than performing a narrowly defined function. The organization's structure also affects managers' jobs. Managing a division responsible for a product or customer group tends to require more experience and cognitive ability than managing a department that handles a particular function. In contrast, managing a functional department requires skill in managing conflicts and aligning employees' efforts with higher-level goals, because these employees tend to identify heavily with their department or profession.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 04-02 Describe how work flow is related to an organization's structure. Level of Difficulty: 3 Hard Topic: Work-Flow Analysis

108.

Compare and contrast tasks, duties, and responsibilities (TDRs) and knowledge, skills, abilities, and other characteristics (KSOAs) as they relate to different processes of job analysis.

A job description is a list of the tasks, duties, and responsibilities (TDRs) that a job entails. TDRs are observable actions. When a manager attempts to evaluate job performance, it is most important to have detailed information about the work performed in the job, that is, the TDRs. This information makes it possible to determine how well an individual is meeting each job requirement. A job description is primarily constituted of the TDRs of the job. A job specification is a list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform a job. Knowledge refers to the factual or procedural information that is necessary for successfully performing a task. A skill is an individual's level of proficiency at performing a particular task—that is, the capability to perform it well. Ability refers to a more general enduring capability that an individual possesses. Other characteristics might be personality traits such as someone's persistence or motivation to achieve. In developing job specifications, it is important to consider all of the elements of KSAOs. Accurate information about KSAOs is especially important for making decisions about who will fill a job. Interviews and selection decisions should therefore focus on KSAOs. In contrast to TDRs, KSAOs are characteristics of people and are not directly observable. They are observable only when individuals are carrying out the TDRs of the job, and afterward, if they can show the product of their labor.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 04-03 Define the elements of a job analysis, and discuss their significance for human resource management. Level of Difficulty: 3 Hard Topic: Explain Job Descriptions and Job Specifications

109.

Briefly describe the Position Analysis Questionnaire (PAQ). What are the advantages and disadvantages of using the PAQ as source of job information?

One of the broadest and best-researched instruments for analyzing jobs is the Position Analysis Questionnaire (PAQ). This is a standardized job analysis questionnaire containing 194 items that represent work behaviors, work conditions, and job characteristics that apply to a wide variety of jobs. The questionnaire organizes these items into six sections concerning different aspects of a job: information input, mental processes, work output, relationships with other persons, job context, and other characteristics. The person analyzing a job determines whether each item on the questionnaire applies to the job being analyzed. The analyst rates each item on six scales: extent of use, amount of time, importance to the job, possibility of occurrence, applicability, and special code (special rating scales used with a particular item). The PAQ headquarters uses a computer to score the questionnaire and generate a report that describes the scores on the job dimensions. Using the PAQ provides an organization with information that helps in comparing jobs, even when they are dissimilar. The PAQ also has the advantage that it considers the whole work process, from inputs through outputs. However, the person who fills out the questionnaire must have college-level reading skills, and the PAQ is meant to be completed only by job analysts trained in this method. In fact, the ratings of job incumbents tend to be less reliable than ratings by supervisors and trained analysts. Also, the descriptions in the PAQ reports are rather abstract, so the reports may not be useful for writing job descriptions or redesigning jobs.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

110.

Job analysis is so important to HR managers that it has been called the building block of everything that personnel do. List and describe the instances that demonstrate the advantages of using job analysis in various HR activities.

Almost every human resource management program requires some type of information that is gleaned from job analysis. For example: 1. Work redesign—Often an organization seeks to redesign work to make it more efficient or to improve quality. The redesign requires detailed information about the existing job. In addition, preparing the redesign is similar to analyzing a job that does not yet exist. 2. Human resource planning—As planners analyze human resource needs and how to meet those needs, they must have accurate information about the levels of skills required in various jobs, so that they can tell what kinds of human resources will be needed. 3. Selection—To identify the most qualified applicants for various positions, decision makers need to know what tasks the individuals must perform, as well as the necessary knowledge, skills, and abilities. 4. Training—Almost every employee hired by an organization will require training. Any training program requires knowledge of the tasks performed in a job, so that the training is related to the necessary knowledge and skills. 5. Performance appraisal—An accurate performance appraisal requires information about how well each employee is performing in order to reward employees who perform well and to improve their performance if it is below standard. Job analysis helps in identifying the behaviors and the results associated with effective performance. 6. Career planning—Matching an individual's skills and aspirations with career opportunities requires that those in charge of career planning know the skill requirements of the various jobs. This allows them to guide individuals into jobs in which they will succeed and be satisfied. 7. Job evaluation—The process of job evaluation involves assessing the relative dollar value of each job to the organization in order to set up fair pay structures. If employees do not believe pay structures are fair, they will become dissatisfied and may quit, or they will not see much benefit in striving for promotions. To put dollar values on jobs, it is necessary to get information about different jobs and compare them.

AACSB: Analytical Thinking

Blooms: Understand Learning Objective: 04-04 Tell how to obtain information for a job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

111.

How does the use of competencies in job analysis support business success?

When human resource management is actively engaged in talent management as a way to support strategy, organizations need to think beyond skills for particular jobs. They must identify the capabilities they need to acquire and develop in order to promote the organization's success. For this purpose, organizations develop competency models. A competency is an area of personal capability that enables employees to perform their work successfully. A competency model identifies and describes all the competencies required for success in a particular occupation or set of jobs. Organizations may create competency models for occupational groups, levels of the organization, or even the entire organization. For each competency, the model identifies behaviors that are used to determine an individual's level of proficiency. Competency models focus more on how people work, whereas job analysis focuses more on tasks and outcomes.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-05 Summarize recent trends in job analysis. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

112.

Discuss how employers use industrial engineering to design jobs with a view of maximizing efficiency.

Classical industrial engineering looks for the simplest way to structure work in order to maximize efficiency. Typically, applying industrial engineering to a job reduces the complexity of the work, making it so simple that almost anyone can be trained quickly and easily to perform the job. Such jobs tend to be highly specialized and repetitive. In practice, the scientific method traditionally seeks the "one best way" to perform a job by performing timeand-motion studies to identify the most efficient movements for workers to make. Once the engineers have identified the most efficient sequence of motions, the organization should select workers based on their ability to do the job, and then train them in the details of the "one best way" to perform that job. The company also should offer pay structured to motivate workers to do their best.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-06 Describe methods for designing a job so that it can be done efficiently. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

113.

Describe self-managing work teams. How is right job design associated with effective team work?

Some organizations empower employees by designing work to be done by self-managing work teams. These teams have authority for an entire work process or segment. Team members typically have authority to schedule work, hire team members, resolve problems related to the team's performance, and perform other duties traditionally handled by management. Teamwork can give a job such motivating characteristics as autonomy, skill variety, and task identity. Because team members' responsibilities are great, their jobs usually are defined broadly and include sharing of work assignments. Team members may, at one time or another, perform every duty of the team. The challenge for the organization is to provide enough training so that the team members can learn the necessary skills. Another approach, when teams are responsible for particular work processes or customers, is to assign the team responsibility for the process or customer, then let the team decide which members will carry out which tasks. Studies have found that the right job design was associated with effective teamwork. In particular, when teams are self-managed and team members are highly involved in decision making, teams are more productive, employees more satisfied, and managers more pleased with performance. Teams also tend to do better when each team member performs a variety of tasks and when team members view their effort as significant.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-07 Identify approaches to designing a job to make it motivating. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

114.

How does the Occupational Safety and Health Administration (OSHA) encourage organizations to adopt ergonomic job design?

The Occupational Safety and Health Administration has a "four-pronged" strategy for encouraging ergonomic job design. The first prong is to issue guidelines for specific industries. As of 2012, these guidelines have been issued for the nursing home, grocery store, poultryprocessing industries, and for shipyards. Second, OSHA enforces violations of its requirement that employers have a general duty to protect workers from hazards, including ergonomic hazards. Third, OSHA works with industry groups to advise employers in those industries. And finally, OSHA has established a National Advisory Committee on Ergonomics to define needs for further research.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-08 Explain how organizations apply ergonomics to design safe jobs. Level of Difficulty: 2 Medium Topic: The Role of Government in Human Resource Management

115.

Describe some ways in which organizations can simplify the mental demands of a job.

There are several ways to simplify a job's mental demands. One is to limit the amount of information and memorization that the job requires. Organizations can also provide adequate lighting, easy-to-understand gauges and displays, simple-to-operate equipment, and clear instructions. For project management, teamwork, and work done by employees in different locations, organizations may provide social-media tools to simplify information sharing. Often, employees try to simplify some of the mental demands of their own jobs by creating checklists, charts, or other aids. Finally, every job requires some degree of thinking, remembering, and paying attention, so for every job, organizations need to evaluate whether their employees can handle the job's mental demands. Changes in technology sometimes reduce job demands and errors, but in some cases, technology has made the problem worse. Some employees try to juggle information from several sources at once. Organizations probably can't design interruption-free jobs, and few employees would want to isolate themselves entirely from the information and relationships available online. But employers can design jobs that empower workers to manage their time—for example, allowing them to schedule blocks of time when they concentrate on work and do not answer phone, e-mail, or text messages. Some employees set aside one or two periods during the day when they will open their e-mail programs, read messages, and respond to the messages immediately.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 04-09 Discuss how organizations can plan for the mental demands of a job. Level of Difficulty: 2 Medium Topic: Job Analysis and Job Design

Chapter 05 Planning for and Recruiting Human Resources

True / False Questions

1. In human resource planning, forecasting is an intermediary step. True

False

2. In the context of forecasting the demand for labor, leading indicators are relatively objective measures that accurately predict future labor demand. True

False

3. Statistical models are used for forecasting labor demand because they are good at capturing "once-in-a-lifetime" changes. True

False

4. A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. True

False

5. The second step in human resource planning is performance evaluation. True

False

6. The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand. True

False

7. Downsizing can be used to reduce surplus labor because it yields fast results. True

False

8. Work sharing is usually implemented in an effort to avoid labor shortages. True

False

9. The negative effect of downsizing would be low among firms that use performance-related pay incentives. True

False

10. Downsizing disrupts the social networks through which people are creative and flexible. True

False

11. Themost widespread methods for eliminating labor shortages are reducing work hours and endorsing early-retirement programs. True

False

12. The use of temporary workers might provide an organization with additional administrative tasks and financial burdens. True

False

13. In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker. True

False

14. Contracting with another organization to perform a broad set of services is called outsourcing. True

False

15. To ensure success with an outsourcing strategy, companies should outsource work that requires tight security. True

False

16. When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals. True

False

17. The steps in a workforce utilization review are identical to the steps in the HR planning process. True

False

18. In general, all companies have to make decisions in three areas of recruiting: personnel policies, recruitment sources, and the characteristics and behavior of the recruiter. True

False

19. Personnel policies influence the kinds of job applicants an organization attracts. True

False

20. Recruitment sources affect both the characteristics of vacancies and potential job applicants. True

False

21. In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization. True

False

22. Many of the people reading classified ads are either over- or under-qualified for the position. True

False

23. In the context of recruitment sources, private employment agencies serve primarily blue-collar workers, while public employment agencies mostly serve white-collar workers. True

False

24. In the context of recruiter traits and behavior, the recruiter affects the nature of both the job vacancy and the applicants generated. True

False

25. Research suggests that realistic job previews have a strong and consistent effect on employee turnover. True

False

Multiple Choice Questions

26. Organizations carry out human resource planning to

A. reduce hiring of workers from colleges and universities. B. increase hiring costs to match industry standards. C. avoid taking risks. D. gain an advantage over competitors. E. replace technology with highly skilled workers.

27. Which of the following is the first step in the human resource planning process?

A. forecasting B. goal setting C. program implementation D. program evaluation E. performance evaluation 28. In the context of human resource planning, the primary goal of forecasting is to

A. predict labor shortages or surpluses in specific areas of an organization. B. determine labor supply. C. set goals for hiring employees. D. focus attention on a problem and provide a basis for measuring an organization's success. E. eliminate large numbers of personnel with the goal of enhancing an organization's competitiveness. 29. Identify a benefit of applying statistical forecasting methods.

A. They are particularly useful in dynamic environments. B. Under the right conditions, they provide predictions that are much more precise than a human forecaster's subjective judgment. C. They are particularly useful in predicting important events that have no historical precedent. D. They are invariably better than the "best guesses" of experts. E. They can be used by organizations as a substitute for relying on the subjective judgments of experts.

30. Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the past three years. Sasha will most likely use _____ to predict the demand.

A. yield ratio B. workforce utilization review C. trend analysis D. cost per hire E. capacity utilization analysis 31. In the context of forecasting the demand for labor, using trend analysis, inventory levels, changes in technology, and actions of competitors are examples of _____.

A. leading indicators B. performance indicators C. coincident pointers D. transitional matrices E. functional pointers 32. A chart that lists job categories held in one period and shows the proportion of employees in each of those categories in a future period is called a _____.

A. labor review B. trend analysis C. forecast D. leading indicator E. transitional matrix

33. James is the HR manager at Flenzel Inc., which is preparing for the launch of a new product line. The company needs to know how many new customer service representatives to add to help customers with questions and concerns about the existing, and new, products. To guide the company, James needs information about the number of employees currently providing customer service, the number likely to be in those jobs next year, and the numbers expected to move to other positions in the organization. The information will be easier to organize and interpret if James uses a(n) _____.

A. electronic recruiting process B. transitional matrix C. propensity analysis D. due-process policy E. multiple regression analysis 34. Ron, an HR manager at Franton Inc., is preparing for a 5 percent increase in the production labor force next year. To do this, he needs to determine what the current number of production employees is and how the number is likely to change by the end of the year. To help with this analysis, Ron should use a _____.

A. transitional matrix B. propensity analysis C. trend analysis D. multiple regression E. leading indicator

35. Tim, a human resource manager, has studied a transitional matrix to identify how his company has been filling its demand for lab technicians. Where else should Tim get information related to the labor supply?

A. the Bureau of Labor Statistics B. the Equal Employment Opportunity Commission C. the Occupational Safety and Health Administration D. his company's marketing plan E. statistical models that capture "once-in-a-lifetime" changes 36. The second step in human resource planning is _____.

A. forecasting labor shortage B. forecasting labor surplus C. goal setting and strategic planning D. program implementation and evaluation E. program goal setting 37. Jonathan, the CEO of Maxofan Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Jonathan is most likely using the _____ strategy to reduce the labor surplus.

A. early retirement B. downsizing C. natural attrition D. retraining E. hiring freeze

38. Yienze Inc., a manufacturer of electronic goods, is experiencing financial losses. The company is also facing the problem of a labor surplus due to low demand for its products. In this context, which of the following would be the best way for Yienze to deal with this labor surplus?

A. The company must consider work sharing because it causes relatively less suffering to the employees. B. The company must choose an early retirement option because it gives an option to employees to voluntarily leave the organization with suitable monetary compensation. C. The company must freeze employee hiring and focus on natural attrition because it is a relatively fast way to reduce a labor surplus. D. The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses. E. The company must consider retraining employees because it helps improve their interpersonal skills. 39. Renton Inc. is phasing out its desktop computer repair center in Wisconsin. Meanwhile, the demand for repair of mobile devices—services it provides in Georgia and New Mexico—is growing rapidly. Betty, a human resource specialist at Renton headquarters in Atlanta, must plan to avoid a labor surplus in Wisconsin in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which of the following strategies would best help Betty accomplish her goal?

A. pay reductions B. transfers C. demotions D. early retirement E. hiring freeze

40. Solenz Inc. is a relatively new company that employs 23 workers. When it finished a major contract, the owner realized that there wasn't enough work left for all the remaining workers. The company is negotiating contracts that could provide future work in a few months, but it currently must address its labor surplus in order to remain financially sound. Which of the following is the best strategy to deal with this labor surplus?

A. an early-retirement program B. natural attrition C. a hiring freeze D. downsizing E. work sharing 41. Bob, an HR manager at Delair Inc., is expecting a labor surplus for the company in the month of December. This gives Bob nearly eight months to deal with the problem. In order to reduce the labor surplus, Bob decides to use a _____ strategy, which causes less suffering for employees.

A. downsizing B. demotion C. hiring freeze D. pay reduction E. transfer

42. Brendan and Angela are HR managers at Seattle Investments. They are expecting a labor surplus over the next two years resulting in the organization having 24 more employees than required. Typically, two employees leave the organization each month. Which of the following HR strategies should Brendan and Angela consider, taking into account the length of time they have available?

A. downsizing B. natural attrition C. pay reductions D. demotions E. transfers 43. Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

A. Both strategies yield slow results for an organization. B. Both strategies cause high suffering to the employees of an organization. C. Both strategies can be applied for preventing labor shortages. D. Both strategies are expensive to implement. E. Both strategies encourage layoffs. 44. Carmella, an HR manager at Crexion Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to _____.

A. use retrained transfers B. focus on turnover reductions C. hire new employees D. hire temporary employees E. focus on technological innovation

45. Britt, a production manager at Frelix Inc., is expecting a labor shortage for a short period of time. He would like to avoid it with a strategy that can be easily eliminated in the future when there is optimal labor available for work. Which of the following options for avoiding a labor shortage would be the right solution for Britt?

A. hiring new employees B. employing technological innovation C. using retrained transfers D. hiring temporary employees E. reducing managerial staff 46. Errol, a manager at a large holiday decoration store, is expecting increased sales during the upcoming holiday season. He knows that his current workforce will not be able to meet demand, putting him at risk of a labor shortage. Which of the following strategies would be the best option to help Errol avoid a labor shortage?

A. Errol should hire new employees because he will most likely need additional workers after the holiday season to deal with an increasing sales trend. B. Errol should consider increasing his current employees' pay during the holiday season so they will work harder to achieve sales targets. C. Errol should keep his store closed during non-peak hours to compensate for labor shortages. This will ensure his current employees work harder during peak hours. D. Errol should hire temporary employees because he can let them go once the holiday season is over. E. Errol should consider increasing the prices of toys so that he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue.

47. Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.

A. Both strategies yield slow results. B. Both strategies have high revocability. C. Both strategies are expensive to implement. D. Both strategies involve contracting with another organization to perform a broad set of services. E. Both strategies can be used for reducing labor surplus. 48. Janet, an HR manager at SensNet Inc., hires employees who provide a specific set of knowledge and skills that will give her company advantage over its competitors. In the context of strategic planning, Janet is

A. outsourcing a broad set of services. B. using propensity analysis. C. seeking leading indicators. D. hiring individuals with a core competency. E. using trend analysis. 49. Steve, the CEO at Winsfeld Inc., learns that his company is perceived as low-value by customers. He plans to combat this by hiring highly skilled and knowledgeable employees in order to improve Winsfeld's competitive standing. In this scenario, Steve will most likely be hiring

A. outsourced employees. B. offshored employees. C. employees with a core competency. D. employees with a college degree. E. temporary workers.

50. Wilma heads the production department at Riden Inc., a firm that stresses the importance of maintaining regular contact with customers. Wilma is expecting a labor surplus in the future. John, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Wilma rejects this option. Which of the following statements will validate that Wilma made the right decision?

A. Downsizing cannot be used to reduce the number of managers. B. Downsizing would result in increased operational costs. C. Downsizing cannot provide an immediate solution to labor surplus. D. Downsizing would hurt long-term organizational effectiveness. E. Downsizing would harm the hierarchy of top management. 51. Joe is the CEO of TexTel Inc., a company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue. After studying his company's structure, Joe feels TexTel's current processes are inefficient. As a result, Joe decides to downsize the organization and then use the profits to enhance the organization's efficiency. What is a disadvantage of this approach?

A. Downsizing yields slow but long-term profits. B. Downsizing is the simplest way to ensure current and future competitiveness. C. Downsizing will interfere with the effectiveness of the organization's teamwork. D. Downsizing often results in acquisition of companies by other organizations. E. Downsizing requires moving to relatively expensive locations.

52. Identify the correct statement regarding downsizing.

A. Downsizing improves long-term organizational effectiveness. B. The negative effect of downsizing is especially low among firms that engage in highinvolvement work practices. C. Downsizing often disrupts the social networks through which people are creative and flexible. D. The negative impact of downsizing is especially low for those organizations that emphasize research and development. E. Downsizing campaigns only eliminate people who are replaceable. 53. Which of the following is a step a downsized company can take to counter negative employee emotions?

A. demonstrate that the employees that were downsized deserved it B. build confidence in the company's plans for a stronger future C. show the organization's commitment to its management D. encourage employees to work harder, increasing their value and thus keeping them with the company longer E. pursue a commitment to the customers over a commitment to the community 54. A manufacturing company, hit by a slump in demand, is experiencing a labor surplus. The company expects the market to improve in six months, and it does not want to lay off any of its employees. Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

A. demotions B. outsourcing C. reduced work hours D. overtime E. employing temporary workers

55. Nicole, a human resource manager at an electronics firm, observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization. Which of the following statements best explains the reason for this trend among older employees?

A. there are laws against gender discrimination B. there is a rise in the availability of pensions C. jobs are becoming less physically demanding D. phased-retirement programs require employees to work longer hours E. older workers generally don't have much debt 56. El Eram Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Monica, the vice president of human resources, for advice on how to address the resulting labor surplus. Monica studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Monica suggest as the most effective way of addressing El Eram's labor surplus?

A. The workforce should be downsized, with layoffs focusing on the older employees. B. Retrain the older employees in order to make them to work more productively. C. Provide performance-based pay to increase production output by the employees. D. Replace the employees with contract workers. E. Offer early-retirement incentives to the employees in their 50s and 60s. 57. Which of the following best describes a phased-retirement program?

A. It refers to laying off older employees in small batches. B. It refers to giving lucrative incentives to a large number of older employees to voluntarily retire. C. It refers to reducing both the number of hours older employees work as well as the cost of these employees. D. It refers to giving older employees a certain time limit to voluntarily retire. E. It refers to offering alternative work locations and work responsibilities to older employees.

58. Which of the following are the most widespread methods for eliminating labor shortages?

A. downsizing and merging with other organizations B. hiring temporary workers and outsourcing work C. retrained transfers and turnover reduction D. overtime and new external hires E. overtime and retrained transfers 59. Identify a disadvantage of using temporary and contract workers.

A. Revocability of this method is more difficult than other methods of avoiding labor shortage. B. These kinds of workers cannot be hired through an agency. C. These methods are a relatively slow solution to labor shortage. D. These workers tend to be less committed to an organization. E. These workers work well in key jobs, but not in those jobs that supplement permanent employees. 60. Why is temporary employment popular with employers?

A. It gives employers flexibility in operations. B. It allows employers to comply with the requirements of affirmative action imposed by the government. C. The quality of work from temporary workers is usually far superior. D. It is the most effective strategy for key customer service jobs. E. Temporary workers are more committed to the organization.

61. Which of the following best describes outsourcing?

A. It refers to contracting with another organization to perform a broad set of services. B. It refers to finding cheap resources in another country to gain a competitive advantage. C. It refers to using a temporary or contract employee to fill a single job vacancy. D. It refers to buying the necessary raw materials needed to conduct business from external suppliers. E. It refers to moving operations away from the home location to decrease cost savings. 62. Trotta Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in

A. offshoring. B. consolidating. C. licensing. D. acquiring. E. outsourcing. 63. Organizations use outsourcing as a way to

A. reduce a labor surplus. B. operate more efficiently and save money. C. replace labor with technology. D. ease the transition from temporary worker to employee. E. hold onto good employees during a labor surplus until they can be hired back.

64. Grexel Tools applies its in-depth understanding of the challenges facing manufacturers to design and build custom machine tools that are highly valued by business customers. To maintain its competitive advantage, Grexel also wants to avoid spending more than is necessary on administrative activities such as managing employee benefits. What would be the most effective way for Grexel to minimize administrative expenses without sacrificing quality?

A. hiring new employees with administrative skills B. downsizing the workforce so fewer administrators are needed C. moving to a location where raw materials are abundant D. outsourcing administrative work to an organization that specializes in these services E. hiring temporary workers to fill permanent job positions 65. Which of the following is a challenge associated with an outsourcing strategy?

A. labor shortage B. increased cost C. quality-control problems D. lack of necessary technology E. diseconomies of scale

66. A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Japanese company that is opening offices in the area. The Japanese company has given a month's time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?

A. retrained transfers B. overtime C. technological innovation D. new external hires E. turnover reductions 67. Gordon, a supervisor at AutoMate Inc., realizes that a couple of months from now, he might experience a labor shortage for approximately two weeks due to increased demand for the company's products. Which of the following options would be best for dealing with this labor shortage?

A. Gordon should hire new employees because it is a simple process. B. Gordon should depend on technological innovation because it helps replace human labor with machines. C. Gordon should use outsourcing because it reduces internal costs. D. Gordon should encourage employees to stay with the company. E. Gordon should encourage employee overtime because it helps to increase productivity for a short period of time.

68. Which of the following is an element in the final stage of human resources planning?

A. estimating labor demand B. forecasting labor supply C. estimating labor surplus or shortage D. strategic planning E. evaluating outcomes 69. In the context of HR planning, implementation that ties planning and recruiting to an organization's strategy and to its efforts to develop employees becomes a complete program of

A. reengineering. B. total quality management. C. benchmarking. D. talent management. E. workforce utilization. 70. Nazir, an HR manager at Solomon Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Nazir is carrying out the _____ process.

A. promoting B. appraising C. recruiting D. forecasting E. disbanding

71. In the context of managing human resources, the process of _____ creates a buffer between planning and the actual selection of new employees.

A. recruiting B. evaluating C. inducting D. outsourcing E. training 72. _____ influence the kinds of job applicants an organization reaches.

A. Personnel policies B. Recruitment sources C. Characteristics of the recruiter D. Financial sources E. Industry competitors 73. Which of the following aspects of recruitment is most likely to affect the nature of the positions that are vacant?

A. recruitment sources B. personnel policies C. recruiter traits D. recruiter behavior E. applicant characteristics

74. Which of the following is true of companies that use a "lead-the-market" pay strategy?

A. They pay more than the current market wages for a job. B. They have a recruiting disadvantage. C. They recruit fewer employees than needed and depend on overtime. D. They provide relatively better working conditions to employees compared to competitors. E. They usually have low pay, coupled with overtime and flex-time. 75. _____ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

A. Due-process policy B. Employment flexibility C. Rule of fair treatment D. Rule of law E. Employment at will 76. Berzen Inc. hires John as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and John is based on the _____.

A. promote-from-within policy B. lead-the-market strategy C. employment-at-will policy D. nepotistic agreement E. benevolent agreement

77. _____ formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.

A. Leading indicators B. Trend analyses C. Transitional matrices D. Due-process policies E. Employment-at-will contracts 78. Premiere Software is having difficulty filling all its positions for systems analysts. The company's human resource manager suggests introducing a kind of personnel policy known as a dueprocess policy. How is that most likely to help with recruitment?

A. This policy implies greater job security and concern for employees. B. Due-process implies that employees won't be bound to a contract. C. Implementing a due-process policy suggests that the organization is innovative and fun. D. Applicants know a due-process policy always leads to a lead-the-market pay strategy. E. The due-process policy supports a "promote from within" practice, which will encourage current employees to apply. 79. In order to cultivate a favorable picture of the organization, Rhodes Group, a financial services corporation, advertises itself to potential applicants by using the slogan, "Investing in you no matter what road you take." This scenario is an example of _____ advertising.

A. viral B. image C. proactive D. saturation E. signature

80. A physicist at AdVanTech recently received an award for several patents he earned that enabled AdVanTech to help slow climate change by reducing carbon emissions. Shelby, AdVanTech's vice president of human resources, is eager to get news coverage of the physicist's award. She knows that, in addition to drawing positive attention to the company, the publicity will support recruitment. Which statement best supports Shelby's thinking?

A. Publicity about AdVanTech will create more opportunities for advancement within the company. B. A lead-the-market pay strategy requires that people be familiar with the company's track record. C. Creating the impression of AdVanTech as a place where talented people make a difference can attract talented job candidates. D. People who learn about the physicist will be less likely to expect that AdVanTech has an employment-at-will policy. E. This kind of image advertising will give more people the impression that AdVanTech is a fun place to work. 81. Which of the following is an internal source of recruitment?

A. employee referrals B. direct applicants C. employment agencies D. job postings E. personal interviews

82. The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees is referred to as

A. job posting. B. external hiring. C. employment referral. D. a workforce utilization review. E. direct sourcing. 83. Connor is a human resource specialist at a company with a promote-from-within policy. Based on that policy, what method should he include in his recruiting efforts to fill an open position for an accounting supervisor?

A. using the services of a private employment agency B. inviting employees to refer a friend C. sending recruiters to colleges D. posting the job on the company's intranet E. posting the job on the company's careers website 84. Identify the benefit of relying on internal recruitment sources.

A. Internal candidates are likely to promote diversity in terms of race and sex. B. Internal applicants minimize the impact of political considerations in the hiring decision. C. Internal sources are generally cheaper and faster than other means. D. Internal sources expose an organization to new ideas or new ways of doing business. E. Current employees are well suited to recruit people for specialized upper-level positions.

85. Which of the following is the correct statement regarding internal recruitment sources?

A. Research indicates that most organizational positions are filled internally. B. Internal recruitment sources expose an organization to new ideas or new ways of doing business. C. Internal recruiting minimizes the possibility of unrealistic employee expectations. D. Employee referrals are the most common source of job applicants for internal recruitment. E. Internal sources are the most appropriate for specialized upper-level positions. 86. People who apply for a vacancy without prompting from an organization are referred to as

A. direct applicants. B. natural applicants. C. internal applicants. D. neutral applicants. E. referred applicants. 87. Steve applies for a job at Texel Inc. because his friend Dan, who is a manager there, prompts him to do so. In this scenario, Steve is a(n) _____.

A. direct applicant B. natural applicant C. neutral applicant D. referral E. executive search professional

88. Most direct applicants to an organization have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. This process is termed

A. nepotism. B. employee referral. C. self-selection. D. internal recruitment. E. employment at will. 89. Which of the following statements is true about referrals?

A. Referrals fall under the category of internal sources of recruitment. B. The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints. C. The use of referrals can contribute to nepotism. D. Referrals cost much more than other formal recruiting efforts. E. Referrals are the least preferred sources of new hires. 90. Margaret, the HR manager at Frexotel Inc., recruits her cousin Linda as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Margaret has engaged in the practice of hiring relatives, or _____.

A. localism B. nepotism C. structuralism D. voluntarism E. abstractionism

91. Hunter works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company's recruiting dollars. Which is the most likely reason for the supervisor's objection?

A. These types websites are too difficult for most job hunters to use. B. The company will be flooded with applications from individuals who are barely qualified. C. Employers can't search these sites; only job seekers can conduct searches. D. The company will get very few applications, because job hunters read the ads slowly. E. Finding a match between job seekers and job vacancies is inefficient on these sites. 92. Which of the following is true of executive search firms?

A. They find new jobs almost exclusively for high-level, unemployed executives. B. They help organizations in on-campus recruiting. C. They help only entry-level and inexperienced employees to find jobs. D. They are agencies administered by the federal government or governmental organizations. E. They serve as a buffer, providing confidentiality between an employer and a recruit. 93. Luis, a human resource executive, is meeting with the executive team to discuss the need to fill a soon-to-be vacant position for vice president of the company's Medical Devices Division. Normally, he posts vacancies on the company's website, but he encourages the team to allocate funds to hire an executive search firm (ESF) for filling this position. Which statement best supports Luis's recommendation?

A. ESFs can more efficiently advertise the vacant position to a wide audience. B. ESFs are government-run agencies, so they offer low-cost services. C. ESFs provide confidentiality for employer and recruit, giving access to better candidates. D. ESFs specialize in writing effective print ads that give readers enough information. E. ESFs specialize in finding jobs for candidates who are currently unemployed.

94. Themost important source of recruits for entry-level professional and managerial vacancies is

A. on-campus interviewing. B. public employment agencies. C. advertisements in newspapers and magazines. D. private employment agencies. E. employee referrals. 95. In the context of evaluating the quality of a recruitment source, yield ratios express the

A. output yielded by a new hire in relation to the cost of recruiting the new hire. B. dollar costs incurred per hire in relation to the number of applicants interviewed. C. percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. D. quality of new hires by comparing the cost of training the new recruits to the cost of hiring them. E. percentage of applicants who complete one year in the organization after recruitment. 96. Erica helped a sales manager place an ad on job boards and hire 5 new salespeople. She calculates that the total cost to recruit and select these employees was $200,000. What was the cost per hire for this recruiting effort?

A. $40,000 B. $5,000 C. $1,000,000 D. $10,000 E. $200,000

97. Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He has used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Gilbert should determine the _____.

A. hiring conversion rate B. prospective cost C. return on investment D. yield ratio E. cost per hire 98. Xavier determines that his company spent $15,000 to hire 3 new programmers through employee referrals and another $75,000 to hire 5 new programmers through a private employment agency. Which of the following statements is correct about these recruiting efforts?

A. The cost per hire for the employment agency was lower, at $9,375 per hire. B. The cost per hire for the employment agency was lower, at $15,000 per hire. C. The cost per hire for referrals was lower, at $15,000. D. The cost per hire for referrals was lower, at $45,000. E. The cost per hire for referrals was lower, at $5,000 per hire. 99. Keri, a trainer at Klemens Inc., plans on finding out how many candidates moved from the initial interview stage to the training selection stage in the past month. To find out, she needs to compare the _____.

A. yield ratios B. cost per hire C. prospective costs D. returns on investment E. liquidity ratios

100.Zoe is a recruiter with a bachelor's degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. According to your text, the most likely reason for this is because Zoe

A. is not warm enough to the applicants. B. is perceived as less credible because she is an HR specialist. C. does not give applicants enough information, leaving them with more questions than answers. D. comes off as being too professional for someone in the HR field. E. is not approaching the candidate with enough skepticism. 101.Malik is an HR manager at a large accounting firm. He hires and trains the firm's staff of recruiters. Malik hires people with education in human resource management and a warm attitude that displays a positive interest in people. How else should he equip the recruiters so that they have success in this kind of work?

A. Malik should give them a realistic job preview about the recruiters' position. B. Malik should select recruiters in an ideal age range. C. Malik should train the recruiters in how to perform candidates' jobs. D. Malik should equip recruiters with the kinds of information job applicants are seeking. E. Malik should tell recruiters to downplay any negative information about the firm.

102.Juliette is a recruiter for Kaskade Inc. When she interviews job candidates, she works hard to provide background information about the job's positive and negative qualities. She aims to be sure every detail is accurate, so that any employees hired will feel they got what they expected and will want to stay on with the company. Juliette's behavior is an example of providing a _____.

A. yield ratio B. realistic job preview C. core competency D. due-process policy E. job posting 103.Harriett wants to apply for a job vacancy. She calls the recruiter who had advertised this vacancy to know more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Harriett. Which of the following terms refers to the job information given by the recruiter?

A. vacancy analysis B. substantive job criticism C. pragmatic job survey D. realistic job preview E. role examination

104.A start-up software company hires Mia as its first human resource manager. Whenever a new position needs to be filled, Mia sits down with the supervisor to gather facts that will be included in a realistic job preview. Mia knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which of the following statements best explains Mia's decision to provide realistic job previews?

A. The recruiter is less important than personnel policies for affecting a candidate's decision. B. Realism in the recruiter's message is the most researched aspect of recruiting. C. Mia feels pressure to exaggerate the negative qualities of each job vacancy. D. Employees are highly sensitive to negative information. E. Giving realistic information is not expensive or difficult, so it is worth even a small benefit. 105.Omar is proud of his team of warm, knowledgeable, and ethical recruiters at Luvya Insurance. They practice their presentations to be sure they give realistic job previews, and they keep up-todate on the company's policy so they can provide applicants with accurate answers to a host of questions. However, over the past year, Omar observes that the proportion of applicants who accept offers from Luvya has fallen. He follows up with several who turned down offers and learns that they took jobs elsewhere because they developed an unfavorable opinion of Luvya. Which of the following situations most likely explains this problem?

A. The recruiters lack the characteristics associated with success. B. Candidates are not getting timely feedback about their applications. C. The job previews by the recruiters are not realistic. D. The recruiters are not the most appealing race and sex. E. The organization has begun recruiting with teams of recruiters.

Essay Questions

106.Define forecasting. Describe one method each for forecasting labor demand and supply.

107.What is the second step in human resource planning? Explain the significance of this step.

108.What is the primary reason organizations choose to downsize? How do they meet this objective?

109.What are early-retirement programs? What is a phased-retirement program and what are its benefits?

110.Discuss the challenges associated with temporary workers and contract workers.

111.Discuss how employers can overcome the challenges of outsourcing.

112.List and discuss two personnel policies that are especially relevant to recruitment.

113.What are internal sources of recruitment? What are the advantages and disadvantages of using these sources?

114.In terms of external sources of recruitment, who are direct applicants and referrals? Why are these two groups regarded as excellent sources of recruitment?

115.Suppose you are a human resource executive for a hospital. What characteristics and behaviors would you look for in your recruiters so as to increase the positive impact they have on job candidates?

Chapter 05 Planning for and Recruiting Human Resources Answer Key

True / False Questions

In human resource planning, forecasting is an intermediary step. FALSE

The process of human resource planning consists of three stages: forecasting, goal setting and strategic planning, and program implementation and evaluation. The first step in human resource planning is forecasting.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization's strategy. Level of Difficulty: 1 Easy Topic: The Human Resource Planning Process

In the context of forecasting the demand for labor, leading indicators are relatively objective measures that accurately predict future labor demand. TRUE

An organization might use trend analysis, constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called leading indicators. Leading indicators are objective measures that accurately predict future labor demand.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-02 Determine the labor demand for workers in various job categories. Level of Difficulty: 1 Easy Topic: Labor Supply and Demand

Statistical models are used for forecasting labor demand because they are good at capturing "once-in-a-lifetime" changes. FALSE

Statistical models almost always have to be complemented with subjective judgments of experts. There are simply too many "once-in-a-lifetime" changes to consider, and statistical models cannot capture them.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-02 Determine the labor demand for workers in various job categories. Level of Difficulty: 2 Medium Topic: Labor Supply and Demand

A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. TRUE

A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

The second step in human resource planning is performance evaluation. FALSE

The second step in human resource planning is goal setting and strategic planning.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 5-40 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 1 Easy Topic: The Human Resource Planning Process

The goals an organization sets in its human resource planning process should come directly from the analysis of its labor supply and demand. TRUE

The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization's success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 1 Easy Topic: The Human Resource Planning Process

Downsizing can be used to reduce surplus labor because it yields fast results. TRUE

Downsizing reduces labor surpluses quickly; however, this action may cause the highest amount of suffering among employees who survive the job cuts.

Work sharing is usually implemented in an effort to avoid labor shortages. FALSE

Work sharing is one of the options that can be used to avoid a labor surplus.

The negative effect of downsizing would be low among firms that use performance-related pay incentives. FALSE

The negative effect of downsizing is especially high among firms that engage in highinvolvement work practices, such as the use of teams and performance-related pay incentives.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

10.

Downsizing disrupts the social networks through which people are creative and flexible. TRUE

Downsizing leads to a loss of talent, and it often disrupts the social networks through which people are creative and flexible.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember

Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 1 Easy Topic: Techniques in Implementing Strategy

11.

Themost widespread methods for eliminating labor shortages are reducing work hours and endorsing early-retirement programs. FALSE

The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.

12.

The use of temporary workers might provide an organization with additional administrative tasks and financial burdens. FALSE

Temporary employment offers lower costs to organizations. Using temporary workers frees the employer from many administrative tasks and financial burdens associated with being the "employer of record."

13.

In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker. TRUE

In the context of employing temporary and contract workers, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker.

14.

Contracting with another organization to perform a broad set of services is called outsourcing. TRUE

Contracting with another organization to perform a broad set of services is called outsourcing.

15.

To ensure success with an outsourcing strategy, companies should outsource work that requires tight security. FALSE

To ensure success with an outsourcing strategy, companies should avoid outsourcing any work that is proprietary or requires tight security.

16.

When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals. TRUE

When implementing an HR strategy, the organization must hold some individual accountable for achieving the goals. That person also must have the authority and resources needed to accomplish those goals.

17.

The steps in a workforce utilization review are identical to the steps in the HR planning process. TRUE

The steps in a workforce utilization review are identical to the steps in the HR planning process.

18.

In general, all companies have to make decisions in three areas of recruiting: personnel policies, recruitment sources, and the characteristics and behavior of the recruiter. TRUE

In general, all companies have to make decisions in three areas of recruiting: personnel policies, recruitment sources, and the characteristics and behavior of the recruiter.

19.

Personnel policies influence the kinds of job applicants an organization attracts. FALSE

Personnel policies influence the characteristics of the positions to be filled. Recruitment sources influence the kinds of job applicants an organization reaches. And the nature and behavior of the recruiter affect the characteristics of both the vacancies and the applicants.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 2 Medium Topic: Recruitment Strategy

20.

Recruitment sources affect both the characteristics of vacancies and potential job applicants. FALSE

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 2 Medium Topic: Recruitment Strategy

21.

In the context of recruitment sources, referrals are people who apply for a vacancy without prompting from the organization. FALSE

Referrals are people who apply for a vacancy because someone in the organization prompted them to do so. Direct applicants are people who apply for a vacancy without prompting from the organization.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 1 Easy Topic: Recruitment Policies and Techniques

22.

Many of the people reading classified ads are either over- or under-qualified for the position. TRUE

Many of the people reading classified ads are either over- or under-qualified for the position.

23.

In the context of recruitment sources, private employment agencies serve primarily blue-collar workers, while public employment agencies mostly serve white-collar workers. FALSE

In contrast to public employment agencies, which primarily serve the blue-collar labor market, private employment agencies provide much the same service for the white-collar labor market.

24.

In the context of recruiter traits and behavior, the recruiter affects the nature of both the job vacancy and the applicants generated. TRUE

The recruiter affects the nature of both the job vacancy and the applicants generated.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 1 Easy

Topic: The Recruiter's Role

25.

Research suggests that realistic job previews have a strong and consistent effect on employee turnover. FALSE

Research suggests that realistic job previews have a weak and inconsistent effect on turnover.

Multiple Choice Questions

26.

Organizations carry out human resource planning to

A. reduce hiring of workers from colleges and universities. B. increase hiring costs to match industry standards. C. avoid taking risks. D. gain an advantage over competitors.

E. replace technology with highly skilled workers. Organizations need to carry out human resource planning so as to meet business objectives and gain advantage over competitors. To do this, organizations need a clear idea of the strengths and weaknesses of their existing internal labor force.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization's strategy. Level of Difficulty: 2 Medium 5-49 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: The Human Resource Planning Process

27.

Which of the following is the first step in the human resource planning process?

A. forecasting

B. goal setting C. program implementation D. program evaluation E. performance evaluation The first step in human resource planning is forecasting. In personnel forecasting, the HR professional tries to determine the supply of and demand for various types of human resources.

28.

In the context of human resource planning, the primary goal of forecasting is to

A. predict labor shortages or surpluses in specific areas of an organization.

B. determine labor supply. C. set goals for hiring employees. D. focus attention on a problem and provide a basis for measuring an organization's success. E. eliminate large numbers of personnel with the goal of enhancing an organization's competitiveness. The primary goal of forecasting is to predict which areas of the organization will experience labor shortages or surpluses.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand 5-50 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization's strategy. Level of Difficulty: 2 Medium Topic: The Human Resource Planning Process

29.

Identify a benefit of applying statistical forecasting methods.

A. They are particularly useful in dynamic environments. B. Under the right conditions, they provide predictions that are much more precise than a

human forecaster's subjective judgment. C. They are particularly useful in predicting important events that have no historical precedent. D. They are invariably better than the "best guesses" of experts. E. They can be used by organizations as a substitute for relying on the subjective judgments of experts. Statistical methods capture historic trends in a company's demand for labor. Under the right conditions, these methods predict demand and supply more precisely than a human forecaster can using subjective judgment. But many important events in the labor market have no precedent. When such events occur, statistical methods are of little use.

30.

Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the past three years. Sasha will most likely use _____ to predict the demand.

A. yield ratio B. workforce utilization review C. trend analysis

D. cost per hire E. capacity utilization analysis Trend analysis refers to constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called leading indicators.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-02 Determine the labor demand for workers in various job categories. Level of Difficulty: 3 Hard Topic: Labor Supply and Demand

31.

In the context of forecasting the demand for labor, using trend analysis, inventory levels, changes in technology, and actions of competitors are examples of _____.

A. leading indicators

B. performance indicators C. coincident pointers D. transitional matrices E. functional pointers Leading indicators are objective measures that accurately predict future labor demand. They might include measures of the economy (such as sales or inventory levels), actions of competitors, changes in technology, and trends in the composition of the workforce and overall population.

32.

A chart that lists job categories held in one period and shows the proportion of employees in each of those categories in a future period is called a _____.

A. labor review B. trend analysis C. forecast D. leading indicator E. transitional matrix

A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. It answers two questions: "Where did people who were in each job category go?" and "Where did people now in each job category come from?"

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-02 Determine the labor demand for workers in various job categories. Level of Difficulty: 1 Easy Topic: Labor Supply and Demand

33.

James is the HR manager at Flenzel Inc., which is preparing for the launch of a new product line. The company needs to know how many new customer service representatives to add to help customers with questions and concerns about the existing, and new, products. To guide the company, James needs information about the number of employees currently providing customer service, the number likely to be in those jobs next year, and the numbers expected to move to other positions in the organization. The information will be easier to organize and interpret if James uses a(n) _____.

A. electronic recruiting process B. transitional matrix

C. propensity analysis D. due-process policy E. multiple regression analysis A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. A transitional matrix answers two questions: "Where did people who were in each job category go?" and "Where did people now in each job category come from?"

34.

Ron, an HR manager at Franton Inc., is preparing for a 5 percent increase in the production labor force next year. To do this, he needs to determine what the current number of production employees is and how the number is likely to change by the end of the year. To help with this analysis, Ron should use a _____.

A. transitional matrix

B. propensity analysis C. trend analysis D. multiple regression E. leading indicator A transitional matrix is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. A transitional matrix answers two questions: "Where did people who were in each job category go?" and "Where did people now in each job category come from?"

35.

Tim, a human resource manager, has studied a transitional matrix to identify how his company has been filling its demand for lab technicians. Where else should Tim get information related to the labor supply?

A. the Bureau of Labor Statistics

B. the Equal Employment Opportunity Commission C. the Occupational Safety and Health Administration D. his company's marketing plan E. statistical models that capture "once-in-a-lifetime" changes Besides looking at the labor supply within the organization, the planner should examine trends in the external labor market. The planner should keep abreast of labor market forecasts, including the size of the labor market, the unemployment rate, and the kinds of people who will be in the labor market. Important sources of data on the external labor market are published by the Labor Department's Bureau of Labor Statistics.

36.

The second step in human resource planning is _____.

A. forecasting labor shortage B. forecasting labor surplus C. goal setting and strategic planning

D. program implementation and evaluation E. program goal setting The second step in human resource planning is goal setting and strategic planning.

AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 1 Easy Topic: Integrating Human Resource Planning and Strategic Planning

37.

Jonathan, the CEO of Maxofan Inc., finds that the company needs to eliminate a labor surplus to avoid financial difficulties. To deal with this problem, he chooses a strategy that gives him fast results. However, the amount of suffering caused to employees is high. Jonathan is most likely using the _____ strategy to reduce the labor surplus.

A. early retirement B. downsizing

C. natural attrition D. retraining E. hiring freeze In this scenario, Jonathan is most likely using the downsizing strategy to deal with the company's labor surplus. Downsizing delivers fast results to reduce labor surplus. However, the amount of suffering caused to employees is high in this strategy.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

38.

Yienze Inc., a manufacturer of electronic goods, is experiencing financial losses. The company is also facing the problem of a labor surplus due to low demand for its products. In this context, which of the following would be the best way for Yienze to deal with this labor surplus?

surplus that results in financial losses. E. The company must consider retraining employees because it helps improve their interpersonal skills. Although downsizing causes high employee suffering, in this scenario, the company should use downsizing to reduce its labor surplus. Yienze Inc. is facing severe losses and downsizing will also help save it from further financial difficulties.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

39.

Renton Inc. is phasing out its desktop computer repair center in Wisconsin. Meanwhile, the demand for repair of mobile devices—services it provides in Georgia and New Mexico—is growing rapidly. Betty, a human resource specialist at Renton headquarters in Atlanta, must plan to avoid a labor surplus in Wisconsin in a fast and effective way. She wishes to do so with minimal employee suffering in terms of layoffs and salary. Which of the following strategies would best help Betty accomplish her goal?

A. pay reductions B. transfers

C. demotions D. early retirement E. hiring freeze Transfers can be used as a strategy to avoid the Wisconsin labor surplus. Early retirement and hiring freezes are slow options, which do not fit the parameters Betty has set. The remaining strategies are relatively fast, but pay reductions and demotions cause high amounts of suffering, while transfers only cause a moderate amount of suffering.

40.

Solenz Inc. is a relatively new company that employs 23 workers. When it finished a major contract, the owner realized that there wasn't enough work left for all the remaining workers. The company is negotiating contracts that could provide future work in a few months, but it currently must address its labor surplus in order to remain financially sound. Which of the following is the best strategy to deal with this labor surplus?

A. an early-retirement program B. natural attrition C. a hiring freeze D. downsizing E. work sharing

In this scenario, the company should use a work-sharing strategy, which will immediately reduce costs while causing less suffering to employees than layoffs would. Also, the company will still have workers in place when the work on new contracts begins.

41.

Bob, an HR manager at Delair Inc., is expecting a labor surplus for the company in the month of December. This gives Bob nearly eight months to deal with the problem. In order to reduce the labor surplus, Bob decides to use a _____ strategy, which causes less suffering for employees.

A. downsizing B. demotion C. hiring freeze

D. pay reduction E. transfer Bob has eight months to deal with the labor surplus problem. Therefore, he should use the hiring freeze strategy to deal with the surplus. It yields results slowly, causes less suffering for the employees, and achieves the objective of reducing the labor surplus.

42.

Brendan and Angela are HR managers at Seattle Investments. They are expecting a labor surplus over the next two years resulting in the organization having 24 more employees than required. Typically, two employees leave the organization each month. Which of the following HR strategies should Brendan and Angela consider, taking into account the length of time they have available?

A. downsizing B. natural attrition

C. pay reductions D. demotions E. transfers Brendan and Angela should consider natural attrition, which is when people leave an organization on their own. Unlike the other strategies, which produce fast results, natural attrition happens slowly. If two employees continue to leave the organization per month, Brendan and Angela will reduce the labor surplus within two years.

43.

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

A. Both strategies yield slow results for an organization.

B. Both strategies cause high suffering to the employees of an organization. C. Both strategies can be applied for preventing labor shortages. D. Both strategies are expensive to implement. E. Both strategies encourage layoffs. Both the natural attrition and early retirement strategies yield slow results and cause low suffering to the employees.

44.

Carmella, an HR manager at Crexion Inc., is dealing with labor shortage problems due to a sudden increase in production levels at the company. Among the following options, the fastest way to fix this problem is to _____.

A. use retrained transfers B. focus on turnover reductions C. hire new employees D. hire temporary employees

E. focus on technological innovation In this scenario, Carmella must use temporary employees to deal with labor shortage problems. Hiring temporary employees is relatively inexpensive, and it helps in dealing with sudden and temporary labor shortages.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

45.

Britt, a production manager at Frelix Inc., is expecting a labor shortage for a short period of time. He would like to avoid it with a strategy that can be easily eliminated in the future when there is optimal labor available for work. Which of the following options for avoiding a labor shortage would be the right solution for Britt?

A. hiring new employees B. employing technological innovation C. using retrained transfers D. hiring temporary employees

E. reducing managerial staff To handle a labor shortage, one option organizations typically pursue is hiring temporary employees. In this option, the speed of results is high, and the ability to eliminate the strategy at a later date is high.

46.

Errol, a manager at a large holiday decoration store, is expecting increased sales during the upcoming holiday season. He knows that his current workforce will not be able to meet demand, putting him at risk of a labor shortage. Which of the following strategies would be the best option to help Errol avoid a labor shortage?

season is over. E. Errol should consider increasing the prices of toys so that he can make higher profits with fewer sales, thereby reducing the number of customers and consequently solving the labor shortage issue. In this scenario, Errol should hire temporary workers. This strategy can be implemented quickly, ensuring Errol will avoid a labor shortage. This strategy is also gives Errol flexibility because it is easy to change after implementation; once the holiday season is over Errol can let the temporary workers go.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 3 Hard Topic: Techniques in Implementing Strategy

47.

Identify the similarity between the outsourcing and overtime strategies for avoiding a labor shortage.

A. Both strategies yield slow results. B. Both strategies have high revocability.

C. Both strategies are expensive to implement. D. Both strategies involve contracting with another organization to perform a broad set of services. E. Both strategies can be used for reducing labor surplus. Both the overtime and outsourcing strategies yield fast results and are easy to change after implementation, i.e., they have high revocability.

48.

Janet, an HR manager at SensNet Inc., hires employees who provide a specific set of knowledge and skills that will give her company advantage over its competitors. In the context of strategic planning, Janet is

A. outsourcing a broad set of services. B. using propensity analysis. C. seeking leading indicators. D. hiring individuals with a core competency.

E. using trend analysis. Organizations benefit from hiring and retaining employees who provide a core competency— that is, a set of knowledge and skills that make the organization superior to competitors and create value for customers.

49.

Steve, the CEO at Winsfeld Inc., learns that his company is perceived as low-value by customers. He plans to combat this by hiring highly skilled and knowledgeable employees in order to improve Winsfeld's competitive standing. In this scenario, Steve will most likely be hiring

A. outsourced employees. B. offshored employees. C. employees with a core competency.

D. employees with a college degree. E. temporary workers. Organizations are most likely to benefit from hiring and retaining employees who provide a core competency—that is, a set of knowledge and skills that make the organization superior to competitors and create value for customers.

50.

Wilma heads the production department at Riden Inc., a firm that stresses the importance of maintaining regular contact with customers. Wilma is expecting a labor surplus in the future. John, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Wilma rejects this option. Which of the following statements will validate that Wilma made the right decision?

E. Downsizing would harm the hierarchy of top management. Although downsizing has an immediate effect on costs, much of the evidence suggests that it hurts long-term organizational effectiveness. This is especially true for certain kinds of companies, such as those that emphasize research and development and where employees have extensive contact with customers.

51.

Joe is the CEO of TexTel Inc., a company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue. After studying his company's structure, Joe feels TexTel's current processes are inefficient. As a result, Joe decides to downsize the organization and then use the profits to enhance the organization's efficiency. What is a disadvantage of this approach?

D. Downsizing often results in acquisition of companies by other organizations. E. Downsizing requires moving to relatively expensive locations. The negative effect of downsizing is especially high among firms that engage in highinvolvement work practices, such as the use of teams and performance-related pay incentives. As a result, the more a company tries to compete through its human resources, the more layoffs hurt productivity.

52.

Identify the correct statement regarding downsizing.

flexible. D. The negative impact of downsizing is especially low for those organizations that emphasize research and development. E. Downsizing campaigns only eliminate people who are replaceable. Downsizing is the planned elimination of large numbers of personnel with the goal of enhancing an organization's competitiveness. Downsizing leads to a loss of talent, and it often disrupts the social networks through which people are creative and flexible.

53.

Which of the following is a step a downsized company can take to counter negative employee emotions?

A. demonstrate that the employees that were downsized deserved it B. build confidence in the company's plans for a stronger future

C. show the organization's commitment to its management D. encourage employees to work harder, increasing their value and thus keeping them with the company longer E. pursue a commitment to the customers over a commitment to the community Organizations may not take (or even know) the steps that can counter these reactions—for example, demonstrating how they are treating employees fairly, building confidence in the company's plans for a stronger future, and showing the organization's commitment to behaving responsibly with regard to all its stakeholders, including employees, customers, and the community.

54.

A manufacturing company, hit by a slump in demand, is experiencing a labor surplus. The company expects the market to improve in six months, and it does not want to lay off any of its employees. Which of the following strategies is an equitable way to handle this issue and spread the burden more fairly?

A. demotions B. outsourcing C. reduced work hours

D. overtime E. employing temporary workers An alternative to downsizing that is seen as a way to spread the burden more fairly is cutting work hours, generally with a corresponding reduction in pay. This is a more equitable way to weather a slump in demand.

55.

Nicole, a human resource manager at an electronics firm, observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization. Which of the following statements best explains the reason for this trend among older employees?

A. there are laws against gender discrimination B. there is a rise in the availability of pensions C. jobs are becoming less physically demanding

D. phased-retirement programs require employees to work longer hours E. older workers generally don't have much debt The average age of the U.S. workforce is increasing. But even though many baby boomers are reaching traditional retirement age, indications are that this group has no intention of leaving the workforce soon. Reasons include improved health of older people, jobs becoming less physically demanding, insufficient savings, high levels of debt, lack of pensions, enjoyment of work (especially in the higher-paying occupations), and laws against age discrimination.

56.

El Eram Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Monica, the vice president of human resources, for advice on how to address the resulting labor surplus. Monica studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Monica suggest as the most effective way of addressing El Eram's labor surplus?

Another popular way to reduce a labor surplus is with an early-retirement program. Under the pressures associated with an aging labor force, many employers try to encourage older workers to leave voluntarily by offering a variety of early-retirement incentives. The more lucrative of these programs succeed by some measures. Research suggests that these programs encourage lower-performing older workers to retire.

57.

Which of the following best describes a phased-retirement program?

these employees. D. It refers to giving older employees a certain time limit to voluntarily retire. E. It refers to offering alternative work locations and work responsibilities to older employees. In a phased-retirement program, an organization can continue to enjoy the experience of older workers while reducing the number of hours that these employees work, as well as the cost of those employees.

58.

Which of the following are the most widespread methods for eliminating labor shortages?

A. downsizing and merging with other organizations B. hiring temporary workers and outsourcing work

C. retrained transfers and turnover reduction D. overtime and new external hires E. overtime and retrained transfers The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 5-77 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

59.

Identify a disadvantage of using temporary and contract workers.

E. These workers work well in key jobs, but not in those jobs that supplement permanent employees. Temporary and contract workers may not be as committed to an organization as the permanent employees in an organization.

60.

Why is temporary employment popular with employers?

A. It gives employers flexibility in operations.

B. It allows employers to comply with the requirements of affirmative action imposed by the government. C. The quality of work from temporary workers is usually far superior. D. It is the most effective strategy for key customer service jobs. E. Temporary workers are more committed to the organization. Temporary employment is popular with employers because it gives them flexibility they need to operate efficiently when demand for their products changes rapidly.

61.

Which of the following best describes outsourcing?

A. It refers to contracting with another organization to perform a broad set of services.

B. It refers to finding cheap resources in another country to gain a competitive advantage. C. It refers to using a temporary or contract employee to fill a single job vacancy. D. It refers to buying the necessary raw materials needed to conduct business from external suppliers. E. It refers to moving operations away from the home location to decrease cost savings. Outsourcing refers to contracting with another organization to perform a broad set of services.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. 5-79 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Techniques in Implementing Strategy

62.

Trotta Inc., a manufacturer of widgets, has entered into a contract with a third party to perform services related to processing orders, managing inventory levels, and shipping products to customers. The company is engaged in

A. offshoring. B. consolidating. C. licensing. D. acquiring. E. outsourcing.

Outsourcing refers to contracting with another organization to perform a broad set of services.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

63.

Organizations use outsourcing as a way to

A. reduce a labor surplus. B. operate more efficiently and save money.

C. replace labor with technology. D. ease the transition from temporary worker to employee. E. hold onto good employees during a labor surplus until they can be hired back. Organizations use outsourcing as a way to operate more efficiently and save money. They choose outsourcing firms that promise to deliver the same or better quality at a lower cost.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation 5-80 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

64.

Grexel Tools applies its in-depth understanding of the challenges facing manufacturers to design and build custom machine tools that are highly valued by business customers. To maintain its competitive advantage, Grexel also wants to avoid spending more than is necessary on administrative activities such as managing employee benefits. What would be the most effective way for Grexel to minimize administrative expenses without sacrificing quality?

E. hiring temporary workers to fill permanent job positions Organizations use outsourcing as a way to operate more efficiently and save money. They choose outsourcing firms that promise to deliver the same or better quality at a lower cost. One reason they can do this is that the outside company specializes in the service and can benefit from economies of scale. Costs also are lower when the outsourcing firm is located in a part of the world where wages are relatively low.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 3 Hard Topic: Integrating Human Resource Planning and Strategic Planning

65.

Which of the following is a challenge associated with an outsourcing strategy?

A. labor shortage B. increased cost C. quality-control problems

D. lack of necessary technology E. diseconomies of scale Outsourcing may be a necessary way to operate as efficiently as competitors, but it does pose challenges. Quality-control problems, security violations, and poor customer service have sometimes wiped out the cost savings attributed to lower wages.

66.

A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Japanese company that is opening offices in the area. The Japanese company has given a month's time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?

A. retrained transfers B. overtime

C. technological innovation D. new external hires E. turnover reductions Organizations facing a labor shortage may be reluctant to hire employees, even temporary workers, or to commit to an outsourcing arrangement. Especially if the organization expects the shortage to be temporary, it may prefer an arrangement that is simpler and less costly. Under some conditions, these organizations may try to garner more hours from the existing labor force, asking them to go from part-time to full-time status or to work overtime.

67.

Gordon, a supervisor at AutoMate Inc., realizes that a couple of months from now, he might experience a labor shortage for approximately two weeks due to increased demand for the company's products. Which of the following options would be best for dealing with this labor shortage?

a short period of time. Under some conditions, organizations may try to garner more hours from the existing labor force, asking them to go from part-time to full-time status or to work overtime. Employers see overtime pay as preferable to the costs of hiring and training new employees. The preference is especially strong if the organization doubts that the current higher level of demand for its products will last long. Overtime therefore is best suited for short-term labor shortages.

68.

Which of the following is an element in the final stage of human resources planning?

A. estimating labor demand B. forecasting labor supply C. estimating labor surplus or shortage D. strategic planning E. evaluating outcomes

The final stage of human resource planning involves implementing strategies and evaluating outcomes.

69.

In the context of HR planning, implementation that ties planning and recruiting to an organization's strategy and to its efforts to develop employees becomes a complete program of

A. reengineering. B. total quality management. C. benchmarking. D. talent management.

E. workforce utilization. Implementation that ties planning and recruiting to an organization's strategy and to its efforts to develop employees becomes a complete program of talent management. Today's computer systems have made talent management more practical.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 5-85 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

70.

Nazir, an HR manager at Solomon Beverages, identifies and attracts potential job seekers to his organization. In the context of HRM functions, Nazir is carrying out the _____ process.

A. promoting B. appraising C. recruiting

D. forecasting E. disbanding In this scenario, Nazir is carrying out the recruiting process. An activity carried on by an organization with the primary purpose of identifying and attracting potential employees is referred to as recruiting.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 3 Hard Topic: Define Recruitment

71.

In the context of managing human resources, the process of _____ creates a buffer between planning and the actual selection of new employees.

A. recruiting

B. evaluating C. inducting D. outsourcing E. training In human resource management, recruiting consists of any practice or activity carried on by an organization with the primary purpose of identifying and attracting potential employees. It thus creates a buffer between planning and the actual selection of new employees.

72.

_____ influence the kinds of job applicants an organization reaches.

A. Personnel policies B. Recruitment sources

C. Characteristics of the recruiter D. Financial sources E. Industry competitors Recruitment sources influence the kinds of job applicants an organization reaches.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 1 Easy Topic: Recruitment Strategy 5-87 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

73.

Which of the following aspects of recruitment is most likely to affect the nature of the positions that are vacant?

A. recruitment sources B. personnel policies

C. recruiter traits D. recruiter behavior E. applicant characteristics An organization's personnel policies are its decisions about how it will carry out human resource management, including how it will fill job vacancies. These policies influence the nature of the positions that are vacant. According to the research on recruitment, it is clear that characteristics of the vacancy are more important than recruiters or recruiting sources for predicting job choice.

74.

Which of the following is true of companies that use a "lead-the-market" pay strategy?

A. They pay more than the current market wages for a job.

B. They have a recruiting disadvantage. C. They recruit fewer employees than needed and depend on overtime. D. They provide relatively better working conditions to employees compared to competitors. E. They usually have low pay, coupled with overtime and flex-time. Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a "lead-the-market" approach to pay—that is, pay more than the current market wages for a job.

75.

_____ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

A. Due-process policy B. Employment flexibility C. Rule of fair treatment D. Rule of law E. Employment at will

Employment at will is an employment principle, which holds that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. 5-89 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Recruitment Strategy

76.

Berzen Inc. hires John as a supervisor in the company. They have an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. In the context of personnel policies, the relationship between the company and John is based on the _____.

A. promote-from-within policy B. lead-the-market strategy C. employment-at-will policy

D. nepotistic agreement E. benevolent agreement In this scenario, the relationship between John and the company is based on the employmentat-will policy. This policy holds that if there is no specific employment contract stating otherwise, the employer or employee may end an employment relationship at any time.

77.

_____ formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.

A. Leading indicators B. Trend analyses C. Transitional matrices D. Due-process policies

E. Employment-at-will contracts Due-process policies formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee.

78.

Premiere Software is having difficulty filling all its positions for systems analysts. The company's human resource manager suggests introducing a kind of personnel policy known as a due-process policy. How is that most likely to help with recruitment?

A. This policy implies greater job security and concern for employees.

B. Due-process implies that employees won't be bound to a contract. C. Implementing a due-process policy suggests that the organization is innovative and fun. D. Applicants know a due-process policy always leads to a lead-the-market pay strategy. E. The due-process policy supports a "promote from within" practice, which will encourage current employees to apply. Due-process policies formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee. Job applicants are more attracted to organizations with due-process policies, which imply greater job security and concern for protecting employees, than to organizations with employment-at-will policies, which hold that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 3 Hard Topic: Recruitment Strategy

79.

In order to cultivate a favorable picture of the organization, Rhodes Group, a financial services corporation, advertises itself to potential applicants by using the slogan, "Investing in you no matter what road you take." This scenario is an example of _____ advertising.

A. viral B. image

C. proactive D. saturation E. signature Besides advertising specific job openings, organizations may advertise themselves as a good place to work in general. Advertising designed to create a generally favorable impression of the organization is called image advertising.

80.

A physicist at AdVanTech recently received an award for several patents he earned that enabled AdVanTech to help slow climate change by reducing carbon emissions. Shelby, AdVanTech's vice president of human resources, is eager to get news coverage of the physicist's award. She knows that, in addition to drawing positive attention to the company, the publicity will support recruitment. Which statement best supports Shelby's thinking?

difference can attract talented job candidates. D. People who learn about the physicist will be less likely to expect that AdVanTech has an employment-at-will policy. E. This kind of image advertising will give more people the impression that AdVanTech is a fun place to work. Advertising designed to create a generally favorable impression of the organization is called image advertising. Image advertising is particularly important for organizations in highly competitive labor markets that perceive themselves as having a bad image. Research suggests that the image of an organization's brand influences the degree to which a person feels attracted to the organization. This attraction is especially true if the person's own traits seem to match those of the organization. Publicity is not paid advertising, but in this example, it is communication that serves a similar purpose: creating a favorable impression of the company.

81.

Which of the following is an internal source of recruitment?

A. employee referrals B. direct applicants C. employment agencies D. job postings

E. personal interviews Job posting refers to communicating information about a vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees.

82.

The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees is referred to as

A. job posting.

B. external hiring. C. employment referral. D. a workforce utilization review. E. direct sourcing. Job postings refer to the process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else an organization communicates with employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 1 Easy Topic: Recruitment Policies and Techniques

83.

Connor is a human resource specialist at a company with a promote-from-within policy. Based on that policy, what method should he include in his recruiting efforts to fill an open position for an accounting supervisor?

A. using the services of a private employment agency B. inviting employees to refer a friend C. sending recruiters to colleges D. posting the job on the company's intranet

E. posting the job on the company's careers website To promote from within involves recruiting employees who already hold other positions in the organization—that is, using internal sources. Organizations recruit existing employees through job posting, or communicating information about the vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 2 Medium Topic: Recruitment Policies and Techniques

84.

Identify the benefit of relying on internal recruitment sources.

D. Internal sources expose an organization to new ideas or new ways of doing business. E. Current employees are well suited to recruit people for specialized upper-level positions. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.

85.

Which of the following is the correct statement regarding internal recruitment sources?

D. Employee referrals are the most common source of job applicants for internal recruitment. E. Internal sources are the most appropriate for specialized upper-level positions. Internal recruitment sources generate applicants who are well known to an organization. In addition, these applicants are relatively knowledgeable about the organization's vacancies, minimizing the possibility they will have unrealistic expectations about the job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 2 Medium 5-97 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Internal and External Recruiting

86.

People who apply for a vacancy without prompting from an organization are referred to as

A. direct applicants.

B. natural applicants. C. internal applicants. D. neutral applicants. E. referred applicants. People who apply for a vacancy without prompting from an organization are referred to as direct applicants.

87.

Steve applies for a job at Texel Inc. because his friend Dan, who is a manager there, prompts him to do so. In this scenario, Steve is a(n) _____.

A. direct applicant B. natural applicant C. neutral applicant D. referral

E. executive search professional Referrals are people who apply for a job vacancy because someone in the organization prompted them to do so.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-05 List and compare sources of job applicants. 5-98 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: Recruitment Policies and Techniques

88.

Most direct applicants to an organization have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. This process is termed

A. nepotism. B. employee referral. C. self-selection.

D. internal recruitment. E. employment at will. Most direct applicants have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application, a process called selfselection. Self-selection, when it works, eases the pressure on the organization's recruiting and selection systems.

89.

Which of the following statements is true about referrals?

D. Referrals cost much more than other formal recruiting efforts. E. Referrals are the least preferred sources of new hires. Referrals fall under the category of external sources of recruitment. Referrals and direct applications cost much less than formal recruiting efforts and are among the best sources of new hires. The major downside of referrals is that they limit the likelihood of exposing an organization to different viewpoints. Furthermore, sometimes referrals contribute to hiring practices that are or that appear unfair, an example being nepotism, or the hiring of relatives.

90.

Margaret, the HR manager at Frexotel Inc., recruits her cousin Linda as production manager in the company. This move results in resentment among several of the company's employees. By hiring her cousin, Margaret has engaged in the practice of hiring relatives, or _____.

A. localism B. nepotism

C. structuralism D. voluntarism E. abstractionism Nepotism is the practice of hiring relatives. This is often considered an unfair practice and can result in resentment among employees.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 3 Hard Topic: Recruitment Policies and Techniques

91.

Hunter works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company's recruiting dollars. Which is the most likely reason for the supervisor's objection?

A. These types websites are too difficult for most job hunters to use. B. The company will be flooded with applications from individuals who are barely qualified.

C. Employers can't search these sites; only job seekers can conduct searches. D. The company will get very few applications, because job hunters read the ads slowly. E. Finding a match between job seekers and job vacancies is inefficient on these sites. A drawback of the big job websites is that they can provide too many leads of inferior quality because they are so huge and serve all job seekers and employers, not a select segment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 2 Medium Topic: Recruitment Policies and Techniques

92.

Which of the following is true of executive search firms?

For managers or professionals, an employer may use the services of a type of private agency called an executive search firm (ESF). People often call these agencies "headhunters" because, unlike other employment agencies, they find new jobs for people almost exclusively already employed. ESFs serve as a buffer, providing confidentiality between the employer and the recruit.

93.

Luis, a human resource executive, is meeting with the executive team to discuss the need to fill a soon-to-be vacant position for vice president of the company's Medical Devices Division. Normally, he posts vacancies on the company's website, but he encourages the team to allocate funds to hire an executive search firm (ESF) for filling this position. Which statement best supports Luis's recommendation?

D. ESFs specialize in writing effective print ads that give readers enough information. E. ESFs specialize in finding jobs for candidates who are currently unemployed. For managers or professionals, an employer may use the services of a type of private agency called an executive search firm. For job candidates, dealing with ESFs can be sensitive. Typically, executives do not want to advertise their availability, because it could trigger a negative reaction from their current employer. ESFs serve as a buffer, providing confidentiality between the employer and the recruit. That benefit may give an employer access to candidates it cannot recruit in other, more direct ways.

94.

Themost important source of recruits for entry-level professional and managerial vacancies is

A. on-campus interviewing.

B. public employment agencies. C. advertisements in newspapers and magazines. D. private employment agencies. E. employee referrals. On-campus interviewing is the most important source of recruits for entry-level professional and managerial vacancies.

95.

In the context of evaluating the quality of a recruitment source, yield ratios express the

selection process to the next. D. quality of new hires by comparing the cost of training the new recruits to the cost of hiring them. E. percentage of applicants who complete one year in the organization after recruitment. In terms of evaluating the quality of a recruitment source, a yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 05-05 List and compare sources of job applicants. 5-105 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Recruitment Policies and Techniques

96.

Erica helped a sales manager place an ad on job boards and hire 5 new salespeople. She calculates that the total cost to recruit and select these employees was $200,000. What was the cost per hire for this recruiting effort?

A. $40,000

B. $5,000 C. $1,000,000 D. $10,000 E. $200,000 To compute the cost per hire, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy (200,000 ÷ 5 = 40,000).

97.

Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He has used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Gilbert should determine the _____.

A. hiring conversion rate B. prospective cost C. return on investment D. yield ratio E. cost per hire

In this scenario, the cost per hire would allow Gilbert to compare the costs of different recruitment sources. To compute this amount, Gilbert should find the cost of using a particular recruitment source for a particular type of vacancy. Then he should divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient; it delivers qualified candidates at minimal cost.

98.

Xavier determines that his company spent $15,000 to hire 3 new programmers through employee referrals and another $75,000 to hire 5 new programmers through a private employment agency. Which of the following statements is correct about these recruiting efforts?

To compute the cost per hire, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy. With this method, the cost per hire for referrals was $5,000 ($15,000 ÷ 3 = $5,000), which is lower than the $15,000 cost per hire for the employment agency ($75,000 ÷ 5 = $15,000).

99.

Keri, a trainer at Klemens Inc., plans on finding out how many candidates moved from the initial interview stage to the training selection stage in the past month. To find out, she needs to compare the _____.

A. yield ratios

B. cost per hire C. prospective costs D. returns on investment E. liquidity ratios A yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next.

100.

Zoe is a recruiter with a bachelor's degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. According to your text, the most likely reason for this is because Zoe

A. is not warm enough to the applicants. B. is perceived as less credible because she is an HR specialist.

C. does not give applicants enough information, leaving them with more questions than answers. D. comes off as being too professional for someone in the HR field. E. is not approaching the candidate with enough skepticism. According to some studies, applicants perceive HR specialists as less credible and are less attracted to jobs when recruiters are HR specialists. The evidence does not completely discount a positive role for personnel specialists in recruiting. It does indicate, however, that these specialists need to take extra steps to ensure that applicants perceive them as knowledgeable and credible. In general, applicants respond positively to recruiters whom they perceive as warm and informative.

AACSB: Communication Accessibility: Keyboard Navigation Blooms: Evaluate Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 3 Hard Topic: The Recruiter's Role

101.

Malik is an HR manager at a large accounting firm. He hires and trains the firm's staff of recruiters. Malik hires people with education in human resource management and a warm attitude that displays a positive interest in people. How else should he equip the recruiters so that they have success in this kind of work?

E. Malik should tell recruiters to downplay any negative information about the firm. In general, applicants respond positively to recruiters whom they perceive as warm and informative. "Warm" means the recruiter seems to care about the applicant and to be enthusiastic about the applicant's potential to contribute to the organization. "Informative" means the recruiter provides the kind of information the applicant is seeking. The evidence of impact of other characteristics of recruiters—including their age, sex, and race—is complex and inconsistent.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 2 Medium Topic: The Recruiter's Role

102.

Juliette is a recruiter for Kaskade Inc. When she interviews job candidates, she works hard to provide background information about the job's positive and negative qualities. She aims to be sure every detail is accurate, so that any employees hired will feel they got what they expected and will want to stay on with the company. Juliette's behavior is an example of providing a _____.

A. yield ratio B. realistic job preview

C. core competency D. due-process policy E. job posting In this scenario, Juliette is providing a realistic job preview—accurate background information about a job's positive and negative qualities.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 3 Hard Topic: The Recruiter's Role

103.

Harriett wants to apply for a job vacancy. She calls the recruiter who had advertised this vacancy to know more about the job. The recruiter gives some background information about the positive and negative qualities of the job to Harriett. Which of the following terms refers to the job information given by the recruiter?

A. vacancy analysis B. substantive job criticism C. pragmatic job survey D. realistic job preview

E. role examination Realistic job previews provide background information about jobs' positive and negative qualities.

104.

A start-up software company hires Mia as its first human resource manager. Whenever a new position needs to be filled, Mia sits down with the supervisor to gather facts that will be included in a realistic job preview. Mia knows that the impact of job previews on candidates is limited, but she believes the effort is important anyway. Which of the following statements best explains Mia's decision to provide realistic job previews?

Although realistic job previews have only a weak association with reduced turnover, the cost of the effort is low, and they are relatively easy to implement. Consequently, employers should consider using them as a way to reduce turnover among new hires.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 2 Medium Topic: The Recruiter's Role

105.

Omar is proud of his team of warm, knowledgeable, and ethical recruiters at Luvya Insurance. They practice their presentations to be sure they give realistic job previews, and they keep upto-date on the company's policy so they can provide applicants with accurate answers to a host of questions. However, over the past year, Omar observes that the proportion of applicants who accept offers from Luvya has fallen. He follows up with several who turned down offers and learns that they took jobs elsewhere because they developed an unfavorable opinion of Luvya. Which of the following situations most likely explains this problem?

A. The recruiters lack the characteristics associated with success. B. Candidates are not getting timely feedback about their applications.

C. The job previews by the recruiters are not realistic. D. The recruiters are not the most appealing race and sex. E. The organization has begun recruiting with teams of recruiters. Recruiters should provide timely feedback. Applicants dislike delays in feedback. They may draw negative conclusions about the organization, such as the organization doesn't care about their application.

Essay Questions

106.

Define forecasting. Describe one method each for forecasting labor demand and supply.

The attempts to determine the supply of and demand for various types of human resources, or to predict areas within an organization where there will be labor shortages or surpluses, is referred to as forecasting. An organization might use trend analysis to predict labor demand, constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called leading indicators—objective measures that accurately predict future labor demand. The analysis of a transitional matrix is a statistical procedure that can be used for analyzing labor supply. This is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. It answers two questions: "Where did people who were in each job category go?" and "Where did people now in each job category come from?"

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 05-01 Discuss how to plan for human resources needed to carry out the organization's strategy. Learning Objective: 05-02 Determine the labor demand for workers in various job categories. Level of Difficulty: 1 Easy Topic: The Human Resource Planning Process

107.

What is the second step in human resource planning? Explain the significance of this step.

The second step in human resource planning is goal setting and strategic planning. The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring an organization's success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand. They should include a specific figure indicating what should happen with the job category or skill area and a specific timetable for when the results should be achieved. For each goal, the organization must choose one or more human resource strategies. A variety of strategies is available for handling expected shortages and surpluses of labor. This planning stage is critical. The options differ widely in their expense, speed, and effectiveness. Options for reducing a labor surplus cause differing amounts of human suffering. The options for avoiding a labor shortage differ in terms of how easily the organization can undo the change if it no longer faces a labor shortage. Another consideration in choosing an HR strategy is whether the employees required will contribute directly to the organization's success. Organizations are most likely to benefit from hiring and retaining employees who provide a core competency. Through good HR planning, organizations try to anticipate labor surpluses far enough ahead that they can freeze hiring and let natural attrition reduce the labor force.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 2 Medium Topic: The Human Resource Planning Process

108.

What is the primary reason organizations choose to downsize? How do they meet this objective?

The primary reason organizations engage in downsizing is to promote future competitiveness. According to surveys, they do this by meeting four objectives: 1. Reducing costs: Labor is a large part of a company's total costs, so downsizing is an attractive place to start cutting costs. 2. Replacing labor with technology: Closing outdated factories, automating, or introducing other technological changes reduces the need for labor. Often, the labor savings outweigh the cost of the new technology. 3. Mergers and acquisitions: When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members. 4. Moving to more economical locations: Some organizations move from one area of the United States to another, especially from the Northeast and Midwest to the South and the mountain regions of the West.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 05-03 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. Level of Difficulty: 2 Medium Topic: Techniques in Implementing Strategy

109.

What are early-retirement programs? What is a phased-retirement program and what are its benefits?

Early-retirement programs allow the older workers to retire ahead of the retirement age. Under the pressures associated with an aging labor force, many employers try to encourage older workers to leave voluntarily by offering a variety of early-retirement incentives. The more lucrative of these programs succeed by some measures. Research suggests that these programs encourage lower-performing older workers to retire. Sometimes they work so well that too many workers retire. But many are not willing to retire early. Reasons include improved health of older people, jobs becoming less physically demanding, insufficient savings, high levels of debt, lack of pensions, enjoyment of work (especially in higher-paying occupations), and laws against age discrimination. Many organizations are moving from earlyretirement programs to phased-retirement programs. In a phased-retirement program, the organization can continue to enjoy the experience of older workers while reducing the number of hours that these employees work, as well as the cost of those employees. This option also can give older employees the economic and psychological benefit of easing into retirement, rather than being thrust entirely into a new way of life.

110.

Discuss the challenges associated with temporary workers and contract workers.

Temporary and contract workers offer flexibility to the employer. However, to use this source of labor effectively, employers need to overcome some disadvantages. In particular, temporary and contract workers may not be as committed to the organization, so if they work directly with customers, that attitude may spill over and affect customer loyalty. Therefore, many organizations try to use permanent employees in key jobs and use temporary and contract workers in ways that clearly supplement—and do not potentially replace—the permanent employees. Also, if the person providing the service is a contractor and not an employee, the company is not supposed to directly supervise the worker. The company can tell the contractor what criteria the finished assignment should meet but not, for example, where or what hours to work. This distinction is significant, because under federal law, if the company treats the contractor as an employee, the company has certain legal obligations related to matters such as overtime pay and withholding taxes.

111.

Discuss how employers can overcome the challenges of outsourcing.

To ensure success with an outsourcing strategy, companies should follow these guidelines: (1) Learn about what the provider can do for the company, not just the costs. Make sure the company has the necessary skills, including an environment that can meet standards for clear communication, on-time shipping, contract enforcement, fair labor practices, and environmental protection. (2) Do not offshore any work that is proprietary or requires tight security. (3) Start small and monitor the work closely, especially in the beginning, when problems are most likely. (4) Look for opportunities to outsource work in areas that promote growth, for example, by partnering with experts who can help the organization tap new markets.

112.

List and discuss two personnel policies that are especially relevant to recruitment.

Several personnel policies are especially relevant to recruitment: 1. Internal versus external recruiting: Organizations with policies to "promote from within" try to fill upper-level vacancies by recruiting candidates internally. Opportunities for advancement make a job more attractive to applicants and employees. The decision about using internal or external recruiting affects the nature of jobs, recruitment sources, and the nature of applicants. 2. Lead-the-market pay strategies: Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a "lead-themarket" approach to pay—that is, pay more than the current market wages for a job. Higher pay can also make up for a job's less desirable features. Organizations that compete for applicants based on pay may use bonuses, stock options, and other forms of pay besides wages and salaries. 3. Employment-at-will policies: Within the laws of the state where they are operating, employers have latitude to set polices about their rights in an employment relationship. The principle of employment at will holds that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time. An alternative is to establish extensive due-process policies, which formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee. An organization's lawyers may advise the company to ensure that all recruitment documents say the employment is "at will" to protect the company from lawsuits about wrongful discharge. Management must decide how to weigh any legal advantages against the impact on recruitment. Job applicants are more attracted to organizations with due-process policies, which imply greater job security and concern for protecting employees, than to organizations with employment-at-will policies. 4. Image advertising: Besides advertising specific job openings, organizations may advertise themselves as a good place to work in general. Advertising designed to create a generally favorable impression of the organization is called image advertising. This is particularly important for organizations in highly competitive labor markets that perceive themselves as having a bad image. Research suggests that the image of an organization's brand influences the degree to which a person feels attracted to the organization. This attraction is especially true if the person's own traits seem to match those of the organization. Also, job applicants seem to be particularly sensitive to issues of diversity and inclusion in image advertising, so organizations should ensure that their image advertisements reflect the broad nature of the 5-122 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

labor market from which they intend to recruit.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 05-04 Describe recruitment policies organizations use to make job vacancies more attractive. Level of Difficulty: 2 Medium Topic: Recruitment Strategy

113.

What are internal sources of recruitment? What are the advantages and disadvantages of using these sources?

Internal sources of recruitment are employees who currently hold other positions in the organization. Organizations recruit existing employees through job posting, or communicating information about the vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees. Managers also may identify candidates to recommend for vacancies. Policies that emphasize promotions and even lateral moves to achieve broader career experience can give applicants a favorable impression of the organization's jobs. The use of internal sources also affects what kinds of people the organization recruits. For the employer, relying on internal sources offers several advantages. First, it generates applicants who are well known to the organization. In addition, these applicants are relatively knowledgeable about the organization's vacancies, minimizing the possibility they will have unrealistic expectations about the job. Finally, filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization. Despite the advantages of internal recruitment, organizations often have good reasons to recruit externally. For entry-level positions and perhaps for specialized upper-level positions, the organization has no internal recruits from which to draw. Also, bringing in outsiders may expose the organization to new ideas or new ways of doing business. An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation. Finally, companies that are able to grow during a slow economy can gain a competitive edge by hiring the best talent when other organizations are forced to avoid hiring, freeze pay increases, or even lay off talented people.

AACSB: Analytical Thinking Blooms: Understand 5-123 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 2 Medium Topic: Recruitment Policies and Techniques

114.

In terms of external sources of recruitment, who are direct applicants and referrals? Why are these two groups regarded as excellent sources of recruitment?

Direct applicants are people who apply for a vacancy without prompting from an organization. Referrals are people who apply because someone in the organization prompted them to do so. These two sources of recruits share some characteristics that make them excellent pools from which to draw. One advantage is that many direct applicants are, to some extent, already "sold" on the organization. Most have done some research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application, a process called self-selection, which, when it works, eases the pressure on the organization's recruiting and selection systems. A form of aided self-selection occurs with referrals. Many job seekers look to friends, relatives, and acquaintances to help find employment. Using these social networks not only helps the job seeker but also simplifies recruitment for employers. Current employees (who are familiar with the vacancy as well as the person they are referring) decide that there is a fit between the person and the vacancy, so they convince the person to apply for the job. An additional benefit of using such sources is that it costs much less than formal recruiting efforts. Considering these combined benefits, referrals and direct applications are among the best sources of new hires.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 05-05 List and compare sources of job applicants. Level of Difficulty: 2 Medium Topic: Recruitment Policies and Techniques

115.

Suppose you are a human resource executive for a hospital. What characteristics and behaviors would you look for in your recruiters so as to increase the positive impact they have on job candidates?

Student answers will vary. In general, applicants respond more positively to recruiters whom they perceive as warm and informative. In addition, at least according to one study, they perceive HR specialists as less credible and are less attracted to jobs when recruiters are HR specialists. Thus, HR specialists need to take extra steps to ensure that applicants perceive them as knowledgeable and credible. The impact of other characteristics, such as age, sex, and race, is complex and inconsistent. As for behaviors, recruiters should be encouraged to: 1. Provide applicants with timely feedback. 2. Avoid behaviors that might be offensive and convey the wrong impression about the organization. 3. Do recruiting in teams rather than individually.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 05-06 Describe the recruiter's role in the recruitment process, including limits and opportunities. Level of Difficulty: 2 Medium Topic: The Recruiter's Role

Chapter 06 Selecting Employees and Placing Them in Jobs

True / False Questions

1. The process of selecting employees remains constant for all organizations and for all jobs. True

False

2. Automated systems always ensure that all highly qualified candidates are included in the selection process. True

False

3. A reliable measurement generates consistent results. True

False

4. Reliability answers the important question if one is measuring something that matters. True

False

5. Predictive validation is less time consuming and easier than concurrent validation. True

False

6. Content validation is most suitable for measuring abstract qualities such as intelligence or leadership ability. True

False

7. Selection procedures that provide economic value greater than the cost of using them are said to have utility. True

False

8. Under equal employment opportunity laws, if an employer uses an interview process that eliminates most candidates who are black or Hispanic, the employer must show that the method is necessary for selecting candidates who project the right brand image. True

False

9. Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. True

False

10. The Fair Credit Reporting Act requires that employers obtain a candidate's consent before downloading his or her résumé from an online job site. True

False

11. An application form can request information regarding an applicant's marital status and race. True

False

12. An HR department at a manufacturing firm wants to ensure that applicants for production jobs provide complete information about themselves in a standard format. The most effective method would be to ask candidates to submit a résumé. True

False

13. Review of résumés is most valid when the content of the résumés is evaluated in terms of the elements of a job description. True

False

14. Most organizations check references as soon as they receive a candidate's application form. True

False

15. Aptitude tests assess a person's existing knowledge and skills. True

False

16. Geena is the human resource manager for a machine job that produces custom parts. To make these products, production employees must be able to quickly learn new methods and machines. To identify job candidates who can quickly acquire new skills, Geena could administer achievement tests. True

False

17. Race norming refers to establishing different norms for hiring members of different racial groups. True

False

18. The Civil Rights Act of 1991 encourages the use of sex norming as a selection tool. True

False

19. Personality tests are more reliable than intelligence tests. True

False

20. The Polygraph Act legalized the use of polygraph tests for employment screening in most organizations. True

False

21. In a nondirective interview, the interviewer always asks questions from an established set of questions. True

False

22. In a behavior description interview, a candidate is asked by the interviewer how he or she handled a type of situation in the past. True

False

23. Interviewing is considered the most accurate basis for making a selection decision. True

False

24. Interviews are the least expensive method of employee selection. True

False

25. The multiple-hurdle model is based on a process of increasing the number of candidates at each stage of the selection process. True

False

26. In an organization, a supervisor usually makes the final employee selection decision. True

False

Multiple Choice Questions

27. Russell, an entrepreneur, wants to hire a human resource professional who can help him make decisions about who will or will not be allowed to join his organization. In advertising for this professional, what term should he use to describe the process he wants help with?

A. predictive validation B. job analysis C. concurrent validation D. trend analysis E. personnel selection 28. In most organizations, the first step in the personnel selection process is

A. verifying the applicants' qualifications through reference and background checks. B. negotiating with the employee regarding salary and benefits. C. screening the applications to see which ones meet the basic requirements for the job. D. administering tests and reviewing work samples to rate the candidates' abilities. E. inviting candidates with the best abilities to the organization for one or more interviews. 29. Along with 50 other candidates, Rita applied for the position of analyst at Mechalium Inc. Because Rita's profile stood out from other candidates' profiles, she was called for an interview in which she performed well. In the context of the steps involved in the selection process for recruitment, which of the following would most likely be the next step taken by the recruiter?

A. reviewing Rita's work samples B. negotiating salary and benefits with Rita C. verifying Rita's qualifications through background checks D. sending Rita a job offer letter E. getting Rita to sign the job offer

30. Gary, the new human resource manager at Alchemy Corp., proposes using automated systems for screening résumés of applicants. Gary claims that automated systems are better than humans at picking the right profiles. Which of the following statements weakens Gary's claim?

A. Automated systems might reject qualified people who didn't use the same keywords as the job description. B. Automated systems reduce the pace of the selection process by a large margin. C. Automated systems prevent candidates from knowing the status of their applications. D. Automated systems do not help in matching résumés to the keywords in job requirements. E. Automated systems refrain from replying to the candidates when their profiles are rejected. 31. A strategic approach to selection requires ways to measure the effectiveness of selection tools. According to your text, which of the following is a basic standard for this?

A. The method can be personally relatable. B. The method will highlight invalid information. C. The information provided will always be specific to the candidates applying. D. The method offers practical value. E. The legality of the selection criteria depends on which country the measurement is performed. 32. The _____ of a type of measurement indicates how free that measurement is from random error.

A. reliability B. validity C. generalizability D. utility E. verifiability

33. Statistics that measure the degree to which two sets of numbers are related are known as _____.

A. aligned statistics B. important integers C. reliable ratings D. natural numbers E. correlation coefficients 34. A correlation coefficient of -1.0 between two sets of numbers indicates _____.

A. a complete lack of any correlation between the two sets B. that when one set of numbers goes up, so does the other set C. that when one set of numbers goes up, the other set goes down D. a positive correlation between the two sets E. an indefinite relationship between the two sets 35. What does a correlation of 0 mean?

A. a negative correlation B. a positive correlation C. a correlation where one number goes up and the other goes down D. no correlation at all E. an error in the correlation coefficients

36. Reliability answers the important question of

A. whether you are measuring something accurately. B. whether you are measuring something that matters. C. how you are measuring correlation coefficients. D. how many errors something can achieve while still being considered useful. E. intelligence in employees. 37. The _____ of an employment test is indicated by the extent to which the test scores relate to actual job performance.

A. reliability B. validity C. generalizability D. utility E. dependability 38. The HR department at Buckworth Consulting recently developed and employed a certain test in the selection process for managers. After observing a certain trend in the organization, the HR department concluded that the test being used was not a valid selection criterion. Which of the following most likely led to the observation that the test was not valid?

A. Managers who were recruited without the tests performed well when promoted to other roles. B. Managers who got low scores on the tests performed poorly when promoted to other roles. C. Managers who fared well in the tests performed well in their roles. D. Managers who performed well on the tests performed poorly in their roles. E. Managers who were recruited without the tests performed poorly in their roles.

39. Which of the following is true of validity?

A. Validity cannot be explained using correlation coefficients. B. Validity identifies how free a measurement is from random error. C. Validity measures the level of cultural fit. D. Validity can only be measured in one way. E. Validity ensures the fairness of employment practices during selection procedures. 40. Which of the following measures of validity is based on showing a substantial correlation between test scores and job performance scores?

A. criterion-related validity B. diagnostic validity C. content validity D. convergent validity E. construct validity 41. Tiara Inc., an international clothing brand, recruited 15 people as brand managers. They all took a test as part of the recruitment process. Three months after the recruitment, their test scores were analyzed along with their performance on the job to find a substantial correlation between the two factors. Which of the following methods of research is exemplified in this scenario?

A. content validation B. predictive validation C. concurrent validation D. construct validation E. diagnostic validation

42. Identify the correct statement regarding predictive validation.

A. It is the least effective method of measuring validity. B. It uses the test scores of all applicants and looks for a relationship between the scores and future performance. C. It involves administering a test to people who currently hold a job and comparing their scores to existing measures of their current job performance. D. It is the quickest and easiest method compared to other ways of measuring validity. E. Its scores are influenced by applicants' job experiences. 43. Grace is the HR manager of Trelsoft Inc., a software company located in Boston. She wants to establish the validity of a test designed for computer technicians using a predictive validation strategy. Accordingly, Grace must administer the test to _____.

A. at least half the present computer technicians in Trelsoft B. people doing similar jobs in other companies C. people applying for computer technician jobs in Trelsoft D. only those computer technicians in Trelsoft who are performing at acceptable levels E. a random selection of computer technicians currently employed at Trelsoft 44. To test the validity of a selection test for advanced widget designers, Techspark Inc. administers the test to its current widget designers. The test results are then compared with existing measures of job performance. In this instance, what type of validation is being used by Techspark?

A. predictive validation B. concurrent validation C. content validation D. construct validation E. diagnostic validation

45. Identify an accurate difference between predictive validation and concurrent validation.

A. Predictive validation correlates current job roles and job performance; concurrent validation does not. B. Predictive validation correlates future job performance and applicant test scores; concurrent validation does not. C. Concurrent validation is very time-consuming; predictive validation is not. D. Concurrent validation is difficult to employ; predictive validation is not. E. Concurrent validation is utilized on new recruits; predictive validation is not. 46. The consistency between test items or problems and the kinds of situations or problems that occur in a job is known as _____.

A. predictive validity B. content validity C. concurrent validity D. diagnostic validity E. construct validity 47. Buildtron Inc., a construction firm, is in need of a construction superintendent, whose primary responsibilities involve organizing, supervising, and inspecting the work of several subcontractors. Buildtron administers a construction-error recognition test, where an applicant has to enter a shed that has 25 construction errors and has to record as many of these errors as can be detected. What type of validity is being established in this case?

A. concurrent validity B. construct validity C. content validity D. representative validity E. predictive validity

48. Which of the following is true about content validity?

A. It is usually measured on the basis of expert judgment. B. It indicates how free a measurement is from random errors. C. It is most suitable for tests that measure abstract qualities. D. A test that scores high on content validity tends to score low on generalizability. E. It is useful for tests that measure intelligence and leadership quality. 49. For tests that measure abstract qualities such as intelligence or leadership skills, validity would best be established by _____ validation.

A. criterion-related B. content C. concurrent D. construct E. predictive 50. A test that is valid in other contexts beyond the context in which it was developed is known as a(n) _____ method.

A. practical B. generalizable C. reliable D. invalid E. concurrent

51. David Carr is the HR manager of Witherspoon Inc., a publishing company. He wants to know if a certain test of cognitive ability, used in the advertising industry, can be successfully used in his organization. This scenario suggests that he wants to know if this test is a(n) _____ method.

A. substitutable B. evaluative C. practical D. generalizable E. nondirective 52. According to your text, selection methods should accurately predict how well individuals perform, and they should

A. produce information that actually benefits the organization. B. not cost the company a great deal of money. C. all be applicable to many different roles in many different locations. D. only be applicable to the company where they are being used. E. only be used on current employees with leadership aspirations. 53. The extent to which something provides economic value greater than its cost is called its _____.

A. practicality B. utility C. validity D. accountability E. reliability

54. Which of the following exemplifies the best use of utility for a selection procedure?

A. Bette's, a suburban diner, spends a lot of time and money recruiting a server. B. A local gas station has a recruitment procedure that spans four months for the position of a cashier. C. Tywell Capital, an international investment firm, spends close to a million dollars to hire a renowned economist as its new CEO. D. Shinecare, a local car wash, employs a three-month-long selection procedure for hiring one of its operators. E. Haleview High School conducts several rounds of interviews to recruiting a maintenance worker. 55. Gromart, an international retailer, opens a store in a town predominantly populated by a particular racial group. While recruiting employees for the store, it uses a test in the selection process that favors that same racial group. When questioned about the selection procedure, the management reasons that the customers are more comfortable with employees of their own race. In the context of the legal standards of selection, which of the following is an accurate statement?

A. Gromart's actions during the selection process do not violate the Civil Rights Act of 1991 or the equal employment opportunity law at all. B. Though Gromart's selection process violates the Civil Rights Act of 1991, it's justifiable under the equal employment opportunity law. C. Gromart's selection process is justifiable because the Age Discrimination in Employment Act of 1967 requires employers to make reasonable accommodation according to the demographics of a locality. D. Gromart's actions during the selection process do not violate the Civil Rights Act of 1991, but it violates the equal employment opportunity law. E. Gromart's actions during the selection process violate the Civil Rights Act of 1991 because customer preference is not a justifiable reason for discriminatory practices.

56. Which of the following actions during the selection process would be illegal under the equal employment opportunity laws?

A. asking candidates whether they are able to perform the essential functions of a job B. asking all candidates whether they have ever worked under a different name C. asking candidates how close they are to retirement age D. asking all candidates which schools they have attended E. asking candidates whether they will need any reasonable accommodation to complete the selection process 57. Which of the following is a permissible question to ask in job applications and interviews?

A. How would you feel about working for someone younger than you? B. Are you a citizen of the United States? C. What religious holidays do you observe? D. Where were you born? E. Will you need any reasonable accommodation for this hiring process? 58. Which of the following is a permissible question for job applications and interviews?

A. What is the nationality of your name? B. Have you ever been arrested for a crime? C. Was your college a Catholic university? D. Do you have any disabilities? E. Can you meet the requirements of the work schedule?

59. Marianna Baxter attends an interview for the position of a paralegal at one of the biggest law firms in the country. During the interview, she is asked a particular question which she refuses to answer. Frustrated by her behavior, the interviewer repeats the question. She refuses to answer it again and says that it violates her rights under equal employment opportunity law. Which of the following is most likely the question she was asked?

A. What is your complete name? B. What is your ancestry? C. Can you meet the requirements of strict work schedules? D. Have you ever been convicted of a crime? E. What organizations or groups do you belong to that you consider relevant to being able to perform this job? 60. Which of the following laws requires employers to make "reasonable accommodation" to incapacitated individuals?

A. The Civil Rights Act of 1991 B. The Equal Employment Opportunity Act of 1988 C. The Americans with Disabilities Act of 1991 D. The Age Discrimination in Employment Act of 1967 E. The Fair Labor Standards Act of 1938

61. Which of the following statements is true of the Americans with Disabilities Act of 1991?

A. Employers can ask pre-employment questions to investigate disabilities. B. Interviewers are prohibited from asking a candidate if he or she can meet the attendance requirements for a job. C. Interviewers are permitted to ask candidates the number of sick leaves he or she took at his or her previous job. D. Employers are permitted, in making hiring decisions, to use employment physical exams that could reveal a psychological or physical disability. E. Employers are required to make reasonable accommodation to disabled individuals. 62. Rigatel Corp., an investment bank, is in the final stage of its selection process for a business analyst. Rob is one of the desired candidates for the position. As part of background checks, the bank wants to look at his credit history. Which of the following acts requires them to obtain Rob's consent before using a third party to check his credit history?

A. The Civil Rights Act of 1991 B. The Fair Credit Reporting Act C. The Fair Labor Standards Act D. The Labor-Management Reporting and Disclosure Act E. The Consumer Credit Protection Act 63. Which of the following is a requirement under the Immigration Reform and Control Act of 1986?

A. Employers must verify and maintain records on the legal rights of applicants to work in the United States. B. Employers must file a completed Form I-9 with the Immigration and Naturalization Service and retain the documents for at least ten years. C. Employers must pay lower wages to immigrant workers. D. Employers must verify the legal age of employees who do not hold American citizenship. E. Employers must ask a potential employee's religion.

64. Which of the following is an accurate feature of a job application form?

A. It is an expensive way of gathering information from candidates. B. It ensures that certain standard categories of information are obtained. C. It prevents human resource personnel from ranking candidates. D. It has a customized format for every candidate. E. It is usually unsigned and undated. 65. Irene is filling out an application form for the position of an elementary school teacher. While she is filling it out, she comes across a section that asks for information about her high school and college courses and grades. Which of the following sections of the application form is being referred to here?

A. mailing address B. work experience C. racial details D. educational background E. declaration 66. Identify the detail that can be asked in an application form to gather information about suitable candidates.

A. marital status B. history of disabilities C. number of children D. educational background E. applicant's race

67. What is a disadvantage of using résumés as a source of information about job applicants?

A. It is a relatively expensive method of gathering information. B. It does not allow applicants to highlight accomplishments. C. Review of résumés is least valid when the content of the résumés is evaluated in terms of the elements of a job description. D. A résumé is biased in favor of the employer. E. The content of the résumé is controlled by the applicant. 68. For what purpose do organizations typically review applicant résumés?

A. as a substitute for interviews B. as a basis for deciding which candidates to investigate further C. as a way to avoid the cost of administering tests related to job performance D. as a way to control the content of the information and the way it is presented E. as a way to obtain an objective source of information 69. Review of résumés is most valid when the content of the résumés is evaluated in

A. terms of the elements of a job description. B. comparison with other applicants' qualifications. C. terms of the incumbent's competencies. D. terms of the industrial benchmarks. E. comparison with other employees in an organization.

70. While applying for the position of administrative assistant, Rachel was asked to provide the name and phone number of her previous supervisor. She was also provided the alternative of presenting a letter from her previous supervisor vouching for her performance on the job. Which of the following tools used in the initial selection process is illustrated in this case?

A. application form B. résumé C. background checks D. aptitude tests E. references 71. Generally, an organization checks references

A. only if it believes the information provided by an applicant is incorrect. B. immediately after an applicant submits a résumé. C. after it has determined that an applicant is a finalist for a job. D. because it is a legal requirement under equal employment opportunity laws. E. because it is an unbiased source of information. 72. If a person who is a reference gives negative information about a job candidate, there is a chance the candidate will claim _____, meaning the person damaged the applicant's reputation by making statements that cannot be proved truthful.

A. defamation B. misappropriation C. fraud D. misrepresentation E. negligence

73. Erika is a human resource manager at Bluetel Inc., a software company. She receives a call from an HR manager at another software company asking about Marshall, a software engineer who used to work at Bluetel and has applied for a job at the caller's company. Erika checks the company's records and sees that a coworker had accused Marshall of racial discrimination, but an investigation did not turn up any evidence to support the charge. Marshall left the company two months later, saying he was no longer comfortable there. Erika is concerned about sharing the details of this situation with the caller. If telling the information to the caller leads to the other company not hiring Marshall, what potentially unlawful behavior could Marshall accuse Bluetel of engaging in?

A. misappropriation B. fraud C. misrepresentation D. defamation E. negligence 74. If a former employer gives a glowing statement about a candidate and the new employer later learns of misconduct on the part of the employee during his or her previous employment, the new employer may sue the former for _____.

A. negligence B. misrepresentation C. defamation D. misappropriation E. libel

75. Jonas had a great résumé and a glowing recommendation from his previous employer. Impressed by his qualifications and expertise, Vizion Tech Inc. hired him for the position of quality analyst. However, he engaged in blatant sexual harassment at Vizion after a couple of weeks on the job. During its investigation of the harassment, Vizion Tech learned that Jonas had been fired for sexual harassment at his previous employer. If the management of Vizion Tech wanted to hold Jonas's previous employer accountable, they could sue the company for _____.

A. misrepresentation B. fraud C. defamation D. negligence E. embezzlement 76. How can individuals acting as references for job applicants minimize the risk of being sued for defamation or misrepresentation?

A. by giving as much information as possible B. by exclusively giving out positive information about a candidate C. by only giving information about observable, job-related behaviors D. by giving only broad opinions E. by excluding employment dates and the employee's final salary 77. In general, the results of reference checks for job applicants will be most valid if employers _____.

A. contact many references B. rely exclusively on the list provided by applicants C. avoid direct contact with references D. restrict contact with references through e-mails E. receive positive opinions about the applicants from their references

78. Donna Hernandez has applied for the position of data systems operator in one of the federal governmental agencies. As part of the selection process, she takes a civil services examination that measures her existing knowledge and skills. This scenario exemplifies a(n) _____.

A. psychometric test B. critical thinking test C. judgment test D. aptitude test E. achievement test 79. Francisco Holt had applied for the position of an emergency direct care worker at the City Medical Center. In the last round of the selection process, he had to take part in a testing procedure that simulated an emergency situation. He had to run a half-mile on the treadmill, followed by a step test, a posture test, a squat test, and a weight-lifting test. His performance was timed and his heart rate was monitored throughout the tests. Which of the following tests is exemplified in this case?

A. cognitive ability test B. critical thinking test C. psychometric test D. physical ability test E. achievement test 80. Tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability are referred to as _____ tests.

A. job performance B. honesty C. personality inventories D. cognitive ability E. physical ability

81. Which of the following is true about cognitive ability tests?

A. They are especially valid for jobs requiring adaptability. B. They are relatively expensive compared to the other tests. C. They measure strength, endurance, psychomotor abilities, and other physical abilities. D. They are free from legal complications. E. They are especially valid for simple jobs. 82. Identify the limitation of cognitive ability tests.

A. lack of validity of the tests for complex jobs B. lack of reliable and commercially available tests C. legal issues related to administering the tests D. lack of validity of the tests for those jobs that require adaptability E. relatively high cost of the tests 83. The controversial practice that treats a range of scores as being similar and thus allows employers to give preference to underrepresented groups within these similar scores is known as _____.

A. banding B. generalizing C. affirmative action D. sensitizing E. race norming

84. To evaluates the results of a test used in the selection process for job candidates, Zoemetra Corp. uses a method wherein scores between 90 and 100 are graded A, scores between 80 and 90 are graded B, scores between 70 and 80 are graded C, and so on. This practice allows the company to give preference to unrepresented groups within a range. Which of the following terms describes this method of evaluating test results?

A. race norming B. banding C. desensitizing D. generalizing E. modeling 85. A typing test for an administrative assistant's job is an example of a(n) _____ test.

A. job performance B. cognitive ability C. physical ability D. personality inventories E. emotional intelligence 86. In-basket tests are examples of _____ tests.

A. job performance B. physical ability C. honesty D. personality E. cognitive ability

87. A(n) _____ measures the ability to juggle a variety of demands, as in a manager's job where the candidate is presented with simulated memos and phone messages describing the kinds of problems that confront a person in the job.

A. paper-and-pencil honesty test B. in-basket test C. cognitive ability test D. exit test E. work sample test 88. Which of the following statements is true of an assessment center?

A. It is a place where job applicants for manufacturing jobs undergo physical ability tests. B. It conducts a single test for all job applicants to test their technical potential. C. It uses multiple selection methods to rate applicants on their management potential. D. It is a selection method generally used for unskilled applicants. E. It has the lowest validity because it combines several assessment methods. 89. Identify the correct statement regarding job performance tests.

A. They provide fair evaluations for applicants. B. They have the lowest level of validity compared to other tests. C. These tests are highly generalizable. D. Customization of these tests for various jobs is inexpensive. E. They are best suited for identifying the particular skills or traits the individual possesses.

90. Which of the following is a "Big Five" personality trait?

A. physical ability B. cognitive ability C. aptitude D. extroversion E. honesty 91. Identify the traits that are found in a conscientious person.

A. sociable, gregarious, assertive, and talkative B. dependable, organized, persevering, and achievement-oriented C. courteous, trusting, good-natured, and tolerant D. emotionally stable, nondepressed, secure, and content E. curious, imaginative, artistically sensitive, and broad-minded 92. Melissa Jetton, a manufacturing supervisor, is popular with her employees and other colleagues. She is sociable, gregarious, and easy to talk to. However, she is not very organized or achievement-oriented. In this context, which of the "Big Five" personality traits does she demonstrate?

A. conscientiousness B. extroversion C. aggression D. depression E. inquisitiveness

93. Ottercut Tech, a software start-up, is putting together a new team to work on the marketing strategies for their expansion project. In the context of using the "Big Five" personality traits for effective team building, which of the following employees would be a good addition to a team that encourages a strong and harmonious culture and is most likely to give the best results?

A. Jamie is very organized; Stella is very cooperative. B. Mary is not achievement-oriented; Isaac is laid-back. C. Both John and Adam are domineering. D. Both Miriam and Ann are aggressive and unforgiving. E. George is emotionally unstable; Bianca is constantly depressed. 94. Which of the following tests is a legal means to test the integrity of job applicants and generally involves asking applicants directly about their attitudes toward theft and their own experiences with theft?

A. polygraph test B. paper-and-pencil honesty test C. cognitive ability test D. personality inventory test E. in-basket test 95. Emma, a manager at Synergy Inc., conducted an interview with Sean for a job as regional sales manager. During the course of the interview, she asked Sean to take a test that would assess Sean's integrity by asking him about his attitude toward shoplifting and his own experiences with shoplifting, if any. Which of the following tests was conducted by Emma?

A. exit test B. paper-and-pencil honesty test C. cognitive ability test D. work sample test E. in-basket test

96. BuildCo's human resource department is preparing a policy for the drug testing of job applicants. Nate makes a list of statements to include in the policy and shows the list to his supervisor, Monique. Which of the following statements should Monique direct Nate to change?

A. Drug testing should be administered systematically to all applicants who have applied for the same job. B. Drug test reports should not be sent to applicants. C. Drug testing should be conducted for employees working in jobs that involve safety hazards. D. Drug testing should not be conducted in an intrusive environment. E. Drug-testing programs should allow for strict confidentiality of results. 97. Which of the following is true about medical examinations of job candidates?

A. Medical examinations may not be related to job requirements. B. Medical examinations are conducted upon the receipt of a candidate's résumé. C. Medical examinations are conducted specifically for individuals with disabilities. D. Medical examinations that measure size and strength can never be used for a job. E. Medical examinations are conducted after a candidate has been given a job offer. 98. A _____ interview allows interviewer discretion in choosing the questions to be asked and generally includes open-ended questions about the candidate's strengths, weaknesses, career goals, and work experience.

A. behavioral B. situational C. nondirective D. structured E. computerized

99. Gina, a marketing manager, sets up a meeting with Xavier, a human resource manager, to ask for his help in improving her interviewing methods. Gina explains that she is a people person, and her department is built on teamwork, so when candidates interview for a job, she tries to get to know the candidates as people. She always begins by saying, "Tell me about yourself," and based on what the candidate says, she lets the conversation unfold for 30 to 60 minutes. How does this approach limit Gina's effectiveness as an interviewer?

A. By always starting with the same question, she limits the creativity of the candidates. B. By using this structured approach, she avoids asking the wrong questions. C. This type of behavior description interview is too focused on behaviors, rather than teamwork. D. Her method is a panel interview, which has a low validity for a department built on teamwork. E. The wide latitude of these nondirective interviews can result in low reliability and often poor validity. 100.Alexander is being interviewed for the position of an entry-level financial analyst at a well-known asset management company. Alexander is asked questions about the current state of the U.S. stock market, the current net worth of certain financial firms, and concepts such as IPOs and mergers from a set of predetermined questions that the interviewer has prepared. This is an example of a(n) _____.

A. structured interview B. in-basket interview C. work-sample interview D. exit interview E. nondirective interview

101.During interviews for a sales position at Lock-Spark Inc., the interviewer asks each candidate to imagine a situation where a customer emails to report that products were damaged during delivery from Lock-Spark. The interviewer then asks each candidate what he or she would do to handle this situation. This is an example of a(n) _____ interview.

A. behavior description B. situational C. computerized D. exit E. in-basket 102.During interviews for medical assistants at the Haleview Medical Center, all the candidates were asked to talk about a situation in the past when they had to empathize with an emotionally unstable person and help that person make rational decisions. This was to test whether the candidates would be able to assist a frantic patient and help him or her make informed decisions. This type of interview is known as a(n) _____ interview.

A. unstructured B. nondirective C. behavior description D. physical ability E. exit

103.Pluto Inc. is a car manufacturing company that wants to hire a new product manager. Senior management decides to have the department heads for production, sales, and human resources interview the candidates on a variety of topics. This is an example of a(n) _____.

A. behavior description interview B. in-basket interview C. situational interview D. exit interview E. panel interview 104.Harley wants to build a start-up company with a small number of people working for him. He decides to do all the hiring himself. Antonio, a friend of Harley's who is also a lawyer, wants to warn Harley about the risk of discrimination complaints other companies have received by applicants who were not hired. Which of the following statements would best express the basis of Antonio's concern about avoiding discrimination?

A. Interviews are narrow and standardized, so they do not allow interviewers to test the integrity of interviewees with ease. B. Interviews are subjective, so they have the potential of assessing candidates based on questions not related to the job. C. Interviews are situational, so they provide a means to check the accuracy of information provided by the candidate. D. Interviews are expensive, so their validity and reliability are always in question. E. Interviews require polygraph tests, which give the interviewer an opportunity to ask questions that can violate the privacy rights of the interviewee.

105.Which of the following statements is true of selection decisions?

A. They should be a simple matter of whom the supervisor likes best. B. They should be based on the amount of confidence observed in job candidates. C. They should be based on which candidate best meets the requirements of the position. D. They should be a simple matter of which candidate will take the lowest offer. E. They should be based on motivation, not abilities. 106.Which of the following best describes the multiple-hurdle model of personnel selection?

A. It is a process of selecting employees in which a very high score on one type of assessment can make up for a low score on another. B. It is a process of arriving at a selection decision by eliminating some candidates at each stage of the selection process. C. It is a selection process in which several members of an organization form a panel and interview each candidate. D. It is a testing program that establishes different norms for hiring members of different racial groups. E. It is a selection process that treats a range of scores as being similar and divides candidates into groups based on the range into which they fall.

107.Summerton High School has three open positions for teachers. The school's HR personnel review résumés to identify the candidates who meet the school's minimum requirements. Next, potential candidates are then invited for interviews. After this, interviewers discuss the results with HR personnel and select a short list of candidates, who then appear before a panel of teachers and HR personnel for the final interview. Summerton's new teachers are then selected from among these finalists. Which of the following terms describes Summerton's method of selection?

A. compensatory model B. multiple-hurdle model C. leadership model D. behavior description model E. nondirective model 108.Tara, the purchasing manager at Reed Inc., tells Levi, the human resource manager, that she has selected a candidate to be her purchasing assistant. She shows him a draft of an email message offering the candidate the job at the agreed-on starting wage. She asks Levi if there is anything else she should mention in the message. Levi replies that Tara should add information about _____.

A. the work schedule, starting date, and drug test results B. the job responsibilities, work schedule, and starting date C. the work schedule, starting date, and results of the candidate's medical exam D. the job responsibilities and results of the candidate's medical exam E. the starting date

Essay Questions

109.Describe the steps involved in a selection process.

110.Define what is meant by reliability, validity, and utility in the employment selection context.

111.Briefly describe how concurrent and predictive validation research is conducted, and identify at least two potential advantages of predictive validation.

112.Discuss how the Civil Rights Act of 1991 and the Americans with Disabilities Act impact personnel selection processes.

113.Discuss the burden placed on people or organizations contacted as references for job candidates. How do organizations cope with this burden?

114.Explain the two broad categories of employment tests.

115.Why are drug tests a controversial component of the personnel selection process? What are some of the ways in which organizations can avoid problems associated with drug testing?

116.Describe the different types of interviews that can be used for employee selection.

117.How can organizations avoid the pitfalls of using interviews as a selection method?

118.Discuss the multiple-hurdle model and the compensatory models of arriving at a personnel selection decision.

Chapter 06 Selecting Employees and Placing Them in Jobs Answer Key

True / False Questions

The process of selecting employees remains constant for all organizations and for all jobs. FALSE

The process of selecting employees varies considerably from organization to organization and from job to job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 1 Easy Topic: Steps in the Selection Process

Automated systems always ensure that all highly qualified candidates are included in the selection process. FALSE

As with any automation, an applicant-tracking system is only as good as the process it automates. A system that just matches a few keywords between résumés and job descriptions might screen out high-potential employees who didn't use exactly the same term. The problem is even worse if the employer didn't bother to carefully analyze which keywords are really associated with success on the job.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

A reliable measurement generates consistent results. TRUE

The reliability of a type of measurement indicates how free that measurement is from random error. A reliable measurement therefore generates consistent results.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

Reliability answers the important question if one is measuring something that matters. FALSE

Reliability answers one important question—whether you are measuring something accurately—but ignores another question that is as important: Are you measuring something that matters?

Predictive validation is less time consuming and easier than concurrent validation. FALSE

Two kinds of research are possible for arriving at criterion-related validity: predictive valuation and concurrent validation. Predictive validation is more time consuming and difficult, but it is the best measure of validity.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 6-40 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Types of Validity

Content validation is most suitable for measuring abstract qualities such as intelligence or leadership ability. FALSE

The usual basis for deciding that a test has content validity is through expert judgment. Because establishing validity is based on the experts' subjective judgments, content validity is most suitable for measuring behavior that is concrete and observable.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 2 Medium Topic: Types of Validity

Selection procedures that provide economic value greater than the cost of using them are said to have utility. TRUE

Selection methods that provide economic value greater than the cost of using them are said to have utility.

Under equal employment opportunity laws, if an employer uses an interview process that eliminates most candidates who are black or Hispanic, the employer must show that the method is necessary for selecting candidates who project the right brand image. FALSE

The Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1967 place requirements on the choice of selection methods. An employer that uses a neutral-appearing selection method that damages a protected group is obligated to show that there is a business necessity for using that method, such as predicting performance of the job. In this context, good performance does not include "brand image" as a justification for adverse impact.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 2 Medium Topic: Constraints on the Hiring Process

Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. TRUE

Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 1 Easy Topic: Constraints on the Hiring Process

10.

The Fair Credit Reporting Act requires that employers obtain a candidate's consent before downloading his or her résumé from an online job site. FALSE

The Fair Credit Reporting Act requires employers to obtain a candidate's consent before using a third party to check the candidate's credit history or references.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 1 Easy Topic: Constraints on the Hiring Process

11.

An application form can request information regarding an applicant's marital status and race. FALSE

An application form should not request information that could violate equal employment opportunity standards. For example, questions about an applicant's race, marital status, or number of children would be inappropriate.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 1 Easy Topic: Constraints on the Hiring Process

12.

An HR department at a manufacturing firm wants to ensure that applicants for production jobs provide complete information about themselves in a standard format. The most effective method would be to ask candidates to submit a résumé. FALSE

Asking each applicant to fill out an employment application is a low-cost way to gather basic data from many applicants. It also ensures that the organization has certain standard categories of information, such as mailing address and employment history, from each. With résumés, in contrast, applicants control the content of the information as well as the way it is presented.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 3 Hard Topic: Steps in the Selection Process

13.

Review of résumés is most valid when the content of the résumés is evaluated in terms of the elements of a job description. TRUE

Review of résumés is most valid when the content of the résumés is evaluated in terms of the elements of a job description.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 1 Easy Topic: Steps in the Selection Process

14.

Most organizations check references as soon as they receive a candidate's application form. FALSE

Usually an organization checks references only after it has determined that an applicant is a finalist for a job.

15.

Aptitude tests assess a person's existing knowledge and skills. FALSE

Aptitude tests assess how well a person can learn or acquire skills and abilities. Achievement tests measure a person's existing knowledge and skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

16.

Geena is the human resource manager for a machine job that produces custom parts. To make these products, production employees must be able to quickly learn new methods and machines. To identify job candidates who can quickly acquire new skills, Geena could administer achievement tests. FALSE

Achievement tests measure a person's existing knowledge and skills. Aptitude tests assess how well a person can learn or acquire skills and abilities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6-45 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

17.

Race norming refers to establishing different norms for hiring members of different racial groups. TRUE

Race norming refers to establishing different norms for hiring members of different racial groups. The Civil Rights Act of 1991 forbids the use of race or sex norming.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

18.

The Civil Rights Act of 1991 encourages the use of sex norming as a selection tool. FALSE

The Civil Rights Act of 1991 forbids the use of race or sex norming.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

19.

Personality tests are more reliable than intelligence tests. FALSE

Compared with intelligence tests, people are better at faking their answers to a personality test to score higher on desirable traits. For example, people tend to score higher on conscientiousness when filling out job-related personality tests than when participating in research-related tests.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

20.

The Polygraph Act legalized the use of polygraph tests for employment screening in most organizations. FALSE

In 1988, the passage of the Polygraph Act banned the use of polygraphs for screening job candidates.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

21.

In a nondirective interview, the interviewer always asks questions from an established set of questions. FALSE

In a nondirective interview, an interviewer has great discretion in choosing questions. A candidate's reply to one question may suggest other questions to ask.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 1 Easy Topic: Employment Interviews

22.

In a behavior description interview, a candidate is asked by the interviewer how he or she handled a type of situation in the past. TRUE

A behavior description interview (BDI) is a situational interview in which an interviewer asks a candidate to describe how he or she handled a type of situation in the past. Questions about candidates' actual experiences tend to have the highest validity.

23.

Interviewing is considered the most accurate basis for making a selection decision. FALSE

Despite certain benefits, interviewing is not necessarily the most accurate basis for making a selection decision. Research has shown that interviews can be unreliable, low in validity, and biased against a number of different groups.

24.

Interviews are the least expensive method of employee selection. FALSE

Interviews are costly. They require that at least one person devote time to interviewing each candidate, and the applicants typically have to be brought to one geographic location.

25.

The multiple-hurdle model is based on a process of increasing the number of candidates at each stage of the selection process. FALSE

The multiple-hurdle model is based on a process of arriving at a selection decision by eliminating some candidates at each stage of the selection process.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 6-49 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 1 Easy Topic: Steps in the Selection Process

26.

In an organization, a supervisor usually makes the final employee selection decision. TRUE

Usually a supervisor makes the final decision, often alone. This person may couple knowledge of the job with a judgment about who will fit in best with others in the department.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 1 Easy Topic: Steps in the Selection Process

Multiple Choice Questions

27.

Russell, an entrepreneur, wants to hire a human resource professional who can help him make decisions about who will or will not be allowed to join his organization. In advertising for this professional, what term should he use to describe the process he wants help with?

A. predictive validation B. job analysis C. concurrent validation D. trend analysis E. personnel selection

Through personnel selection, organizations make decisions about who will or will not be allowed to join the organization.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

28.

In most organizations, the first step in the personnel selection process is

D. administering tests and reviewing work samples to rate the candidates' abilities. E. inviting candidates with the best abilities to the organization for one or more interviews. The process of selecting employees varies considerably from organization to organization and from job to job. In most organizations, however, first, a human resource professional reviews the applications received to see which meet the basic requirements of the job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

29.

Along with 50 other candidates, Rita applied for the position of analyst at Mechalium Inc. Because Rita's profile stood out from other candidates' profiles, she was called for an interview in which she performed well. In the context of the steps involved in the selection process for recruitment, which of the following would most likely be the next step taken by the recruiter?

A. reviewing Rita's work samples B. negotiating salary and benefits with Rita C. verifying Rita's qualifications through background checks

D. sending Rita a job offer letter E. getting Rita to sign the job offer The process of selecting employees varies considerably from organization to organization and from job to job. In this case, the recruiter would verify Rita's qualifications by employing background and reference checks after the interview.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 3 Hard Topic: Steps in the Selection Process

30.

Gary, the new human resource manager at Alchemy Corp., proposes using automated systems for screening résumés of applicants. Gary claims that automated systems are better than humans at picking the right profiles. Which of the following statements weakens Gary's claim?

A. Automated systems might reject qualified people who didn't use the same keywords as the

job description. B. Automated systems reduce the pace of the selection process by a large margin. C. Automated systems prevent candidates from knowing the status of their applications. D. Automated systems do not help in matching résumés to the keywords in job requirements. E. Automated systems refrain from replying to the candidates when their profiles are rejected. As with any automation, an applicant-tracking system is only as good as the process it automates. A system that just matches a few keywords between résumés and job descriptions might screen out high-potential employees who didn't use exactly the same term.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 3 Hard Topic: How Technology Influences Human Resource Management?

31.

A strategic approach to selection requires ways to measure the effectiveness of selection tools. According to your text, which of the following is a basic standard for this?

E. The legality of the selection criteria depends on which country the measurement is performed. A strategic approach to selection requires ways to measure the effectiveness of selection tools. From science, we have five basic standards for this. First, the method provides reliable information. Second, the method provides valid information. Third, the information can be

generalized to apply to the candidates. Fourth, the method offers high utility (practical value). And fifth, the selection criteria are legal.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 2 Medium Topic: Properties of Employee Selection

32.

The _____ of a type of measurement indicates how free that measurement is from random error.

A. reliability

B. validity C. generalizability D. utility E. verifiability The reliability of a type of measurement indicates how free that measurement is from random error. A reliable measurement therefore generates consistent results.

33.

Statistics that measure the degree to which two sets of numbers are related are known as _____.

A. aligned statistics B. important integers C. reliable ratings D. natural numbers E. correlation coefficients

Correlation coefficients are statistics that measure the degree in which two sets of numbers are related. A higher correlation coefficient signifies a stronger relationship.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy 6-55 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Properties of Employee Selection

34.

A correlation coefficient of -1.0 between two sets of numbers indicates _____.

A. a complete lack of any correlation between the two sets B. that when one set of numbers goes up, so does the other set C. that when one set of numbers goes up, the other set goes down

D. a positive correlation between the two sets E. an indefinite relationship between the two sets Correlation coefficients measure the degree to which two sets of numbers are related. At one extreme, a correlation coefficient of 1.0 means a perfect positive relationship—as one set of numbers goes up, so does the other. At the other extreme, a correlation of -1.0 means a perfect negative correlation—when one set of numbers goes up, the other goes down.

35.

What does a correlation of 0 mean?

A. a negative correlation B. a positive correlation C. a correlation where one number goes up and the other goes down D. no correlation at all

E. an error in the correlation coefficients A correlation of 0 means there is no correlation at all.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. 6-56 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

36.

Reliability answers the important question of

A. whether you are measuring something accurately.

B. whether you are measuring something that matters. C. how you are measuring correlation coefficients. D. how many errors something can achieve while still being considered useful. E. intelligence in employees. Reliability answers one important question—whether something is measured accurately—but ignores another question that is as important: Is something that matters being measured?

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 2 Medium Topic: Properties of Employee Selection

37.

The _____ of an employment test is indicated by the extent to which the test scores relate to actual job performance.

A. reliability B. validity

C. generalizability D. utility E. dependability For a selection measure, validity describes the extent to which performance on the measure (such as a test score) is related to what the measure is designed to assess (such as job performance).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 6-57 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

38.

The HR department at Buckworth Consulting recently developed and employed a certain test in the selection process for managers. After observing a certain trend in the organization, the HR department concluded that the test being used was not a valid selection criterion. Which of the following most likely led to the observation that the test was not valid?

E. Managers who were recruited without the tests performed poorly in their roles. One way to determine whether a measure is valid is to compare many people's scores on that measure with their job performance. If the managers who performed well in the tests do not demonstrate the same level of performance in their respective job roles, it undermines the validity of the test.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 3 Hard Topic: Properties of Employee Selection

39.

Which of the following is true of validity?

A strong positive (or negative) correlation between a measure and job performance means the measure should be a valid basis for selecting (or rejecting) a candidate. This information is important not only because it helps organizations identify the best employees, but also because organizations can demonstrate fair employment practices by showing that their selection process is valid.

40.

Which of the following measures of validity is based on showing a substantial correlation between test scores and job performance scores?

A. criterion-related validity

B. diagnostic validity C. content validity D. convergent validity E. construct validity Criterion-related validity is a measure of validity based on showing a substantial correlation between test scores and job performance scores.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Types of Validity

41.

Tiara Inc., an international clothing brand, recruited 15 people as brand managers. They all took a test as part of the recruitment process. Three months after the recruitment, their test scores were analyzed along with their performance on the job to find a substantial correlation between the two factors. Which of the following methods of research is exemplified in this scenario?

A. content validation B. predictive validation

C. concurrent validation D. construct validation E. diagnostic validation In this case, Tiara Inc., is employing the predictive validation method. This method uses the test scores of all applicants and looks for a relationship between the scores and future performance.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 3 Hard Topic: Types of Validity

42.

Identify the correct statement regarding predictive validation.

A. It is the least effective method of measuring validity. B. It uses the test scores of all applicants and looks for a relationship between the scores and

future performance. C. It involves administering a test to people who currently hold a job and comparing their scores to existing measures of their current job performance. D. It is the quickest and easiest method compared to other ways of measuring validity. E. Its scores are influenced by applicants' job experiences. Predictive validation involves using the test scores of all applicants and looking for a relationship between the scores and future performance. The researcher administers the tests, waits a set period of time, and then measures the performance of the applicants who were hired.

43.

Grace is the HR manager of Trelsoft Inc., a software company located in Boston. She wants to establish the validity of a test designed for computer technicians using a predictive validation strategy. Accordingly, Grace must administer the test to _____.

A. at least half the present computer technicians in Trelsoft B. people doing similar jobs in other companies C. people applying for computer technician jobs in Trelsoft

D. only those computer technicians in Trelsoft who are performing at acceptable levels E. a random selection of computer technicians currently employed at Trelsoft Predictive validation research uses the test scores of all applicants and looks for a relationship between the scores and future performance. The researcher administers the tests, waits a set period of time, and then measures the performance of the applicants who were hired.

44.

To test the validity of a selection test for advanced widget designers, Techspark Inc. administers the test to its current widget designers. The test results are then compared with existing measures of job performance. In this instance, what type of validation is being used by Techspark?

A. predictive validation B. concurrent validation

C. content validation D. construct validation E. diagnostic validation Concurrent validation research administers a test to people who currently hold a job and then compares their scores to existing measures of job performance. If the people who score highest on the test also do better on the job, the test is assumed to be valid.

45.

Identify an accurate difference between predictive validation and concurrent validation.

A. Predictive validation correlates current job roles and job performance; concurrent validation does not. B. Predictive validation correlates future job performance and applicant test scores;

concurrent validation does not. C. Concurrent validation is very time-consuming; predictive validation is not. D. Concurrent validation is difficult to employ; predictive validation is not. E. Concurrent validation is utilized on new recruits; predictive validation is not. Predictive validation uses the test scores of all applicants and looks for a relationship between the scores and the future performance of those who were hired. Concurrent validation is administered as a test to people who currently hold a job, and then compares their scores to existing measures of job performance.

46.

The consistency between test items or problems and the kinds of situations or problems that occur in a job is known as _____.

A. predictive validity B. content validity

C. concurrent validity D. diagnostic validity E. construct validity The consistency between the test items or problems and the kinds of situations or problems that occur on a job is known as content validity. A test that is "content valid" exposes a job applicant to situations that are likely to occur on a job.

47.

Buildtron Inc., a construction firm, is in need of a construction superintendent, whose primary responsibilities involve organizing, supervising, and inspecting the work of several subcontractors. Buildtron administers a construction-error recognition test, where an applicant has to enter a shed that has 25 construction errors and has to record as many of these errors as can be detected. What type of validity is being established in this case?

A. concurrent validity B. construct validity C. content validity

D. representative validity E. predictive validity Content validity is the consistency between the test items or problems and the kinds of situations or problems that occur on the job. A test that is "content valid" exposes the job applicant to situations or problems that occur on the job. It tests whether the applicant has the knowledge, skills, or ability to handle such situations.

48.

Which of the following is true about content validity?

A. It is usually measured on the basis of expert judgment.

B. It indicates how free a measurement is from random errors. C. It is most suitable for tests that measure abstract qualities. D. A test that scores high on content validity tends to score low on generalizability. E. It is useful for tests that measure intelligence and leadership quality. The usual basis for deciding that a test has content validity is through expert judgment. Experts can rate the test items according to whether they mirror essential functions of the job.

49.

For tests that measure abstract qualities such as intelligence or leadership skills, validity would best be established by _____ validation.

A. criterion-related B. content C. concurrent D. construct

E. predictive For tests that measure abstract qualities such as intelligence or leadership ability, establishment of validity may have to rely on construct validity. This involves establishing that tests really do measure intelligence, leadership ability, or other such constructs, as well as showing that mastery of this construct is associated with successful performance of the job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. 6-67 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Types of Validity

50.

A test that is valid in other contexts beyond the context in which it was developed is known as a(n) _____ method.

A. practical B. generalizable

C. reliable D. invalid E. concurrent A test that is valid in other contexts beyond the context in which a selection method was developed is known as generalizable. A generalizable method applies not only to the conditions in which the method was originally developed, but should also be valid in other contexts.

51.

David Carr is the HR manager of Witherspoon Inc., a publishing company. He wants to know if a certain test of cognitive ability, used in the advertising industry, can be successfully used in his organization. This scenario suggests that he wants to know if this test is a(n) _____ method.

A. substitutable B. evaluative C. practical D. generalizable

E. nondirective A generalizable method applies not only to the conditions in which the method was originally developed—job, organization, people, time period, and so on. It also applies to other organizations, jobs, applicants, and so on. In other words, a generalizable method is a selection method that is valid in one context and is also valid in other contexts.

52.

According to your text, selection methods should accurately predict how well individuals perform, and they should

A. produce information that actually benefits the organization.

B. not cost the company a great deal of money. C. all be applicable to many different roles in many different locations. D. only be applicable to the company where they are being used. E. only be used on current employees with leadership aspirations. Not only should selection methods such as tests and interview responses accurately predict how well individuals will perform, but they should also produce information that actually benefits the organization.

53.

The extent to which something provides economic value greater than its cost is called its _____.

A. practicality B. utility

C. validity D. accountability E. reliability The extent to which something provides economic value greater than its cost is called its utility. In the context of practical value of selection methods, not only should selection methods such as tests and interview responses accurately predict how well individuals will perform, but they should also produce information that actually benefits an organization.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

54.

Which of the following exemplifies the best use of utility for a selection procedure?

renowned economist as its new CEO. D. Shinecare, a local car wash, employs a three-month-long selection procedure for hiring one of its operators. E. Haleview High School conducts several rounds of interviews to recruiting a maintenance worker. Utility is the extent to which something provides economic value greater than its cost. Despite the financial cost, hiring a renowned economist as the CEO of an international investment firm provides the greatest amount of value, and thus utility, of the examples provided.

55.

Gromart, an international retailer, opens a store in a town predominantly populated by a particular racial group. While recruiting employees for the store, it uses a test in the selection process that favors that same racial group. When questioned about the selection procedure, the management reasons that the customers are more comfortable with employees of their own race. In the context of the legal standards of selection, which of the following is an accurate statement?

customer preference is not a justifiable reason for discriminatory practices. Gromart's actions during the selection process violate the Civil Rights Act of 1991 because customer preference is not a justifiable reason for discriminatory practices. The Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1967 place requirements on the choice of selection methods.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 3 Hard Topic: Constraints on the Hiring Process

56.

Which of the following actions during the selection process would be illegal under the equal employment opportunity laws?

D. asking all candidates which schools they have attended E. asking candidates whether they will need any reasonable accommodation to complete the selection process The equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. The organization may not ask questions that gather information about a person's protected status, even indirectly. Age is an example of a protected status.

57.

Which of the following is a permissible question to ask in job applications and interviews?

Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. The organization may not ask questions that gather information about a person's protected status, even indirectly. Asking if a candidate will need any reasonable accommodation to complete the selection process is permissible.

58.

Which of the following is a permissible question for job applications and interviews?

Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. The organization may not ask questions that gather information about a person's protected status, even indirectly. Questioning a candidate's ability to meet the requirements of a work schedule is permissible.

AACSB: Diversity Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 2 Medium Topic: Constraints on the Hiring Process

59.

Marianna Baxter attends an interview for the position of a paralegal at one of the biggest law firms in the country. During the interview, she is asked a particular question which she refuses to answer. Frustrated by her behavior, the interviewer repeats the question. She refuses to answer it again and says that it violates her rights under equal employment opportunity law. Which of the following is most likely the question she was asked?

A. What is your complete name? B. What is your ancestry?

C. Can you meet the requirements of strict work schedules? D. Have you ever been convicted of a crime? E. What organizations or groups do you belong to that you consider relevant to being able to perform this job? Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. An organization may not ask questions that gather information about a person's protected status, even indirectly.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 3 Hard Topic: Constraints on the Hiring Process

60.

Which of the following laws requires employers to make "reasonable accommodation" to incapacitated individuals?

A. The Civil Rights Act of 1991 B. The Equal Employment Opportunity Act of 1988 C. The Americans with Disabilities Act of 1991

D. The Age Discrimination in Employment Act of 1967 E. The Fair Labor Standards Act of 1938 The Americans with Disabilities Act (ADA) of 1991 requires employers to make reasonable accommodation to disabled individuals. Under the ADA, pre-employment questions may not investigate disabilities, but must focus on job performance.

61.

Which of the following statements is true of the Americans with Disabilities Act of 1991?

The Americans with Disabilities Act of 1991 requires employers to make "reasonable accommodation" to disabled individuals and restricts many kinds of questions during the selection process.

62.

Rigatel Corp., an investment bank, is in the final stage of its selection process for a business analyst. Rob is one of the desired candidates for the position. As part of background checks, the bank wants to look at his credit history. Which of the following acts requires them to obtain Rob's consent before using a third party to check his credit history?

A. The Civil Rights Act of 1991 B. The Fair Credit Reporting Act

C. The Fair Labor Standards Act D. The Labor-Management Reporting and Disclosure Act E. The Consumer Credit Protection Act The Fair Credit Reporting Act requires employers to obtain a candidate's consent before using a third party to check the candidate's credit history or references. If the employer then decides to take an adverse action (such as not hiring) based on the report, the employer must give the applicant a copy of the report and summary of the applicant's rights before taking the action.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 3 Hard Topic: Constraints on the Hiring Process

63.

Which of the following is a requirement under the Immigration Reform and Control Act of 1986?

A. Employers must verify and maintain records on the legal rights of applicants to work in the

United States. B. Employers must file a completed Form I-9 with the Immigration and Naturalization Service and retain the documents for at least ten years. C. Employers must pay lower wages to immigrant workers. D. Employers must verify the legal age of employees who do not hold American citizenship. E. Employers must ask a potential employee's religion. Under the Immigration Reform and Control Act of 1986, employers must verify and maintain records on the legal rights of applicants to work in the United States by having applicants fill out the U.S. Citizenship and Immigration Services' Form I-9 and present documents showing their identity and eligibility to work.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 2 Medium Topic: Constraints on the Hiring Process

64.

Which of the following is an accurate feature of a job application form?

A. It is an expensive way of gathering information from candidates. B. It ensures that certain standard categories of information are obtained.

C. It prevents human resource personnel from ranking candidates. D. It has a customized format for every candidate. E. It is usually unsigned and undated. An application form ensures that the organization has certain standard categories of information, such as a mailing address and employment history, from each candidate. Asking each applicant to fill out an employment application is a low-cost way to gather basic data from many applicants.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

65.

Irene is filling out an application form for the position of an elementary school teacher. While she is filling it out, she comes across a section that asks for information about her high school and college courses and grades. Which of the following sections of the application form is being referred to here?

A. mailing address B. work experience C. racial details D. educational background

E. declaration Employment applications include areas for applicants to provide several types of information. One area is for the applicant's educational background. This includes space to list high school, college, and universities attended and degree(s) awarded.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

66.

Identify the detail that can be asked in an application form to gather information about suitable candidates.

A. marital status B. history of disabilities C. number of children D. educational background

E. applicant's race The application form should not request information that could violate equal employment opportunity standards. For example, questions about an applicant's race, marital status, or number of children would be inappropriate. Employment applications include areas for applicants to provide several types of information. One of them is their educational background. This includes high school, college, and universities attended and degree(s) awarded.

67.

What is a disadvantage of using résumés as a source of information about job applicants?

An obvious drawback of using résumés as a source of information is that applicants control the content of the information, as well as the way it is presented. This type of information is therefore biased in favor of the applicant and may not even be accurate. On the positive side, résumés may enable applicants to highlight accomplishments that might not show up in the format of an employment application. Review of résumés is most valid when the content of the résumés is evaluated in terms of the elements of a job description.

68.

For what purpose do organizations typically review applicant résumés?

A. as a substitute for interviews B. as a basis for deciding which candidates to investigate further

C. as a way to avoid the cost of administering tests related to job performance D. as a way to control the content of the information and the way it is presented E. as a way to obtain an objective source of information Organizations typically use résumés as a basis for deciding which candidates to investigate further.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

69.

Review of résumés is most valid when the content of the résumés is evaluated in

A. terms of the elements of a job description.

B. comparison with other applicants' qualifications. C. terms of the incumbent's competencies. D. terms of the industrial benchmarks. E. comparison with other employees in an organization. Review of résumés is most valid when the content of the résumés is evaluated in terms of the elements of a job description.

70.

While applying for the position of administrative assistant, Rachel was asked to provide the name and phone number of her previous supervisor. She was also provided the alternative of presenting a letter from her previous supervisor vouching for her performance on the job. Which of the following tools used in the initial selection process is illustrated in this case?

A. application form B. résumé C. background checks D. aptitude tests E. references

Application forms often ask that applicants provide the names of several references. Applicants provide the names and phone numbers of former employers or others who can vouch for their abilities and past job performance.

71.

Generally, an organization checks references

D. because it is a legal requirement under equal employment opportunity laws. E. because it is an unbiased source of information. Usually the organization checks references after it has determined that an applicant is a finalist for a job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

72.

If a person who is a reference gives negative information about a job candidate, there is a chance the candidate will claim _____, meaning the person damaged the applicant's reputation by making statements that cannot be proved truthful.

A. defamation

B. misappropriation C. fraud D. misrepresentation E. negligence If a person who is a reference gives negative information, there is a chance the candidate will claim defamation, meaning the person damaged the applicant's reputation by making statements that cannot be proved truthful.

73.

Erika is a human resource manager at Bluetel Inc., a software company. She receives a call from an HR manager at another software company asking about Marshall, a software engineer who used to work at Bluetel and has applied for a job at the caller's company. Erika checks the company's records and sees that a coworker had accused Marshall of racial discrimination, but an investigation did not turn up any evidence to support the charge. Marshall left the company two months later, saying he was no longer comfortable there. Erika is concerned about sharing the details of this situation with the caller. If telling the information to the caller leads to the other company not hiring Marshall, what potentially unlawful behavior could Marshall accuse Bluetel of engaging in?

A. misappropriation B. fraud C. misrepresentation D. defamation

E. negligence If a person who is a reference for a job candidate gives negative information, there is a chance the candidate will claim defamation, meaning the person damaged the applicant's reputation by making statements that cannot be proved truthful.

74.

If a former employer gives a glowing statement about a candidate and the new employer later learns of misconduct on the part of the employee during his or her previous employment, the new employer may sue the former for _____.

A. negligence B. misrepresentation

C. defamation D. misappropriation E. libel If a person who is a reference for a job applicant gives a glowing statement about a candidate, and the new employer later learns of misdeeds such as sexual misconduct or workplace violence, the new employer might sue the former employer for misrepresentation.

75.

Jonas had a great résumé and a glowing recommendation from his previous employer. Impressed by his qualifications and expertise, Vizion Tech Inc. hired him for the position of quality analyst. However, he engaged in blatant sexual harassment at Vizion after a couple of weeks on the job. During its investigation of the harassment, Vizion Tech learned that Jonas had been fired for sexual harassment at his previous employer. If the management of Vizion Tech wanted to hold Jonas's previous employer accountable, they could sue the company for _____.

A. misrepresentation

B. fraud C. defamation D. negligence E. embezzlement If the former employer gives a glowing statement about a candidate, and the new employer later learns of misdeeds such as sexual misconduct or workplace violence, the new employer might sue the former employer for misrepresentation.

76.

How can individuals acting as references for job applicants minimize the risk of being sued for defamation or misrepresentation?

A. by giving as much information as possible B. by exclusively giving out positive information about a candidate C. by only giving information about observable, job-related behaviors

D. by giving only broad opinions E. by excluding employment dates and the employee's final salary In order to minimize the risks associated with providing information about job candidates, most organizations have policies that the HR department will handle all requests for references and that they will only verify employment dates and sometimes the employee's final salary. In organizations without such a policy, HR professionals should be careful—and train managers to be careful—to stick to observable, job-related behaviors and to avoid broad opinions that may be misinterpreted.

77.

In general, the results of reference checks for job applicants will be most valid if employers _____.

A. contact many references

B. rely exclusively on the list provided by applicants C. avoid direct contact with references D. restrict contact with references through e-mails E. receive positive opinions about the applicants from their references In general, the results of reference checking will be most valid if the employer contacts many references (if possible, going beyond the list of names provided by the applicant), speaks with them directly by phone, and listens carefully for clues such as tone of voice.

78.

Donna Hernandez has applied for the position of data systems operator in one of the federal governmental agencies. As part of the selection process, she takes a civil services examination that measures her existing knowledge and skills. This scenario exemplifies a(n) _____.

A. psychometric test B. critical thinking test C. judgment test D. aptitude test E. achievement test

Achievement tests measure a person's existing knowledge and skills. For example, government agencies conduct civil service examinations to see whether applicants are qualified to perform certain jobs.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 3 Hard Topic: Employment Tests

79.

Francisco Holt had applied for the position of an emergency direct care worker at the City Medical Center. In the last round of the selection process, he had to take part in a testing procedure that simulated an emergency situation. He had to run a half-mile on the treadmill, followed by a step test, a posture test, a squat test, and a weight-lifting test. His performance was timed and his heart rate was monitored throughout the tests. Which of the following tests is exemplified in this case?

A. cognitive ability test B. critical thinking test C. psychometric test D. physical ability test

E. achievement test This is an example of a physical ability test. This evaluates one or more of the following areas of physical ability: muscular tension, muscular power, muscular endurance, cardiovascular endurance, flexibility, balance, and coordination.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 3 Hard Topic: Employment Tests

80.

Tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability are referred to as _____ tests.

A. job performance B. honesty C. personality inventories D. cognitive ability

E. physical ability Tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability are referred to as cognitive ability tests.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

81.

Which of the following is true about cognitive ability tests?

A. They are especially valid for jobs requiring adaptability.

B. They are relatively expensive compared to the other tests. C. They measure strength, endurance, psychomotor abilities, and other physical abilities. D. They are free from legal complications. E. They are especially valid for simple jobs. Cognitive ability tests—sometimes called "intelligence tests"—are designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability. The tests are especially valid for complex jobs and for those requiring adaptability in changing circumstances.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. 6-94 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Employment Tests

82.

Identify the limitation of cognitive ability tests.

A. lack of validity of the tests for complex jobs B. lack of reliable and commercially available tests C. legal issues related to administering the tests

D. lack of validity of the tests for those jobs that require adaptability E. relatively high cost of the tests The evidence of validity, coupled with the relatively low cost of these tests, makes cognitive ability tests appealing, except for one problem: concern about legal issues. These concerns arise from a historical pattern in which use of the tests has had an adverse impact on African Americans.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

83.

The controversial practice that treats a range of scores as being similar and thus allows employers to give preference to underrepresented groups within these similar scores is known as _____.

A. banding

B. generalizing C. affirmative action D. sensitizing E. race norming The concept of banding treats a range of scores as being similar. All applicants within a range of scores, or band, are treated as having the same score. Then within the set of tied scores, employers give preference to underrepresented groups.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

84.

To evaluates the results of a test used in the selection process for job candidates, Zoemetra Corp. uses a method wherein scores between 90 and 100 are graded A, scores between 80 and 90 are graded B, scores between 70 and 80 are graded C, and so on. This practice allows the company to give preference to unrepresented groups within a range. Which of the following terms describes this method of evaluating test results?

A. race norming B. banding

C. desensitizing D. generalizing E. modeling In this case, Zoemetra Corp. is using the method of banding for evaluating the results of the test. The concept of banding treats a range of scores as being similar. All applicants within a range of scores, or band, are treated as having the same score. Then within the set of tied scores, employers give preference to underrepresented groups.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

85.

A typing test for an administrative assistant's job is an example of a(n) _____ test.

A. job performance

B. cognitive ability C. physical ability D. personality inventories E. emotional intelligence Job performance tests have the advantage of giving applicants a chance to show what they can do. Testing for job performance may involve a simulated work environment, a difficult team project, or a complex computer programming puzzle. Examples of job performance tests include tests of keyboarding speed and in-basket tests.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

86.

In-basket tests are examples of _____ tests.

A. job performance

B. physical ability C. honesty D. personality E. cognitive ability Job performance testing may involve a simulated work environment, a difficult team project, or a complex computer programming puzzle. Examples of job performance tests include tests of keyboarding speed and in-basket tests. An in-basket test measures the ability to juggle a variety of demands, as in a manager's job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

87.

A(n) _____ measures the ability to juggle a variety of demands, as in a manager's job where the candidate is presented with simulated memos and phone messages describing the kinds of problems that confront a person in the job.

A. paper-and-pencil honesty test B. in-basket test

C. cognitive ability test D. exit test E. work sample test An in-basket test measures the ability to juggle a variety of demands, as in a manager's job. The candidate is presented with simulated memos and phone messages describing the kinds of problems that confront a person in the job. The candidate has to decide how to respond to these messages and in what order.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

88.

Which of the following statements is true of an assessment center?

D. It is a selection method generally used for unskilled applicants. E. It has the lowest validity because it combines several assessment methods. Tests for selecting managers may take the form of an assessment center—a wide variety of specific selection programs that use multiple selection methods to rate applicants or job incumbents on their management potential.

89.

Identify the correct statement regarding job performance tests.

A. They provide fair evaluations for applicants.

B. They have the lowest level of validity compared to other tests. C. These tests are highly generalizable. D. Customization of these tests for various jobs is inexpensive. E. They are best suited for identifying the particular skills or traits the individual possesses. Job performance tests have the advantage of giving applicants a chance to show what they can do, which leads them to feel that the evaluation was fair. The tests also are job specific— that is, tailored to the kind of work done in a specific job. So they have a high level of validity, especially when combined with cognitive ability tests and a highly structured interview.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. 6-100 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Employment Tests

90.

Which of the following is a "Big Five" personality trait?

A. physical ability B. cognitive ability C. aptitude D. extroversion

E. honesty One way that psychologists think about personality is in terms of the "Big Five" traits: extroversion, adjustment, agreeableness, conscientiousness, and inquisitiveness.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

91.

Identify the traits that are found in a conscientious person.

A. sociable, gregarious, assertive, and talkative B. dependable, organized, persevering, and achievement-oriented

C. courteous, trusting, good-natured, and tolerant D. emotionally stable, nondepressed, secure, and content E. curious, imaginative, artistically sensitive, and broad-minded Conscientiousness is indicated in a person who is dependable, organized, persevering, thorough, and achievement-oriented.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests.

Level of Difficulty: 1 Easy Topic: Employment Tests

92.

Melissa Jetton, a manufacturing supervisor, is popular with her employees and other colleagues. She is sociable, gregarious, and easy to talk to. However, she is not very organized or achievement-oriented. In this context, which of the "Big Five" personality traits does she demonstrate?

A. conscientiousness B. extroversion

C. aggression D. depression E. inquisitiveness Melissa possesses the quality of extroversion. It includes traits such as sociable, gregarious, talkative, and expressive.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 3 Hard Topic: Employment Tests

93.

Ottercut Tech, a software start-up, is putting together a new team to work on the marketing strategies for their expansion project. In the context of using the "Big Five" personality traits for effective team building, which of the following employees would be a good addition to a team that encourages a strong and harmonious culture and is most likely to give the best results?

A. Jamie is very organized; Stella is very cooperative.

B. Mary is not achievement-oriented; Isaac is laid-back. C. Both John and Adam are domineering. D. Both Miriam and Ann are aggressive and unforgiving. E. George is emotionally unstable; Bianca is constantly depressed. Organizations select team members with similar traits and values in order to promote a strong culture where people work together harmoniously. Jamie and Stella exhibit qualities of conscientiousness and agreeableness. Other traits of their personality dimensions include dependable, organized, persevering, achievement-oriented (Jamie) and courteous, trusting, good-natured, tolerant, and forgiving (Stella).These traits would fit well with a start-up looking to build a strong team in a harmonious culture.

AACSB: Communication Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 3 Hard Topic: Employment Tests

94.

Which of the following tests is a legal means to test the integrity of job applicants and generally involves asking applicants directly about their attitudes toward theft and their own experiences with theft?

A. polygraph test B. paper-and-pencil honesty test

C. cognitive ability test D. personality inventory test E. in-basket test Paper-and-pencil honesty (or integrity) tests ask applicants directly about their attitudes toward theft and their own experiences with theft. These were developed in response to the passage of the Polygraph Act in 1998 that banned the use of polygraphs for screening job candidates.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 1 Easy Topic: Employment Tests

95.

Emma, a manager at Synergy Inc., conducted an interview with Sean for a job as regional sales manager. During the course of the interview, she asked Sean to take a test that would assess Sean's integrity by asking him about his attitude toward shoplifting and his own experiences with shoplifting, if any. Which of the following tests was conducted by Emma?

A. exit test B. paper-and-pencil honesty test

C. cognitive ability test D. work sample test E. in-basket test Paper-and-pencil honesty (or integrity) tests ask applicants directly about their attitudes toward theft and their own experiences with theft. These were developed in response to the passage of the Polygraph Act in 1998 that banned the use of polygraphs for screening job candidates.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

96.

BuildCo's human resource department is preparing a policy for the drug testing of job applicants. Nate makes a list of statements to include in the policy and shows the list to his supervisor, Monique. Which of the following statements should Monique direct Nate to change?

A. Drug testing should be administered systematically to all applicants who have applied for the same job. B. Drug test reports should not be sent to applicants.

C. Drug testing should be conducted for employees working in jobs that involve safety hazards. D. Drug testing should not be conducted in an intrusive environment. E. Drug-testing programs should allow for strict confidentiality of results. Drug-testing report should be sent to the applicants who have taken the drug test, along with information about how to appeal the results and be retested if appropriate.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

97.

Which of the following is true about medical examinations of job candidates?

To protect candidates' privacy, medical exams must be related to job requirements and may not be given until the candidate has received a job offer.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

98.

A _____ interview allows interviewer discretion in choosing the questions to be asked and generally includes open-ended questions about the candidate's strengths, weaknesses, career goals, and work experience.

A. behavioral B. situational C. nondirective

D. structured E. computerized In a nondirective interview, an interviewer has great discretion in choosing questions. A candidate's reply to one question may suggest other questions to ask. Nondirective interviews typically include open-ended questions about the candidate's strengths, weaknesses, career goals, and work experience.

99.

Gina, a marketing manager, sets up a meeting with Xavier, a human resource manager, to ask for his help in improving her interviewing methods. Gina explains that she is a people person, and her department is built on teamwork, so when candidates interview for a job, she tries to get to know the candidates as people. She always begins by saying, "Tell me about yourself," and based on what the candidate says, she lets the conversation unfold for 30 to 60 minutes. How does this approach limit Gina's effectiveness as an interviewer?

validity. Gina has described the use of nondirective interviews, in which the interviewer has great discretion in choosing questions. The candidate's reply to one question may suggest other questions to ask. Because these interviews give the interviewer wide latitude, their reliability is not great, and some interviewers may even ask questions that are not valid or even legal.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 3 Hard Topic: Employment Interviews

100.

Alexander is being interviewed for the position of an entry-level financial analyst at a wellknown asset management company. Alexander is asked questions about the current state of the U.S. stock market, the current net worth of certain financial firms, and concepts such as IPOs and mergers from a set of predetermined questions that the interviewer has prepared. This is an example of a(n) _____.

A. structured interview

B. in-basket interview C. work-sample interview D. exit interview E. nondirective interview A structured interview consists of a predetermined set of questions for the interviewer to ask. Ideally, the questions are related to job requirements and cover relevant knowledge, skills, and experiences.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 3 Hard Topic: Employment Interviews

101.

During interviews for a sales position at Lock-Spark Inc., the interviewer asks each candidate to imagine a situation where a customer emails to report that products were damaged during delivery from Lock-Spark. The interviewer then asks each candidate what he or she would do to handle this situation. This is an example of a(n) _____ interview.

A. behavior description B. situational

C. computerized D. exit E. in-basket A situational interview is a structured interview in which an interviewer describes a situation likely to arise on the job and asks a candidate what he or she would do in that situation.

102.

During interviews for medical assistants at the Haleview Medical Center, all the candidates were asked to talk about a situation in the past when they had to empathize with an emotionally unstable person and help that person make rational decisions. This was to test whether the candidates would be able to assist a frantic patient and help him or her make informed decisions. This type of interview is known as a(n) _____ interview.

A. unstructured B. nondirective C. behavior description

D. physical ability E. exit A behavior description interview is a structured interview in which an interviewer asks the candidate to describe how he or she handled a type of situation in the past. Questions about candidates' actual experiences tend to have the highest validity.

103.

Pluto Inc. is a car manufacturing company that wants to hire a new product manager. Senior management decides to have the department heads for production, sales, and human resources interview the candidates on a variety of topics. This is an example of a(n) _____.

A. behavior description interview B. in-basket interview C. situational interview D. exit interview E. panel interview

This is an example of a panel interview, where several members of an organization meet to interview each candidate. A panel interview gives a candidate a chance to meet more people and see how people interact in an organization.

104.

Harley wants to build a start-up company with a small number of people working for him. He decides to do all the hiring himself. Antonio, a friend of Harley's who is also a lawyer, wants to warn Harley about the risk of discrimination complaints other companies have received by applicants who were not hired. Which of the following statements would best express the basis of Antonio's concern about avoiding discrimination?

questions not related to the job. C. Interviews are situational, so they provide a means to check the accuracy of information provided by the candidate. D. Interviews are expensive, so their validity and reliability are always in question. E. Interviews require polygraph tests, which give the interviewer an opportunity to ask questions that can violate the privacy rights of the interviewee. Interviews are subjective, so they place the organization at greater risk of discrimination complaints by applicants who were not hired, especially if those individuals were asked questions not entirely related to the job.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 3 Hard Topic: Constraints on the Hiring Process

105.

Which of the following statements is true of selection decisions?

D. They should be a simple matter of which candidate will take the lowest offer. E. They should be based on motivation, not abilities. Selection decisions should not be a simple matter of whom the supervisor likes best or which candidate will take the lowest offer. Also, observing confidence in job candidates does not necessarily mean they are competent. Rather, the people making the selection should look for the best fit between candidate and position. An obvious strategy is to select the candidates who score highest on tests and interviews. However, employee performance depends on motivation as well as ability.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 2 Medium Topic: Properties of Employee Selection

106.

Which of the following best describes the multiple-hurdle model of personnel selection?

stage of the selection process. C. It is a selection process in which several members of an organization form a panel and interview each candidate. D. It is a testing program that establishes different norms for hiring members of different racial groups. E. It is a selection process that treats a range of scores as being similar and divides candidates into groups based on the range into which they fall. The multiple-hurdle model is the process of arriving at a selection decision by eliminating some candidates at each stage of the selection process.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

107.

Summerton High School has three open positions for teachers. The school's HR personnel review résumés to identify the candidates who meet the school's minimum requirements. Next, potential candidates are then invited for interviews. After this, interviewers discuss the results with HR personnel and select a short list of candidates, who then appear before a panel of teachers and HR personnel for the final interview. Summerton's new teachers are then selected from among these finalists. Which of the following terms describes Summerton's method of selection?

A. compensatory model B. multiple-hurdle model

C. leadership model D. behavior description model E. nondirective model Summerton uses the multiple-hurdle model. The multiple-hurdle model is the process of arriving at a selection decision by eliminating some candidates at each stage of the selection process. Each stage of the process is a hurdle, and candidates who overcome a hurdle continue to the next stage of the process.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 3 Hard Topic: Steps in the Selection Process

108.

Tara, the purchasing manager at Reed Inc., tells Levi, the human resource manager, that she has selected a candidate to be her purchasing assistant. She shows him a draft of an email message offering the candidate the job at the agreed-on starting wage. She asks Levi if there is anything else she should mention in the message. Levi replies that Tara should add information about _____.

A. the work schedule, starting date, and drug test results B. the job responsibilities, work schedule, and starting date

C. the work schedule, starting date, and results of the candidate's medical exam D. the job responsibilities and results of the candidate's medical exam E. the starting date When a candidate has been selected, the organization should communicate the offer to the candidate. The offer should include the job responsibilities, work schedule, rate of pay, starting date, and other relevant details. Results of medical exams and drug tests would be confidential and do not belong in a job offer.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 3 Hard Topic: Steps in the Selection Process

Essay Questions

109.

Describe the steps involved in a selection process.

The process of selecting employees varies considerably from organization to organization and from job to job. First, a human resource professional reviews the applications received to see which meet the basic requirements of a job. For candidates who meet the basic requirements, the organization administers tests and reviews work samples to rate the candidates' abilities. Those with the best abilities are invited to the organization for one or more interviews. For the top few candidates, the organization checks references and conducts background checks to verify that the organization's information is correct. Then supervisors, teams, and other decision makers select a person to receive a job offer. In some cases, the candidate may negotiate with the organization regarding salary, benefits, and the like. If the candidate accepts the job, the organization places him or her in that job.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 06-01 Identify the elements of the selection process. Level of Difficulty: 1 Easy Topic: Steps in the Selection Process

110.

Define what is meant by reliability, validity, and utility in the employment selection context.

Reliability is the extent to which a measurement is free from random error. A reliable measurement therefore generates consistent results. Validity is the extent to which performance on a measure (such as a test score) is related to what the measure is designed to assess (such as job performance). Utility indicates that the selection methods provide economic value greater than the cost of using them.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 1 Easy Topic: Properties of Employee Selection

111.

Briefly describe how concurrent and predictive validation research is conducted, and identify at least two potential advantages of predictive validation.

Concurrent validation research administers a test to people who currently hold a job and then compares their scores to existing measures of job performance. If the people who score highest on the test also do better on the job, the test is assumed to be valid. Predictive validation research uses the test scores of all applicants and looks for a relationship between the scores and future performance. The researcher administers the tests, waits a set period of time, and then measures the performance of the applicants who were hired. Potential advantages of predictive validation include: (1) Job applicants are typically more motivated to perform well on the test than job incumbents; (2) Their performance on the tests is not influenced by their firsthand experience with the job; and (3) The group studied is more likely to include people who perform poorly on the test—a necessary ingredient to accurately validate a test.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-02 Define ways to measure the success of a selection method. Level of Difficulty: 2 Medium Topic: Types of Validity

112.

Discuss how the Civil Rights Act of 1991 and the Americans with Disabilities Act impact personnel selection processes.

The Civil Rights Act of 1991 places requirements on the choice of selection methods. An employer that uses a neutral-appearing selection method that damages a protected group is obligated to show that there is a business necessity for using that method. It also prohibits preferential treatment in favor of minority groups. In the case of an organization using a test that tends to reject members of minority groups, the organization may not simply adjust minority applicants' scores upward, a practice known as race norming. The Americans with Disabilities Act (ADA) requires employers to make "reasonable accommodation" to disabled individuals and restricts many kinds of questions during the selection process. Under the ADA, pre-employment questions may not investigate disabilities, but must focus on job performance. Also, the employer may not, in making hiring decisions, use employment physical exams or other tests that could reveal a psychological or physical disability.

AACSB: Diversity Blooms: Understand Learning Objective: 06-03 Summarize the government's requirements for employee selection. Level of Difficulty: 2 Medium Topic: Constraints on the Hiring Process

113.

Discuss the burden placed on people or organizations contacted as references for job candidates. How do organizations cope with this burden?

Providing information as references for job candidates poses some burden on the people or organizations contacted for the purpose. Part of that burden is the risk of giving information that is seen as too negative or too positive. If the person who is a reference gives negative information, there is a chance the candidate will claim defamation, meaning the person damaged the applicant's reputation by making statements that cannot be proved truthful. At the other extreme, if the person gives a glowing statement about a candidate, and the new employer later learns of misdeeds such as sexual misconduct or workplace violence, the new employer might sue the former employer for misrepresentation. Because such situations occasionally arise, people who give references tend to give as little information as possible. Most organizations have policies that the HR department will handle all requests for references and that they will only verify employment dates and sometimes the employee's final salary. In organizations without such a policy, HR professionals should be careful—and train managers to be careful—to stick to observable, job-related behaviors and to avoid broad opinions that may be misinterpreted.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-04 Compare the common methods used for selecting human resources. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

114.

Explain the two broad categories of employment tests.

Employment tests fall into two broad categories: 1. Aptitude tests: These assess how well a person can learn or acquire skills and abilities. In the realm of employment testing, the best-known aptitude test is the General Aptitude Test Battery (GATB), used by the U.S. Employment Service. 2. Achievement tests: These measure a person's existing knowledge and skills. For example, government agencies conduct civil service examinations to see whether applicants are qualified to perform certain jobs.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

115.

Why are drug tests a controversial component of the personnel selection process? What are some of the ways in which organizations can avoid problems associated with drug testing?

Drug tests are controversial for several reasons. Some people are concerned that they invade individuals' privacy. Others object from a legal perspective. When all applicants or employees are subject to testing, whether or not they have shown evidence of drug use, the tests might be an unreasonable search and seizure or a violation of due process. Taking urine and blood samples involves invasive procedures and accusing someone of drug use is a serious matter. Employers considering the use of drug tests should ensure that their drug-testing programs conform to some general rules. First, administer the tests systematically to all applicants for the same job. Second, use drug testing for jobs that involve safety hazards. Third, have a report of the results sent to the applicant, along with information about how to appeal the results and be retested if appropriate. Fourth, respect applicants' privacy by conducting tests in an environment that is not intrusive and keeping results confidential.

Blooms: Understand Learning Objective: 06-05 Describe major types of employment tests. Level of Difficulty: 2 Medium Topic: Employment Tests

116.

Describe the different types of interviews that can be used for employee selection.

The different types of interviews that can be used for employee selection are: 1. Nondirective interview: The interviewer has great discretion in choosing questions. The candidate's reply to one question may suggest other questions to ask. These interviews typically include open-ended questions about the candidate's strengths, weaknesses, career goals, and work experience. Because these interviews give the interviewer wide latitude, their reliability is not great, and some interviewers ask questions that are not valid or even legal. 2. Structured interview: This interview establishes a set of questions for the interviewer to ask. Ideally, the questions are related to job requirements and cover relevant knowledge, skills, and experiences. The interviewer is supposed to avoid asking questions that are not on the list. Although interviewers may object to being restricted, the results may be more valid and reliable than with a nondirective interview. 3. Situational interview: This is a structured interview in which the interviewer describes a situation likely to arise on the job and asks the candidate what he or she would do in that situation. This type of interview may have high validity in predicting job performance. 4. Behavior description interview (BDI): This is a structured interview in which the interviewer asks the candidate to describe how he or she handled a type of situation in the past. Questions about candidates' actual experiences tend to have the highest validity.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 2 Medium Topic: Employment Interviews

117.

How can organizations avoid the pitfalls of using interviews as a selection method?

In order to avoid the pitfalls of using interviews as a selection method, human resource staff should keep the interviews narrow, structured, and standardized. The interview should focus on accomplishing a few goals, so that at the end of the interview, the organization has ratings on several observable measures, such as ability to express ideas. The interview should not try to measure abilities and skills—for example, intelligence—that tests can measure better. Situational interviews are especially effective for doing this. Organizations can prevent problems related to subjectivity by training interviewers and using more than one person to conduct interviews. Training typically includes focusing on the recording of observable facts, rather than on making subjective judgments, as well as developing interviewers' awareness of their biases. Using a structured system for taking notes or scoring responses may be helpful for limiting subjectivity and helping the interviewer remember and justify an evaluation later. Finally, to address costs of interviewing, many organizations videotape interviews and send the tapes (rather than the applicants) from department to department.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-06 Discuss how to conduct effective interviews. Level of Difficulty: 2 Medium Topic: Employment Interviews

118.

Discuss the multiple-hurdle model and the compensatory models of arriving at a personnel selection decision.

The multiple-hurdle model is the process of arriving at a selection decision by eliminating some candidates at each stage of the selection process. Each stage of the process is a hurdle, and candidates who overcome a hurdle continue to the next stage of the process. Another, more expensive alternative is to take most applicants through all steps of the process and then to review all the scores to find the most desirable candidates. With this alternative, decision makers may use a compensatory model, in which a very high score on one type of assessment can make up for a low score on another.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 06-07 Explain how employers carry out the process of making a selection decision. Level of Difficulty: 2 Medium Topic: Steps in the Selection Process

Chapter 07 Training Employees

True / False Questions

1. Training refers to any planned effort by a firm to facilitate the learning of job-related knowledge, skills, or behavior by employees. True

False

2. The last step in the instructional design process involves choosing a training method. True

False

3. Instructional design logically should begin with needs assessment. True

False

4. According to the person analysis method, performance feedback is the only variable that can be affected by training. True

False

5. Task analysis determines whether employees are ready to undergo training. True

False

6. Readiness for training is a combination of employee characteristics and positive work environment that permit training. True

False

7. Social support refers to the ways an organization's people encourage training. True

False

8. Effective training objectives include performance standards that are measurable. True

False

9. Putting together a request for proposal for a training program is a quick process. True

False

10. Presentation methods are preferred over hands-on training methods in helping trainees handle interpersonal issues. True

False

11. The training technique most widely used in the workplace is behavior modeling. True

False

12. Attending classes is a faster and more efficient method of learning new skills as compared to electronic performance support systems (EPSSs). True

False

13. Apprenticeship programs can only be sponsored by government agencies. True

False

14. For on-the-job training (OJT) programs to be effective, an organization should review OJT practices at companies in similar industries. True

False

15. Training programs use case studies to develop employees' management skills. True

False

16. An experiential program is a type of internship used to instruct new student employees. True

False

17. In coordination training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place. True

False

18. Action learning uses challenging, structured outdoor activities, which include difficult sports. True

False

19. Along with physical elements, the training context should include emotional elements. True

False

20. If a concept involves more than five items, the training program should deliver information in shorter sessions or chunks. True

False

21. The best stage to prepare for evaluating a training program is after the program has been implemented. True

False

22. The most accurate way to assess training effectiveness is to conduct pretests and posttests and then train all the employees. True

False

23. An orientation program is training designed to prepare employees to perform their jobs effectively, learn about the organization, and establish work relationships. True

False

24. A risk of diversity training programs that focus on attitudes toward minority groups is that they may alienate minorities. True

False

25. The process of sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities is known as cultural immersion. True

False

Multiple Choice Questions

26. Which of the following consists of an organization's planned effort to help employees acquire jobrelated knowledge, skills, abilities, and behaviors?

A. attrition B. benchmarking C. training D. compensation E. recruitment

27. _____ refers to a process of systematically developing training to meet specified needs.

A. Role-play B. Recruitment C. Simulation D. Instructional design E. Organization analysis 28. KYG Instruments, a firm that produces manufacturing equipment for various industries, experiences an influx of new sales employees due to a recent expansion. Despite possessing a vast amount of sales experience, most of the new employees perform poorly. This is because the new recruits possess inadequate technical knowledge about the products sold by KYG. To address the issue, the HR department decides to implement a training program using the instructional design process. As part of the process, the HR department's first step should be to

A. ensure that sales representatives do not feel undervalued. B. identify what the sales representatives will need to learn. C. identify senior product engineers to train the sales representatives. D. chart the methods that should be used to train the sales representatives. E. announce the objectives of the training program. 29. Ensuring that employees are ready for training in terms of their attitudes, motivation, basic skills, and work environment is the _____ step of the instructional design process.

A. first B. second C. third D. fourth E. fifth

30. The HR department at Trevor Communications oversees the recruitment and training of employees at the firm. As the firm grows and recruits more employees, overseeing individual training programs has been come too much for HR staff to handle. Which of the following applications should the HR department use to help with employee training?

A. a customer relationship management system B. a management information system C. a learning management system D. a decision support system E. an executive decision-making system 31. Which of the following best describes a learning management system?

A. a team of trainers and human resource professionals who are responsible for planning and conducting the training programs in an organization B. the process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary C. a software application that automates the administration, development, and delivery of training programs D. a process for determining the appropriateness of training by evaluating the characteristics of the organization E. the process of determining individuals' needs and readiness for training

32. The human resource department of Brown Industries, a consumer electronics manufacturer, wants to set up a learning management system for its global sales force. This way, sales personnel can get training in new models and product lines even while on the road, and managers can ensure their employees are keeping up-to-date. The HR manager looks into "training systems" and identifies five top results. Which of the following systems describes a learning management system?

A. Performa: software used by HR departments to evaluate job performance B. Recruit Plus: software used by HR department to administer tests to job candidates C. Crimson: a system that automates the process of administering and delivering training D. K-Learn: software for the creation of training videos E. E-Valuate: an assessment tool that evaluates employees' readiness to learn new skills 33. Which of the following best describes needs assessment?

A. It is the process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training are necessary. B. It is a combination of employee characteristics and positive work environment that permit training. C. It is a process that evaluates the monetary needs of employees that will motivate them to undertake a training program. D. It is an application that automates the administration and delivery of a company's training program. E. It is the process to determine employees' characteristics to ensure their readiness for training.

34. Faulkner and White Company, a firm that builds enterprise resource planning products for customers, wants to implement training programs for its employees as an HR initiative. Senior management proposes the use of an instructional design process. Which of the following should ideally be Faulkner and White's next step?

A. task analysis B. organization analysis C. person analysis D. competitor analysis E. market analysis 35. Organization analysis looks at training needs in light of the

A. readiness of employees for training. B. employee's strategy toward achieving organizational goals. C. management's support for training activities. D. monetary incentives the management has promised its employees. E. severance package deal for a particular batch of employees. 36. According to your text, managers will be most likely to support training if

A. there are no other solutions available for them to try. B. it is not overly expensive. C. it will solve a significant problem. D. they do not have to participate in it. E. it will result in minor improvements.

37. A client asks Tenrep Technologies to carry out a project that involves working on a software tool called POPIL, which is new to the company. The training manager in Tenrep's HR department begins by conducting a needs assessment. Which of the following methods will the manager use to identify individuals' needs and readiness for training?

A. person analysis B. organization analysis C. task analysis D. trend analysis E. regression analysis 38. Which of the following questions can be answered by performing a person analysis?

A. What are the tasks that require more training? B. How will the training be carried out? C. Are employees ready for training? D. Does the organization have the infrastructure to support training? E. Are there any impediments to implementing a training program? 39. James, the marketing manager for an automobile manufacturer, observes frequent conflicts between two of his subordinates, Jeff and Kevin. He asks the human resource department to help, and the department's training manager, Kelly, investigates. She tells James that the two subordinates lack interpersonal communication skills, but would be likely to improve with proper training. This scenario suggests that Kelly has conducted a(n) _____.

A. institutional analysis B. market analysis C. person analysis D. organization analysis E. instructional analysis

40. The management at a pesticide manufacturing company has observed a decline in quality measures. The managers ask Robin, the firm's HR manager, to investigate whether training might solve the problem. Robin conducts needs assessment and recommends a training plan. Which of the following conditions would most likely have been an observation during Robin's person analysis?

A. Machinery and other production equipment in the firm's plant pose a hazard to the employees operating them. B. The goals of the firm are more focused on the specific needs of a narrow market segment. C. Employees of the firm's production department lack clarity in decisions regarding quality standards for manufacturing. D. The firm's budget for training has declined from the year before. E. Training programs offered by the firm lack specific goals and methods for measuring their success. 41. In a person analysis, which of the following is a primary variable that can be affected by training?

A. the organization's input B. performance feedback C. the employee's ability D. positive consequences to motivate good performance E. the employee's motivation 42. Which of the following processes identifies the knowledge, skills, and behaviors that should be emphasized by training?

A. person analysis B. task analysis C. transactional analysis D. trend analysis E. regression analysis

43. Adam, a team leader at a business process outsourcing firm, tells the human resource department that a significant share of his employees are missing deadlines. The department conducts a needs assessment and tells Adam that the employees' jobs require time management skills, so a training session on time management would be likely to improve performance. In this scenario, the department's recommendations would most likely be based on a(n) _____.

A. institutional analysis B. task analysis C. person analysis D. organization analysis E. instructional analysis 44. Which of the following is a characteristic of task analysis?

A. It does not require knowledge of the work environment. B. It is independent of time constraints or deadlines. C. It results in an assessment of employees' readiness for training. D. It is usually conducted along with person analysis. E. It helps in determining individuals' needs for training.

45. A customer at Danielle, a French restaurant, complains to Jason, the owner, about a specialty dessert being unacceptable. Jason inspects the dessert and finds that brie, a type of cheese, is overripe. Jason questions the new pastry chef, Mario, who acknowledges he should have substituted another type of cheese for the brie. Jason analyzes the situation and concludes that Mario should be put through additional training to avoid such mistakes in the future. What type of analysis has Jason performed in this situation?

A. an organization analysis B. a task analysis C. a specialized skills assessment D. a person analysis E. a needs assessment 46. Which of the following is defined as a combination of employee characteristics and positive work environment that permit training?

A. organization analysis B. benchmarking C. learning management system D. orientation E. readiness for training

47. Karen works as a sales manager for Apencience Corp. Karen can read, write, and speak Mandarin, English, and German. She assists top-level management in making business decisions and setting long-term goals for the organization. Which of Karen's abilities is illustrated in this scenario?

A. emotional intelligence B. psychological mindedness C. spatial ability D. psychomotor skills E. cognitive ability 48. Cognitive ability is defined as the ability of a person to

A. collect information, organize it, and share it with one's team members. B. understand the skills of one's team members. C. climb walls, complete rope courses, climb ladders, or make trust falls. D. express positive attitudes toward an organization's training programs. E. use written and spoken language, solve math problems, and use logic to solve problems. 49. _____ is the limit on training's effectiveness that arises from the conditions within the organization.

A. A simulation B. Social support C. A situational constraint D. Psychological mindedness E. Experiential conflict

50. KTPO Telecom wants to implement an on-the-job training program for the sales staff that are unaware of the technical aspects of the firm's products. The lack of technical knowledge among its sales staff is harming the company's prospects of securing lucrative contracts. Although KTPO's IT team is well versed in various technologies, it is not well suited to handle a training program. However, the best IT trainers in the industry cost more than what KTPO can afford to spend on the training program. This scenario illustrates _____.

A. simulation B. social support C. situational constraints D. psychological mindedness E. experiential conflicts 51. Meryl, a training manager, is making a presentation to her company's business leaders. She says meeting the company's five-year plan will require skills in using some new technology. Employees and their supervisors are eager to learn, but Meryl says some situational constraints are standing in the way of meeting these objectives. Which of the following could be such a constraint?

A. supervisors don't praise employees for learning B. supervisors don't believe training is relevant C. employees have a negative attitude toward training D. the company has not budgeted sufficient funds for training E. supervisors don't tell their employees about the training that is available

52. _____ refers to the ways an organization's people encourage training.

A. Situational constraint B. Employee orientation C. Benchmarking D. Social support E. Experiential program 53. At All Sizes Auto, managers encourage employees to receive training and praise them when they demonstrate new skills. Employees are excited about how learning helps them succeed at work and take on more responsibility. Which aspect of readiness for training does this example describe?

A. employee ability B. employees' incentive package C. training curriculum D. social support E. situational constraints 54. Openze Technology, a firm that manufactures mobile phones, has seen a major improvement in cost reduction since it instituted a three-week training program for all of its new recruits. During the training program, the new employees are constantly encouraged to express their thoughts and ideas. Good ideas are rewarded immediately by the trainers, thereby encouraging active participation. Which factor most likely explains the success of the training?

A. situational constraints B. cognitive ability C. task analysis D. social support E. experiential learning

55. Which of the following is a characteristic of effective training objectives?

A. disclaimers to prevent exaggerated expectations B. specified costs associated with the training C. specified methods of performance evaluation D. names of the trainers and trainees E. measurable performance standards 56. Terral Prime, an auditing firm, purchases a management information system called Alpha Duo. Most of Terral's employees are unfamiliar with the functional aspects of Alpha Duo, and management decides to approach external trainers to train its employees. Rebecca, the company's training coordinator, is tasked with finding suitable trainers. Rebecca sends an email, with a document outlining the company's training requirements, to multiple vendors and asks them to provide suitable trainer profiles and cost quotes. What is the document called that Rebecca sends out to training vendors?

A. a request for proposal B. articles of incorporation C. instructional design D. needs assessment form E. organization analysis report 57. When using an outside training expert, a complete _____ should indicate funding for the project and the process by which the organization will determine its level of satisfaction.

A. cohabitation agreement B. letter of intent C. certificate of occupancy D. articles of incorporation E. request for proposal

58. In the context of planning a training program, even though it is time consuming, putting together a _____ is worthwhile because it helps an organization clarify training objectives, compare vendors, and measure results.

A. cohabitation agreement B. letter of intent C. certificate of occupancy D. requirements specification document E. request for proposal 59. Phonyton Inc. determines that it needs to train 200 employees on using a new software application. Philip, the training administrator, is investigating options to find the one that will meet the company's needs within the budget available. He determines that no one at Phonyton knows enough about the software to provide the training. Which of the following plans would be most likely to achieve training objectives at the lowest cost?

A. hiring external consultants to create training specially tailored to the company B. passing out user manuals and hoping employees can learn enough on their own C. having Philip deliver the training, based on the content in the user manual D. delaying the training program until the company has more money in the budget E. having employees participate in a general outside training course for the software 60. Filler Mayo Inc. recognizes the need for providing on-the-job training to employees whose technical skills are lacking. The company's HR department is tasked with coordinating the entire training process. This function of the HR department at Filler Mayo is called _____.

A. requirements specification B. training administration C. training simulation D. orientation E. needs analysis

61. Identify the training method that is used for conveying facts or comparing alternatives.

A. hands-on method B. presentation method C. group-building method D. on-the-job training program E. object class method 62. Which of the following training methods uses techniques like lectures, workbooks, video clips, podcasts, and websites?

A. group building methods B. hands-on methods C. presentation methods D. object class methods E. experiential programs 63. _____ training remains the most widely used method of training.

A. Audiovisual B. On-the-job C. Experiential programs D. Computer-based E. Classroom

64. One of the least expensive and least time-consuming ways to train multiple trainees on a specific topic is through _____.

A. action learning B. a simulation C. computer-based training D. audiovisual training E. classroom instruction 65. Which of the following types of training allows trainees at different locations to attend programs online, using their computers to view lectures, participate in discussions, and share documents?

A. on-the-job training B. experiential programs C. distance learning D. cross training E. action learning 66. Identify the correct statement regarding audiovisual training.

A. It is the best method to establish teams or work groups. B. It is an example of a hands-on method of training. C. It can be carried out only in a classroom. D. It does not allow users to have any control over the presentation. E. It is not affected by an individual trainer's goals and skills.

67. Identify the correct statement regarding computer-based training.

A. it is more expensive than classroom instruction B. it is difficult to customize for specific training needs C. it is not an interactive form of training D. it gives a company the flexibility in scheduling training E. it is now declining in popularity 68. Roger, the manager of a car dealership, finds it impossible to train his mechanics on the details of every potential repair problem because of the increasing complexity and variety of today's automobiles. Hence, he provides them with a training program that will familiarize them with the basics of engine, emission, and other types of repair. Additionally, in case of a particular problem, the training program will let the mechanics seek expert advice through an online computer application. Which of the following learning approaches is being implemented by Roger?

A. e-learning simulation B. electronic performance support system C. experiential behavior modeling program D. virtual reality-based simulation program E. Myers-Briggs simulation program 69. Which of the following statements accurately characterizes electronic performance support systems (EPSSs)?

A. EPSSs provide expert advice when a problem occurs on the job. B. EPSSs automate the administration and delivery of a company's training programs. C. EPSSs determine the appropriateness of training by evaluating the characteristics of the organization. D. EPSSs determine an individual's readiness for training. E. EPSSs identify the tasks that training should emphasize.

70. Which of the following is a work-study training method that teaches job skills through a combination of on-the-job training and classroom training?

A. bumping B. benchmarking C. apprenticeship D. co-employment E. onboarding 71. Which of the following statements is true of an apprenticeship?

A. An apprentice does not make any money. B. An apprentice usually assists a certified tradesperson at the worksite. C. An apprenticeship does not involve classroom training. D. An apprenticeship is typically sponsored by an educational institution. E. An apprenticeship is based on simulations and virtual reality. 72. Allinall, a firm that specializes in building construction, hires Kyle, an unemployed teenager, to work in its carpentry division. Since Kyle does not have the required skills to work as a carpenter, he is provided training that helps him pick up carpentry skills on the job. Kyle learns by assisting other master carpenters and journeymen. In addition to the skills Kyle acquires, he is paid by Allinall. The form of training exemplified in this scenario is called _____.

A. simulation B. internship C. apprenticeship D. co-employment E. onboarding

73. Russell is paid for assisting a welder on a construction site. He also is adding to his welding skills by attending a local trade school. When he finishes his training program and demonstrates he has mastered specific skills, he will become a journeyman welder. Which of the following statements best identifies that Russell is in an apprenticeship program?

A. It can't be an internship, because apprentices are paid, while interns are not. B. Apprentices, unlike interns, do not learn on the job. C. Apprentices have hands-on experience assisting a tradesperson. D. Unlike interns, apprentices do not attend educational institutions. E. Interns are more likely than apprentices to get admonished for their mistakes on the job. 74. Identify the occupation that would typically employ an apprentice.

A. accountant B. doctor C. carpenter D. nurse E. lawyer 75. Identify the occupation that would typically employ interns.

A. bricklayer B. journalist C. carpenter D. plumber E. welder

76. Which of the following statements is true of an apprenticeship?

A. An apprenticeship does not include any classroom training methods. B. An apprentice can earn an income while learning a trade. C. An apprenticeship does not offer hands-on learning and practice. D. An apprenticeship cannot be sponsored by groups outside the firm. E. An apprenticeship is mostly used for teaching management and interpersonal skills. 77. Identify the on-the-job training program that is typically funded by an educational institution as a component of an academic program.

A. internship B. coordination training C. apprenticeship D. experiential training E. simulation training 78. Carla, a student at Cardinal College, is pursuing a degree in international business management. As part of her program at Cardinal College, she has accepted an opportunity to work at Wong Consulting for a period of six months, where she will gain experience related to her field. Carla's employment at Wong Consulting is an example of a(n) _____.

A. internship B. coordination training C. apprenticeship D. experiential training program E. simulation training program

79. Which of the following distinguishes an apprenticeship from an internship?

A. An apprenticeship is an on-the-job training method, whereas an internship is a classroombased training method. B. An apprenticeship is an unstructured training method, whereas an internship is a structured training method. C. An apprenticeship is sponsored by employee unions, whereas an internship is sponsored by educational institutions. D. Most apprenticeship programs take place in white-collar professions, whereas most internship programs occur in blue-collar jobs. E. An apprenticeship does not provide an income, whereas an internship provides an income while learning a trade. 80. Which of the following training methods involves representing a real-life situation with trainees making decisions resulting in outcomes that mirror what would happen on the job?

A. apprenticeship B. cross-training C. action learning D. internship E. simulation

81. Fernando is hired as a seasonal firefighter by the California Department of Forestry and Fire Protection. The training used to prepare Fernando for his firefighting job involves an online training module. In this game-like module, Fernando is virtually placed in a real-life scenario such as a garage fire or a restaurant fire, and his goal is to put out the fire and save as many lives as possible. This form of training is referred to as a(n) _____.

A. apprenticeship B. cross-training C. action learning D. internship E. simulation 82. Which of the following statements is true of simulators used in training?

A. They must have elements identical to those found in the work environment. B. They cannot be used when the risks of a mistake on a job are great. C. They are used for on-the-job training. D. They are inexpensive to develop. E. They do not need constant updating. 83. Ionia Inc. uses simulators to train its cable installers. Several employees who completed the simulation training did not pass the test in which they were supposed to demonstrate the necessary skills. The training manager investigated and identified the source of the problem. Which of the following would be the most likely source?

A. The simulation contained elements unlike those found in Ionia's work environment. B. Simulations are typically unreliable training methods. C. The trainees were not given the correct avatars to use. D. The trainees were not enthusiastic enough about their work when using the simulator. E. Trainees in simulations have to be afraid of the impact of wrong decisions.

84. Identify the statement that accurately describes an avatar.

A. a computer-based technology that provides an interactive three-dimensional learning experience B. a computer application that automates the administration and delivery of a training program C. a computer depiction of employees that can be manipulated in an online role-play D. a computer application that conducts needs assessments for an organization E. a computer-based technology that provides access to skills training, information, and expert advice when a problem occurs on the job 85. Using avatars for training purposes would be an example of _____.

A. benchmarking B. action learning C. a simulation D. adventure learning E. an orientation 86. Which of the following is a computer-based technology that provides an interactive, threedimensional learning experience?

A. an electronic performance support system B. instructional design C. a learning management system D. benchmarking E. virtual reality

87. Which of the following is described as a detailed description of a situation that trainees analyze and discuss and is designed to develop higher-order thinking skills?

A. a restrictive covenant B. an electronic performance support system C. a case study D. a request for proposal E. an avatar 88. Which of the following is the correct statement regarding case studies?

A. Case studies stimulate learning by actively involving participants and the competitive nature of business. B. Cases encourage trainees by giving them practice in weighing and acting on uncertain outcomes after evaluating a case. C. Trainees play a passive role while being trained with case studies. D. Case studies do not encourage trainees to take risks. E. Training with case studies does not require any interaction among trainees. 89. _____ involves training sessions in which participants observe other people demonstrating the desired behavior, then have opportunities to practice the behavior themselves.

A. Random testing B. Benchmarking C. Behavior modeling D. Experiential training E. Classroom learning

90. Behavior modeling is especially useful for improving

A. technical skills. B. interpersonal skills. C. spatial skills. D. clerical skills. E. cognitive skills. 91. A(n) _____ is a training method in which participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations.

A. apprenticeship B. experiential program C. internship D. case study E. audiovisual training program

92. Tom, the marketing director of an automobile manufacturing company, enrolled a new group of trainees in experiential programs based on the responses evoked during a training session. Which of the following responses by the trainees could have resulted in their enrollment in experiential programs?

A. The trainees expressed a desire to involve themselves in virtual realities that provided an interactive and three-dimensional learning experience. B. The trainees expressed a desire to partake in training sessions that involved observing the behavior of others and practicing it themselves. C. The trainees expressed a desire to create computer depictions of themselves, which could be manipulated onscreen to play roles as workers in various situations. D. The trainees expressed a desire to evaluate themselves and see the impact of their decisions in a risk-free environment. E. The trainees expressed a desire to be challenged and get out outside of their comfort zone but within limits that kept their motivation strong. 93. Which of the following forms of experiential training is a teamwork and leadership training program that uses challenging, structured outdoor activities?

A. behavior modeling B. coordination training C. adventure learning D. cross-training E. action learning

94. Which of the following is an example of an experiential training method?

A. Jane, who is a cashier, is being trained to stock shelves in case there is a shortage of employees. B. Jeffery and his colleagues take part in a rafting course sponsored by their company. C. Erin and five other managers are tasked to study a business problem and present recommendations. D. Hugh is asked to review videos of other employees exhibiting certain important behaviors related to the workplace. E. Katherine uses an online persona to make decisions in game simulations involving job-related situations. 95. _____ is a training method that coordinates the performance of individuals who work together to achieve a common goal.

A. Simulation B. Internship C. Team training D. Virtual reality E. Apprenticeship 96. According to your text, which of the following work settings is most likely to benefit from team training?

A. a technical support call center B. a stock brokerage firm C. a military brigade D. a research laboratory E. a group of school teachers

97. Team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place is referred to as

A. coordination training. B. experiential training. C. behavior modeling. D. cross-training. E. action learning. 98. All Natural Goods hired Peter to maintain inventory records and Pam to place orders for new inventory when stocks run low. So that the warehouse can continue to function when either is on vacation, the company trained Peter to place orders and trained Pam to maintain inventory records. Which of the following training methods does this situation illustrate?

A. coordination training B. experiential training C. behavior modeling D. cross-training E. action learning 99. Which of the following is an example of the cross-training method?

A. Olivia, a cashier, is being trained to stock shelves in case there is a shortage of employees. B. Stan, along with his colleagues, participates in a 5K run sponsored by the company. C. Kylie and five other managers analyze a business problem to suggest changes. D. Patrick reviews videos of other employees exhibiting certain important behaviors related to the workplace. E. Ira has team members visualize what they have to do to release a new product.

100.The difference between adventure learning and cross-training is that

A. adventure learning is a team activity, while cross-training is an organization-wide activity. B. adventure learning helps team members understand themselves and each other, while crosstraining helps team members learn each other's job roles. C. adventure learning focuses on improving job-related skills of employees, while cross-training is focused on a person's behavior. D. adventure learning is easier but more expensive to conduct than cross-training. E. adventure learning is a team program, while cross-training is an experiential program. 101._____ is a team training method that trains a team on how to share information and decisions to obtain the best team performance.

A. Behavior modeling B. Experiential program C. Diversity training D. Coordination training E. Simulation 102.Which of the following forms of group building gives teams or work groups an actual problem, has them work on solving it and commit to an action plan, and holds them accountable for carrying out the plan?

A. virtual reality B. self-directed learning C. action learning D. business games E. simulations

103.Thomas heads a waste management firm. Recently, his firm was under scrutiny from environmental organizations. To counter any possible negative claims by these organizations against his company, Thomas assigned five of his junior managers to study the issue and propose plans or initiatives that could make the company appear more environmentally friendly. He also instructed senior managers to mentor their subordinates as they devised new ideas. Which of the following form of team training was applied by Thomas?

A. action learning B. adventure learning C. cross-training D. internship E. apprenticeship 104.Keith and his team, employees of an online retailing company, are being trained on cyber surveillance and user security. As part of their training, they are working to identify a solution to the problem of cyber-phishing and data breaches. Which of the following forms of group-building methods is being employed by Keith's team?

A. cross-learning B. action learning C. adventure learning D. virtual reality E. behavior modeling

105.In the context of principles of learning, which of the following is defined as the difficulty level of written materials?

A. virtual reality B. simulation C. modularity D. action learning E. readability 106.Matt, the training coordinator at Joaquim Solutions, inspected the written materials for a new training program and concluded that the materials were not very readable. Which of the following conditions would most likely lead Matt to this conclusion?

A. The training material contained many checklists. B. Most statements of the training materials were limited to simple words. C. The training material was devoid of technical jargon. D. The text of the materials was combined with illustrations. E. The training material consisted of too many long sentences. 107.Identify a guideline that helps increase the readability of training materials.

A. replace concrete words with abstract words B. combine two or more sentences into one long sentence C. combine two or more paragraphs into one long paragraph D. add checklists and illustrations to clarify the text E. substitute written material for video, hands-on learning, or other nonwritten methods

108._____ requires that employees actually learn the content of the training program and that the necessary conditions are in place for employees to apply what they learned.

A. Behavior modeling B. Transfer of training C. Simulation D. Virtual reality E. Action learning 109.To ensure transfer of training, an organization's training programs should prepare employees to self-manage their use of new skills and behaviors on the job. According to your text, Which of the following is NOT a way for trainee employees to manage their new skills and behaviors?

A. Trainees should identify the positive and negative consequences of using their new skills. B. Trainees should set goals for using skills or behaviors on the job. C. Trainees should set goals for using skills and behaviors on the job. D. Trainees should practice monitoring their use of the new skills and behaviors. E. Trainees should employ their new skills and behaviors perfectly. 110.The stage to prepare for evaluating a training program is

A. before the request for proposal is developed. B. when the organization ensures readiness. C. after the program has been developed. D. during the implementation of the program. E. when the program is being developed.

111.Information such as facts, techniques, and procedures that trainees can recall after training is an example of _____.

A. training outcomes B. transfer of training C. return on investment on training D. training credits E. training improvements 112.Which of the following is the most accurate way to evaluate a training program?

A. use only a pretest B. conduct pretests, train only part of the employees, then compare the trained employees to the untrained C. conduct pretests and posttests on all untrained employees D. use only a posttest E. check trainees' performance, knowledge, and attitudes only after they have completed the training program

113.Stronx Consulting tests its salespeople on listening skills and then implements a training program to teach all of them to be better listeners. At the conclusion of the last training session, it conducts a posttest to measure listening skills again. Based on the results, the training manager reports that the training program increased listening skills by a significant amount. Which of the following statements represents the main weakness in the manager's conclusion?

A. The actual impact of the training can only be evaluated by comparing the performance of employees who underwent training and those who did not. B. The posttest evaluated employees for the same levels of knowledge, skill, and competency as the pretest did. C. Posttests and pretests are very complex, and Stronx Consulting should have used a simpler form of evaluation. D. The duration of the training was three days, which is comparatively short when compared with the duration of many other training programs. E. The posttest was conducted immediately after the training program, which is too soon for accurate measurement of learning. 114.According to your text, the simplest approach to evaluating training is to

A. use only a pretest. B. calculate the return on investment. C. conduct pretests and posttests on all trainees. D. use only a posttest. E. compare pretest and posttest scores of the trained group with those of an untrained group.

115.Which of the following forms of training prepares employees to perform their jobs effectively, learn about the organization, and establish work relationships?

A. orientation B. benchmarking C. sensitivity training D. bumping E. conditioning 116.Which of the following statements best expresses the reason why orientation programs for new employees are valuable to employers?

A. The federal government requires orientation for all new employees. B. Employees starting a new job need to become familiar with job tasks and learn the organization's policies and procedures. C. New employees do not perform sufficient research on their employers before starting work. D. Employers generally fail to provide a realistic job profile during the selection process. E. An orientation program is a cost-effective substitute for training programs after an employee has begun work.

117.Level On, a firm that creates games for mobile devices and PCs, has an unusual training program for all its new employees. The program lasts for five days and does not involve doing any work. During this period the trainees, in teams of three, visit different departments, gathering information about the company and various department functions. Additionally, they are paired with more experienced employees to discuss their goals at the company and to learn more about the organization's culture and policies. The form of training used for new employees at Level On is known as _____.

A. onboarding B. benchmarking C. sensitivity training D. diversity training E. conditioning 118.Identify the main purpose of diversity training programs that focus on attitudes.

A. to teach employees not to have any stereotypes about other people B. to teach employees to be effective at behaviors that inhibit personal growth C. to change organizational policies that inhibit employees' personal growth and productivity D. to teach skills for constructively handling inevitable communication barriers and misunderstandings E. to increase participants' awareness of cultural, ethnic, personal, and physical differences in the workforce

119.Which of the following is the main objective of diversity training programs that focus on behavior?

A. to increase participants' awareness of cultural and ethnic differences as well as differences in personal and physical characteristics, such as disabilities B. to teach employees to be effective at different tasks and roles C. to send participants directly into communities where they interact with persons from different cultures, races, and nationalities D. to change organizational policies and individual conduct that inhibit employees' personal growth and productivity E. to make people aware of cultural differences and stereotypes 120.Compared with other forms of diversity training, which approach do trainees tend to respond to most positively?

A. increasing participants' awareness of cultural and ethnic differences B. teaching employees skills for constructively handling communication barriers, conflicts, and misunderstandings that normally arise C. discussing differences in personal and physical characteristics, such as disabilities D. identifying incidents that discourage people from working up to their full potential E. discussing promotion opportunities or management decisions that some employees believe were handled unfairly

121.Identify the type of diversity training provided by some organizations that involves sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

A. community service B. acculturation C. cultural immersion D. cultural health E. ethnology 122.Windel Auto, an automobile manufacturer based in the United States, partners with a Japanese manufacturer, Telspar, to supply automobile parts. To ensure that its employees do not miscommunicate with its Japanese partner, Windel implements a training program in which managers study Japanese customs, language traits, and interpersonal traits, and then spend a few months working alongside Telspar managers in Japan. Which of the following forms of training has Windel Auto used in this scenario?

A. community service B. acculturation C. cultural immersion D. virtual reality E. adventure learning

Essay Questions

123.What are the different stages of the instructional design process?

124.Discuss the three elements of a needs assessment process.

125.What should managers do to support training?

126.What is a request for proposal? What is its importance?

127.In the context of training, what is e-learning?

128.Define apprenticeship. Explain the merits of apprenticeship.

129.What are experiential programs? Describe different types of experiential programs.

130.What are some of the effective ways of implementing a training program?

131.Identify three approaches of evaluating the success of a training program.

132.Discuss the different approaches to diversity training.

Chapter 07 Training Employees Answer Key

True / False Questions

Training refers to any planned effort by a firm to facilitate the learning of job-related knowledge, skills, or behavior by employees. TRUE

Training consists of an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 1 Easy Topic: Employee Training

The last step in the instructional design process involves choosing a training method. FALSE

The last step in the instructional design process involves evaluating the results of the training to gather feedback for planning future training programs.

Instructional design logically should begin with needs assessment. TRUE

Instructional design logically should begin with needs assessment, the process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 1 Easy Topic: Employee Training

According to the person analysis method, performance feedback is the only variable that can be affected by training. FALSE

In assessing the need for training, the manager should identify all the variables that can influence performance. The primary variables are the person's ability and skills, his or her attitudes and motivation, the organization's input, performance feedback, and positive consequences to motivate good performance. Of these variables, only ability and skills can be affected by training.

Task analysis determines whether employees are ready to undergo training. FALSE

Task analysis is the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize. The person analysis should determine whether employees are ready to undergo training. In other words, the employees to receive training not only should require additional knowledge and skill but also must be willing and able to learn.

Readiness for training is a combination of employee characteristics and positive work environment that permit training. TRUE

Readiness for training is a combination of employee characteristics and positive work environment that permit training. It exists when employees are able and eager to learn and when their organizations encourage learning.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 1 Easy Topic: Principles of Learning

Social support refers to the ways an organization's people encourage training. TRUE

Social support refers to the ways an organization's people encourage training, including giving trainees praise and encouraging words, sharing information about participating in training programs, and expressing positive attitudes toward the organization's training programs.

Effective training objectives include performance standards that are measurable. TRUE

Effective training objectives have several characteristics including performance standards that are measurable.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 1 Easy Topic: Employee Training

Putting together a request for proposal for a training program is a quick process. FALSE

To select a training service, an organization can mail several vendors a request for proposal, which is a document outlining the type of service needed, the type and number of references needed, the number of employees to be trained, the date by which the training is to be completed, and the date by which proposals should be received. Putting together a request for proposal is time consuming but worthwhile because it helps the organization to clarify its objectives, compare vendors, and measure results.

10.

Presentation methods are preferred over hands-on training methods in helping trainees handle interpersonal issues. FALSE

Hands-on methods where trainees are actively involved in trying out skills through on-the-job training, simulations, role-plays, and computer games are especially useful for teaching how to handle interpersonal issues.

11.

The training technique most widely used in the workplace is behavior modeling. FALSE

At school, one tends to associate learning with classroom instruction, and that type of training is most widely used in the workplace, too. Classroom instruction typically involves a trainer lecturing a group.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

12.

Attending classes is a faster and more efficient method of learning new skills as compared to electronic performance support systems (EPSSs). FALSE

Electronic performance support systems (EPSSs) are computer applications that provide access to skills training, information, and expert advice when a problem occurs on the job. Employees needing guidance can use the EPSS to look up the particular information they need, such as detailed instructions on how to perform an unfamiliar task. Using an EPSS is faster and more relevant than attending classes, even classes offered online.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

13.

Apprenticeship programs can only be sponsored by government agencies. FALSE

An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training and classroom training. Government requirements for an apprenticeship program vary by occupation. Some apprenticeship programs are sponsored by individual companies, others by employee unions.

14.

For on-the-job training (OJT) programs to be effective, an organization should review OJT practices at companies in similar industries. TRUE

To be effective, OJT programs should include several characteristics, one of them being that the organization should review OJT practices at companies in similar industries.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

15.

Training programs use case studies to develop employees' management skills. TRUE

Training programs use business games and case studies to develop employees' management skills. A case study is a detailed description of a situation that trainees study and discuss.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 7-52 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

16.

An experiential program is a type of internship used to instruct new student employees. FALSE

An experiential program is a form of training where participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations.

17.

In coordination training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place. FALSE

Coordination training trains the team how to share information and decisions to obtain the best team performance.

18.

Action learning uses challenging, structured outdoor activities, which include difficult sports. FALSE

In action learning, teams or work groups get an actual problem, work on solving it, commit to an action plan, and are accountable for carrying out the plan.

19.

Along with physical elements, the training context should include emotional elements. TRUE

Along with physical elements, the training context should include emotional elements.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-06 Summarize how to implement a successful training program. Level of Difficulty: 1 Easy Topic: Principles of Learning

20.

If a concept involves more than five items, the training program should deliver information in shorter sessions or chunks. TRUE

Training programs need to break information into chunks that people can remember. Research suggests that people can attend to no more than four to five items at a time. If a concept or procedure involves more than five items, the training program should deliver information in shorter sessions or chunks.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 7-54 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 07-06 Summarize how to implement a successful training program. Level of Difficulty: 1 Easy Topic: Principles of Learning

21.

The best stage to prepare for evaluating a training program is after the program has been implemented. FALSE

The stage to prepare for evaluating a training program is when the program is being developed.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-07 Evaluate the success of a training program. Level of Difficulty: 1 Easy Topic: Evaluating Training Programs

22.

The most accurate way to assess training effectiveness is to conduct pretests and posttests and then train all the employees. FALSE

The most accurate, but most costly, way to evaluate a training program is to measure performance, knowledge, or attitudes among all employees before the training and then train only part of the employees. After the training is complete, the performance, knowledge, or attitudes are again measured, and the trained group is compared with the untrained group.

23.

An orientation program is training designed to prepare employees to perform their jobs effectively, learn about the organization, and establish work relationships. TRUE

Many employees receive their first training during their first days on the job. This training is the organization's orientation program—its training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 1 Easy Topic: Employee Orientation

24.

A risk of diversity training programs that focus on attitudes toward minority groups is that they may alienate minorities. FALSE

A risk of diversity training programs that focus on attitudes—especially when they define diversity mainly in terms of race, ethnicity, and sex—is that they may alienate white male employees, who conclude that if the company values diversity more, it values them less.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

25.

The process of sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities is known as cultural immersion. TRUE

Some organizations provide diversity training in the form of cultural immersion, sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

Multiple Choice Questions

26.

Which of the following consists of an organization's planned effort to help employees acquire job-related knowledge, skills, abilities, and behaviors?

A. attrition B. benchmarking C. training

D. compensation E. recruitment Training consists of an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-01 Discuss how to link training programs to organizational needs. 7-57 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Employee Training

27.

_____ refers to a process of systematically developing training to meet specified needs.

A. Role-play B. Recruitment C. Simulation D. Instructional design

E. Organization analysis To achieve training goals, HR professionals approach training through instructional design—a process of systematically developing training to meet specified needs.

28.

KYG Instruments, a firm that produces manufacturing equipment for various industries, experiences an influx of new sales employees due to a recent expansion. Despite possessing a vast amount of sales experience, most of the new employees perform poorly. This is because the new recruits possess inadequate technical knowledge about the products sold by KYG. To address the issue, the HR department decides to implement a training program using the instructional design process. As part of the process, the HR department's first step should be to

A. ensure that sales representatives do not feel undervalued. B. identify what the sales representatives will need to learn.

C. identify senior product engineers to train the sales representatives. D. chart the methods that should be used to train the sales representatives. E. announce the objectives of the training program. An instructional design process begins with an assessment of the needs for training—what the organization requires that its people learn.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 3 Hard Topic: Employee Training

29.

Ensuring that employees are ready for training in terms of their attitudes, motivation, basic skills, and work environment is the _____ step of the instructional design process.

A. first B. second

C. third D. fourth E. fifth During second step in the instructional design process, the organization ensures that employees are ready for training in terms of their attitudes, motivation, basic skills, and work environment.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 2 Medium Topic: Employee Training

30.

The HR department at Trevor Communications oversees the recruitment and training of employees at the firm. As the firm grows and recruits more employees, overseeing individual training programs has been come too much for HR staff to handle. Which of the following applications should the HR department use to help with employee training?

A. a customer relationship management system B. a management information system C. a learning management system

D. a decision support system E. an executive decision-making system In this scenario, the HR department at Trevor Communications should use a learning management system. To carry out an instructional design process more efficiently and effectively, a growing number of organizations are using a learning management system, a computer application that automates the administration, development, and delivery of a company's training programs.

31.

Which of the following best describes a learning management system?

training programs D. a process for determining the appropriateness of training by evaluating the characteristics of the organization E. the process of determining individuals' needs and readiness for training To carry out an instructional design process more efficiently and effectively, a growing number of organizations are using a learning management system, a computer application that automates the administration, development, and delivery of a company's training programs.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 1 Easy Topic: How Technology Influences Human Resource Management?

32.

The human resource department of Brown Industries, a consumer electronics manufacturer, wants to set up a learning management system for its global sales force. This way, sales personnel can get training in new models and product lines even while on the road, and managers can ensure their employees are keeping up-to-date. The HR manager looks into "training systems" and identifies five top results. Which of the following systems describes a learning management system?

D. K-Learn: software for the creation of training videos E. E-Valuate: an assessment tool that evaluates employees' readiness to learn new skills To carry out an instructional design process more efficiently and effectively, a growing number of organizations are using a learning management system, a computer application that automates the administration, development, and delivery of a company's training programs. In this scenario, Crimson is the learning management system.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 3 Hard Topic: How Technology Influences Human Resource Management?

33.

Which of the following best describes needs assessment?

A. It is the process of evaluating the organization, individual employees, and employees'

tasks to determine what kinds of training are necessary. B. It is a combination of employee characteristics and positive work environment that permit training. C. It is a process that evaluates the monetary needs of employees that will motivate them to undertake a training program. D. It is an application that automates the administration and delivery of a company's training program. E. It is the process to determine employees' characteristics to ensure their readiness for training. Needs assessment is the process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary.

34.

Faulkner and White Company, a firm that builds enterprise resource planning products for customers, wants to implement training programs for its employees as an HR initiative. Senior management proposes the use of an instructional design process. Which of the following should ideally be Faulkner and White's next step?

A. task analysis B. organization analysis

C. person analysis D. competitor analysis E. market analysis A complete instructional design process begins with an assessment of the needs for training. Usually, the needs assessment begins with the organization analysis. This is a process for determining the appropriateness of training by evaluating the characteristics of the organization.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 3 Hard Topic: Employee Training

35.

Organization analysis looks at training needs in light of the

A. readiness of employees for training. B. employee's strategy toward achieving organizational goals. C. management's support for training activities.

D. monetary incentives the management has promised its employees. E. severance package deal for a particular batch of employees. Organization analysis is a process for determining the appropriateness of training by evaluating the characteristics of the organization. The organization analysis looks at training needs in light of the organization's strategy, resources available for training, and management's support for training activities.

36.

According to your text, managers will be most likely to support training if

A. there are no other solutions available for them to try. B. it is not overly expensive. C. it will solve a significant problem.

D. they do not have to participate in it. E. it will result in minor improvements. Managers will be most likely to support training if the people planning it can show that it will solve a significant problem or result in a significant improvement, relative to its cost.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 2 Medium 7-66 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Employee Training

37.

A client asks Tenrep Technologies to carry out a project that involves working on a software tool called POPIL, which is new to the company. The training manager in Tenrep's HR department begins by conducting a needs assessment. Which of the following methods will the manager use to identify individuals' needs and readiness for training?

A. person analysis

B. organization analysis C. task analysis D. trend analysis E. regression analysis Person analysis is a process for determining individuals' needs and readiness for training. It helps a manager to identify whether training is appropriate and which employees need training.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 2 Medium Topic: Employee Training

38.

Which of the following questions can be answered by performing a person analysis?

A. What are the tasks that require more training? B. How will the training be carried out? C. Are employees ready for training?

D. Does the organization have the infrastructure to support training? E. Are there any impediments to implementing a training program? Person analysis is a process for determining individuals' needs and readiness for training. It involves answering several questions, including whether employees are ready for training.

39.

James, the marketing manager for an automobile manufacturer, observes frequent conflicts between two of his subordinates, Jeff and Kevin. He asks the human resource department to help, and the department's training manager, Kelly, investigates. She tells James that the two subordinates lack interpersonal communication skills, but would be likely to improve with proper training. This scenario suggests that Kelly has conducted a(n) _____.

A. institutional analysis B. market analysis C. person analysis

D. organization analysis E. instructional analysis A person analysis is a process for determining individuals' needs and readiness for training. It helps a manager to identify whether training is appropriate and which employees need training.

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 2 Medium Topic: Employee Training

40.

The management at a pesticide manufacturing company has observed a decline in quality measures. The managers ask Robin, the firm's HR manager, to investigate whether training might solve the problem. Robin conducts needs assessment and recommends a training plan. Which of the following conditions would most likely have been an observation during Robin's person analysis?

standards for manufacturing. D. The firm's budget for training has declined from the year before. E. Training programs offered by the firm lack specific goals and methods for measuring their success. Person analysis is a process for determining individuals' needs and readiness for training. It involves answering several questions. One of them is to identify employees who need training and their readiness for training.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 3 Hard Topic: Employee Training

41.

In a person analysis, which of the following is a primary variable that can be affected by training?

A. the organization's input B. performance feedback C. the employee's ability

D. positive consequences to motivate good performance E. the employee's motivation In assessing the need for training, the manager should identify all the variables that can influence performance. The primary variables are the person's ability and skills, his or her attitudes and motivation, the organization's input, performance feedback, and positive consequences to motivate good performance. Of these variables, only ability and skills can be affected by training.

42.

Which of the following processes identifies the knowledge, skills, and behaviors that should be emphasized by training?

A. person analysis B. task analysis

C. transactional analysis D. trend analysis E. regression analysis Task analysis is the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize. Usually, task analysis is conducted along with person analysis.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 1 Easy Topic: Employee Training

43.

Adam, a team leader at a business process outsourcing firm, tells the human resource department that a significant share of his employees are missing deadlines. The department conducts a needs assessment and tells Adam that the employees' jobs require time management skills, so a training session on time management would be likely to improve performance. In this scenario, the department's recommendations would most likely be based on a(n) _____.

A. institutional analysis B. task analysis

C. person analysis D. organization analysis E. instructional analysis The third area of needs assessment is task analysis, the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize.

44.

Which of the following is a characteristic of task analysis?

E. It helps in determining individuals' needs for training. Task analysis is the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize. Usually, task analysis is conducted along with person analysis.

45.

A customer at Danielle, a French restaurant, complains to Jason, the owner, about a specialty dessert being unacceptable. Jason inspects the dessert and finds that brie, a type of cheese, is overripe. Jason questions the new pastry chef, Mario, who acknowledges he should have substituted another type of cheese for the brie. Jason analyzes the situation and concludes that Mario should be put through additional training to avoid such mistakes in the future. What type of analysis has Jason performed in this situation?

A. an organization analysis B. a task analysis

C. a specialized skills assessment D. a person analysis E. a needs assessment A task analysis is the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize. Usually task analysis is conducted along with person analysis. Understanding shortcomings in performance usually requires knowledge about the tasks, the work environment, as well as the employee.

46.

Which of the following is defined as a combination of employee characteristics and positive work environment that permit training?

A. organization analysis B. benchmarking C. learning management system D. orientation E. readiness for training

Readiness for training is a combination of employee characteristics and positive work environment that permit training. It depends on two broad characteristics of the work environment: situational constraints and social support.

47.

Karen works as a sales manager for Apencience Corp. Karen can read, write, and speak Mandarin, English, and German. She assists top-level management in making business decisions and setting long-term goals for the organization. Which of Karen's abilities is illustrated in this scenario?

A. emotional intelligence B. psychological mindedness C. spatial ability D. psychomotor skills E. cognitive ability

To be ready to learn, employees need basic learning skills, especially cognitive ability, which includes being able to use written and spoken language, solve math problems, and use logic to solve problems.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 3 Hard Topic: Employee Training

48.

Cognitive ability is defined as the ability of a person to

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 2 Medium Topic: Employee Training

49.

_____ is the limit on training's effectiveness that arises from the conditions within the organization.

A. A simulation B. Social support C. A situational constraint

D. Psychological mindedness E. Experiential conflict Readiness for training depends on two broad characteristics of the work environment: situational constraints and social support. Situational constraints are the limits on training's effectiveness that arise from the situation or the conditions within the organization.

50.

KTPO Telecom wants to implement an on-the-job training program for the sales staff that are unaware of the technical aspects of the firm's products. The lack of technical knowledge among its sales staff is harming the company's prospects of securing lucrative contracts. Although KTPO's IT team is well versed in various technologies, it is not well suited to handle a training program. However, the best IT trainers in the industry cost more than what KTPO can afford to spend on the training program. This scenario illustrates _____.

A. simulation B. social support C. situational constraints

D. psychological mindedness E. experiential conflicts Readiness for training depends on two broad characteristics of the work environment: situational constraints and social support. Situational constraints are the limits on training's effectiveness that arise from the situation or the conditions within the organization.

51.

Meryl, a training manager, is making a presentation to her company's business leaders. She says meeting the company's five-year plan will require skills in using some new technology. Employees and their supervisors are eager to learn, but Meryl says some situational constraints are standing in the way of meeting these objectives. Which of the following could be such a constraint?

E. supervisors don't tell their employees about the training that is available Situational constraints are the limits on training's effectiveness that arise from the situation or the conditions within the organization. Constraints can include a lack of money for training, lack of time for training or practicing, and failure to provide proper tools and materials for learning or applying the lessons of training.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 3 Hard Topic: Employee Training

52.

_____ refers to the ways an organization's people encourage training.

A. Situational constraint B. Employee orientation C. Benchmarking D. Social support

E. Experiential program Readiness for training also depends on two broad characteristics of the work environment: situational constraints and social support. Social support refers to the ways the organization's people encourage training, including giving trainees praise and encouraging words, sharing information about participating in training programs, and expressing positive attitudes toward the organization's training programs.

53.

At All Sizes Auto, managers encourage employees to receive training and praise them when they demonstrate new skills. Employees are excited about how learning helps them succeed at work and take on more responsibility. Which aspect of readiness for training does this example describe?

A. employee ability B. employees' incentive package C. training curriculum D. social support

E. situational constraints Readiness for training is a combination of employee characteristics and positive work environment that permit training. It depends on two broad characteristics of the work environment: situational constraints and social support. Social support refers to the ways the organization's people encourage training, including giving trainees praise and encouraging words, sharing information about participating in training programs, and expressing positive attitudes toward the organization's training programs.

54.

Openze Technology, a firm that manufactures mobile phones, has seen a major improvement in cost reduction since it instituted a three-week training program for all of its new recruits. During the training program, the new employees are constantly encouraged to express their thoughts and ideas. Good ideas are rewarded immediately by the trainers, thereby encouraging active participation. Which factor most likely explains the success of the training?

A. situational constraints B. cognitive ability C. task analysis D. social support

E. experiential learning Readiness for training depends, among other things, on two broad characteristics of the work environment: situational constraints and social support. Social support refers to the ways the organization's people encourage training, including giving trainees praise and encouraging words, sharing information about participating in training programs, and expressing positive attitudes toward the organization's training programs. This scenario exemplifies social support.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 3 Hard Topic: Employee Training

55.

Which of the following is a characteristic of effective training objectives?

Effective training objectives include performance standards that are measurable. They also identify the resources needed to carry out the desired performance or outcome.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 2 Medium Topic: Employee Training

56.

Terral Prime, an auditing firm, purchases a management information system called Alpha Duo. Most of Terral's employees are unfamiliar with the functional aspects of Alpha Duo, and management decides to approach external trainers to train its employees. Rebecca, the company's training coordinator, is tasked with finding suitable trainers. Rebecca sends an email, with a document outlining the company's training requirements, to multiple vendors and asks them to provide suitable trainer profiles and cost quotes. What is the document called that Rebecca sends out to training vendors?

A. a request for proposal

B. articles of incorporation C. instructional design D. needs assessment form E. organization analysis report To select a training service, an organization can mail several vendors a request for proposal, which is a document outlining the type of service needed, the type and number of references needed, the number of employees to be trained, the date by which the training is to be completed, and the date by which proposals should be received.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 3 Hard Topic: Employee Training

57.

When using an outside training expert, a complete _____ should indicate funding for the project and the process by which the organization will determine its level of satisfaction.

A. cohabitation agreement B. letter of intent C. certificate of occupancy D. articles of incorporation E. request for proposal

To select a training service, an organization can mail several vendors a request for proposal (RFP). A complete RFP also indicates funding for the project and the process by which the organization will determine its level of satisfaction.

58.

In the context of planning a training program, even though it is time consuming, putting together a _____ is worthwhile because it helps an organization clarify training objectives, compare vendors, and measure results.

A. cohabitation agreement B. letter of intent C. certificate of occupancy D. requirements specification document E. request for proposal

To select a training service, an organization can mail several vendors a request for proposal. Putting together a request for proposal is time consuming but worthwhile because it helps the organization clarify its objectives, compare vendors, and measure results.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 1 Easy Topic: Employee Training

59.

Phonyton Inc. determines that it needs to train 200 employees on using a new software application. Philip, the training administrator, is investigating options to find the one that will meet the company's needs within the budget available. He determines that no one at Phonyton knows enough about the software to provide the training. Which of the following plans would be most likely to achieve training objectives at the lowest cost?

The cost of purchasing training from a contractor can vary substantially. In general, it is much costlier to purchase specialized training that is tailored to the organization's unique requirements than to participate in a seminar or training course that teaches general skills or knowledge.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 3 Hard Topic: Strengths and Weaknesses of Various Training Programs

60.

Filler Mayo Inc. recognizes the need for providing on-the-job training to employees whose technical skills are lacking. The company's HR department is tasked with coordinating the entire training process. This function of the HR department at Filler Mayo is called _____.

A. requirements specification B. training administration

C. training simulation D. orientation E. needs analysis Even in organizations that send employees to outside training programs, someone in the organization may be responsible for coordinating the overall training program. Called training administration, this is typically the responsibility of a human resources professional.

61.

Identify the training method that is used for conveying facts or comparing alternatives.

A. hands-on method B. presentation method

C. group-building method D. on-the-job training program E. object class method When the objective of training is to convey facts or compare alternatives, presentation methods are used. In this method, trainees receive information provided by others through lectures, workbooks, video clips, podcasts, or websites.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

62.

Which of the following training methods uses techniques like lectures, workbooks, video clips, podcasts, and websites?

A. group building methods B. hands-on methods C. presentation methods

D. object class methods E. experiential programs Presentation methods are when trainees receive information provided by others. The different techniques used include lectures, workbooks, video clips, podcasts, or websites.

63.

_____ training remains the most widely used method of training.

A. Audiovisual B. On-the-job C. Experiential programs D. Computer-based E. Classroom

A wide variety of methods is available for conducting training. Although the share of instruction provided online has grown over the past few years, classroom training remains the most widely method.

64.

One of the least expensive and least time-consuming ways to train multiple trainees on a specific topic is through _____.

A. action learning B. a simulation C. computer-based training D. audiovisual training E. classroom instruction

When the course objectives call for presenting information on a specific topic to many trainees, classroom instruction is one of the least expensive and least time-consuming ways to accomplish that goal.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. 7-88 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

65.

Which of the following types of training allows trainees at different locations to attend programs online, using their computers to view lectures, participate in discussions, and share documents?

A. on-the-job training B. experiential programs C. distance learning

D. cross training E. action learning With distance learning, trainees at different locations attend programs online, using their computers to view lectures, participate in discussions, and share documents.

66.

Identify the correct statement regarding audiovisual training.

An advantage of audiovisual presentations is that they give trainees a consistent presentation, not affected by an individual trainer's goals and skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 7-89 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

67.

Identify the correct statement regarding computer-based training.

E. it is now declining in popularity Computer-based training is generally less expensive than putting an instructor in a classroom of trainees. The low cost to deliver information gives the company flexibility in scheduling training, so that it can fit around work requirements. Also, it is easier to customize computerbased training for individual learners.

68.

Roger, the manager of a car dealership, finds it impossible to train his mechanics on the details of every potential repair problem because of the increasing complexity and variety of today's automobiles. Hence, he provides them with a training program that will familiarize them with the basics of engine, emission, and other types of repair. Additionally, in case of a particular problem, the training program will let the mechanics seek expert advice through an online computer application. Which of the following learning approaches is being implemented by Roger?

A. e-learning simulation B. electronic performance support system

C. experiential behavior modeling program D. virtual reality-based simulation program E. Myers-Briggs simulation program Electronic performance support systems are computer applications that provide access to skills training, information, and expert advice when a problem occurs on the job.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

69.

Which of the following statements accurately characterizes electronic performance support systems (EPSSs)?

A. EPSSs provide expert advice when a problem occurs on the job.

B. EPSSs automate the administration and delivery of a company's training programs. C. EPSSs determine the appropriateness of training by evaluating the characteristics of the organization. D. EPSSs determine an individual's readiness for training. E. EPSSs identify the tasks that training should emphasize. Electronic performance support systems (EPSSs) provide access to skills training, information, and expert advice when a problem occurs on the job. Using an EPSS is faster and more relevant than attending classes, even classes offered online.

70.

Which of the following is a work-study training method that teaches job skills through a combination of on-the-job training and classroom training?

A. bumping B. benchmarking C. apprenticeship

D. co-employment E. onboarding An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training (OJT) and classroom training. The OJT component of an apprenticeship involves the apprentice assisting a certified tradesperson at the work site.

71.

Which of the following statements is true of an apprenticeship?

A. An apprentice does not make any money. B. An apprentice usually assists a certified tradesperson at the worksite.

C. An apprenticeship does not involve classroom training. D. An apprenticeship is typically sponsored by an educational institution. E. An apprenticeship is based on simulations and virtual reality. An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training and classroom training.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. 7-93 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

72.

Allinall, a firm that specializes in building construction, hires Kyle, an unemployed teenager, to work in its carpentry division. Since Kyle does not have the required skills to work as a carpenter, he is provided training that helps him pick up carpentry skills on the job. Kyle learns by assisting other master carpenters and journeymen. In addition to the skills Kyle acquires, he is paid by Allinall. The form of training exemplified in this scenario is called _____.

A. simulation B. internship C. apprenticeship

D. co-employment E. onboarding An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training and classroom training.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 3 Hard Topic: Strengths and Weaknesses of Various Training Programs

73.

Russell is paid for assisting a welder on a construction site. He also is adding to his welding skills by attending a local trade school. When he finishes his training program and demonstrates he has mastered specific skills, he will become a journeyman welder. Which of the following statements best identifies that Russell is in an apprenticeship program?

D. Unlike interns, apprentices do not attend educational institutions. E. Interns are more likely than apprentices to get admonished for their mistakes on the job. An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training and classroom training. The on-the-job component of an apprenticeship involves the apprentice assisting a certified tradesperson (a journeyman) at the work site. Typically, the apprentice's classroom training is provided by local trade schools, high schools, and community colleges.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 3 Hard Topic: Strengths and Weaknesses of Various Training Programs

74.

Identify the occupation that would typically employ an apprentice.

A. accountant B. doctor C. carpenter

D. nurse E. lawyer Carpentry is an example of a profession in which apprentices are typically employed.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

75.

Identify the occupation that would typically employ interns.

A. bricklayer B. journalist

C. carpenter D. plumber E. welder Journalism is an example of a profession that would typically employ interns.

76.

Which of the following statements is true of an apprenticeship?

A. An apprenticeship does not include any classroom training methods. B. An apprentice can earn an income while learning a trade.

C. An apprenticeship does not offer hands-on learning and practice. D. An apprenticeship cannot be sponsored by groups outside the firm. E. An apprenticeship is mostly used for teaching management and interpersonal skills. An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training and classroom training. For trainees, a major advantage of apprenticeship is the ability to earn an income while learning a trade.

AACSB: Technology

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

77.

Identify the on-the-job training program that is typically funded by an educational institution as a component of an academic program.

A. internship

B. coordination training C. apprenticeship D. experiential training E. simulation training An internship is on-the-job learning sponsored by an educational institution as a component of an academic program. The sponsoring school works with local employers to place students in positions where they can gain experience related to their area of study.

78.

Carla, a student at Cardinal College, is pursuing a degree in international business management. As part of her program at Cardinal College, she has accepted an opportunity to work at Wong Consulting for a period of six months, where she will gain experience related to her field. Carla's employment at Wong Consulting is an example of a(n) _____.

A. internship

B. coordination training C. apprenticeship D. experiential training program E. simulation training program An internship is on-the-job learning sponsored by an educational institution as a component of an academic program. The sponsoring school works with local employers to place students in positions where they can gain experience related to their area of study.

79.

Which of the following distinguishes an apprenticeship from an internship?

by educational institutions. D. Most apprenticeship programs take place in white-collar professions, whereas most internship programs occur in blue-collar jobs. E. An apprenticeship does not provide an income, whereas an internship provides an income while learning a trade. Some apprenticeships are sponsored by individual companies, others by employee unions. Internships are sponsored by an educational institution as a component of an academic program.

80.

Which of the following training methods involves representing a real-life situation with trainees making decisions resulting in outcomes that mirror what would happen on the job?

A. apprenticeship B. cross-training C. action learning D. internship E. simulation

A simulation is a training method that represents a real-life situation with trainees making decisions resulting in outcomes that mirror what would happen on the job. Simulations enable trainees to see the impact of their decisions in an artificial, risk-free environment.

81.

Fernando is hired as a seasonal firefighter by the California Department of Forestry and Fire Protection. The training used to prepare Fernando for his firefighting job involves an online training module. In this game-like module, Fernando is virtually placed in a real-life scenario such as a garage fire or a restaurant fire, and his goal is to put out the fire and save as many lives as possible. This form of training is referred to as a(n) _____.

A. apprenticeship B. cross-training C. action learning D. internship E. simulation

82.

Which of the following statements is true of simulators used in training?

A. They must have elements identical to those found in the work environment.

B. They cannot be used when the risks of a mistake on a job are great. C. They are used for on-the-job training. D. They are inexpensive to develop. E. They do not need constant updating. Simulations enable trainees to see the impact of their decisions in an artificial, risk-free environment. Simulators must have elements identical to those found in the work environment.

83.

Ionia Inc. uses simulators to train its cable installers. Several employees who completed the simulation training did not pass the test in which they were supposed to demonstrate the necessary skills. The training manager investigated and identified the source of the problem. Which of the following would be the most likely source?

A. The simulation contained elements unlike those found in Ionia's work environment.

B. Simulations are typically unreliable training methods. C. The trainees were not given the correct avatars to use. D. The trainees were not enthusiastic enough about their work when using the simulator. E. Trainees in simulations have to be afraid of the impact of wrong decisions. Simulators must have elements identical to those found in the work environment. Simulators need to respond exactly as equipment would under the conditions and response given by the trainee.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 3 Hard Topic: Strengths and Weaknesses of Various Training Programs

84.

Identify the statement that accurately describes an avatar.

D. a computer application that conducts needs assessments for an organization E. a computer-based technology that provides access to skills training, information, and expert advice when a problem occurs on the job When simulations are conducted online, trainees often participate by creating avatars, or computer depictions of themselves, which they manipulate onscreen to play roles as workers or other participants in a job-related situation.

85.

Using avatars for training purposes would be an example of _____.

A. benchmarking B. action learning C. a simulation

D. adventure learning E. an orientation When simulations are conducted online, trainees often participate by creating avatars, or computer depictions of themselves, which they manipulate onscreen to play roles as workers or other participants in a job-related situation.

AACSB: Technology Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

86.

Which of the following is a computer-based technology that provides an interactive, threedimensional learning experience?

A. an electronic performance support system B. instructional design C. a learning management system D. benchmarking E. virtual reality

Virtual reality is a computer-based technology that provides an interactive, three-dimensional learning experience.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

87.

Which of the following is described as a detailed description of a situation that trainees analyze and discuss and is designed to develop higher-order thinking skills?

A. a restrictive covenant B. an electronic performance support system C. a case study

D. a request for proposal E. an avatar A case study is a detailed description of a situation that trainees analyze and discuss. Cases are designed to develop higher-order thinking skills, such as the ability to analyze and evaluate information. They also can be a safe way to encourage trainees to take appropriate risks, by giving them practice in weighing and acting on uncertain outcomes.

88.

Which of the following is the correct statement regarding case studies?

A. Case studies stimulate learning by actively involving participants and the competitive nature of business. B. Cases encourage trainees by giving them practice in weighing and acting on uncertain

outcomes after evaluating a case. C. Trainees play a passive role while being trained with case studies. D. Case studies do not encourage trainees to take risks. E. Training with case studies does not require any interaction among trainees. Cases are designed to develop higher-order thinking skills, such as the ability to analyze and evaluate information. They also can be a safe way to encourage trainees to take appropriate risks, by giving them practice in weighing and acting on uncertain outcomes.

89.

_____ involves training sessions in which participants observe other people demonstrating the desired behavior, then have opportunities to practice the behavior themselves.

A. Random testing B. Benchmarking C. Behavior modeling

D. Experiential training E. Classroom learning Behavior modeling involves training sessions in which participants observe other people demonstrating the desired behavior, then have opportunities to practice the behavior themselves.

90.

Behavior modeling is especially useful for improving

A. technical skills. B. interpersonal skills.

C. spatial skills. D. clerical skills. E. cognitive skills. Research suggests that one of the most effective ways to teach interpersonal skills is through behavior modeling. This involves training sessions in which participants observe other people demonstrating the desired behavior, then have opportunities to practice the behavior themselves.

91.

A(n) _____ is a training method in which participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations.

A. apprenticeship B. experiential program

C. internship D. case study E. audiovisual training program In experiential programs, participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations.

92.

Tom, the marketing director of an automobile manufacturing company, enrolled a new group of trainees in experiential programs based on the responses evoked during a training session. Which of the following responses by the trainees could have resulted in their enrollment in experiential programs?

but within limits that kept their motivation strong. To develop teamwork and leadership skills, some organizations enroll their employees in a form of training called experiential programs. Experiential training programs should be related to a specific business problem. Participants should feel challenged and move outside their comfort zones, but within limits that keep their motivation strong and help them understand the purpose of the program.

93.

Which of the following forms of experiential training is a teamwork and leadership training program that uses challenging, structured outdoor activities?

A. behavior modeling B. coordination training C. adventure learning

D. cross-training E. action learning One form of experiential program, called adventure learning, uses challenging, structured outdoor activities, which may include difficult sports such as dog sledding, rafting, or mountain climbing.

94.

Which of the following is an example of an experiential training method?

A. Jane, who is a cashier, is being trained to stock shelves in case there is a shortage of employees. B. Jeffery and his colleagues take part in a rafting course sponsored by their company.

C. Erin and five other managers are tasked to study a business problem and present recommendations. D. Hugh is asked to review videos of other employees exhibiting certain important behaviors related to the workplace. E. Katherine uses an online persona to make decisions in game simulations involving jobrelated situations. One form of experiential program, called adventure learning, uses challenging, structured outdoor activities, which may include difficult sports such as dog sledding, rafting, or mountain climbing.

95.

_____ is a training method that coordinates the performance of individuals who work together to achieve a common goal.

A. Simulation B. Internship C. Team training

D. Virtual reality E. Apprenticeship A possible alternative to experiential programs is team training, which coordinates the performance of individuals who work together to achieve a common goal. An organization may benefit from providing such training to groups when group members must share information and group performance depends on the performance of the individual group members.

96.

According to your text, which of the following work settings is most likely to benefit from team training?

A. a technical support call center B. a stock brokerage firm C. a military brigade

D. a research laboratory E. a group of school teachers An organization may benefit from providing team training to groups when group members must share information and group performance depends on the performance of the individual group members. Examples include the military, nuclear power plants, and commercial airlines.

97.

Team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place is referred to as

A. coordination training. B. experiential training. C. behavior modeling. D. cross-training.

E. action learning. In cross-training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

98.

All Natural Goods hired Peter to maintain inventory records and Pam to place orders for new inventory when stocks run low. So that the warehouse can continue to function when either is on vacation, the company trained Peter to place orders and trained Pam to maintain inventory records. Which of the following training methods does this situation illustrate?

A. coordination training B. experiential training C. behavior modeling D. cross-training

E. action learning In cross-training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

99.

Which of the following is an example of the cross-training method?

A. Olivia, a cashier, is being trained to stock shelves in case there is a shortage of

employees. B. Stan, along with his colleagues, participates in a 5K run sponsored by the company. C. Kylie and five other managers analyze a business problem to suggest changes. D. Patrick reviews videos of other employees exhibiting certain important behaviors related to the workplace. E. Ira has team members visualize what they have to do to release a new product. In cross-training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 3 Hard Topic: Strengths and Weaknesses of Various Training Programs

100.

The difference between adventure learning and cross-training is that

A. adventure learning is a team activity, while cross-training is an organization-wide activity. B. adventure learning helps team members understand themselves and each other, while

cross-training helps team members learn each other's job roles. C. adventure learning focuses on improving job-related skills of employees, while crosstraining is focused on a person's behavior. D. adventure learning is easier but more expensive to conduct than cross-training. E. adventure learning is a team program, while cross-training is an experiential program. Adventure learning helps participants gain a greater understanding of themselves and the ways they interact with their co-workers. In cross-training, team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

101.

_____ is a team training method that trains a team on how to share information and decisions to obtain the best team performance.

A. Behavior modeling B. Experiential program C. Diversity training D. Coordination training

E. Simulation Coordination training trains the team in how to share information and decisions to obtain the best team performance.

102.

Which of the following forms of group building gives teams or work groups an actual problem, has them work on solving it and commit to an action plan, and holds them accountable for carrying out the plan?

A. virtual reality B. self-directed learning C. action learning

D. business games E. simulations Action learning is a form of group building where teams or work groups get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying out the plan.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-05 Compare widely used training methods. 7-116 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

103.

Thomas heads a waste management firm. Recently, his firm was under scrutiny from environmental organizations. To counter any possible negative claims by these organizations against his company, Thomas assigned five of his junior managers to study the issue and propose plans or initiatives that could make the company appear more environmentally friendly. He also instructed senior managers to mentor their subordinates as they devised new ideas. Which of the following form of team training was applied by Thomas?

A. action learning

B. adventure learning C. cross-training D. internship E. apprenticeship Action learning is a form of group building where teams or work groups get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying out the plan.

104.

Keith and his team, employees of an online retailing company, are being trained on cyber surveillance and user security. As part of their training, they are working to identify a solution to the problem of cyber-phishing and data breaches. Which of the following forms of groupbuilding methods is being employed by Keith's team?

A. cross-learning B. action learning

C. adventure learning D. virtual reality E. behavior modeling In action learning, teams or work groups get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying out the plan. Ideally, the project is one for which the efforts and results will be visible not only to participants but also to others in the organization.

105.

In the context of principles of learning, which of the following is defined as the difficulty level of written materials?

A. virtual reality B. simulation C. modularity D. action learning E. readability

Written materials should have an appropriate reading level. A simple way to assess readability—the difficulty level of written materials—is to look at the words being used and at the length of sentences.

106.

Matt, the training coordinator at Joaquim Solutions, inspected the written materials for a new training program and concluded that the materials were not very readable. Which of the following conditions would most likely lead Matt to this conclusion?

A simple way to assess readability—the difficulty level of written materials—is to look at the words being used and at the length of sentences. In general, it is easiest to read short sentences and simple, standard words.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-06 Summarize how to implement a successful training program. Level of Difficulty: 3 Hard Topic: Principles of Learning

107.

Identify a guideline that helps increase the readability of training materials.

E. substitute written material for video, hands-on learning, or other nonwritten methods The basic approach is to rewrite the material looking for ways to simplify it. Ways to do this include substituting simple, concrete words for unfamiliar or abstract words; dividing long sentences into two or more short sentences; dividing long paragraphs into two or more short paragraphs; and adding checklists and illustrations to clarify the text.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-06 Summarize how to implement a successful training program. Level of Difficulty: 2 Medium Topic: Principles of Learning

108.

_____ requires that employees actually learn the content of the training program and that the necessary conditions are in place for employees to apply what they learned.

A. Behavior modeling B. Transfer of training

C. Simulation D. Virtual reality E. Action learning Transfer of training is the on-the-job use of knowledge, skills, and behaviors learned in training. Transfer of training requires that employees actually learn the content of the training program and that the necessary conditions are in place for employees to apply what they learned.

109.

To ensure transfer of training, an organization's training programs should prepare employees to self-manage their use of new skills and behaviors on the job. According to your text, Which of the following is NOT a way for trainee employees to manage their new skills and behaviors?

To ensure transfer of training, an organization's training programs should prepare employees to self-manage their use of new skills and behaviors on the job. To that end, the trainer should have trainees set goals for using skills or behaviors on the job, identify conditions under which they might fail to use the skills and behaviors, and identify the consequences (positive and negative) of using them. Employees should practice monitoring their use of the new skills and behaviors. The trainer should stress that learning to use new skills on the job is naturally difficult and will not necessarily proceed perfectly, but that employees should keep trying.

110.

The stage to prepare for evaluating a training program is

After a training program ends, or at intervals during an ongoing training program, organizations should ensure that the training is meeting objectives. The stage to prepare for evaluating a training program is when the program is being developed.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-07 Evaluate the success of a training program. Level of Difficulty: 2 Medium Topic: Evaluating Training Programs

111.

Information such as facts, techniques, and procedures that trainees can recall after training is an example of _____.

A. training outcomes

B. transfer of training C. return on investment on training D. training credits E. training improvements Assessment of training also should evaluate training outcomes, that is, what (if anything) has changed as a result of the training. Possible outcomes include information such as facts, techniques, and procedures that trainees can recall after the training.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-07 Evaluate the success of a training program. 7-123 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Evaluating Training Programs

112.

Which of the following is the most accurate way to evaluate a training program?

A. use only a pretest B. conduct pretests, train only part of the employees, then compare the trained employees to

the untrained C. conduct pretests and posttests on all untrained employees D. use only a posttest E. check trainees' performance, knowledge, and attitudes only after they have completed the training program The most accurate way to evaluate the training program is to measure performance, knowledge, or attitudes among all employees before the training and then train only part of the employees. After the training is complete, the performance, knowledge, or attitudes are again measured, and the trained group is compared with the untrained group.

113.

Stronx Consulting tests its salespeople on listening skills and then implements a training program to teach all of them to be better listeners. At the conclusion of the last training session, it conducts a posttest to measure listening skills again. Based on the results, the training manager reports that the training program increased listening skills by a significant amount. Which of the following statements represents the main weakness in the manager's conclusion?

A. The actual impact of the training can only be evaluated by comparing the performance of

employees who underwent training and those who did not. B. The posttest evaluated employees for the same levels of knowledge, skill, and competency as the pretest did. C. Posttests and pretests are very complex, and Stronx Consulting should have used a simpler form of evaluation. D. The duration of the training was three days, which is comparatively short when compared with the duration of many other training programs. E. The posttest was conducted immediately after the training program, which is too soon for accurate measurement of learning. The most accurate but most costly way to evaluate the training program is to measure performance, knowledge, or attitudes among all employees before the training and then train only part of the employees. After the training is complete, the performance, knowledge, or attitudes are again measured, and the trained group is compared with the untrained group.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-07 Evaluate the success of a training program. Level of Difficulty: 3 Hard Topic: Evaluating Training Programs

114.

According to your text, the simplest approach to evaluating training is to

A. use only a pretest. B. calculate the return on investment. C. conduct pretests and posttests on all trainees. D. use only a posttest.

E. compare pretest and posttest scores of the trained group with those of an untrained group. The simplest approach to evaluate training is to use only a posttest. This type of measurement does not enable accurate comparisons, but it may be sufficient, depending on the cost and purpose of the training.

115.

Which of the following forms of training prepares employees to perform their jobs effectively, learn about the organization, and establish work relationships?

A. orientation

B. benchmarking C. sensitivity training D. bumping E. conditioning Many employees receive their first training during their first days on the job. This training is the organization's orientation program—its training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. 7-126 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Employee Orientation

116.

Which of the following statements best expresses the reason why orientation programs for new employees are valuable to employers?

A. The federal government requires orientation for all new employees. B. Employees starting a new job need to become familiar with job tasks and learn the

organization's policies and procedures. C. New employees do not perform sufficient research on their employers before starting work. D. Employers generally fail to provide a realistic job profile during the selection process. E. An orientation program is a cost-effective substitute for training programs after an employee has begun work. Organizations provide for orientation because employees need to become familiar with job tasks and learn the details of the organization's practices, policies, and procedures.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 2 Medium Topic: Employee Orientation

117.

Level On, a firm that creates games for mobile devices and PCs, has an unusual training program for all its new employees. The program lasts for five days and does not involve doing any work. During this period the trainees, in teams of three, visit different departments, gathering information about the company and various department functions. Additionally, they are paired with more experienced employees to discuss their goals at the company and to learn more about the organization's culture and policies. The form of training used for new employees at Level On is known as _____.

A. onboarding

B. benchmarking C. sensitivity training D. diversity training E. conditioning Increasingly, employers have taken orientation to the next level with the process of onboarding. Onboarding aims to prepare new employees for full participation in the organization. It is a conscious attempt to get new employees to connect and identify with their employer by encouraging them to gather more information about the company, its history and culture, and its products or services. A comprehensive onboarding process prepares employees in four areas: complying with policies and rules, clarifying job requirements, understanding the organization's culture, and connecting with co-workers. To achieve these objectives, onboarding activities address social as well as task-related aspects of work.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 3 Hard Topic: Employee Orientation

118.

Identify the main purpose of diversity training programs that focus on attitudes.

the workforce Diversity training programs that focus on attitudes have objectives to increase participants' awareness of cultural and ethnic differences, as well as differences in personal characteristics and physical characteristics (such as disabilities).

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

119.

Which of the following is the main objective of diversity training programs that focus on behavior?

growth and productivity E. to make people aware of cultural differences and stereotypes Programs that focus on behavior aim at changing the organizational policies and individual behaviors that inhibit employees' personal growth and productivity.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

120.

Compared with other forms of diversity training, which approach do trainees tend to respond to most positively?

A. increasing participants' awareness of cultural and ethnic differences B. teaching employees skills for constructively handling communication barriers, conflicts, and

misunderstandings that normally arise C. discussing differences in personal and physical characteristics, such as disabilities D. identifying incidents that discourage people from working up to their full potential E. discussing promotion opportunities or management decisions that some employees believe were handled unfairly One approach to diversity training starts with the assumption that all individuals differ in various ways and teaches skills for constructively handling the communication barriers, conflicts, and misunderstandings that necessarily arise when different people try to work together. Trainees may be more positive about receiving this type of training than other kinds of diversity training.

121.

Identify the type of diversity training provided by some organizations that involves sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

A. community service B. acculturation C. cultural immersion

D. cultural health E. ethnology Some organizations provide diversity training in the form of cultural immersion, sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

122.

Windel Auto, an automobile manufacturer based in the United States, partners with a Japanese manufacturer, Telspar, to supply automobile parts. To ensure that its employees do not miscommunicate with its Japanese partner, Windel implements a training program in which managers study Japanese customs, language traits, and interpersonal traits, and then spend a few months working alongside Telspar managers in Japan. Which of the following forms of training has Windel Auto used in this scenario?

A. community service B. acculturation C. cultural immersion

D. virtual reality E. adventure learning Some organizations provide diversity training in the form of cultural immersion, sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 1 Easy Topic: Strengths and Weaknesses of Various Training Programs

Essay Questions

123.

What are the different stages of the instructional design process?

An instructional design process begins with an assessment of the needs for training—what the organization requires that its people learn. Next, the organization ensures that employees are ready for training in terms of their attitudes, motivation, basic skills, and work environment. The third step is to plan the training program, including the program's objectives, instructors, and methods. The organization then implements the program. Finally, evaluating the results of the training provides feedback for planning future training programs.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 07-01 Discuss how to link training programs to organizational needs. Level of Difficulty: 2 Medium Topic: Employee Training

124.

Discuss the three elements of a needs assessment process.

The needs assessment process involves three major elements: (1) organization analysis, (2) person analysis, and (3) task analysis. 1. Organization analysis: Usually, the needs assessment begins with the organization analysis. It involves determining the appropriateness of training by evaluating the characteristics of the organization. The organization analysis looks at training needs in light of the organization's strategy, resources available for training, and management's support for training activities. 2. Person analysis: The person analysis is a process for determining individuals' needs and readiness for training. It is critical when training is considered in response to a performance problem. 3. Task analysis: The task analysis is the process to identify the tasks, knowledge, skills, and behaviors that training should emphasize. It is usually conducted along with person analysis. Understanding shortcomings in performance usually requires knowledge about the employee as well as the tasks and work environment.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 07-02 Explain how to assess the need for training. Level of Difficulty: 2 Medium Topic: Employee Training

125.

What should managers do to support training?

Some of the ways in which managers can support training are: • Understand the content of the training. • Know how training relates to what you need employees to do. • In performance appraisals, evaluate employees on how they apply training to their jobs. • Support employees' use of training when they return to work. • Ensure that employees have the equipment and technology needed to use training. • Prior to training, discuss with employees how they plan to use training. • Recognize newly trained employees who use training content. • Give employees release time from their work to attend training. • Explain to employees why they have been asked to attend training. • Give employees feedback related to skills or behavior they are trying to develop. • If possible, be a trainer.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 07-03 Explain how to assess employees' readiness for training. Level of Difficulty: 2 Medium Topic: Employee Training

126.

What is a request for proposal? What is its importance?

An organization can provide an effective training program, even if it lacks expertise in training. To select a training service, an organization can mail several vendors a request for proposal (RFP). A request for proposal is a document outlining the type of service needed, the type and number of references needed, the number of employees to be trained, the date by which the training is to be completed, and the date by which proposals should be received. A complete RFP also indicates funding for the project and the process by which the organization will determine its level of satisfaction. Putting together a request for proposal is time consuming but worthwhile because it helps the organization to clarify its objectives, compare vendors, and measure results.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 07-04 Describe how to plan an effective training program. Level of Difficulty: 2 Medium Topic: Employee Training

127.

In the context of training, what is e-learning?

E-learning involves receiving training via the Internet or an organization's intranet, typically through some combination of web-based training modules, distance learning, and virtual classrooms. E-learning uses electronic networks for delivering and sharing information, and it offers tools and information for helping trainees improve performance. Training programs may include links to other online information resources and to trainees and experts for collaboration on problem solving. The e-learning system may also process enrollments, test and evaluate participants, and monitor progress. The best e-learning combines the advantages of the Internet with the principles of a good learning environment. It takes advantage of the web's dynamic nature and ability to use many positive learning features, including hyperlinks to other training sites and content, control by the trainee, and ability for trainees to collaborate.

Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

128.

Define apprenticeship. Explain the merits of apprenticeship.

An apprenticeship is a work-study training method that teaches job skills through a combination of structured on-the-job training (OJT) and classroom training. The OJT component of an apprenticeship involves the apprentice assisting a certified tradesperson at the work site. Typically, the classroom training is provided by local trade schools, high schools, and community colleges. Government requirements for an apprenticeship program vary by occupation. Some apprenticeship programs are sponsored by individual companies, others by employee unions. For trainees, a major advantage of apprenticeship is the ability to earn an income while learning a trade. It is usually effective because it involves hands-on learning and extensive practice.

AACSB: Technology Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

129.

What are experiential programs? Describe different types of experiential programs.

To develop teamwork and leadership skills, some organizations enroll their employees in a form of training called experiential programs. In experiential programs, participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations. One form of experiential program, called adventure learning, uses challenging, structured outdoor activities, which may include difficult sports such as dog sledding or mountain climbing. Other activities may be structured tasks like climbing walls, completing rope courses, climbing ladders, or making "trust falls" (in which each trainee stands on a table and falls backward into the arms of other group members).

Blooms: Understand Learning Objective: 07-05 Compare widely used training methods. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

130.

What are some of the effective ways of implementing a training program?

In general, effective training communicates learning objectives clearly, presents information in distinctive and memorable ways, and helps trainees link the subject matter to their jobs. Employees are most likely to learn when training is linked to their current job experiences and tasks. Training sessions should present material using familiar concepts, terms, and examples. As far as possible, the training context—such as the physical setting or the images presented on a computer—should mirror the work environment. Along with physical elements, the context should include emotional elements. Trainers should provide ways to actively involve the trainees, have them practice repeatedly, and have them complete tasks within a time that is appropriate in light of the learning objectives. Practice requires physically carrying out the desired behaviors, not just describing them. Trainees need to understand whether or not they are succeeding. Therefore, training sessions should offer feedback. Effective feedback focuses on specific behaviors and is delivered as soon as possible after the trainees practice or demonstrate what they have learned. Well-designed training helps people remember the content. Training programs need to break information into chunks that people can remember. If a concept or procedure involves more than five items, the training program should deliver information in shorter sessions or chunks.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 07-06 Summarize how to implement a successful training program. Level of Difficulty: 2 Medium Topic: Principles of Learning

131.

Identify three approaches of evaluating the success of a training program.

Depending on the objectives, the evaluation can use one or more of five training measures: trainee satisfaction with the program, knowledge or abilities gained, use of new skills and behavior on the job (transfer of training), and improvements in individual and organizational performance. The usual way to measure whether participants have acquired information is to administer tests on paper or electronically. Trainers or supervisors can observe whether participants demonstrate the desired skills and behaviors. Surveys measure changes in attitude. Changes in company performance have a variety of measures in order to demonstrate the final measure of success shown: return on investment. To measure whether the conditions are in place for transfer of training, the organization can ask employees three questions about specific training-related tasks: (1) do you perform the task?; (2) how many times do you perform the task?; (3) to what extent do you perform difficult and challenging learned tasks? Frequent performance of difficult training-related tasks would signal great opportunity to perform. If there is low opportunity to perform, the organization should conduct further needs assessment and reevaluate readiness to learn. Lack of transfer can mean that employees have not learned the course material. Another reason for poor transfer of training is that the content of the training may not be important for the employee's job. Assessment of training also should evaluate training outcomes, that is, what (if anything) has changed as a result of the training. The relevant training outcomes are the ones related to the organization's goals for the training and its overall performance. Training is a significant part of many organizations' budgets. Therefore, economic measures are an important way to evaluate the success of a training program. Businesses that invest in training want to achieve a high return on investment —the monetary benefits of the investment compared to the amount invested, expressed as a percentage. The most costly way to evaluate the training program is to measure performance, knowledge, or attitudes among all employees before the training and then train only part of the employees. After the training is complete, the performance, knowledge, or attitudes are again measured, and the trained group is compared with the untrained group. A simpler but less accurate way to assess the training is to conduct the pretest and posttest on all trainees, comparing their performance, knowledge, or attitudes before and after the training. This form of measurement does not rule out the possibility that change resulted from something other than training. 7-140 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

The simplest approach is to use only a posttest. Use of only a posttest can show if trainees have reached a specified level of competency, knowledge, or skill. Of course, this type of measurement does not enable accurate comparisons, but it may be sufficient, depending on the cost and purpose of the training.

AACSB: Analytical Thinking Blooms: Apply Learning Objective: 07-07 Evaluate the success of a training program. Level of Difficulty: 3 Hard Topic: Evaluating Training Programs

132.

Discuss the different approaches to diversity training.

Approaches to diversity training include: (1) attitude awareness and change, (2) behavior change, and (3) cultural immersion. Programs that focus on attitudes have objectives to increase participants' awareness of cultural and ethnic differences as well as differences in personal characteristics and physical characteristics (such as disabilities). These programs are based on the assumption that people who become aware of differences and their stereotypes about those differences will be able to avoid letting stereotypes influence their interactions with people. Programs that focus on behavior aim to change the organizational policies and individual behaviors that inhibit employees' personal growth and productivity. Sometimes these programs identify incidents that discourage employees from working up to their potential. Another approach starts with the assumption that all individuals differ in various ways and teaches skills for constructively handling the communication barriers, conflicts, and misunderstandings that necessarily arise when different people try to work together. Trainees may be more positive about receiving this type of training than other kinds of diversity training. Finally, some organizations provide diversity training in the form of cultural immersion, sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities. Participants might talk with community members, work in community organizations, or learn about events that are significant to the community they visit.

AACSB: Diversity Blooms: Understand Learning Objective: 07-08 Describe training methods for employee orientation and onboarding and for diversity management. Level of Difficulty: 2 Medium Topic: Strengths and Weaknesses of Various Training Programs

Chapter 08 Developing Employees for Future Success

True / False Questions

1. Development implies learning that is not necessarily related to an employee's current job. True

False

2. A protean career is one that remains constant despite the changes in a person's interests, abilities, and values and in the work environment. True

False

3. The approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships. True

False

4. Themost frequent uses of assessment are to identify employees with managerial potential to measure current managers' strengths and weaknesses. True

False

5. According to the Myers-Briggs Type Indicator, individuals with a Feeling (F) preference try always to be objective in making decisions, whereas individuals with a Thinking (T) preference are more subjective. True

False

6. Research on the validity, reliability, and effectiveness of the Myers-Briggs Type Indicator is inconclusive. True

False

7. The Myers-Briggs Type Indicator is an assessment tool for behavioral styles based on the works of the psychologist William Marston. True

False

8. Assessment centers are primarily used to identify employees' technical skills. True

False

9. Research suggests that assessment center ratings are valid for predicting performance, salary level, and career advancement. True

False

10. A performance appraisal process must identify causes of an employee's performance discrepancy and develop plans for improving their performance. True

False

11. Most employee development occurs through formal education programs. True

False

12. An organization can use downward moves as a source of job experience. True

False

13. Job rotation increases employees' understanding of different company functions. True

False

14. Relocation is the most common way to use downward moves for employee development. True

False

15. Employees on sabbatical generally do not receive their salary or benefits. True

False

16. Mentoring programs tend to be very successful when they are compulsory. True

False

17. Coaches are peers or managers who work with other employees to motivate them, help them develop their skills, and provide them with reinforcement and feedback. True

False

18. Basic career management systems involve the four sequential steps of recruiting, relocation, reality check, and action planning. True

False

19. In a self-assessment, an organization's responsibility is to identify opportunities and areas that need improvement. True

False

20. In goal setting for career management, the employee is responsible for identifying the goal and the method of determining his or her progress toward that goal. True

False

21. Action planning often involves the preparation of a career development plan. True

False

22. Women and minorities often have difficulty finding mentors. True

False

23. Succession planning focuses on high-potential employees. True

False

24. The development of high-potential employees is a usually a very swift process. True

False

25. Research suggests that managers who participate in programs like Individual Coaching for Effectiveness (ICE) improve their skills and are less likely to be terminated. True

False

Multiple Choice Questions

26. Managers provide for _____, a combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

A. emotional development B. training programs C. employee development D. counseling sessions E. feedback

27. _____ increases an employee's ability to move into jobs that may not yet exist.

A. Development B. Qualification C. Physical appearance D. Personal background E. Ethnic culture 28. Which of the following is true of the relationship between training and development?

A. Training is future oriented, while development is focused on one's experiences in the past. B. Training prepares employees for management careers, while development is for learning entry-level skills. C. Participation in training is voluntary, but most organizations require participation in development activities. D. The goal of training is preparation for the current job, while the goal of development is preparation for future job opportunities. E. Training is often an ongoing process, while development tends to be a short-term process. 29. A(n) _____ is a career that frequently changes based on changes in a person's interests, abilities, and values and in the work environment.

A. prescribed career B. stable career C. flexible career D. established career E. protean career

30. Protean careers require that employees

A. look for organizations to provide job security. B. take responsibility for managing their own careers. C. be specialized at repetitive tasks. D. look for organizations to provide a career ladder so they can climb to higher positions. E. focus on holding on to their jobs to avoid being laid off. 31. Identify the correct statement regarding protean careers.

A. Employees in protean careers look for organizations to provide job security. B. Employees in protean careers take lesser responsibility for managing protean careers than for traditional careers. C. A protean career is one that does not change frequently. D. Employees in protean careers look for organizations to provide development opportunities based on the modern psychological contract. E. Protean careers are characterized by frequent changes due to changes in a person's desired level of compensation. 32. _____ helps employees select development activities that prepare them to meet their career goals.

A. Career path B. Training C. Policy analysis D. Job sharing E. Career management

33. The four general approaches that companies use for employee development include

A. formal education, assessment, job experiences, and interpersonal relationships. B. job rotation, promotion, transfer, and job sharing. C. psychological tests, assessment centers, the Myers-Briggs Type Indicator, and performance feedback. D. business games, formal courses, team building, and assessment. E. total quality management, Six Sigma, lean manufacturing, and quality function deployment. 34. Which of the following is true of formal education as an approach to employee development?

A. Organizations organize formal educational programs at the workplace or off-site to support employee development. B. Formal education includes organization-specific workshops that are open to outsiders as well as employees. C. As a prerequisite to formal education, trainees must enroll in various courses offered by an organization. D. Formal education includes presentations sent out by an organization, which enlist the ethics and policies educating employees from time to time. E. In an organization, formal education involves collating data pertaining to the development of projects.

35. Thompson Design, a popular furniture manufacturer, provides employee support through various workshops on interior design techniques. It also offers three-month courses on various aspects of decorating a home, from suitable paint for a media room to contemporary outdoor furnishings. This adds to employees' existing knowledge and skill sets, helping create customer satisfaction. In this scenario, which of the following approaches to employee development is Thompson Design taking?

A. assessment B. formal education C. job experiences D. interpersonal relationships E. counseling 36. Ricardo, the vice president of Salt Crumbs, is reviewing the development program for the company's middle managers. He notes that management development includes psychological profiles and mentors, as well as lateral moves to positions that give managers a broader view of the company. Ricardo would like to add a component of formal education. Which of the following options could be included in this new component?

A. on-the-job training in the basics of managers' current jobs B. opportunities to sign up for sessions with a life coach C. a program of externships at local charities D. workshops involving business games and simulations E. 360-degree feedback

37. A sales firm regularly enrolls some of its employees in a six-month marketing course with a leading university. At the end of the course, the employees are able to perform better in the organization. Which of the following methods of employee development has the firm used?

A. externship B. formal education C. assessment D. interpersonal relationships E. personality test 38. The process of collecting information and providing feedback to employees about their behavior, communication style, or skills is known as _____.

A. requirements analysis B. data mining C. assessment D. counseling E. quality check 39. For assessment to work efficiently, an employee must be

A. provided suggestions to improve his or her weak skills. B. evaluated discreetly so the employee does not pretend to be a model employee. C. present on the day the assessment occurs so that results of the feedback will be accurate. D. employed at the organization for at least a year. E. informed that an appraisal can take place at any time during the year.

40. The Myers-Briggs Type Indicator (MBTI) identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and _____.

A. succession planning B. self-assessment C. lifestyle D. value system E. goal setting 41. The energy dichotomy of the Myers-Briggs Type Indicator indicates _____.

A. the preparations individuals make before making decisions B. the amount of consideration individuals give to their own and others' values and feelings C. individuals' degree of introversion or extroversion D. the hard facts of a situation E. individuals' tendency to be either flexible or structured 42. According to the Myers-Briggs Type Indicator, how do Introverted types (I) gain energy?

A. by focusing on inner thoughts B. by focusing on interpersonal relationships C. by gathering facts and details D. by focusing less on facts and more on possibilities E. by trying to be objective in making decisions

43. According to the Myers-Briggs Type Indicator, Extroverted types (E) gain energy through

A. interpersonal relationships. B. personal thoughts. C. facts and details. D. establishing goals. E. inner feelings. 44. According to the Myers-Briggs Type Indicator, what is true of individuals with a Sensing (S) preference?

A. They enjoy surprises. B. They tend to rush into decision making. C. They tend to focus less on facts and more on possibilities and relationships among them. D. They focus on interpersonal relationships. E. They tend to gather the facts and details to prepare for a decision. 45. The decision-making dimension of the Myers-Briggs Type Indicator relates to the

A. steps or actions individuals take when making decisions. B. amount of consideration given to others' feelings when making a decision. C. individuals' tendency to be flexible and adaptable. D. confidence and speed with which decisions are reached. E. individuals' interpersonal strength and vitality.

46. According to the lifestyle dichotomy of the Myers-Briggs Type Indicator, individuals with a _____ preference enjoy surprises and dislike deadlines.

A. Judging (J) B. Perceiving (P) C. Thinking (T) D. Feeling (F) E. Sensing (S) 47. According to the Myers-Briggs Type Indicator, individuals with a Perceiving (P) preference

A. are decisive and focused on goals. B. are comfortable with changing a decision. C. like deadlines. D. focus more on possibilities and relationships among facts. E. do not like surprises. 48. Hannah Barboza Inc., a publishing company, administered the Myers-Briggs Type Indicator (MBTI) assessment to its editorial team and learned that some individuals are drawn toward gathering the facts and details needed for decision making, while others focus more on noticing relations among the facts. Some of the employees enjoy learning this about themselves, but the human resource specialist who administered the assessment cautions them not to use the results to limit their understanding of what they can do. Which of the following statements best explains the need for caution in applying the results of this assessment?

A. MBTI scores are mainly useful for measuring job performance. B. MBTI scores are not necessarily valid and reliable. C. MBTI scores should be used for evaluating promotion potential. D. MBTI scores are extremely stable over time. E. The scores show that some individuals are more flexible in their thinking than others.

49. Identify the correct statement regarding the Myers-Briggs Type Indicator (MBTI).

A. It is an appropriate tool for measuring job performance. B. People who take the MBTI generally do not find it to be an enjoyable experience. C. MBTI scores are stable over time. D. The MBTI is a valuable tool for understanding communication styles. E. Research has concluded that the MBTI is highly valid, reliable, and effective. 50. Which of the following categories in the DiSC inventory means that a person emphasizes relationships and also displays optimism?

A. conscientiousness B. steadiness C. influence D. dominance E. initiative 51. Schram Enterprises, a software company, conducts Inscape's DiSC inventory assessment to evaluate its employees. The assessment reveals that there are very few employees who are calm, supportive of others, and works far ahead of any deadlines. Which of the following DiSC categories applies to the employees described in the scenario?

A. influence B. conscientiousness C. steadiness D. dominance E. intelligence

52. Chang works at a leading restaurant. She is usually scared of making any mistakes at her workplace, so she is very keen on paying attention to details. She also prioritizes quality in her work. In the context of Inscape's DiSC assessment, she would most likely score high in _____.

A. steadiness B. dominance C. conscientiousness D. humility E. influence 53. An off-site location in which multiple raters or evaluators evaluate employees' performance on a number of exercises is known as a(n) _____.

A. development center B. feedback center C. control center D. assessment center E. counseling center 54. Which of the following statements is true about an assessment center?

A. An assessment center is a meeting room where a team of seven to ten employees is assigned a problem and must work together to solve it within a certain time period. B. At an assessment center, multiple raters or evaluators evaluate employees' performance on a number of exercises. C. It is an office that looks into the process of collecting information and providing feedback to employees about their behavior, communication style, or skills. D. At an assessment center, senior managers hold a test that identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle. E. It refers to an on-site location where the corporate leaders design a tool that gathers the ratings of a manager's use of the skills associated with success in managing.

55. The primary use of assessment centers is to identify

A. the employees who have the personality characteristics and skills needed for managerial positions. B. the strengths and weaknesses of an organization. C. the decision processes and communication styles that inhibit production. D. the opportunities and threats to an organization. E. the factors that inhibit group performance. 56. Brenda, the vice president of human resources at FSE Inc., meets with the executive committee to discuss planning for future job openings at the vice president level. Brenda advises the committee that sending some high-potential employees to an assessment center would be beneficial, although a full-day assessment could cost $20,000. Which of the following statements supports Brenda's recommendation?

A. Brenda's personal bias disqualifies her from selecting future candidates. B. An assessment center works with employees one-on-one at the work site as a way to fully assess an employee's potential. C. An assessment center would eliminate the need for personality tests. D. Assessment centers primarily identify whether employees have the functional skills they need to carry out their jobs. E. High assessment center ratings are associated with career success. 57. Which of the following assessment center exercises is being used when a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period?

A. interview session B. leaderless group discussion C. role playing D. in-basket exercise E. personality test

58. Myrtle Flower Company, sends its management trainees to an assessment center. There, the employees are assigned to small groups and given a problem to solve within an allotted time frame. The team members have to work together in tackling problems that they might face in a management position, without a source to whom they can refer any questions. What is the correct term for this type of development exercise?

A. psychological profiling B. 360-degree feedback C. leaderless group discussion D. in-basket exercise E. time-bound discussion 59. Which of the following is true of in-basket exercises?

A. They require teams of five to seven employees to work together to solve assigned problems within a certain time period. B. They are paper-and-pencil tests designed to measure participants' communication styles and skills. C. They simulate the administrative tasks of a manager's job, using a pile of documents for the employee to handle. D. They require participants to take the part of a manager or employee in a situation involving the skills to be assessed. E. They require the use of interest and aptitude tests to evaluate an employee's vocabulary, general mental ability, and reasoning skills.

60. In _____, a participant takes the part of a manager or employee in a situation involving the skills to be assessed.

A. personality tests B. group discussions C. interview sessions D. role-plays E. leaderless group discussions 61. An employee's tolerance for uncertainty and the ability to get along with others are assessed in _____.

A. leaderless group discussions B. in-basket exercises C. personality tests D. role plays E. interviews 62. In assessment centers, typically, each assessor observes and records _____ employees' behaviors in each exercise.

A. six or seven B. four or five C. eight or nine D. one or two E. ten or eleven

63. Which of the following statements is true about the 360-degree feedback process?

A. it involves rating an individual in terms of work-related behaviors B. it collects a single perspective of a manager's performance C. it breaks down formal communications about behaviors and skill ratings between employees and their internal and external customers D. it gives results that can be easily interpreted by anyone E. it demands very little time from the raters to complete the evaluations 64. How does 360-degree feedback help organizations?

A. Managers are able to identify subordinates who provide negative feedback. B. Delivering ratings to a manager provides a simple way for the manager to act on the feedback. C. Performance improves and behavior changes as a result of participation. D. The feedback demands very little time, so the raters can focus on other tasks. E. Managers can easily interpret the results themselves and take necessary action. 65. The combination of relationships, problems, demands, tasks, and other features of an employee's jobs is referred to as _____.

A. job appraisals B. job experiences C. formal education D. technical training E. interpersonal relationships

66. Using job experiences for development assumes that

A. development occurs most often when jobs are structured to eliminate challenges. B. development occurs only through promotions. C. development is most likely to occur when the work involves high levels of negative stress. D. development is most likely when an employee's skills do not fully match the skills required. E. development is most likely when an employee already knows how to perform the job. 67. Which of the following is true of job enlargement?

A. It is a systematic approach to help an organization modify its core processes to achieve more efficient results. B. It aims at greater productivity through reduced application of mental and physical effort. C. It attempts to motivate employees by giving them the opportunity to use specific skill sets. D. It involves moving employees through a series of job assignments in one or more functional areas. E. It involves adding challenges or new responsibilities to employees' current jobs. 68. Which of the following statements is true of job enlargement?

A. It creates a type of role ambiguity because an employee is not sure how to handle improvements. B. It allows employers more scope in recruiting more employees. C. It assigns an employee to a position in a different area of a company. D. It creates an opportunity for employees to develop new skills. E. It moves employees through a series of job assignments in one or more functional areas.

69. Job rotation involves

A. adding challenges or new responsibilities to an employee's current job. B. moving an employee through a series of job assignments in one or more functional areas of the company. C. allowing an employee to work full-time in a temporary position at another company. D. allowing an employee to switch between two different jobs within the company on a daily or weekly basis. E. assigning an employee to a position with less responsibility and authority. 70. Zenita was a creative writer at The Machner Group before her editor asked her to try out her skills at photography in the company's visuals department. After completing a short course on photography, Zenita joined the visuals department. Which of the following methods of job design did Zenita experience?

A. job experience B. job enlargement C. job rotation D. job reduction E. job revolution 71. Which of the following is a potential problem of job rotation?

A. Employees typically develop a short-term perspective on their problems and solutions. B. Employees generally earn less. C. Promotions usually take longer. D. Employees typically develop specialized skills but fail to use them due to quick rotations. E. Job rotation decreases employees' understanding of different company functions.

72. Which of the following conditions will most likely ensure a job rotation will succeed?

A. the organization is unclear about its job rotation policies B. top management is indifferent to the program's success C. goals for the program support personal goals and desires D. employees and their managers agree on which skills are to be developed E. the rotation schedule occurs every few months, ensuring employees develop strong on-the-job learning skills 73. Most companies use _____ moves as an option for employee development.

A. small upward B. vertical and horizontal C. left, right, and sideways D. occasional horizontal E. upward, downward, and lateral 74. Which of the following is true about a transfer?

A. It typically involves a full-time temporary position at another organization. B. A transfer fundamentally increases job responsibilities. C. A transfer essentially increases compensation. D. It occurs when an employee is given less responsibility and authority. E. It is an assignment of an employee to a position in a different area of the company, usually in a lateral move.

75. A move to a job with a similar level of responsibility within the same organization is called a(n)

A. externship. B. promotion. C. downward move. D. upward move. E. lateral move. 76. An organization may demote an employee to a lower-level position

A. to provide greater challenges to him or her. B. so that the employee can learn different skills. C. to increase the employee's visibility. D. so that the employee can get more authority. E. to give the employee more responsibility. 77. Hollander McKenzie, an employee of Baha Enterprises, is having trouble in his current job. His manager's constant feedback is that he does not maintain consistency in his work. In a meeting with Hollander's manager, the HR team decides to shift him to a department that would not require as much skill as his current position requires. In this scenario, which of the following approaches to employee development is Hollander experiencing?

A. a promotion B. a downward move C. a transfer D. a sabbatical E. a job enlargement

78. A(n) _____ involves moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job.

A. appraisal B. demotion C. promotion D. transfer E. externship 79. Management at an IT firm is thinking of promoting Barbara, a customer service representative, to the position of senior customer relationship manager. Which of the following, if true, would make the promotion less likely?

A. A promotion would reduce Barbara's feelings of accomplishment. B. Barbara wants to improve her pay and status at work. C. Barbara shows that she can handle greater responsibility. D. Slow growth has limited the opportunities available in the company. E. The company would have to provide information about the new position. 80. Allowing employees to take a full-time temporary position at another company is known as a(n)

A. transfer. B. expatriate assignment. C. sabbatical. D. externship. E. lateral move.

81. Kim Riaz is a technical analyst at WaterDrop Inc. and has consistently impressed her managers with her ability to perform outstandingly in all projects assigned to her. Her manager, Carl, understands that she is really good at her job, but also recognizes that she might experience burnout because of the repetitive nature of the job. He talks to her about developing other possible skills by working full time for a short period at a different company. In this scenario, which of the following approaches to employee development is Carl encouraging?

A. externship B. transfer C. promotion D. job rotation E. job transfer 82. Marika is a senior journalist at a news agency. She goes on a temporary leave for six months and travels around different parts of South Asia during her leave. She records her travel experiences in a book and shares it with her colleagues upon her return. During her leave, she was also being paid by the organization. This is an example of a(n) _____.

A. transfer B. expatriate assignment C. sabbatical D. externship E. downward move

83. Providing employees with the opportunity to get away from the day-to-day stresses of their job and acquire new skills and perspectives is known as a(n) _____.

A. transfer B. expatriate assignment C. sabbatical D. externship E. downward move 84. Sean, a senior editor at News CRB, asks Kiara, the editor-in-chief, for a sabbatical. Which of the following statements best explains why News CRB would pay Sean during the sabbatical, if Kiara approves it?

A. Sean will use the time to try his hand at acquiring skills in various other departments. B. While Sean is away, Kiara can promote another senior editor on the team. C. During the sabbatical, Sean can develop new skills and refresh his existing ones. D. Sean's salary cannot be matched by any other company in the local area. E. During the sabbatical, Sean will have more time to spend with family members. 85. Doug was part of a formal mentoring program and was mentored by Amelia. The mentoring sessions were conducted over a period of six weeks to improve Doug's communications and interpersonal skills in the workplace. The sessions, however, were unsuccessful. Which of the following, if true, would most likely have caused the failure of the mentoring sessions?

A. Doug failed to treat the mentoring sessions as therapy. B. Doug and Amelia did not have an informal relationship before the formal mentoring program began. C. Amelia is a senior employee and has more experience than Doug. D. Doug's participation was involuntary, and he had little understanding of the details of the program. E. Doug is a new employee, whereas Amelia has been working with the firm for many years.

86. Which of the following is true of mentoring?

A. Mentoring is the best substitute for therapy. B. Most mentoring relationships develop formally as a result of interests or values officially discussed by a mentor and a protégé. C. Employees most likely to seek a mentor are emotionally unstable and have a low need for power and achievement. D. Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program. E. Informal mentoring programs ensure access to mentors for all employees, regardless of gender or race. 87. Which of the following is a characteristic of a successful formal mentoring program?

A. mentor and protégé participation is mandatory B. managers are rewarded for employee development C. mentors are chosen on a random basis D. mentors become therapists for their protégés E. mentor-protégé relationships are artificially created 88. Jillian, a human resource executive, is setting up a mentoring program at her company. Which of the following actions will best help the program succeed?

A. making sure the performance management system rewards managers for employee development B. selecting mentors based on their interpersonal rather than technical skills C. setting up the mentoring as a mandatory program for both mentors and mentees D. giving mentors realistic expectations by explaining that the protégés will benefit, not the mentors E. defining the mentor's role broadly, to help with personal problems as well as business-related skills

89. Charles is a successful senior employee at Groo Technology. He has five years of experience in the company and is well recognized for his contributions. The vice president of human resources tells Charles about Nina, an employee Groo hired for her keen intelligence. According to the vice president, Nina is struggling to make an impact because she does not speak up assertively or understand who to talk to when she has questions. The vice president asks Charles to serve as a mentor to Nina. What would this role involve doing?

A. promoting Nina to better jobs and giving her raises B. assigning several protégés to help Nina C. developing Nina through coaching, sponsorship, and challenging assignments D. implementing a formal mentoring program E. administering 360-degree feedback 90. Acting as a mentor gives managers

A. career support and sponsorship. B. increased visibility among the organization's managers. C. a chance to talk about their worries. D. a chance to develop their interpersonal skills. E. a greater opportunity to be promoted. 91. A peer or manager who works closely with employees to motivate them, help them develop their skills, and provide reinforcement and feedback is known as a

A. protégé. B. coach. C. moderator. D. high-potential employee. E. facilitator.

92. Mindy, a manager at Savannah Grasse, observes that Mark is a slow learner and has not been able to grasp the nuances of his job responsibilities. She sees potential in Mark and decides to coach him. In this scenario, what role of a coach will Mindy be performing?

A. making sure Mark only obtains feedback from her B. helping Mark accept the limits of mentoring relationships C. helping Mark learn on his own by providing problems and withholding solutions D. working one-on-one with Mark to teach him the necessary skills he needs E. encouraging Mark to take a sabbatical 93. Charlie, the accounting manager of MindChannel Inc., agreed to work with a coach. He chose this in order to become more of a team player, which would in turn lead him to being considered for a larger role in management. After two months, however, he complained to the human resource manager that the process is time-consuming and he has not seen any positive results. Which of the following responses to Charlie's complaint would best reflect how coaching can contribute to employee development?

A. A coach generally starts by asking challenging questions, so the coach should be replaced. B. Results should show up after several weeks—so Charlie must not be practicing. C. Getting results can take several months—and the employee has to keep practicing. D. The coach should have defined Charlie's goals and motives more specifically. E. The coach should meet with Charlie every six months until he improves. 94. Which of the following is a component of a basic career management system?

A. sabbatical B. goal setting C. externship D. team building E. workplace ethics

95. Which of the following activities is most appropriate for the first step of the career management process?

A. self-assessment B. goal setting C. reality checking D. identifying the steps and timetable to reach a goal E. specifying the competencies to be developed 96. Wrap Foods, a leading brand in microwavable food items, prides itself on helping its employees with their career paths. The employees are highly efficient and are motivated to define areas of weakness in their job performances and work to eliminate them. The employees take various tests to help them assess their career interests and behavioral tendencies, thus helping them work on becoming successful. In this scenario, which of the following systems for career management is being employed at Wrap Foods?

A. feedback B. self-assessment C. self-discipline D. goal setting E. action plan 97. What is an employee's responsibility in the data-gathering stage of career management?

A. to identify opportunities and areas needing improvement B. to communicate performance evaluations C. to identify steps and a timetable to reach goals D. to provide assessment information to identify strengths, weaknesses, interests, and values E. to ensure that goals are specific, challenging, and attainable

98. The _____ is a self-assessment tool that helps employees identify their occupational and job interests.

A. Myers-Briggs Type Indicator B. Self-Directed Search C. leaderless group discussion D. Occupational Outlook Handbook E. Strong-Campbell Interest Inventory 99. Which of the following helps identify employees' preferences for working in different types of environments, such as sales and counseling?

A. Myers-Briggs Type Indicator B. Self-Directed Search C. leaderless group discussion D. Occupational Outlook Handbook E. Strong-Campbell Interest Inventory 100.The step in the career management process in which psychological tests, such as the MyersBriggs Type Indicator and the Strong-Campbell Interest Inventory, are used is

A. follow-up. B. reality check. C. goal setting. D. action planning. E. data gathering.

101.The step in the career management process in which employees receive information about their skills and knowledge and where these assets fit into the organization's plans is called

A. self-assessment. B. feedback. C. goal setting. D. action planning. E. data gathering. 102.Marcus, a manager at Royal Memphis Hotel, is training a new group of employees. After each training session, the employees complete various exercises to test their knowledge. After evaluating the results, Marcus speaks one-on-one with the employees to help them define their areas of weakness and encourage them to keep fine-tuning their strengths. In this scenario, Marcus is providing his employees with _____.

A. counseling B. feedback C. goals D. self-assessment E. self-appraisal

103.Employees at Akesson Inc. are frustrated with their manager, Ryan, who does not believe in providing feedback because he thinks it's a waste of time. His employees argue that they do not know how to hone their skills if they are not told what areas they should work on and what areas are satisfactory. Which of the following statements would strengthen the employees' arguments?

A. Ryan only hires employees who have the potential to follow through on his high expectations. B. Feedback is not an effective mechanism because employees can choose to reject the constructive information. C. Evaluating each employee is a herculean task that would require a lot of time and effort. D. Employees who receive feedback gain more clarity on their roles and how they fit within an organization. E. Employees ought to evaluate themselves because self-assessment is the best type of feedback. 104.In the feedback step of the career management process, the employee is primarily responsible for

A. ensuring that his or her goal is specific, challenging, and attainable. B. identifying the company's resources needed to reach goals. C. identifying what skills he or she could realistically develop in light of the opportunities available. D. identifying resources he or she needs, including courses, work experiences, and relationships. E. identifying his or her strengths, weaknesses, interests, and values.

105.BottleCap Creations offers its employees a career management program in which they can take a variety of self-assessments. When employees complete these self-assessments, what is the organization's responsibility in the next stage of the career management process?

A. setting short- and long-range career goals for the employee, in light of the reality check B. identifying the steps and timetable for reaching the goals in the employee's action plan C. identifying opportunities and personal areas needing improvement D. communicating to the employee what skills he or she could realistically develop in light of the opportunities available E. communicating to the employee the results of the performance evaluation and any development opportunities available 106.Usually an employer conducts the reality check as part of a performance appraisal or as the _____ stage of performance management.

A. self-assessment B. action planning C. goal setting D. data gathering E. feedback 107.Christopher, an employee, understands that he has great potential after taking a self-assessment test at his company. He decides to create a checklist of short-term objectives to achieve to help him hone his skills. In this scenario, Christopher is employing _____ as a mechanism of career management.

A. feedback B. self-assessment C. goal setting D. assessment E. appraisal

108.What is the organization's responsibility in the goal-setting stage of the career management process?

A. to identify what skills can be developed realistically B. to identify goals and methods to determine goal progress C. to identify steps and a timetable to reach goals D. to ensure that the goal is specific, challenging, and attainable E. to communicate performance evaluation and opportunities available to an employee 109.The final step in the career management process is

A. self-assessment. B. reality check. C. goal setting. D. action planning and follow-up. E. feedback. 110.During the action planning and follow-up step of the career management process, the employer

A. has the responsibility of communicating the performance evaluation. B. should identify opportunities and personal areas needing improvement. C. should ensure that the goal is specific. D. is responsible for identifying the steps and timetable to reach the goals. E. should identify the resources needed.

111.Martha Wong has been through a series of self-assessments and has received constant feedback. She has listed her goals for the future and thought of various ways in which she can accomplish them. The act of determining the various methods to accomplish Martha's goals is an example of _____.

A. empowerment B. determination C. training D. an action plan E. a career restructure 112.Circumstances that resemble an invisible barrier that keep most women and minorities from attaining the top jobs in organizations are referred to as the

A. revolving door. B. fixed wall. C. glass ceiling. D. closed door. E. glass escalator. 113.Michelle, an employee at Matthews Inc., finds it difficult to attain a promotion even after working for seven years at the firm. She believes that she is not being promoted because she is a woman. In this scenario, Michelle's progress in the organization is restricted by a _____.

A. downward move B. nickel fence C. job reduction D. job rotation E. glass ceiling

114.The glass ceiling is likely caused by

A. a lack of access to developmental relationships. B. the presence of a diverse workforce. C. the presence of too many mentors for female employees. D. the presence of women with technical skills. E. providing challenging job assignments to high-potential employees. 115.Michael, a newly appointed human resource manager at Zeta Inc., learns that several female managers have complained that the company has a "glass ceiling." Indeed, the top positions are all filled by men, but Michael isn't sure whether the pattern is just a coincidence. He agrees to investigate. Which of the following conditions, if it exists, would be evidence of a glass ceiling at Zeta?

A. Patterns of promotion are the same for women and men at Zeta. B. Zeta has a formal process for identifying developmental needs. C. Managers making developmental assignments consider whether stereotypes are influencing assignments. D. Zeta has no formal mentoring program to ensure that the female managers have mentors. E. Zeta is preparing for the retirement of its leaders. 116._____ is the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant.

A. Acculturation B. Leaderless group discussion C. Benchmarking D. Data gathering E. Succession planning

117.A pharmaceutical company, TechnoGene, has initiated a system where high-potential employees are identified and trained for senior positions in the company. Which of the following processes is exemplified in this scenario?

A. succession planning B. self-assessment C. feedback D. handing over formalities E. goal setting 118.Ruben, a human resource executive for Alpha2Omega Equipment, is preparing a recommendation to the company's executives that the company develop a program of succession planning. The company has been growing rapidly, so he anticipates some resistance to the time required for careful planning. Which statement would best support Ruben's idea for succession planning?

A. Succession planning forces Alpha2Omega's managers to conduct performance appraisals of all employees. B. Succession planning enables Alpha2Omega to promote managers whether or not they are ready. C. Succession planning ensures that Alpha2Omega is ready with candidates if a key position becomes vacant. D. Succession planning will be needed only temporarily, because the workforce has been aging. E. Alpha2Omega is able to grow in spite of having fewer middle managers than it did 30 years ago.

119.Identify the correct statement about succession planning.

A. it ensures that middle management systematically reviews leadership talent in the company B. it provides a set of developmental experiences that managers must complete to be considered for top management positions C. all companies have a succession plan ready when they need one D. it identifies a specific replacement for each managerial position within a company E. it focuses on low-potential and medium-potential employees 120.In the case of succession planning, job assignments for high-potential employees are based on

A. the personal preferences of these employees. B. the immediate needs of an organization. C. the willingness of departments to accommodate these employees. D. the successful career paths of the managers whom these employees are preparing to replace. E. the availability of special assignments such as serving on committees and task forces. 121.The first step in the process of developing a succession plan is

A. reviewing the existing talent. B. linking succession planning with other human resource systems. C. identifying the positions to be planned for. D. establishing position requirements. E. deciding how to measure employees' potential for being able to fill requirements.

122.The employees at Melly Towers acknowledge that their supervisor is excellent at his work and that he has received many accolades during his 40-year career. However, they claim he is a dysfunctional manager. When confronted, the supervisor argues that his work should speak for itself and the employees' opinions of his behavior is irrelevant. Which of the following statements would support the employees' claim?

A. The employees require this style of supervision because it keeps them focused. B. The supervisor feels that his behavior is normal and necessary to keep the team grounded. C. The supervisor often discourages employees from challenging tasks, saying that they are incapable of accomplishing them. D. The employees are consistently recognized for performing their very best in challenging tasks, and they owe their success to their supervisor. E. The supervisor believes that keeping a distance from his employees will create a sense of fear in them. 123.An Individual Coaching for Effectiveness program is designed to

A. help managers with dysfunctional behavior. B. improve the technical skills of employees. C. help prepare managers for overseas assignments. D. reduce the effects of the glass ceiling. E. attract and retain ambitious managerial employees.

Essay Questions

124.Discuss the relationship between training, development, and careers.

125.What are the different kinds of formal educational programs that organizations may use to support employee development?

126.How do organizations use psychological tests as an assessment tool?

127.Describe a leaderless group discussion.

128.What is 360-degree feedback? What are its advantages and disadvantages?

129.What are the different ways in which job experiences help in employee development?

130.Briefly describe group mentoring programs.

131.How do managers and peers develop employees through coaching?

132.What are the four steps of a basic career management system?

133.What is succession planning and what are its benefits? What are the three stages for an effective program for developing high-potential employees?

Chapter 08 Developing Employees for Future Success Answer Key

True / False Questions

Development implies learning that is not necessarily related to an employee's current job. TRUE

The definition of development indicates that it is future oriented. Development implies learning that is not necessarily related to an employee's current job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-01 Discuss how development is related to training and careers. Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

A protean career is one that remains constant despite the changes in a person's interests, abilities, and values and in the work environment. FALSE

Today's employees are more likely to have a protean career, one that frequently changes based on changes in the person's interests, abilities, and values and in the work environment.

The approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships. TRUE

The many approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-02 Identify the methods organizations use for employee development. Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

Themost frequent uses of assessment are to identify employees with managerial potential to measure current managers' strengths and weaknesses. TRUE

The most frequent uses of assessment are to identify employees with managerial potential to measure current managers' strengths and weaknesses.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

According to the Myers-Briggs Type Indicator, individuals with a Feeling (F) preference try always to be objective in making decisions, whereas individuals with a Thinking (T) preference are more subjective. FALSE

Individuals with a Thinking (T) preference try always to be objective in making decisions. Individuals with a Feeling (F) preference tend to evaluate the impact of the alternatives on others, as well as their own feelings; they are more subjective.

Research on the validity, reliability, and effectiveness of the Myers-Briggs Type Indicator is inconclusive. TRUE

Research on the validity, reliability, and effectiveness of the MBTI is inconclusive. People who take the MBTI find it a positive experience and say it helps them change their behavior. However, MBTI scores are not necessarily stable over time.

The Myers-Briggs Type Indicator is an assessment tool for behavioral styles based on the works of the psychologist William Marston. FALSE

The DiSC assessment tool is an inventory of behavioral styles based on the work of William Marston, a psychologist who attempted to categorize normal behavior patterns.

Assessment centers are primarily used to identify employees' technical skills. FALSE

The primary use of assessment centers is to identify whether employees have the personality characteristics, administrative skills, and interpersonal skills needed for managerial jobs.

Research suggests that assessment center ratings are valid for predicting performance, salary level, and career advancement. TRUE

Research suggests that assessment center ratings are valid for predicting performance, salary level, and career advancement. Assessment centers may also be useful for development because of the feedback that participants receive about their attitudes, skill strengths, and weaknesses.

10.

A performance appraisal process must identify causes of an employee's performance discrepancy and develop plans for improving their performance. TRUE

A performance appraisal, or formal process for measuring employee performance, is a major component of performance management. The appraisal system must tell employees specifically about their performance problems and ways to improve their performance.

11.

Most employee development occurs through formal education programs. FALSE

Most employee development occurs through job experiences—the combination of relationships, problems, demands, tasks, and other features of an employee's jobs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

12.

An organization can use downward moves as a source of job experience. TRUE

Lateral moves include job rotation, transfer, or temporary assignment to another organization. An organization may also use downward moves or promotions as a source of job experience.

13.

Job rotation increases employees' understanding of different company functions. TRUE

Job rotation helps employees gain an appreciation for the company's goals, increases their understanding of different company functions, develops a network of contacts, and improves problem-solving and decision-making skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-04 Explain how job experiences can be used for developing skills. 8-49 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Job Rotation

14.

Relocation is the most common way to use downward moves for employee development. FALSE

The temporary cross-functional move is the most common way to use downward moves for employee development.

15.

Employees on sabbatical generally do not receive their salary or benefits. FALSE

Temporary assignments can include a sabbatical—a leave of absence from an organization to renew or develop skills. Employees on sabbatical often receive full pay and benefits.

16.

Mentoring programs tend to be very successful when they are compulsory. FALSE

Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 1 Easy Topic: Coaching and Mentoring

17.

Coaches are peers or managers who work with other employees to motivate them, help them develop their skills, and provide them with reinforcement and feedback. TRUE

A coach is a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback.

18.

Basic career management systems involve the four sequential steps of recruiting, relocation, reality check, and action planning. FALSE

A basic career management system involves four steps: data gathering, feedback, goal setting, and action planning and follow-up.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 1 Easy Topic: Steps in the Career Development Process

19.

In a self-assessment, an organization's responsibility is to identify opportunities and areas that need improvement. FALSE

Self-assessment refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioral tendencies. The employee's responsibility is to identify opportunities and personal areas needing improvement. The organization's responsibility is to provide assessment information for identifying strengths, weaknesses, interests, and values.

20.

In goal setting for career management, the employee is responsible for identifying the goal and the method of determining his or her progress toward that goal. TRUE

In goal setting, it is the employee's responsibility to identify the goal and the method of determining her or his progress toward that goal.

21.

Action planning often involves the preparation of a career development plan. TRUE

The outcome of action planning often takes the form of a career development plan. Development plans usually include descriptions of strengths and weaknesses, career goals, and development activities for reaching each goal.

22.

Women and minorities often have difficulty finding mentors. TRUE

With regard to developmental relationships, women and minorities often have trouble finding mentors. They may not participate in an organization's, profession's, or community's "old boys' network."

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 1 Easy Topic: The Glass Ceiling

23.

Succession planning focuses on high-potential employees. TRUE

Succession planning focuses on high-potential employees, that is, employees an organization believes can succeed in higher-level business positions such as general manager of a business unit, director of a function (such as marketing or finance), or chief executive officer.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 1 Easy Topic: Succession Planning

24.

The development of high-potential employees is a usually a very swift process. FALSE

The development of high-potential employees is a slow process.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 1 Easy Topic: Succession Planning

25.

Research suggests that managers who participate in programs like Individual Coaching for Effectiveness (ICE) improve their skills and are less likely to be terminated. TRUE

Research suggests that managers who participate in programs like ICE (Individual Coaching for Effectiveness) improve their skills and are less likely to be terminated.

Multiple Choice Questions

26.

Managers provide for _____, a combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

A. emotional development B. training programs C. employee development

D. counseling sessions E. feedback Employee development is the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

27.

_____ increases an employee's ability to move into jobs that may not yet exist.

A. Development

B. Qualification C. Physical appearance D. Personal background E. Ethnic culture Development implies learning that is not necessarily related to an employee's current job. Instead, it prepares employees for other jobs or positions in an organization and increases their ability to move into jobs that may not yet exist.

28.

Which of the following is true of the relationship between training and development?

preparation for future job opportunities. E. Training is often an ongoing process, while development tends to be a short-term process. Development implies learning that is not necessarily related to an employee's current job. Instead, it prepares employees for other jobs or positions in the organization and increases their ability to move into jobs that may not yet exist. In contrast, training traditionally focuses on helping employees improve performance of their current jobs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-01 Discuss how development is related to training and careers. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

29.

A(n) _____ is a career that frequently changes based on changes in a person's interests, abilities, and values and in the work environment.

A. prescribed career B. stable career C. flexible career D. established career E. protean career

Today's employees are more likely to have a protean career, one that frequently changes based on changes in a person's interests, abilities, and values and in the work environment.

30.

Protean careers require that employees

A. look for organizations to provide job security. B. take responsibility for managing their own careers.

C. be specialized at repetitive tasks. D. look for organizations to provide a career ladder so they can climb to higher positions. E. focus on holding on to their jobs to avoid being laid off. A protean career is one that frequently changes based on changes in a person's interests, abilities, and values and in the work environment. Employees in protean careers take responsibility for managing their careers. This practice is consistent with the modern psychological contract. Employees look for organizations to provide, not job security and a career ladder to climb, but instead development opportunities and flexible work arrangements.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 08-01 Discuss how development is related to training and careers. Level of Difficulty: 1 Easy Topic: Current Trends in Career Development

31.

Identify the correct statement regarding protean careers.

based on the modern psychological contract. E. Protean careers are characterized by frequent changes due to changes in a person's desired level of compensation. A protean career is one that frequently changes based on changes in a person's interests, abilities, and values and in the work environment. Employees in protean careers take responsibility for managing their careers. This practice is consistent with the modern psychological contract. Employees look for organizations to provide not job security and a career ladder to climb, but instead development opportunities and flexible work arrangements.

32.

_____ helps employees select development activities that prepare them to meet their career goals.

A. Career path B. Training C. Policy analysis D. Job sharing E. Career management

Career management helps employees select development activities that prepare them to meet their career goals. It helps employers select development activities in line with their human resource needs.

33.

The four general approaches that companies use for employee development include

A. formal education, assessment, job experiences, and interpersonal relationships.

B. job rotation, promotion, transfer, and job sharing. C. psychological tests, assessment centers, the Myers-Briggs Type Indicator, and performance feedback. D. business games, formal courses, team building, and assessment. E. total quality management, Six Sigma, lean manufacturing, and quality function deployment. The many approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-02 Identify the methods organizations use for employee development. 8-60 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

34.

Which of the following is true of formal education as an approach to employee development?

A. Organizations organize formal educational programs at the workplace or off-site to support

employee development. B. Formal education includes organization-specific workshops that are open to outsiders as well as employees. C. As a prerequisite to formal education, trainees must enroll in various courses offered by an organization. D. Formal education includes presentations sent out by an organization, which enlist the ethics and policies educating employees from time to time. E. In an organization, formal education involves collating data pertaining to the development of projects. Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. These may include workshops designed specifically for an organization's employees, short courses offered by consultants or universities, university programs offered to employees who live on campus during the program, and executive MBA programs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-02 Identify the methods organizations use for employee development. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

35.

Thompson Design, a popular furniture manufacturer, provides employee support through various workshops on interior design techniques. It also offers three-month courses on various aspects of decorating a home, from suitable paint for a media room to contemporary outdoor furnishings. This adds to employees' existing knowledge and skill sets, helping create customer satisfaction. In this scenario, which of the following approaches to employee development is Thompson Design taking?

A. assessment B. formal education

C. job experiences D. interpersonal relationships E. counseling Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. These may include workshops designed specifically for an organization's employees, short courses offered by consultants or universities.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-02 Identify the methods organizations use for employee development. Level of Difficulty: 3 Hard Topic: Define Career Development and Its Objectives

36.

Ricardo, the vice president of Salt Crumbs, is reviewing the development program for the company's middle managers. He notes that management development includes psychological profiles and mentors, as well as lateral moves to positions that give managers a broader view of the company. Ricardo would like to add a component of formal education. Which of the following options could be included in this new component?

E. 360-degree feedback The many approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships. Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. These may include workshops designed specifically for the organization's employees, short courses offered by consultants or universities, university programs offered to employees, and executive MBA programs. These programs may involve lectures by business experts, business games and simulations, experiential programs, and meetings with customers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-02 Identify the methods organizations use for employee development. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

37.

A sales firm regularly enrolls some of its employees in a six-month marketing course with a leading university. At the end of the course, the employees are able to perform better in the organization. Which of the following methods of employee development has the firm used?

A. externship B. formal education

C. assessment D. interpersonal relationships E. personality test The employee development method adopted in this case is that of formal education. Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. These may include workshops designed specifically for the organization's employees, short courses offered by consultants or universities, university programs offered to employees who live on campus during the program, and executive MBA programs (which enroll managers to meet on weekends or evenings to earn a master's degree in business administration).

38.

The process of collecting information and providing feedback to employees about their behavior, communication style, or skills is known as _____.

A. requirements analysis B. data mining C. assessment

D. counseling E. quality check One of the ways to provide for employee development is assessment—collecting information and providing feedback to employees about their behavior, communication style, or skills.

39.

For assessment to work efficiently, an employee must be

A. provided suggestions to improve his or her weak skills.

B. evaluated discreetly so the employee does not pretend to be a model employee. C. present on the day the assessment occurs so that results of the feedback will be accurate. D. employed at the organization for at least a year. E. informed that an appraisal can take place at any time during the year. For assessment to support development, the assessment information must be shared with the employee being assessed. Along with that assessment information, the employee needs suggestions for correcting skill weaknesses and for using skills already learned.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job 8-65 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

performance to plan employee development. Level of Difficulty: 2 Medium Topic: Steps in the Career Development Process

40.

The Myers-Briggs Type Indicator (MBTI) identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and _____.

A. succession planning B. self-assessment C. lifestyle

D. value system E. goal setting The Myers-Briggs Type Indicator (MBTI) identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle.

41.

The energy dichotomy of the Myers-Briggs Type Indicator indicates _____.

D. the hard facts of a situation E. individuals' tendency to be either flexible or structured The Myers-Briggs Type Indicator identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle. The energy dichotomy indicates where individuals gain interpersonal strength and vitality, measured as their degree of introversion or extroversion.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

42.

According to the Myers-Briggs Type Indicator, how do Introverted types (I) gain energy?

A. by focusing on inner thoughts

B. by focusing on interpersonal relationships C. by gathering facts and details D. by focusing less on facts and more on possibilities E. by trying to be objective in making decisions The energy dichotomy of the Myers-Briggs Type Indicator indicates where individuals gain interpersonal strength and vitality, measured as their degree of introversion or extroversion. Introverted types (I) gain energy by focusing on inner thoughts and feelings.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 8-67 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 1 Easy Topic: Career Development Resources

43.

According to the Myers-Briggs Type Indicator, Extroverted types (E) gain energy through

A. interpersonal relationships.

B. personal thoughts. C. facts and details. D. establishing goals. E. inner feelings. According to the Myers-Briggs Type Indicator, Extroverted types (E) gain energy through interpersonal relationships while Introverted types (I) gain energy by focusing on inner thoughts and feelings.

44.

According to the Myers-Briggs Type Indicator, what is true of individuals with a Sensing (S) preference?

According to the Myers-Briggs Type Indicator, individuals with a Sensing (S) preference tend to gather the facts and details to prepare for a decision.

45.

The decision-making dimension of the Myers-Briggs Type Indicator relates to the

A. steps or actions individuals take when making decisions. B. amount of consideration given to others' feelings when making a decision.

C. individuals' tendency to be flexible and adaptable. D. confidence and speed with which decisions are reached. E. individuals' interpersonal strength and vitality. In decision making, individuals differ in the amount of consideration they give to their own and others' values and feelings, as opposed to the hard facts of a situation.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. 8-69 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Career Development Resources

46.

According to the lifestyle dichotomy of the Myers-Briggs Type Indicator, individuals with a _____ preference enjoy surprises and dislike deadlines.

A. Judging (J) B. Perceiving (P)

C. Thinking (T) D. Feeling (F) E. Sensing (S) The lifestyle dichotomy of the Myers-Briggs Type Indicator describes an individual's tendency to be either flexible or structured. Individuals with a Perceiving (P) preference enjoy surprises, are comfortable with changing a decision, and dislike deadlines.

47.

According to the Myers-Briggs Type Indicator, individuals with a Perceiving (P) preference

A. are decisive and focused on goals. B. are comfortable with changing a decision.

C. like deadlines. D. focus more on possibilities and relationships among facts. E. do not like surprises. Individuals with a Perceiving (P) preference enjoy surprises, are comfortable with changing a decision, and dislike deadlines.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 1 Easy Topic: Career Development Resources

48.

Hannah Barboza Inc., a publishing company, administered the Myers-Briggs Type Indicator (MBTI) assessment to its editorial team and learned that some individuals are drawn toward gathering the facts and details needed for decision making, while others focus more on noticing relations among the facts. Some of the employees enjoy learning this about themselves, but the human resource specialist who administered the assessment cautions them not to use the results to limit their understanding of what they can do. Which of the following statements best explains the need for caution in applying the results of this assessment?

A. MBTI scores are mainly useful for measuring job performance. B. MBTI scores are not necessarily valid and reliable.

C. MBTI scores should be used for evaluating promotion potential. D. MBTI scores are extremely stable over time. E. The scores show that some individuals are more flexible in their thinking than others. Research on the validity, reliability, and effectiveness of the MBTI is inconclusive. People who take the MBTI find it a positive experience and say it helps them change their behavior. However, MBTI scores are not necessarily stable over time. Still, the MBTI is a valuable tool for understanding communication styles and the ways people prefer to interact with others. It is not appropriate for measuring job performance, however, or as the only means of evaluating promotion potential.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 3 Hard Topic: Career Development Resources

49.

Identify the correct statement regarding the Myers-Briggs Type Indicator (MBTI).

E. Research has concluded that the MBTI is highly valid, reliable, and effective. The Myers-Briggs Type Indicator (MBTI) is a valuable tool for understanding communication styles and the ways people prefer to interact with others. Research on the validity, reliability, and effectiveness of the MBTI is inconclusive. People who take the MBTI find it a positive experience and say it helps them change their behavior. MBTI scores are not necessarily stable over time. It is not appropriate for measuring job performance, however, or as the only means of evaluating promotion potential.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

50.

Which of the following categories in the DiSC inventory means that a person emphasizes relationships and also displays optimism?

A. conscientiousness B. steadiness C. influence

D. dominance E. initiative In the DiSC inventory, the category "influence" means a person emphasizes relationships and persuasion. This type of person likes to collaborate, dislikes being ignored, and displays optimism and enthusiasm.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

51.

Schram Enterprises, a software company, conducts Inscape's DiSC inventory assessment to evaluate its employees. The assessment reveals that there are very few employees who are calm, supportive of others, and works far ahead of any deadlines. Which of the following DiSC categories applies to the employees described in the scenario?

A. influence B. conscientiousness C. steadiness

D. dominance E. intelligence Steadiness means a person emphasizes cooperation, sincerity, and dependability. This type of person behaves calmly and with humility, dislikes rushing, and is supportive of others.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 3 Hard Topic: Career Development Resources

52.

Chang works at a leading restaurant. She is usually scared of making any mistakes at her workplace, so she is very keen on paying attention to details. She also prioritizes quality in her work. In the context of Inscape's DiSC assessment, she would most likely score high in _____.

A. steadiness B. dominance C. conscientiousness

D. humility E. influence Conscientiousness means the person emphasizes quality and accuracy, displaying competency. This type of person worries about mistakes and wants to get the details. He or she favors objective thinking and enjoys working independently.

53.

An off-site location in which multiple raters or evaluators evaluate employees' performance on a number of exercises is known as a(n) _____.

A. development center B. feedback center C. control center D. assessment center

E. counseling center At an assessment center, multiple raters or evaluators (assessors) evaluate employees' performance on a number of exercises.

AACSB: Analytical Thinking

54.

Which of the following statements is true about an assessment center?

on a number of exercises. C. It is an office that looks into the process of collecting information and providing feedback to employees about their behavior, communication style, or skills. D. At an assessment center, senior managers hold a test that identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle. E. It refers to an on-site location where the corporate leaders design a tool that gathers the ratings of a manager's use of the skills associated with success in managing. At an assessment center, multiple raters or evaluators evaluate employees' performance on a number of exercises. An assessment center is usually an off-site location, such as a conference center, and has 6 to 12 employees participating at one time

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

55.

The primary use of assessment centers is to identify

A. the employees who have the personality characteristics and skills needed for managerial

positions. B. the strengths and weaknesses of an organization. C. the decision processes and communication styles that inhibit production. D. the opportunities and threats to an organization. E. the factors that inhibit group performance. The primary use of assessment centers is to identify whether employees have the personality characteristics, administrative skills, and interpersonal skills needed for managerial jobs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

56.

Brenda, the vice president of human resources at FSE Inc., meets with the executive committee to discuss planning for future job openings at the vice president level. Brenda advises the committee that sending some high-potential employees to an assessment center would be beneficial, although a full-day assessment could cost $20,000. Which of the following statements supports Brenda's recommendation?

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 3 Hard Topic: Career Development Resources

57.

Which of the following assessment center exercises is being used when a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period?

A. interview session B. leaderless group discussion

C. role playing D. in-basket exercise E. personality test In a leaderless group discussion, a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period.

58.

Myrtle Flower Company, sends its management trainees to an assessment center. There, the employees are assigned to small groups and given a problem to solve within an allotted time frame. The team members have to work together in tackling problems that they might face in a management position, without a source to whom they can refer any questions. What is the correct term for this type of development exercise?

A. psychological profiling B. 360-degree feedback C. leaderless group discussion

D. in-basket exercise E. time-bound discussion In a leaderless group discussion, a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

59.

Which of the following is true of in-basket exercises?

the employee to handle. D. They require participants to take the part of a manager or employee in a situation involving the skills to be assessed. E. They require the use of interest and aptitude tests to evaluate an employee's vocabulary, general mental ability, and reasoning skills. In-basket exercises simulate the administrative tasks of a manager's job, using a pile of documents for the employee to handle.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

60.

In _____, a participant takes the part of a manager or employee in a situation involving the skills to be assessed.

A. personality tests B. group discussions C. interview sessions D. role-plays

E. leaderless group discussions In role-plays, the participant takes the part of a manager or employee in a situation involving the skills to be assessed.

61.

An employee's tolerance for uncertainty and the ability to get along with others are assessed in _____.

A. leaderless group discussions B. in-basket exercises C. personality tests

D. role plays E. interviews Personality tests may be used in an assessment center to determine employees' ability to get along with others, their tolerance for uncertainty, and other traits related to success as a manager or team member.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 8-82 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

62.

In assessment centers, typically, each assessor observes and records _____ employees' behaviors in each exercise.

A. six or seven B. four or five C. eight or nine D. one or two

E. ten or eleven In assessment centers, the assessors are usually managers who have been trained to look for employee behaviors that are related to the skills being assessed. Typically, each assessor observes and records one or two employees' behaviors in each exercise.

63.

Which of the following statements is true about the 360-degree feedback process?

A. it involves rating an individual in terms of work-related behaviors

B. it collects a single perspective of a manager's performance C. it breaks down formal communications about behaviors and skill ratings between employees and their internal and external customers D. it gives results that can be easily interpreted by anyone E. it demands very little time from the raters to complete the evaluations The 360-degree feedback system often involves rating an individual in terms of work-related behaviors. For development purposes, the rater would identify an area of behavior as a strength of that employee or an area requiring further development.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: 360-Degree Appraisals

64.

How does 360-degree feedback help organizations?

D. The feedback demands very little time, so the raters can focus on other tasks. E. Managers can easily interpret the results themselves and take necessary action. There are several benefits of 360-degree feedback. This method establishes formal communications about behaviors and skill ratings between employees and their internal and external customers. Additionally, studies have shown that performance improves and behavior changes as a result of participating in 360-degree feedback systems.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: 360-Degree Appraisals

65.

The combination of relationships, problems, demands, tasks, and other features of an employee's jobs is referred to as _____.

A. job appraisals B. job experiences

C. formal education D. technical training E. interpersonal relationships Most employee development occurs through job experiences—the combination of relationships, problems, demands, tasks, and other features of an employee's jobs.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

66.

Using job experiences for development assumes that

E. development is most likely when an employee already knows how to perform the job. Using job experiences for employee development assumes that development is most likely to occur when an employee's skills and experiences do not entirely match the skills required for the employee's current job. The usefulness of job experiences for employee development varies depending on whether the employee views the experiences as positive or negative sources of stress.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

67.

Which of the following is true of job enlargement?

Job enlargement involves adding challenges or new responsibilities to employees' current jobs.

68.

Which of the following statements is true of job enlargement?

E. It moves employees through a series of job assignments in one or more functional areas. Job enlargement not only makes a job more interesting, but also creates an opportunity for employees to develop new skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-04 Explain how job experiences can be used for developing skills. 8-87 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

69.

Job rotation involves

A. adding challenges or new responsibilities to an employee's current job. B. moving an employee through a series of job assignments in one or more functional areas

of the company. C. allowing an employee to work full-time in a temporary position at another company. D. allowing an employee to switch between two different jobs within the company on a daily or weekly basis. E. assigning an employee to a position with less responsibility and authority. A job design technique that can be applied to employee development is job rotation, moving employees through a series of job assignments in one or more functional areas.

70.

Zenita was a creative writer at The Machner Group before her editor asked her to try out her skills at photography in the company's visuals department. After completing a short course on photography, Zenita joined the visuals department. Which of the following methods of job design did Zenita experience?

A. job experience B. job enlargement C. job rotation

D. job reduction E. job revolution Another job design technique that can be applied to employee development is job rotation, moving employees through a series of job assignments in one or more functional areas.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 3 Hard Topic: Job Rotation

71.

Which of the following is a potential problem of job rotation?

A. Employees typically develop a short-term perspective on their problems and solutions.

B. Employees generally earn less. C. Promotions usually take longer. D. Employees typically develop specialized skills but fail to use them due to quick rotations. E. Job rotation decreases employees' understanding of different company functions. Job rotation helps employees increase their understanding of different company functions. It also helps employees increase their salary and earn promotions faster. However, knowing they will be rotated to another job may give the employees a short-term perspective on problems and their solutions.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 2 Medium Topic: Job Rotation

72.

Which of the following conditions will most likely ensure a job rotation will succeed?

E. the rotation schedule occurs every few months, ensuring employees develop strong onthe-job learning skills Job rotation is most likely to succeed when it meets certain conditions. One of these conditions is that employees and their managers understand and agree on the expectations for the job rotation, including which skills are to be developed.

73.

Most companies use _____ moves as an option for employee development.

A. small upward B. vertical and horizontal C. left, right, and sideways D. occasional horizontal E. upward, downward, and lateral

Most companies use upward, downward, and lateral moves as an option for employee development.

74.

Which of the following is true about a transfer?

in a lateral move. In a transfer, the organization assigns an employee to a position in a different area of the company. Transfers do not necessarily increase job responsibilities or compensation. They are usually lateral moves, that is, moves to a job with a similar level of responsibility.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 2 Medium 8-91 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Define Career Development and Its Objectives

75.

A move to a job with a similar level of responsibility within the same organization is called a(n)

A. externship. B. promotion. C. downward move. D. upward move. E. lateral move.

Most companies use upward, downward, and lateral moves as an option for employee development. Lateral moves are moves to a job with a similar level of responsibility.

76.

An organization may demote an employee to a lower-level position

A. to provide greater challenges to him or her. B. so that the employee can learn different skills.

C. to increase the employee's visibility. D. so that the employee can get more authority. E. to give the employee more responsibility. A downward move occurs when an employee is given less responsibility and authority. The organization may demote an employee because of poor performance or move the employee to a lower-level position in another function so that the employee can develop different skills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-04 Explain how job experiences can be used for developing skills. 8-92 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Define Career Development and Its Objectives

77.

Hollander McKenzie, an employee of Baha Enterprises, is having trouble in his current job. His manager's constant feedback is that he does not maintain consistency in his work. In a meeting with Hollander's manager, the HR team decides to shift him to a department that would not require as much skill as his current position requires. In this scenario, which of the following approaches to employee development is Hollander experiencing?

A. a promotion B. a downward move

C. a transfer D. a sabbatical E. a job enlargement A downward move occurs when an employee is given less responsibility and authority. An organization may demote an employee because of poor performance or move the employee to a lower-level position in another function so that the employee can develop different skills. In this scenario, Hollander is experiencing a downward move.

78.

A(n) _____ involves moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job.

A. appraisal B. demotion C. promotion

D. transfer E. externship A promotion involves moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job. Usually promotions include pay increases.

79.

Management at an IT firm is thinking of promoting Barbara, a customer service representative, to the position of senior customer relationship manager. Which of the following, if true, would make the promotion less likely?

E. The company would have to provide information about the new position. Organizations can more easily offer promotions if they are profitable and growing. In other conditions, opportunities for promoting employees may be limited.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation

Blooms: Analyze Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 3 Hard Topic: Define Career Development and Its Objectives

80.

Allowing employees to take a full-time temporary position at another company is known as a(n)

A. transfer. B. expatriate assignment. C. sabbatical. D. externship.

E. lateral move. In some cases, an employer may benefit from the skills an employee can learn at another organization. The employer may encourage the employee to participate in an externship—a full-time temporary position at another organization.

81.

Kim Riaz is a technical analyst at WaterDrop Inc. and has consistently impressed her managers with her ability to perform outstandingly in all projects assigned to her. Her manager, Carl, understands that she is really good at her job, but also recognizes that she might experience burnout because of the repetitive nature of the job. He talks to her about developing other possible skills by working full time for a short period at a different company. In this scenario, which of the following approaches to employee development is Carl encouraging?

A. externship

B. transfer C. promotion D. job rotation E. job transfer An employer may encourage an employee to participate in an externship—a full-time temporary position at another organization. Externships are an attractive option for employees in analytical positions, who otherwise might solve the same kinds of problems over and over, becoming bored as they miss out on exposure to challenging new ideas and techniques.

82.

Marika is a senior journalist at a news agency. She goes on a temporary leave for six months and travels around different parts of South Asia during her leave. She records her travel experiences in a book and shares it with her colleagues upon her return. During her leave, she was also being paid by the organization. This is an example of a(n) _____.

A. transfer B. expatriate assignment C. sabbatical

D. externship E. downward move This is an example of a sabbatical. Temporary assignments can include a sabbatical—a leave of absence from an organization to renew or develop skills. Employees on sabbatical often receive full pay and benefits. Sabbaticals let employees get away from the day-to-day stresses of their jobs and acquire new skills and perspectives. Sabbaticals also allow employees more time for personal pursuits such as writing a book or spending more time with family members.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 3 Hard Topic: Define Career Development and Its Objectives

83.

Providing employees with the opportunity to get away from the day-to-day stresses of their job and acquire new skills and perspectives is known as a(n) _____.

A. transfer B. expatriate assignment C. sabbatical

D. externship E. downward move Temporary assignments can include a sabbatical—a leave of absence from an organization to renew or develop skills.

84.

Sean, a senior editor at News CRB, asks Kiara, the editor-in-chief, for a sabbatical. Which of the following statements best explains why News CRB would pay Sean during the sabbatical, if Kiara approves it?

D. Sean's salary cannot be matched by any other company in the local area. E. During the sabbatical, Sean will have more time to spend with family members. A sabbatical is a leave of absence from an organization to renew or develop skills. Sabbaticals let employees get away from the day-to-day stresses of their jobs and acquire new skills and perspectives. Sabbaticals also allow employees more time for personal pursuits such as writing a book or spending more time with family members.

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 3 Hard Topic: Define Career Development and Its Objectives

85.

Doug was part of a formal mentoring program and was mentored by Amelia. The mentoring sessions were conducted over a period of six weeks to improve Doug's communications and interpersonal skills in the workplace. The sessions, however, were unsuccessful. Which of the following, if true, would most likely have caused the failure of the mentoring sessions?

program. E. Doug is a new employee, whereas Amelia has been working with the firm for many years. Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program. Most mentoring relationships develop informally as a result of interests or values shared by the mentor and protégé.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 3 Hard Topic: Coaching and Mentoring

86.

Which of the following is true of mentoring?

understand the details of the program. E. Informal mentoring programs ensure access to mentors for all employees, regardless of gender or race. Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program. Most mentoring relationships develop informally as a result of interests or values shared by the mentor and protégé.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 2 Medium Topic: Coaching and Mentoring

87.

Which of the following is a characteristic of a successful formal mentoring program?

A. mentor and protégé participation is mandatory B. managers are rewarded for employee development

C. mentors are chosen on a random basis D. mentors become therapists for their protégés E. mentor-protégé relationships are artificially created Rewarding managers for employee development is important because it signals that mentoring and other development activities are worthwhile. Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program.

88.

Jillian, a human resource executive, is setting up a mentoring program at her company. Which of the following actions will best help the program succeed?

A. making sure the performance management system rewards managers for employee

development B. selecting mentors based on their interpersonal rather than technical skills C. setting up the mentoring as a mandatory program for both mentors and mentees D. giving mentors realistic expectations by explaining that the protégés will benefit, not the mentors E. defining the mentor's role broadly, to help with personal problems as well as businessrelated skills Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program. Rewarding managers for employee development is also important because it signals that mentoring and other development activities are worthwhile. In addition, the organization should carefully select mentors based on their interpersonal and technical skills, train them for the role, and evaluate whether the program has met its objectives. Employees also should accept the limits of mentoring relationships. Mentoring is not, for example, a substitute for therapy.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 3 Hard Topic: Coaching and Mentoring

89.

Charles is a successful senior employee at Groo Technology. He has five years of experience in the company and is well recognized for his contributions. The vice president of human resources tells Charles about Nina, an employee Groo hired for her keen intelligence. According to the vice president, Nina is struggling to make an impact because she does not speak up assertively or understand who to talk to when she has questions. The vice president asks Charles to serve as a mentor to Nina. What would this role involve doing?

A. promoting Nina to better jobs and giving her raises B. assigning several protégés to help Nina C. developing Nina through coaching, sponsorship, and challenging assignments

D. implementing a formal mentoring program E. administering 360-degree feedback A mentor is an experienced, productive senior employee who helps develop a less experienced employee, called the protégé. Mentors give protégés career support, including coaching, protection, sponsorship, challenging assignments, and visibility among the organization's managers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 2 Medium Topic: Coaching and Mentoring

90.

Acting as a mentor gives managers

A. career support and sponsorship. B. increased visibility among the organization's managers. C. a chance to talk about their worries. D. a chance to develop their interpersonal skills.

E. a greater opportunity to be promoted. Acting as a mentor gives managers a chance to develop their interpersonal skills and increase their feelings that they are contributing something important to the organization.

91.

A peer or manager who works closely with employees to motivate them, help them develop their skills, and provide reinforcement and feedback is known as a

A. protégé. B. coach.

C. moderator. D. high-potential employee. E. facilitator. A coach is a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-06 Tell how managers and peers develop employees through coaching. Level of Difficulty: 1 Easy Topic: Coaching and Mentoring 8-104 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

92.

Mindy, a manager at Savannah Grasse, observes that Mark is a slow learner and has not been able to grasp the nuances of his job responsibilities. She sees potential in Mark and decides to coach him. In this scenario, what role of a coach will Mindy be performing?

E. encouraging Mark to take a sabbatical Coaches may play one or more of three roles. First, they work one-on-one with an employee, as when giving feedback. Second, coaches help employees learn for themselves—for example, helping them find experts and teaching them to obtain feedback from others. Finally, coaches provide resources such as mentors, courses, or job experiences.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-06 Tell how managers and peers develop employees through coaching. Level of Difficulty: 2 Medium Topic: Coaching and Mentoring

93.

Charlie, the accounting manager of MindChannel Inc., agreed to work with a coach. He chose this in order to become more of a team player, which would in turn lead him to being considered for a larger role in management. After two months, however, he complained to the human resource manager that the process is time-consuming and he has not seen any positive results. Which of the following responses to Charlie's complaint would best reflect how coaching can contribute to employee development?

D. The coach should have defined Charlie's goals and motives more specifically. E. The coach should meet with Charlie every six months until he improves. Getting results from a coaching relationship can take at least six months of weekly or monthly meetings. To be effective, a coach generally conducts an assessment, asks questions that challenge the employee to think deeply about his or her goals and motives, helps the employee create an action plan, and follows up regularly to help the employee stay on track. Employees contribute to the success of coaching when they persevere in practicing the behaviors identified in the action plan.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-06 Tell how managers and peers develop employees through coaching. Level of Difficulty: 3 Hard Topic: Coaching and Mentoring

94.

Which of the following is a component of a basic career management system?

A. sabbatical B. goal setting

C. externship D. team building E. workplace ethics A basic career management system involves four steps: data gathering, feedback, goal setting, and action planning and follow-up.

95.

Which of the following activities is most appropriate for the first step of the career management process?

A. self-assessment

B. goal setting C. reality checking D. identifying the steps and timetable to reach a goal E. specifying the competencies to be developed Assessment tools may be applied to data gathering, the first step in the career management process. Self-assessment refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioral tendencies.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 2 Medium 8-107 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Steps in the Career Development Process

96.

Wrap Foods, a leading brand in microwavable food items, prides itself on helping its employees with their career paths. The employees are highly efficient and are motivated to define areas of weakness in their job performances and work to eliminate them. The employees take various tests to help them assess their career interests and behavioral tendencies, thus helping them work on becoming successful. In this scenario, which of the following systems for career management is being employed at Wrap Foods?

A. feedback B. self-assessment

C. self-discipline D. goal setting E. action plan Self-assessment refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioral tendencies.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 3 Hard Topic: Steps in the Career Development Process

97.

What is an employee's responsibility in the data-gathering stage of career management?

A. to identify opportunities and areas needing improvement

B. to communicate performance evaluations C. to identify steps and a timetable to reach goals D. to provide assessment information to identify strengths, weaknesses, interests, and values E. to ensure that goals are specific, challenging, and attainable In the data-gathering stage of career management, the employee's responsibility is to identify opportunities and personal areas needing improvement.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 2 Medium Topic: Steps in the Career Development Process

98.

The _____ is a self-assessment tool that helps employees identify their occupational and job interests.

A. Myers-Briggs Type Indicator B. Self-Directed Search C. leaderless group discussion D. Occupational Outlook Handbook E. Strong-Campbell Interest Inventory

The Strong-Campbell inventory helps employees identify their occupational and job interests.

99.

Which of the following helps identify employees' preferences for working in different types of environments, such as sales and counseling?

A. Myers-Briggs Type Indicator B. Self-Directed Search

C. leaderless group discussion D. Occupational Outlook Handbook E. Strong-Campbell Interest Inventory The Self-Directed Search identifies employees' preferences for working in different kinds of environments—sales, counseling, and so on.

100.

The step in the career management process in which psychological tests, such as the MyersBriggs Type Indicator and the Strong-Campbell Interest Inventory, are used is

A. follow-up. B. reality check. C. goal setting. D. action planning. E. data gathering.

In the data-gathering step of the career management process, several assessment tools may be used. Self-assessment tools often include psychological tests such as the Myers-Briggs Type Indicator, the Strong-Campbell Interest Inventory, and the Self-Directed Search.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 08-07 Identify the steps in the process of career management. 8-110 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Steps in the Career Development Process

101.

The step in the career management process in which employees receive information about their skills and knowledge and where these assets fit into the organization's plans is called

A. self-assessment. B. feedback.

C. goal setting. D. action planning. E. data gathering. In the feedback step of career management, employees receive information about their skills and knowledge and where these assets fit into the organization's plans.

102.

Marcus, a manager at Royal Memphis Hotel, is training a new group of employees. After each training session, the employees complete various exercises to test their knowledge. After evaluating the results, Marcus speaks one-on-one with the employees to help them define their areas of weakness and encourage them to keep fine-tuning their strengths. In this scenario, Marcus is providing his employees with _____.

A. counseling B. feedback

C. goals D. self-assessment E. self-appraisal In feedback, employees receive information about their skills and knowledge and where these assets fit into an organization's plans.

103.

Employees at Akesson Inc. are frustrated with their manager, Ryan, who does not believe in providing feedback because he thinks it's a waste of time. His employees argue that they do not know how to hone their skills if they are not told what areas they should work on and what areas are satisfactory. Which of the following statements would strengthen the employees' arguments?

organization. E. Employees ought to evaluate themselves because self-assessment is the best type of feedback. Feedback enables employees to receive information about their skills and knowledge and where these assets fit into an organization's plans.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 3 Hard Topic: Steps in the Career Development Process

104.

In the feedback step of the career management process, the employee is primarily responsible for

available. D. identifying resources he or she needs, including courses, work experiences, and relationships. E. identifying his or her strengths, weaknesses, interests, and values. The employee's responsibility in the feedback step is to identify what skills he or she could realistically develop in light of the opportunities available.

105.

BottleCap Creations offers its employees a career management program in which they can take a variety of self-assessments. When employees complete these self-assessments, what is the organization's responsibility in the next stage of the career management process?

development opportunities available After data gathering, the next step of career management is feedback. In this step, employees receive information about their skills and knowledge and where these assets fit into the organization's plans. The employee's responsibility is to identify what skills she or he could realistically develop in light of the opportunities available. The organization's responsibility is to communicate the performance evaluation and the opportunities available to the employee, given the organization's long-range plans.

106.

Usually an employer conducts the reality check as part of a performance appraisal or as the _____ stage of performance management.

A. self-assessment B. action planning C. goal setting D. data gathering E. feedback

Usually the employer conducts the reality check as part of a performance appraisal or as the feedback stage of performance management.

107.

Christopher, an employee, understands that he has great potential after taking a selfassessment test at his company. He decides to create a checklist of short-term objectives to achieve to help him hone his skills. In this scenario, Christopher is employing _____ as a mechanism of career management.

A. feedback B. self-assessment C. goal setting

D. assessment E. appraisal Based on the information from the self-assessment and reality check, an employee sets shortand long-term career objectives.

AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Apply Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 3 Hard Topic: Steps in the Career Development Process

108.

What is the organization's responsibility in the goal-setting stage of the career management process?

E. to communicate performance evaluation and opportunities available to an employee In the goal-setting stage of the career management process, the organization's responsibilities are to ensure that the goal is specific, challenging, and attainable and to help an employee reach the goal.

109.

The final step in the career management process is

A. self-assessment. B. reality check. C. goal setting. D. action planning and follow-up.

E. feedback. During the final step of the career management process, employees prepare an action plan for how they will achieve their short- and long-term career goals. The employee is responsible for identifying the steps and timetable to reach the goals. The employer should identify resources needed, including courses, work experiences, and relationships. The employee and the manager should meet in the future to discuss progress toward career goals.

110.

During the action planning and follow-up step of the career management process, the employer

During the final step, employees prepare an action plan for how they will achieve their shortand long-term career goals. The employer should identify resources needed, including courses, work experiences, and relationships.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-07 Identify the steps in the process of career management. Level of Difficulty: 2 Medium Topic: Steps in the Career Development Process

111.

Martha Wong has been through a series of self-assessments and has received constant feedback. She has listed her goals for the future and thought of various ways in which she can accomplish them. The act of determining the various methods to accomplish Martha's goals is an example of _____.

A. empowerment B. determination C. training D. an action plan

E. a career restructure Employees prepare an action plan for how they will achieve their short- and long-term career goals as a final step of the career management process. Action plans may involve any one or a combination of development methods—training, assessment, job experiences, or the help of a mentor or coach.

112.

Circumstances that resemble an invisible barrier that keep most women and minorities from attaining the top jobs in organizations are referred to as the

A. revolving door. B. fixed wall. C. glass ceiling.

D. closed door. E. glass escalator. The glass ceiling refers to circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organizations.

113.

Michelle, an employee at Matthews Inc., finds it difficult to attain a promotion even after working for seven years at the firm. She believes that she is not being promoted because she is a woman. In this scenario, Michelle's progress in the organization is restricted by a _____.

A. downward move B. nickel fence C. job reduction D. job rotation E. glass ceiling

Women and minorities are rare in the top level of U.S. corporations. Observers of this situation have noted that it looks as if an invisible barrier is keeping women and minorities from reaching the top jobs, a barrier that has come to be known as the glass ceiling.

AACSB: Diversity

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 3 Hard Topic: The Glass Ceiling

114.

The glass ceiling is likely caused by

A. a lack of access to developmental relationships.

B. the presence of a diverse workforce. C. the presence of too many mentors for female employees. D. the presence of women with technical skills. E. providing challenging job assignments to high-potential employees. The glass ceiling is likely caused by a lack of access to training programs, appropriate developmental job experiences, and developmental relationships such as mentoring.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 2 Medium Topic: The Glass Ceiling

115.

Michael, a newly appointed human resource manager at Zeta Inc., learns that several female managers have complained that the company has a "glass ceiling." Indeed, the top positions are all filled by men, but Michael isn't sure whether the pattern is just a coincidence. He agrees to investigate. Which of the following conditions, if it exists, would be evidence of a glass ceiling at Zeta?

E. Zeta is preparing for the retirement of its leaders. The glass ceiling is likely caused by a lack of access to training programs, to appropriate developmental job experiences, and to developmental relationships such as mentoring. With regard to developmental relationships, women and minorities often have trouble finding mentors. They may not participate in the "old-boys' network." Also, recent evidence finds differences in how women and men pursue advancement and in how executives perceive women's and men's qualifications and ambitions.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 3 Hard Topic: The Glass Ceiling

116.

_____ is the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant.

A. Acculturation B. Leaderless group discussion C. Benchmarking D. Data gathering E. Succession planning

As positions at the top of organizations become vacant, many organizations have determined that their middle managers are fewer and often unprepared for top-level responsibility. This situation has raised awareness of the need for succession planning—the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant.

117.

A pharmaceutical company, TechnoGene, has initiated a system where high-potential employees are identified and trained for senior positions in the company. Which of the following processes is exemplified in this scenario?

A. succession planning

B. self-assessment C. feedback D. handing over formalities E. goal setting Succession planning is the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 3 Hard Topic: Succession Planning

118.

Ruben, a human resource executive for Alpha2Omega Equipment, is preparing a recommendation to the company's executives that the company develop a program of succession planning. The company has been growing rapidly, so he anticipates some resistance to the time required for careful planning. Which statement would best support Ruben's idea for succession planning?

becomes vacant. D. Succession planning will be needed only temporarily, because the workforce has been aging. E. Alpha2Omega is able to grow in spite of having fewer middle managers than it did 30 years ago. Succession planning—the process of identifying and tracking high-potential employees who will be able to fill key positions when they become vacant—offers several benefits. It forces senior management to regularly and thoughtfully review the company's leadership talent. It ensures that critical, sometimes hard-to-find talent is available. It provides a set of development experiences that managers must complete to be considered for key positions, so the organization does not promote managers before they are ready. Success planning systems also help attract and retain ambitious managerial employees by providing development opportunities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 3 Hard Topic: Succession Planning

119.

Identify the correct statement about succession planning.

A. it ensures that middle management systematically reviews leadership talent in the company B. it provides a set of developmental experiences that managers must complete to be

considered for top management positions C. all companies have a succession plan ready when they need one D. it identifies a specific replacement for each managerial position within a company E. it focuses on low-potential and medium-potential employees Succession planning forces senior management to regularly and thoughtfully review a company's leadership talent. It provides a set of development experiences that managers must complete to be considered for top management positions, so the organization does not promote managers before they are ready.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 2 Medium Topic: Succession Planning

120.

In the case of succession planning, job assignments for high-potential employees are based on

replace. E. the availability of special assignments such as serving on committees and task forces. Succession planning focuses on high-potential employees, that is, employees the organization believes can succeed in higher-level business positions. Job assignments are based on the successful career paths of the managers whom the high-potential employees are preparing to replace.

121.

The first step in the process of developing a succession plan is

A. reviewing the existing talent. B. linking succession planning with other human resource systems. C. identifying the positions to be planned for.

D. establishing position requirements. E. deciding how to measure employees' potential for being able to fill requirements. The first step in the process for developing a succession plan is identifying the positions to be planned for.

AACSB: Analytical Thinking

122.

The employees at Melly Towers acknowledge that their supervisor is excellent at his work and that he has received many accolades during his 40-year career. However, they claim he is a dysfunctional manager. When confronted, the supervisor argues that his work should speak for itself and the employees' opinions of his behavior is irrelevant. Which of the following statements would support the employees' claim?

incapable of accomplishing them. D. The employees are consistently recognized for performing their very best in challenging tasks, and they owe their success to their supervisor. E. The supervisor believes that keeping a distance from his employees will create a sense of fear in them. A manager who is otherwise competent may engage in some behaviors that make him or her ineffective or even "toxic"—someone who stifles good ideas and drives away employees. These dysfunctional behaviors include insensitivity to others, inability to be a team player, arrogance, poor conflict-management skills, inability to meet business objectives, and inability to adapt to change.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 3 Hard Topic: Define Career Development and Its Objectives

123.

An Individual Coaching for Effectiveness program is designed to

A. help managers with dysfunctional behavior.

B. improve the technical skills of employees. C. help prepare managers for overseas assignments. D. reduce the effects of the glass ceiling. E. attract and retain ambitious managerial employees. Development programs for managers with dysfunctional behavior may include specialized programs such as one called Individual Coaching for Effectiveness (ICE). The ICE program includes diagnosis, coaching, and support activities tailored to each manager's needs.

Essay Questions

124.

Discuss the relationship between training, development, and careers.

Training focuses on improving performance in one's current job. Development implies learning that is not necessarily related to an employee's current job. Instead, it prepares employees for other jobs or positions in the organization and increases their ability to move into jobs that may not yet exist. Careers have been traditionally defined in terms of a sequence of positions within an occupation or organization. However, careers have become more fluid. Protean careers reflect frequent changes in the employee's interests, abilities, and values and the changing work environment.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-01 Discuss how development is related to training and careers. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

125.

What are the different kinds of formal educational programs that organizations may use to support employee development?

Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. These may include workshops designed specifically for the organization's employees, short courses offered by consultants or universities, university programs offered to employees who live on campus during the program, and executive MBA programs. These programs may involve lectures by business experts, business games and simulations, experiential programs, and meetings with customers. Another trend in executive education is for employers and the education provider to create short courses with content designed specifically for the audience.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-02 Identify the methods organizations use for employee development. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

126.

How do organizations use psychological tests as an assessment tool?

Organizations with sophisticated development systems use psychological tests to measure employees' skills, personality types, and communication styles. Two psychological tests popular among organizations are the Myers-Briggs Type Indicator and the DiSC assessment. These are questionnaires in which employees answer questions about themselves or select words or statements they agree describe themselves. From the answers, a testing service creates an inventory or profile describing the person's traits or the way the person tends to behave. The Myers-Briggs Type Indicator (MBTI) identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle, and describes them in terms of four dichotomies: (1) energy dichotomy, or introversion versus extroversion; (2) information-gathering dichotomy, or sensing versus intuition; (3) decisionmaking dichotomy, or aspects of thinking versus feeling; and (4) lifestyle dichotomy, or judging versus perceiving. Research on the validity, reliability, and effectiveness of the MBTI is inconclusive. Still, the MBTI is a valuable tool for understanding communication styles and the ways people prefer to interact with others. It is not appropriate for measuring job performance, however, or as the only means of evaluating promotion potential. The DiSC assessment tool is an inventory of behavioral styles. An employee receives a profile report describing his or her behavioral style, preferred environment, and strategies for effectiveness. The style is described in terms of dominance, influence, steadiness, and conscientiousness. There are variations in these inventories, so employers should be careful to use a version that has been tested and shown to be valid and reliable.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-03 Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. Level of Difficulty: 2 Medium Topic: Career Development Resources

127.

Describe a leaderless group discussion.

A leaderless group discussion is an assessment center exercise in which a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period. The problem may involve buying and selling supplies, nominating a subordinate for an award, or assembling a product. Interview questions typically cover each employee's work and personal experiences, skill strengths and weaknesses, and career plans.

128.

What is 360-degree feedback? What are its advantages and disadvantages?

360-degree feedback is a method of performance measurement by an employee's supervisor, peers, employees, and customers. Often the feedback involves rating the individual in terms of work-related behaviors. Advantages: Organizations collect multiple perspectives of managers' performance, allowing employees to compare their own personal evaluations with the views of others. This method also establishes formal communications about behaviors and skill ratings between employees and their internal and external customers. Performance improves and behavior changes as a result of participating in upward feedback and 360-degree feedback systems. The change is greatest in people who received lower ratings from others than what they gave themselves. The system is most likely to be effective if the rating instrument enables reliable or consistent ratings, assesses behaviors or skills that are job related, and is easy to use. Disadvantages: This method demands a significant amount of time for raters to complete the evaluations. If raters, especially subordinates or peers, provide negative feedback, some managers might try to identify and punish them. A facilitator is needed to help interpret results. Simply delivering ratings to a manager does not provide ways for the manager to act on the feedback. Any form of assessment should be accompanied by suggestions for improvement and development of an action plan.

129.

What are the different ways in which job experiences help in employee development?

Job experiences can be used for development in the following ways: 1) Job enlargement: This is achieved by adding challenges or new responsibilities to employees' current jobs. Examples include completing a special project, switching roles within a work team, or researching new ways to serve customers. 2) Job rotation: It helps employees gain an appreciation for the company's goals, increases their understanding of different functions, develops a network of contacts, and improves problem-solving and decision-making skills. Job rotation is most likely to succeed when it meets certain conditions: the organization establishes and communicates clear policies about which positions are eligible for job rotation; employees and their managers understand and agree on the expectations for the job rotation, including which skills are to be developed; goals for the program support business goals; and the rotation schedule is realistic. 3) Transfers, promotions, downward moves: In a transfer, an organization assigns an employee to a position in a different area of the company, while in a downward move the employee is given less responsibility and authority. Transfers and downward moves can be anxiety-provoking and may appear like a punishment. Organizations should provide information about the potential benefits of the new job, and its challenges; involve employees in planning the change; give clear and frequent performance feedback; give information on the financial implications of the job opportunity; and help in locating housing, assistance for dependent family members, and help for spouse in finding new employment, if necessary. A promotion involves moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job. Because promotions improve the person's pay, status, and feelings of accomplishment, employees are more willing to accept promotions than lateral or downward moves. Organizations can more easily offer promotions if they are profitable and growing. In other conditions, opportunities for promoting employees may be limited. 4) Temporary assignments with other organizations: Externships involve a company allowing its employees to take full-time temporary position at other companies, while sabbaticals involve a leave of absence from the company to renew or develop skills. Sabbaticals let employees get away from the day-to-day stresses of their jobs and acquire new skills and perspectives. They allow employees more time for personal pursuits, such as writing a book or spending more time with family members.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-04 Explain how job experiences can be used for developing skills. Level of Difficulty: 2 Medium Topic: Define Career Development and Its Objectives

130.

Briefly describe group mentoring programs.

Some organizations use group mentoring programs, which assign four to six protégés to a successful senior employee, so that more employees can benefit from mentoring. A potential advantage of group mentoring is that protégés can learn from each other as well as from the mentor. The leader helps protégés understand the organization, guides them in analyzing their experiences, and helps them clarify career directions. Each member of the group may complete specific assignments, or the group may work together on a problem or issue.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-05 Summarize principles of successful mentoring programs. Level of Difficulty: 2 Medium Topic: Coaching and Mentoring

131.

How do managers and peers develop employees through coaching?

A coach is a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback. Coaches should be prepared to take on one or more of three roles: working one-on-one with an employee; helping employees learn for themselves; and providing resources, such as mentors, courses, or job experiences.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-06 Tell how managers and peers develop employees through coaching. Level of Difficulty: 2 Medium Topic: Coaching and Mentoring 8-135 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

132.

What are the four steps of a basic career management system?

A basic career management system involves four steps: data gathering, feedback, goal setting, and action planning and follow-up. 1) Data gathering: This is the first step in the career management process. Self-assessment refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioral tendencies. The employee's responsibility is to identify opportunities and personal areas needing improvement. The organization's responsibility is to provide assessment information for identifying strengths, weaknesses, interests, and values. 2) Feedback: In the feedback step of the career management process, employees receive information about their skills and knowledge and where these assets fit into the organization's plans. The employee's responsibility is to identify what skills he or she could realistically develop in light of the opportunities available. The organization's responsibility is to communicate the performance evaluation and the opportunities available to the employee, given the organization's long-range plans. Opportunities might include promotions and transfers. 3) Goal setting: The employee sets short- and long-term career objectives in one or more of the following categories: desired positions, level of skill to apply, work setting, and skill acquisition. The goals should be specific, and they should include a date by which the goal is to be achieved. It is the employee's responsibility to identify the goal and the method of determining her or his progress toward that goal. The organization's responsibilities are to ensure that the goal is specific, challenging, and attainable and to help the employee reach the goal. 4) Action planning and follow-up: Employees prepare an action plan for how they will achieve their career goals. The employee is responsible for identifying the steps and timetable to reach the goals. The employer should identify resources needed, including courses, work experiences, and relationships. Action plans may involve any one or a combination of development methods—training, assessment, job experiences, or the help of a mentor or coach.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 08-07 Identify the steps in the process of career management. 8-136 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Steps in the Career Development Process

133.

What is succession planning and what are its benefits? What are the three stages for an effective program for developing high-potential employees?

Succession planning is the process of identifying and tracking high-potential employees who will be able to fill top management positions, such as general manager or CEO, when they become vacant.

Succession planning helps organizations in several ways: it requires senior management to systematically conduct a review of leadership talent in the company; it ensures that top-level management talent is available; it provides a set of development experiences that managers must complete to be considered for top management positions; and it helps attract and retain managerial employees by providing development opportunities. An effective program for developing high-potential employees has three stages: Stage 1: At stage 1, high-potential employees are selected, typically those who have completed elite academic programs or who have been outstanding performers. Psychological tests and assessment centers may also be used. Stage 2: At stage 2, employees receive developmental experiences. Those who succeed are the ones who continue to demonstrate good performance, who are willing to make sacrifices for the company, and who have good communication skills. Those who meet expectations move to the next stage. Stage 3: At stage 3, the CEO becomes actively involved in developing the employees, who are exposed to the company's key personnel and are given a greater understanding of the company's culture. Reaching this stage may take 15 to 20 years.

AACSB: Analytical Thinking Blooms: Understand 8-137 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 08-08 Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers. Level of Difficulty: 2 Medium Topic: Succession Planning

Chapter 09 Creating and Maintaining High-Performance Organizations

True / False Questions

1. Creating a high-performance work system is similar to traditional management practices because both treat decision making about technology, organization structure, and human resources as unrelated. True

False

2. An organization's HR department makes most decisions about organizational structure. True

False

3. The reward systems of an organization include the performance measures by which employees are judged and the methods of measuring performance. True

False

4. High-performance work systems are characterized by high employee turnover. True

False

5. Themost popular way to empower employees is to design work so that it can be performed by individuals. True

False

6. To create a learning organization, one challenge is to shift the focus of training away from merely generating and sharing knowledge toward a stronger focus on teaching skills. True

False

7. A condition underpinning any high-performance organization is that employees be fully engaged with their work. True

False

8. People experience occupational intimacy when they love their work, when they and their coworkers care about one another, and when they find their work meaningful. True

False

9. A written code of ethics is usually ineffective if it is developed with input from employees about situations they encounter. True

False

10. Research suggests that it is more effective to improve HRM practices as a whole than to focus on one or two isolated practices. True

False

11. High-performance organizations do not need selection methods that identify more than technical skills. True

False

12. To set up a performance management system that supports the organization's goals, employees need to understand what they must do to contribute to a goal achievement. True

False

13. Measures of employees' performance should take the effects of situational constraints into account. True

False

14. Compensation usually discourages high-performance organizations when it is linked in part to performance measures. True

False

15. Transaction processing includes the activities required to meet government reporting requirements. True

False

16. An expert system can increase efficiency by enabling more highly skilled employees to do work that otherwise would require many less-skilled employees. True

False

17. A standard feature of a modern Human Resource Information System is the use of relational databases, which store data in separate files that can be linked by common elements. True

False

18. A benefit of e-HRM is that employees can help themselves to information they need when they need it, instead of contacting an HR staff person. True

False

19. In the context of e-HRM, online appraisal or talent management systems provide data that can help managers spot high performers to reward or types of skills where additional training is a priority. True

False

20. For an organization's human resource division, "customers" are the organization's top management. True

False

21. An HRM audit is a formal review of the outcomes of HRM functions. True

False

22. Training dollars per employee is a business indicator of the success of an HR department's introduction and orientation programs. True

False

23. The usual way to measure customer satisfaction in the course of an HRM audit is to conduct experiments in controlled environments. True

False

24. Oneway to measure HRM effectiveness is to use HR analytics to measure a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense. True

False

25. Landon, a human resource manager, proposes that his company hire an expert in HR analytics. This competency could enable the company to measure the economic costs and benefits of its HR programs, so it can continue only the programs that add value. True

False

Multiple Choice Questions

26. Which of the following best defines a high-performance work system?

A. an arrangement of machinery and equipment that streamlines the workflow and results in maximum efficiency and cost savings B. the right combination of people, technology, and organizational structure that makes full use of the organization's resources and opportunities in achieving its goals C. a computer software system that is designed to help managers solve problems by showing how results vary when the manager alters assumptions or data D. a system that is used to collect, record, store, analyze, and retrieve data concerning an organization's human resources E. a performance management system that measures customer satisfaction 27. Which of the following statements is true of high-performance work systems?

A. Creating a high-performance work system is akin to using traditional management practices. B. To function as a high-performance work system, people, technology, and organizational structure must be completely independent of one another. C. To develop a high-performance work system, organizations need to determine what kinds of people fit their needs and then locate, train, and motivate those special people. D. A high-performance work system usually excludes reward systems. E. Integrated high-performance work practices usually have little impact on productivity and longterm financial performance. 28. Identify the term that refers to the way in which an organization groups its people into useful divisions, departments, and reporting relationships.

A. job structure B. organizational structure C. value chain D. corporate design E. relationship management

29. Which of the following in an organization usually makes most of the decisions about organizational structure?

A. top management B. HR department C. supervisors D. middle-level managers E. technical analysts 30. Which of the following elements of a high-performance work system determines how the details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities?

A. information systems B. reward systems C. performance D. organizational structure E. task design 31. Gibson United is a new firm located in Chicago. The firm has to hire qualified individuals, compartmentalize them into different departments, and hire a set of managers who will be able to instruct, monitor, and guide these employees to ensure smooth functioning of the organization. In this scenario, Gibson United is engaging in creating a(n) _____.

A. information system B. task-design procedure C. reward system D. organizational structure E. staffing solution

32. In a high-performance work system, organizational structure promotes cooperation, learning, and _____.

A. traditional management practices B. personal discipline C. improved financial performance D. continuous improvement E. productivity in all levels of the organization 33. Which of the following statements is true of an organizational structure in a high-performance work system?

A. It promotes high employee turnover. B. It promotes cooperation and learning. C. It discourages competition. D. It helps the organization select the right people with the required qualifications. E. It encourages people to strive for objectives that support the organization's overall goals. 34. Which of the following statements is true about task design?

A. It determines what type of information to gather to reduce errors in planning. B. It empowers people to perform better and create goals that match an organization's goals. C. It allows the recruitment of prospective candidates to occur in an easier manner. D. It involves dividing a task or assignment into smaller tasks or assignments so that short-term goals can be met. E. It involves the clustering of details pertaining to an organization's required activities.

35. In a high-performance work system, task design makes jobs _____.

A. narrow in scope B. high in task significance, but low in autonomy C. highly specialized D. efficient while encouraging high quality E. simple and repetitive 36. According to your text, which of the following is a key element of high-performance work systems?

A. organization B. a rigid hierarchy C. measurable skill sets D. the right people E. exact synchronization between divisions 37. Which of the following elements in a high-performance work system contributes to high performance by encouraging people to strive for objectives that support the organization's overall goals and includes the performance measures by which employees are judged?

A. organizational goals B. task design C. reward systems D. information systems E. training systems

38. Ryan is an experienced employee at an organization. The latest policy implemented by the firm's management provides only new employees with bonuses and other perks for exemplary performance. Ryan has raised concerns regarding the revised policy, but management stands firm on its revised policy. For Ryan's company to be a high-performance work system, which of the following elements is Ryan seeking to improve?

A. organizational structure B. staffing C. reward systems D. task design E. information systems 39. In which of the following ways do modern information systems contribute most directly to the creation of a high-performance work system?

A. by encouraging employees to strive for objectives that support the organization's goals B. by determining the details of the organization's necessary activities C. by enabling organizations to give many employees access to information D. by grouping people into useful divisions and departments E. by selecting people who can perform their jobs well 40. Nicole was recently promoted at a leading IT firm. Her supervisor has given her access to previously-restricted programs, and Nicole can now retrieve certain confidential data necessary to her job responsibilities. Given the nature of her work, which of the following elements of a highperformance work system is illustrated in this scenario?

A. organizational structure B. staffing C. reward systems D. task design E. information systems

41. Outcomes of a high-performance work system include higher productivity and _____.

A. efficiency B. maintenance C. manpower D. equipment E. resources 42. High-performance work systems result in _____.

A. simple, repetitive jobs B. high employee turnover C. high production costs D. high product quality E. centralized decision making 43. Which of the following is an outcome of a high performance work system?

A. higher productivity B. decreased product quality C. employee turnover D. decent customer satisfaction E. meeting basic goals

44. As part of his company's initiative to create a high-performance work system, Brady, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Brady to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Brady to use?

A. Getting employees focused on customer satisfaction should take their focus off compensation, lowering costs. B. Improving customer satisfaction should increase demand, leading to greater sales and profits. C. Satisfied customers should result in higher quality, which in turn will increase the degree of innovation. D. Customer satisfaction should lower employee absenteeism and turnover, which reduces costs and raises profits. E. Focusing on customer satisfaction will drive up productivity, which in turn drives up profits. 45. Which of the following statements is true about the outcomes of high-performance work systems?

A. The outcomes of high-performance work systems include high employee turnover. B. Sales revenues increase the outcomes of high-performance work systems. C. Clients are the main force that drives the outcomes of a high-performance work system. D. The outcomes of each employee contribute to a system's overall high performance. E. Incentives provided to each employee play a big part in contributing to outcomes.

46. Which of the following would most likely aid in the formation of a high-performance work system?

A. employees' rewards and compensation that relate to the company's financial performance B. work design that allows employees to use a single skill C. technology that is used to discourage flexibility D. employees that receive little formal performance feedback E. training that is discouraged because of increasing costs 47. A manufacturing firm aims to become a high-performance work system. To do this, a survey team asks employees for comments and suggestions on how they can improve the firm. Some of the newest hires say they feel left out of decision-making processes, while some of the experienced employees say their objections towards the firm switching to cheaper manufacturing equipment went unheard. Which of the following conditions would help the firm strengthen the formation of its high-performance work system?

A. The newest employees should be encouraged to focus on their tasks rather than being involved in improving work methods. B. The management should allow experienced employees to participate in planning changes in equipment, layout, and work methods. C. The new employees should be left out of planning changes because they are not accustomed to the firm's way of doing things yet. D. The firm should hire a third party to gain an outsider's assessment on what needs to be done. E. The survey team should ignore the employee comments and push for the changes they would like to see instead.

48. Which of the following is a condition that contributes to high performance?

A. Teams perform work only if the employees are interested in a project. B. Work design gives employees the opportunity to utilize a variety of skills. C. Training is not ongoing, but it is implemented when necessary. D. Changes to layout and work methods are handled by management. E. Employees' rewards and compensation relate mainly to individual performance. 49. _____ is a necessary condition of high performance because it contributes to good long-term relationships with employees, customers, and the public.

A. Emotional behavior B. Ethical behavior C. Physical behavior D. Mental behavior E. Cognitive behavior 50. Which of the following is a valid reason for ethical behavior to be a necessary condition for high performance?

A. It fosters competitiveness. B. It empowers first-line managers and supervisors. C. It helps an organization maintain the status quo. D. It contributes to good long-term relationships with employees, customers, and the public. E. It encourages people to be highly innovative.

51. Themost popular way of empowering employees is by

A. narrowing the scope of jobs. B. designing work so that it is performed by teams. C. adopting a centralized decision-making approach. D. paying bonuses to all employees regardless of contribution. E. providing employees with simple, repetitive jobs. 52. A work team can be empowered by

A. reducing the team's interaction with other department or teams. B. keeping roles independent and separate from one another. C. authorizing the team to make decisions traditionally made by managers. D. confining the scope of work done by the team and its members. E. assigning management of work schedules to the manager. 53. Teamwork and empowerment contribute to high performance when they improve _____.

A. job satisfaction B. organizational goals C. organizational ethics D. job rotation E. job enlargement

54. For empowerment to succeed, managers should

A. micromanage their teams and delegate as much work as possible. B. ensure that communication flows top down from senior management. C. help their teams ensure that communication flows in both directions. D. hold frequent meetings to constantly supervise the progress of the team. E. ensure that a team shares information only after it receives approval. 55. Which of the following statements is true about a learning organization?

A. It actively resists organizational change. B. It usually considers organizational learning a barrier to the dissemination of corporate culture. C. It supports lifelong learning by enabling all employees to continually acquire and share knowledge. D. It places a relatively low importance on innovation. E. It considers training a superfluous corporate ritual. 56. Zoom Motors pays a lot of attention to improving employee skills on the job. Its training centers and mentors are open to one-on-one sessions, group discussions, and workshops. The organization boasts a world-class resource center that offers the latest editions of many books and journals related to the automotive industry. All employees have free access to the knowledge pool in the organization and are welcome to initiate discussions on topics of interest. In this scenario, Zoom Motors has created a _____.

A. learning organization B. cultural organization C. static organization D. smart organization E. technology-based organization

57. For a learning organization to function well, employees ought to

A. create short-term learning goals rather than long-term learning goals. B. identify their own training needs. C. take part in seminars and conferences at least once every week. D. share the information that was acquired during the learning process. E. distribute highly classified information. 58. Each employee's and each group's ongoing efforts to gather information and apply the information to their decisions in a learning organization is referred to as

A. continuous learning. B. critical thinking. C. innovation. D. cognition. E. groupthink. 59. The employees at the Waycliff Foundation are continuously conducting research on ways to improve facilities and benefits for the impoverished children they care for. They then implement the ideas resulting from their research. This is an example of _____.

A. brand alignment B. continuous learning C. employee engagement D. performance management E. expert systems

60. Which of the following is true about continuous learning?

A. The advancement of technology has put little pressure on employees to learn about their work systems. B. Employees should continuously learn about their work systems to improve performance. C. Continuous learning may eventually turn out to be a disadvantage because it results in information overload. D. Despite continuous learning, employees do not put into practice what they have learned. E. Continuous learning definitely will result in a job transfer or better job opportunities. 61. What is the perception about training in a learning organization?

A. It is treated as a superfluous corporate ritual. B. It is viewed as an investment in the organization's human resources. C. It is considered as the only driver of continued growth and sustainability. D. It is deemed as the primary means of retaining good employees. E. It is regarded as a tool to minimize organizational anarchy. 62. Which of the following occurs when organizations encourage employees to see relationships among ideas and to test assumptions and observe the results of their actions?

A. high employee turnover B. critical, systematic thinking C. disruptive, intermittent learning D. organizational change E. organizational anarchy

63. A learning culture creates the conditions in which managers

A. encourage experimentation. B. ensure rigidity. C. help sustain the status quo. D. encourage groupthink. E. demonstrate a high degree of risk aversion. 64. At Wakame Beauty Solutions, Sheila created an award-winning line of lip balm, lip gloss, and lipstick after many hours of research and discussions with experts. Now, with her manager's encouragement, she frequently conducts workshops for other employees about lip color and other beauty products. In this scenario, which of the following features of Wakame Beauty Solutions is exemplified?

A. flexible environment B. critical thinking C. learning culture D. job rotation E. functional organization

65. Georgia, the learning and development manager at StudyWell Inc., believes that in addition to providing superior benefits to employees, it is important to create an environment in which employees are able to develop. She suggests a new program that encourages employees take time out of their workday to research relevant topics and share knowledge with their colleagues. Which of the following statements best supports the value of this program to StudyWell?

A. Any increase in learning activities in an organization increases workload and decreases the time available to handle the workload. B. Conversing with coworkers should occur during employees' free time, not as part of their daily work activities. C. The time that employees spend in research may interfere with projects that must be accomplished under tight deadlines. D. Shared knowledge can lead to new innovations for StudyWell, as well as the development of internal talent. E. Employees will use the knowledge they've acquired to assert their intellectual superiority over management. 66. Calvin, the CEO of Incal Inc., a digital media startup, holds a meeting with his employees, telling them he wants them to put 100% effort into their daily work. He adds that in every quarter the company meets its sales targets, employees will receive a $500 bonus. In this scenario, Calvin's actions are most likely to improve ______.

A. critical thinking B. continuous learning C. ethical behavior D. employee engagement E. information systems

67. Tamara, a human resource manager at Ionic Consulting, believes that it is important for employees to feel a sense of satisfaction about their jobs, because a satisfied employee will contribute more to the organization than an employee who is dissatisfied with his or her job. Which of the following actions by Tamara's department would best contribute to employee satisfaction?

A. rewarding employees for meeting goals B. paying all employees the same salary, regardless of performance C. giving out trophies instead of extra pay for accomplishments D. simplifying jobs to the most routine activities E. setting easy-to-reach goals 68. Which of the following is a way in which organizations can promote job satisfaction?

A. They can make jobs more repetitive. B. They can set up subjective performance management systems. C. They can set highly abstract goals. D. They can empower supervisors. E. They can make jobs more interesting. 69. According to your text, the practices that do most to promote employee engagement are opportunities for career progress, recognition for accomplishments, and _____.

A. excellent benefits B. strong leadership C. a corporate learning culture D. brand alignment E. empowerment

70. Which of the following processes involves ensuring that HR policies, practices, and programs support or are congruent with an organization's overall culture or brand, including its products and services?

A. brand reinforcement B. brand alignment C. crowdsourcing D. brand dilution E. corporate social responsibility 71. The slogan of Natural Care Products is "Loving the Earth." This is more than just an advertising message. The company hires people who not only have job-related skills but also a commitment to sustainability and enjoyment of nature. The employees regularly have opportunities to sign up for service projects such as river cleanups and recycling drives. Employees are enthusiastic about developing and marketing products made with all-natural ingredients sustainably sourced. The HR department uses its communication tools to remind employees about how everyone contributes to realizing this eco-friendly vision for the company. Together, these efforts at Natural Care Products create _____.

A. brand alignment B. a learning culture C. critical systemic thinking D. knowledge sharing E. continuous learning

72. People experience _____ when they love their work, when they and their co-workers care about one another, and when they find their work meaningful.

A. burnout B. cognitive job satisfaction C. occupational intimacy D. diminished personal accomplishment E. emotional dissonance 73. James works at a publishing house. He is fond of his work and is a passionate team member. His colleagues show concern for him and his work, and he experiences a positive feeling about his work. In the context of job satisfaction, the feeling experienced by Vincent is known as _____.

A. job altruism B. occupational intimacy C. work loyalty D. task obedience E. job compliance 74. Which of the following practices is most likely to enhance occupational intimacy?

A. lowering emphasis on organizational learning B. narrowing the scope of work C. setting highly abstract goals D. establishing rigid and enduring pay structures E. establishing policies that show concern for employees' needs

75. A year ago, a production facility of a beverage company became the subject of negative news coverage following complaints that it had been slow to alert the community to some contamination of the water supply. During the reporters' investigation, several employees came forward to blame a supervisor who they claimed was nasty and unfair in his dealings with them. After the stories spread online, the human resource department noticed that the number of workers applying for jobs at the facility had tumbled, and so had the quality of applicants who did apply. The troublesome manager was dismissed, and now the human resource department is investigating how to improve the ethical climate at the facility. Which of the following measures would contribute most to the effort?

A. recognizing that, for a business, ethical issues are mainly relevant in the short term B. sending executives to an off-site private retreat to write a code of ethics together C. shutting down channels through which unethical acts might become known D. keeping quiet until the incidents are forgotten E. including measures of ethical behavior in performance management 76. Identify the HRM practice that can assist firms in becoming a high-performance organization.

A. a conservative discipline system B. avoiding monitoring employees' satisfaction C. a job related and legal selection system D. a work design encouraging rigidity E. using technology sparingly 77. Which of the following is an HRM practice that helps organizations achieve high performance?

A. work performed by individuals B. an organization discouraging continuous learning C. a performance management system measuring customer satisfaction and quality D. pay systems primarily rewarding loyalty to the company E. technology which increases costs

78. Job design aimed at empowerment

A. is complex. B. limits flexibility. C. includes access to resources. D. increases employee turnover. E. includes a rigid pay structure. 79. ThinkBig Inc. has been known for its excellent customer service since its start more than 40 years ago. The company carefully selects employees based on their combination of skills and commitment to the company's values of service and quality. How does ThinkBig's selection process contribute to the company's high performance?

A. ThinkBig focuses on outcomes that can be defined in specific terms. B. ThinkBig can benefit from the use of teamwork and employee empowerment. C. ThinkBig's selection process avoids the use of psychological testing. D. ThinkBig's employees have more technical skills than competitors' employees have. E. ThinkBig‘s employees not only know how to do their work, but also are enthusiastic and committed. 80. ITI Inc., a software company, is currently looking for employees to fill vacant positions. It is looking for prospective candidates who are enthusiastic about their work and willing to share their knowledge with their colleagues on various topics related to their field. The HR department is responsible for finding the right type of candidate to fit the roles in the organization. In this scenario, the HR department contributes to high performance through _____.

A. job design B. training C. performance management D. recruitment and selection E. job search

81. Which of the following selection methods is used by organizations to identify employees who innovate, share ideas, and take initiative?

A. technical proficiency B. psychological testing C. structured interview D. ambition research E. physical ability 82. At a high-performance organization, recruitment and selection aim at obtaining the kinds of employees who can thrive in this type of setting. These employees are _____.

A. primarily individual contributors B. enthusiastic about knowledge sharing C. averse to risk taking D. averse to experimentation E. averse to taking initiative 83. Ronaldo, the general manager of RipnRoll Furniture, believes that each employee must thoroughly understand the goals of the organization. He understands that adhering to the vision and mission of the organization will help increase employee satisfaction and will also result in improved employee performance. Which of the following strengthens Ronaldo's belief?

A. the vision and mission of the organization are ethical B. understanding the organization's goals helps employees improve their performance C. employee performance can be enhanced by keeping costs under control D. Ronaldo has too many expectations of his employees E. the organization's goals constantly change

84. The human resource department of Winston Memorial Hospital has played a leading role in helping the hospital become a high-performance work system. Recently, the team has been focusing on the organization's performance management. Which of the following efforts would most directly ensure that performance management supports the development of a highperformance work system?

A. preventing organizational culture from influencing employees' behaviors B. making sure employees know how their work contributes to the hospital's mission C. ensuring the confidentiality of the organization's primary objectives D. developing the hospital's talent to move into positions of greater responsibility E. identifying and hiring people who are enthusiastic about and able to contribute to teamwork 85. Oneway performance management systems can support organizational goals is by

A. defining and measuring performance in broad behavioral terms. B. linking performance measures to meeting internal and external customers' needs. C. ignoring situational constraints. D. outsourcing those goals to professional behavior management firms. E. choosing business goals based on employees' skills and abilities. 86. To improve the performance of employees at RowYourBoat Inc., the company provides recognition and monetary benefits to those employees whose performance exceeds expectations. This strategy can motivate some employees to perform better. This is an example of a(n) _____ strategy.

A. occupational intimacy B. brand alignment C. appraisal D. compensation E. job design

87. A media company gives its employees monetary bonuses at the end of the company's fiscal year based on employees' contribution to the firm's financial success. This is a method of

A. including employees in organizational planning. B. disassociating compensation from performance measures. C. disseminating organizational learning. D. increasing employee participation in strategic decision making. E. linking compensation to performance measures. 88. Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increase empowerment and job satisfaction by

A. communicating the basis for decisions about pay. B. disassociating compensation from performance measures. C. discouraging negotiations regarding pay. D. limiting employee participation in management. E. limiting the use of gainsharing and profit sharing. 89. New technology usually involves _____—that is, using equipment and information processing to perform activities that had been performed by people.

A. downsizing B. outsourcing C. offshoring D. automation E. diversification

90. Which of the following refers to the computations and calculations involved in reviewing and documenting HRM decisions and practices?

A. E-HRM B. transaction processing C. automation D. expert systems E. decision support systems 91. The HR department at AYM Resources is having a tough time documenting its hiring decisions. In addition, irregularities were uncovered when reviewing the offers made to job candidates during the previous year. As a solution to these issues, the human resource manager proposes that all activities related to employee selection be documented thoroughly with the help of computers. In this scenario, the manager proposes using _____.

A. transformational processing B. expert systems C. decision support systems D. micro processing E. transaction processing

92. Which of the following best defines decision support systems?

A. It refers to computer software systems that allow managers to see how outcomes vary when assumptions or data are altered. B. It is a network of remote servers used to store reusable data. C. It is a network of systems that incorporates decision rules used by people who are considered to have expertise in a certain area. D. It refers to the set of topics on which a human resource information system collects and maintains information. E. It refers to online training and development materials that employees can access at their own convenience from anywhere around the world. 93. A human resource manager is developing a plan for ensuring the company has enough engineers. She has already gathered forecasts for the number of mechanical engineering graduates from nearby colleges. Now, she wants to test various salaries and determine the corresponding percentages of graduates that will accept a job offer with her company. This will allow the HR manager to advise the best salary range to offer, given the supply of labor. Which of the following information systems is intended for this kind of analysis?

A. a decision support system B. an expert system C. an HR dashboard D. a transaction-processing system E. a transitional matrix

94. The senior management of a firm is undecided about the number of employees needed for its new project. To advise the executives, a human resource specialist uses a computer system to estimate how long teams of three different sizes will take to complete the project, assuming the project is of either low, average, or high difficulty. The type of system appropriate for this case is a(n) _____.

A. expert system B. HR dashboard C. decision support system D. transaction-processing system E. document management system 95. _____ are computer systems that incorporate the decision rules used by people who are considered to have proficiency in a certain area.

A. Decision support systems B. Expert systems C. E-HRM systems D. Transaction-processing systems E. Clouds

96. A firm's HR department uses a computer system that assists in the selection of candidates to be interviewed for a job opening. The computer system enables the interviewer to act as both an interviewee and interviewer in a simulation, thus providing the HR specialist with comprehensive knowledge about the firm's overall interview and selection process. This computer system is likely to be a(n) _____.

A. expert system B. employee retention system C. decision support system D. work-action system E. document management system 97. Which of the following statements is true of expert systems?

A. they can only be used by employees who have proven expertise in a certain area B. they increase errors arising from decision-making biases C. they are typically unstable D. they deliver quality at a very high cost E. they aid in reducing errors that result from fatigue 98. A standard feature of a modern HRIS (Human Resource Information System) is the use of _____, which store data in separate files that can be linked by common elements.

A. graph databases B. hypermedia databases C. relational databases D. unstructured databases E. parallel databases

99. Identify the advantage of a relational database.

A. It facilitates the storage of employee information in a single, large file. B. It replicates the traditional method of filing employee data by name, a system that is strongly preferred by organizations worldwide. C. It helps HR staff in retrieving information about specific applicants. D. It helps people arrive at decisions that reflect expert knowledge. E. It is designed to exclusively meet the needs of the HR department. 100.Which of the following exemplifies one of the most creative developments in human resource information systems technology?

A. decision support system B. transactional processing system C. HR dashboard D. expert system E. intranet 101.Which of the following refers to a display of a series of HR measures, showing human resource goals and objectives and the progress toward meeting them?

A. a performance review template B. a job preview C. an expert system D. an HR dashboard E. a relational database

102.The HR department at TIP Consulting uses a human resource information system (HRIS). The employees of the department can view and track their individual progress as well as the progress that the department has made using HRIS. The component of the HRIS that enables this is called a(n) _____.

A. HR banner B. HR bulletin board C. HR showcase D. HR dashboard E. HR scroll 103.Roger, the vice president of HR at Maestro Inc., claims that the department's effectiveness has improved since it implemented the use of an HR dashboard. What capabilities of an HR dashboard best explain this improvement?

A. The HR dashboard eliminated the need for relational databases. B. The HR dashboard is used by all the employees. C. The HR dashboard provides an easy-to-scan review of HR performance on a companywide basis. D. The HR dashboard supplies human resource information to managers in their cars. E. The HR dashboard performs computations of routine HR practices.

104.Hal, a manager at a leading IT firm, is reviewing trends in his department. He notices the programming team has significantly increased the amount of work they have completed, but the testing team continues to stay at the same productivity level. What human resource information system tool would allow Hal to view such data?

A. expert system B. cloud computing database C. decision support system D. HR dashboard E. judge-advisor system 105.Which of the following is a vital tool in making confidential HR-related information widely accessible only to authorized users within an organization?

A. a decision support system B. an expert system C. an intranet D. a transactional processing system E. a judge-advisor system 106.Enrollment in employee benefits such as health insurance and retirement plans requires the use of private information about employees. Which of the following is the most appropriate and effective way for an organization to meet the need for confidentiality?

A. limiting the amount and type of information made available to company personnel B. placing the information about these benefits on a secure intranet with links to resources on the broader Internet C. consolidating information into a single file D. forbidding any knowledge sharing within the organization E. allowing only top-level personnel to have access to the database containing that information

107.Which of the following statements accurately characterizes social media and e-HRM?

A. Social media and HR practices have no business being together. B. Employee engagement has begun to take the form of videos and networking sites. C. Business collaboration is unable to occur in a virtual format. D. Both have unfavorable effects on employee manageability. E. Social media is not able to compete with forward-thinking HR tools. 108.Identify the correct statement regarding e-HRM.

A. Most administrative and information-gathering HRM activities can be part of e-HRM. B. E-HRM is less economical than traditional HR systems. C. E-HRM has adversely affected employee manageability. D. The number of organizations actively engaged in e-HRM is steadily decreasing. E. A major drawback of e-HRM is that employees cannot help themselves to the information they need when they need it. 109.WingDing Inc. is a retailer with outlets in more than 30 cities in the United States. After a recent expansion of an additional 25 outlets, WingDing looked to expand its IT infrastructure to make it easier for workers to apply for jobs and for employees to submit their time sheets. The IT department decided against increasing the capacity of the company's servers. Instead, the team used a third-party hosting service for running these applications. The employees at the megastores are allowed access to this information through a web interface. In this scenario, WingDing is employing _____.

A. expert systems B. relational database management C. cloud computing D. an HR dashboard E. decision support systems

110.Alamos Inc. has extensively made use of cloud computing for several functions of its HR department. This technology has helped manage department functions, store necessary data, and also has given employees access to the required databases to resolve customer queries and complaints. Which of the following, if true, would disrupt the services provided by this arrangement?

A. Internet access in the facility is intermittent for three hours every day. B. An updated version of the cloud, including multiple new features, has become available. C. Many other companies are making use of this device to store and manage data. D. The company's computers do not have capacity for all the software required. E. The company does not have enough servers to host the system. 111.In the context of an organization's human resource division, which of the following statements is true of its "customers"?

A. The term refers specifically to the organization's shareholders. B. The term refers specifically to the organization's offshore clients. C. The term usually refers to the organization's top management. D. The term refers to the organization as a whole and its other divisions. E. The term refers to the labor law enforcement agencies. 112.The three things human resource management needs to define in a customer-oriented approach are

A. the customer needs, the size of the organization, and the number of customers. B. the customer groups, the customer needs, and the activities required to meet those needs. C. the size of an organization, the customer groups, and the level of motivation of the customers. D. the size of the organization, the number of customers, and the customer needs. E. the dedication to quality, the size of management, and the goals of the organization.

113.Sofia, a human resources executive, emphasizes to her staff that the department should focus on serving its "customer," the company's employees. Which of the following activities best expresses treatment of employees as customers?

A. providing employees with the training they need to succeed at work B. keeping records of whether employees complete training when it is required C. reporting safety performance to the Occupational Safety and Health Administration D. directing employees who call to submit their questions in writing on a certain form E. telling employees what they must do to meet the needs of the HR department 114.According to your text, a number of techniques are available for measuring HRM's effectiveness in meeting its customers' needs depending on the situation. These techniques include reviewing a set of key indicators, measuring the outcomes of _____, and measuring the economic value of HRM programs.

A. training results B. committed employees C. goals D. specific HRM activity E. predicted successes 115.A formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance, is referred to as a(n) _____.

A. balanced scorecard B. profit-and-loss statement C. evidence-based HRM D. job description E. HRM audit

116.The primary focus of an HRM audit is based on

A. motivating customers. B. estimating the costs of implementing an HR practice. C. reviewing the various outcomes of HRM functions. D. determining the dollar value of the HRM program. E. determining the legality of HR practices. 117.To determine the outcomes of the HR functions at Vesco International, several top-level managers suggest conducting a formal review of the HR department to evaluate its functions. The CEO approves the implementation of this suggestion. Which of the following ways to measure the effectiveness of human resource management would Vesco use?

A. HRM functions B. HRM audit C. HRM analytics D. HRM programs E. HRM activities 118.Which of the following is an HRM function in an HRM audit?

A. production B. appraisal C. export D. import E. copyright protection

119.In the context of an HRM audit, the ratio of acceptances to offers made primarily serves as a business indicator for _____ activities.

A. employee development B. appraisal C. training D. compensation E. staffing 120.The HR department of a firm identifies the per capita requirement costs in its annual audit. It also calculates the average number of days taken to fill open positions at the firm. The data gathered were used as business indicators in the audit. The business indicators are most likely to measure the performance of the _____ activity of the firm.

A. training B. employee appraisal C. employee development D. compensation E. staffing 121.Which of the following is a measure of customer satisfaction that indicates the success of the staffing efforts of an HR department?

A. treatment of applicants B. average years of experience or education of hires per job family C. average days taken to fill open requisitions D. the ratio of acceptances to offers made E. the ratio of minority or women applicants to representation in local labor market

122.Which of the following is a business indicator for the success of the compensation system designed by the HR department of an organization?

A. competitiveness in the local labor market B. the ratio of average salary offers to average salary in community C. the relationship between pay and performance D. employee satisfaction with pay E. the fairness of existing job evaluation system in assigning grades and salaries 123.Which of the following is a customer satisfaction measure that indicates the success of the compensation system designed by the HR department of an organization?

A. competitiveness in local labor market B. the ratio of average salary offers to average salary in community C. per capita (average) merit increases D. the percentage of overtime hours to straight time E. the ratio of recommendations for reclassification to number of employees 124.Which of the following is a measure of customer satisfaction that indicates the success of the benefits programs implemented by the HR department of an organization?

A. promptness in handling claims B. the average unemployment compensation payment C. per capita (average) merit increases D. the benefit cost per payroll dollar E. the percentage of sick leave to total pay

125.In the context of an HRM audit, average unemployment compensation payment primarily serves as a vital business indicator for activities related to _____.

A. staffing B. training C. employee appraisals D. benefits E. recruitment 126.Which of the following is a business indicator of the success of the training programs implemented by the HR department of an organization?

A. the extent to which training programs meet the needs of employees and the company B. training dollars per employee C. communication to employees about available training opportunities D. assistance in identifying management potential E. the quality of introduction or orientation programs 127.For a business conducting an HRM audit, which of the following will serve as an important customer satisfaction measure in assessing the success of training programs conducted by HR?

A. the percentage of employees participating in training programs per job family B. the percentage of employees receiving tuition refunds C. per capita (average) merit increases D. training dollars per employee E. the quality of introduction or orientation programs

128.Which of the following is a business indicator of the success of the employee appraisal and development programs implemented by the HR department of an organization?

A. assistance in identifying management potential B. the organizational development activities provided by the HRM department C. the accuracy and clarity of information provided to managers and employees D. the quality of the introduction or orientation programs E. the distribution of performance appraisal ratings 129.A business indicator of the overall effectiveness of HR activities includes

A. the ratio of personnel staff to employee population. B. accuracy and clarity of information provided to managers and employees. C. the competence and expertise of staff. D. the working relationship between organizations and HRM department. E. assistance in identifying management potential. 130.Which of the following is a customer satisfaction measure of the overall effectiveness of HR activities?

A. the ratio of personnel staff to employee population B. the percentage of employees receiving tuition refunds C. per capita (average) merit increases D. the working relationship between organizations and HRM department E. the turnover rate

131.The use of HR analytics involves measuring a program's success in terms of whether it

A. adopted a pro-innovation approach. B. was perceived as effective by external stakeholders. C. sustained the status quo. D. delivered value in an economic sense. E. enjoyed the support of trade unions. 132.Maridings Inc., an apparel manufacturer, employed a large-scale recruitment drive to hire some of the country's best fashion designers. The company's HR team was responsible for measuring the success of this recruitment drive to quantify its returns. In this scenario, the HR team can use a process is referred to as _____.

A. HR report B. HR audit C. HR analytics D. HR statistics E. HR scoping 133.In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. In this context, greater efficiency means the HR department

A. has a relatively limited influence over employee performance. B. uses fewer and less-costly resources to perform its functions. C. spends lavishly on resources. D. has a more beneficial effect on the organization's performance. E. ensures that all operations are legal.

134.In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. In this context, greater effectiveness means that

A. the rate of employee turnover is considerably high. B. the HR personnel use fewer and less-costly resources to perform its functions. C. the average employee compensation in the organization is well above the prevailing market rate. D. what the HR department does has a more beneficial effect on employees' and the organization's performance. E. there is a relatively narrow gap between the highest and the lowest salaries paid in the organization.

Essay Questions

135.What is a high-performance work system? Explain the different elements of a high-performance work system. What is the role of HRM in such a system?

136.Discuss the various outcomes of a high-performance work system.

137.List the conditions that contribute to the formation of a high-performance work system.

138.What is a learning organization? What are its key features?

139.What is occupational intimacy? Explain.

140.Discuss how recruitment and selection practices contribute to high performance in an organization.

141.What are the guidelines that describe how to make the performance management system support organizational goals?

142.Describe an HR dashboard.

143.What is an HRM audit?

144.How can HR departments improve their performance?

Chapter 09 Creating and Maintaining High-Performance Organizations Answer Key

True / False Questions

Creating a high-performance work system is similar to traditional management practices because both treat decision making about technology, organization structure, and human resources as unrelated. FALSE

Creating a high-performance work system contrasts with traditional management practices. In the past, decisions about technology, organizational structure, and human resources were treated as if they were unrelated. More recently, managers have realized that success depends on how well all elements work together.

An organization's HR department makes most decisions about organizational structure. FALSE

An organization's top management makes most decisions about structure, such as how many employees report to each supervisor and whether employees are grouped according to the functions they carry out or the customers they serve.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 1 Easy 9-48 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: High-Performance Work Systems

The reward systems of an organization include the performance measures by which employees are judged and the methods of measuring performance. TRUE

Reward systems contribute to high performance by encouraging people to strive for objectives that support the organization's overall goals. Reward systems include the performance measures by which employees are judged, the methods of measuring performance, and the incentive pay and other rewards linked to success.

High-performance work systems are characterized by high employee turnover. FALSE

Outcomes of a high-performance work system include higher productivity and efficiency. A high-performance work system may have other outcomes, including high product quality, great customer satisfaction, and low employee turnover.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

Themost popular way to empower employees is to design work so that it can be performed by individuals. FALSE

One of the most popular ways to empower employees is to design work so that it is performed by teams. On a work team, employees bring together various skills and experiences to produce goods or provide services.

To create a learning organization, one challenge is to shift the focus of training away from merely generating and sharing knowledge toward a stronger focus on teaching skills. FALSE

Knowledge is shared. Therefore, to create a learning organization, one challenge is to shift the focus of training away from merely teaching skills and toward a broader focus on generating and sharing knowledge.

A condition underpinning any high-performance organization is that employees be fully engaged with their work. TRUE

A condition underpinning any high-performance organization is that employees be fully engaged with their work. Employee engagement is the degree to which employees are fully involved in their work and the strength of their commitment to their job and company. Being fully engaged tends to require that employees experience their jobs as fulfilling or allowing them to fulfill important values. Research supports the idea that employees' job satisfaction and job performance are related.

People experience occupational intimacy when they love their work, when they and their coworkers care about one another, and when they find their work meaningful. TRUE

People experience occupational intimacy when they love their work, when they and their coworkers care about one another, and when they find their work meaningful.

A written code of ethics is usually ineffective if it is developed with input from employees about situations they encounter. FALSE

A number of organizational systems can promote ethical behavior. These include a written code of ethics that the organization distributes to employees and expects them to use in decision making. This type of guidance can be especially effective if developed with input from employees about situations they encounter.

10.

Research suggests that it is more effective to improve HRM practices as a whole than to focus on one or two isolated practices. TRUE

Research suggests that it is more effective to improve HRM practices as a whole than to focus on one or two isolated practices, such as the organization's pay structure or selection system. Also, to have the intended influence on performance, the HRM practices must fit well with one another and the organization as a whole.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

11.

High-performance organizations do not need selection methods that identify more than technical skills. FALSE

High-performance organizations need selection methods that identify more than technical skills, like ability to perform accounting and engineering tasks. Employers may use group interviews, open-ended questions, and psychological tests to find employees who innovate, share ideas, and take initiative.

12.

To set up a performance management system that supports the organization's goals, employees need to understand what they must do to contribute to a goal achievement. TRUE

Performance management ensures that employees' work contributes to achieving the organization's goals. In a high-performance organization, this requires making sure that employees know the organization's goals and what they must do to contribute to goal achievement. A performance management system that meets those requirements applies the process of employee performance.

13.

Measures of employees' performance should take the effects of situational constraints into account. TRUE

An organization should monitor economic conditions, the organization's culture, and other influences of situational constraints on performance. Measures of employees' performance should take these influences into account.

14.

Compensation usually discourages high-performance organizations when it is linked in part to performance measures. FALSE

Compensation supports high-performance organizations when it is linked in part to performance measures.

15.

Transaction processing includes the activities required to meet government reporting requirements. TRUE

Transaction processing refers to computations and calculations involved in reviewing and documenting HRM decisions and practices. It includes documenting decisions and actions associated with employee relocation, training expenses, and enrollment in courses and benefit plans. Transaction processing also includes the activities required to meet government reporting requirements, such as filling out EEO-1 reports, on which employers report information about employees' race and gender by job category.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 1 Easy Topic: How Technology Influences Human Resource Management?

16.

An expert system can increase efficiency by enabling more highly skilled employees to do work that otherwise would require many less-skilled employees. FALSE

An expert system can increase efficiency by enabling fewer or less-skilled employees to do work that otherwise would require many highly skilled employees.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

17.

A standard feature of a modern Human Resource Information System is the use of relational databases, which store data in separate files that can be linked by common elements. TRUE

A standard feature of a modern Human Resource Information System is the use of relational databases, which store data in separate files that can be linked by common elements. These common elements are fields identifying the type of data.

18.

A benefit of e-HRM is that employees can help themselves to information they need when they need it, instead of contacting an HR staff person. TRUE

A benefit of e-HRM is that employees can help themselves to the information they need when they need it, instead of contacting an HR staff person.

19.

In the context of e-HRM, online appraisal or talent management systems provide data that can help managers spot high performers to reward or types of skills where additional training is a priority. TRUE

Most administrative and information-gathering activities in human resource management can be part of e-HRM.

20.

For an organization's human resource division, "customers" are the organization's top management. FALSE

In recent years, human resource management at some organizations has responded to the quest for total quality management by taking a customer-oriented approach. For an organization's human resource division, "customers" are the organization as a whole and its other divisions.

21.

An HRM audit is a formal review of the outcomes of HRM functions. TRUE

22.

Training dollars per employee is a business indicator of the success of an HR department's introduction and orientation programs. TRUE

Training dollars per employee is a business indicator of the success of an HR department's introduction and orientation programs.

23.

The usual way to measure customer satisfaction in the course of an HRM audit is to conduct experiments in controlled environments. FALSE

The usual way to measure customer satisfaction is to conduct surveys such as the employee attitude survey.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 9-58 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 1 Easy Topic: Evaluating the Effectiveness of HRM Practices

24.

Oneway to measure HRM effectiveness is to use HR analytics to measure a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense. TRUE

One way to measure HRM effectiveness is to use HR analytics. This type of assessment can measure success in terms of whether a program or practice achieved its objectives and whether it delivered value in an economic sense.

25.

Landon, a human resource manager, proposes that his company hire an expert in HR analytics. This competency could enable the company to measure the economic costs and benefits of its HR programs, so it can continue only the programs that add value. TRUE

HR analytics involves measuring a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense. The analysis can take an economic approach that measures the dollar value of the program's costs and benefits. Successful programs should deliver value that is greater than the programs' costs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Evaluating the Effectiveness of HRM Practices

Multiple Choice Questions

26.

Which of the following best defines a high-performance work system?

use of the organization's resources and opportunities in achieving its goals C. a computer software system that is designed to help managers solve problems by showing how results vary when the manager alters assumptions or data D. a system that is used to collect, record, store, analyze, and retrieve data concerning an organization's human resources E. a performance management system that measures customer satisfaction A high-performance work system refers to the right combination of people, technology, and organizational structure that makes full use of the organization's resources and opportunities in achieving its goals. To function as a high-performance work system, each of these elements must fit well with the others in a smoothly functioning whole.

27.

Which of the following statements is true of high-performance work systems?

of people fit their needs and then locate, train, and motivate those special people. D. A high-performance work system usually excludes reward systems. E. Integrated high-performance work practices usually have little impact on productivity and long-term financial performance. To function as a high-performance work system, each of the elements—people, technology, and organizational structure—must fit well with the others in a smoothly functioning whole. Organizations need to determine what kinds of people fit their needs, and then locate, train, and motivate those special people.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

28.

Identify the term that refers to the way in which an organization groups its people into useful divisions, departments, and reporting relationships.

A. job structure B. organizational structure

C. value chain D. corporate design E. relationship management Organizational structure is the way the organization groups its people into useful divisions, departments, and reporting relationships.

29.

Which of the following in an organization usually makes most of the decisions about organizational structure?

A. top management

B. HR department C. supervisors D. middle-level managers E. technical analysts An organization's top management makes most decisions about structure, for instance, how many employees report to each supervisor and whether employees are grouped according to the functions they carry out or the customers they serve.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. 9-62 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

30.

Which of the following elements of a high-performance work system determines how the details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities?

A. information systems B. reward systems C. performance D. organizational structure E. task design

Task design determines how the details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities. In a high-performance work system, task design makes jobs efficient while encouraging high quality.

31.

Gibson United is a new firm located in Chicago. The firm has to hire qualified individuals, compartmentalize them into different departments, and hire a set of managers who will be able to instruct, monitor, and guide these employees to ensure smooth functioning of the organization. In this scenario, Gibson United is engaging in creating a(n) _____.

A. information system B. task-design procedure C. reward system D. organizational structure

E. staffing solution Organizational structure is the way the organization groups its people into useful divisions, departments, and reporting relationships.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

32.

In a high-performance work system, organizational structure promotes cooperation, learning, and _____.

A. traditional management practices B. personal discipline C. improved financial performance D. continuous improvement

E. productivity in all levels of the organization In a high-performance work system, organizational structure promotes cooperation, learning, and continuous improvement.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

33.

Which of the following statements is true of an organizational structure in a high-performance work system?

A. It promotes high employee turnover. B. It promotes cooperation and learning.

C. It discourages competition. D. It helps the organization select the right people with the required qualifications. E. It encourages people to strive for objectives that support the organization's overall goals. In a high-performance work system, organizational structure promotes cooperation, learning, and continuous improvement.

34.

Which of the following statements is true about task design?

A. It determines what type of information to gather to reduce errors in planning. B. It empowers people to perform better and create goals that match an organization's goals. C. It allows the recruitment of prospective candidates to occur in an easier manner. D. It involves dividing a task or assignment into smaller tasks or assignments so that shortterm goals can be met. E. It involves the clustering of details pertaining to an organization's required activities.

Task design determines how the details of an organization's necessary activities will be grouped, whether into jobs or team responsibilities.

35.

In a high-performance work system, task design makes jobs _____.

A. narrow in scope B. high in task significance, but low in autonomy C. highly specialized D. efficient while encouraging high quality

E. simple and repetitive Task design determines how the details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities. In a high-performance work system, task design makes jobs efficient while encouraging high quality.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 1 Easy 9-66 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: High-Performance Work Systems

36.

According to your text, which of the following is a key element of high-performance work systems?

A. organization B. a rigid hierarchy C. measurable skill sets D. the right people

E. exact synchronization between divisions According to your text, the right people are a key element of high-performance work systems. Human resource personnel help the organization recruit and select people with the needed qualifications. Training, development, and career management ensure that these people are able to perform their current and future jobs with the organization.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

37.

Which of the following elements in a high-performance work system contributes to high performance by encouraging people to strive for objectives that support the organization's overall goals and includes the performance measures by which employees are judged?

A. organizational goals B. task design C. reward systems

D. information systems E. training systems Reward systems contribute to high performance by encouraging people to strive for objectives that support the organization's overall goals. Reward systems include the performance measures by which employees are judged, the methods of measuring performance, and the incentive pay and other rewards linked to success.

38.

Ryan is an experienced employee at an organization. The latest policy implemented by the firm's management provides only new employees with bonuses and other perks for exemplary performance. Ryan has raised concerns regarding the revised policy, but management stands firm on its revised policy. For Ryan's company to be a high-performance work system, which of the following elements is Ryan seeking to improve?

A. organizational structure B. staffing C. reward systems

D. task design E. information systems Reward systems contribute to high performance by encouraging people to strive for objectives that support the organization's overall goals. Reward systems include the performance measures by which employees are judged, the methods of measuring performance, and the incentive pay and other rewards linked to success.

39.

In which of the following ways do modern information systems contribute most directly to the creation of a high-performance work system?

D. by grouping people into useful divisions and departments E. by selecting people who can perform their jobs well Modern information systems, including the Internet, have enabled organizations to share information widely. HR departments take advantage of this technology to give employees access to information about benefits, training opportunities, job openings, and more.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

40.

Nicole was recently promoted at a leading IT firm. Her supervisor has given her access to previously-restricted programs, and Nicole can now retrieve certain confidential data necessary to her job responsibilities. Given the nature of her work, which of the following elements of a high-performance work system is illustrated in this scenario?

A. organizational structure B. staffing C. reward systems D. task design E. information systems

Managers make decisions about the types of information to gather and the sources of information. They also must decide who in the organization should have access to the information and how they will make the information available. Modern information systems, including the Internet, have enabled organizations to share information widely.

41.

Outcomes of a high-performance work system include higher productivity and _____.

A. efficiency

B. maintenance C. manpower D. equipment E. resources Outcomes of a high-performance work system include higher productivity and efficiency.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

42.

High-performance work systems result in _____.

A. simple, repetitive jobs B. high employee turnover C. high production costs D. high product quality

E. centralized decision making Outcomes of a high-performance work system include higher productivity and efficiency. These outcomes contribute to higher profits. A high-performance work system may have other outcomes, including high product quality, great customer satisfaction, and low employee turnover.

43.

Which of the following is an outcome of a high performance work system?

A. higher productivity

B. decreased product quality C. employee turnover D. decent customer satisfaction E. meeting basic goals Outcomes of a high-performance work system include higher productivity and efficiency. A high-performance work system may have other outcomes, including high product quality, great customer satisfaction, and low employee turnover.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

44.

As part of his company's initiative to create a high-performance work system, Brady, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Brady to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Brady to use?

A. Getting employees focused on customer satisfaction should take their focus off compensation, lowering costs. B. Improving customer satisfaction should increase demand, leading to greater sales and

profits. C. Satisfied customers should result in higher quality, which in turn will increase the degree of innovation. D. Customer satisfaction should lower employee absenteeism and turnover, which reduces costs and raises profits. E. Focusing on customer satisfaction will drive up productivity, which in turn drives up profits. Besides higher productivity and efficiency, the outcomes of a high-performance work system may include high product quality, great customer satisfaction, and low employee turnover. Customer satisfaction contributes to growth of the business. When the workers satisfy customers, sales rise, and in response to the greater demand, profits rise.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

45.

Which of the following statements is true about the outcomes of high-performance work systems?

E. Incentives provided to each employee play a big part in contributing to outcomes. In a high-performance work system, the outcomes of each employee and work group contribute to the system's overall high performance. The organization's individuals and groups work efficiently, provide high-quality goods and services, and so on, and in this way, they contribute to meeting the organization's goals.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

46.

Which of the following would most likely aid in the formation of a high-performance work system?

A. employees' rewards and compensation that relate to the company's financial performance

B. work design that allows employees to use a single skill C. technology that is used to discourage flexibility D. employees that receive little formal performance feedback E. training that is discouraged because of increasing costs Certain conditions underlie the formation of a high-performance work system. One such condition is that employees' rewards and compensation relate to the company's financial performance.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

47.

A manufacturing firm aims to become a high-performance work system. To do this, a survey team asks employees for comments and suggestions on how they can improve the firm. Some of the newest hires say they feel left out of decision-making processes, while some of the experienced employees say their objections towards the firm switching to cheaper manufacturing equipment went unheard. Which of the following conditions would help the firm strengthen the formation of its high-performance work system?

in equipment, layout, and work methods. C. The new employees should be left out of planning changes because they are not accustomed to the firm's way of doing things yet. D. The firm should hire a third party to gain an outsider's assessment on what needs to be done. E. The survey team should ignore the employee comments and push for the changes they would like to see instead. Certain conditions underlie the formation of a high-performance work system, such as allowing employees to participate in planning changes in equipment, layout, and work methods.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

48.

Which of the following is a condition that contributes to high performance?

A. Teams perform work only if the employees are interested in a project. B. Work design gives employees the opportunity to utilize a variety of skills.

C. Training is not ongoing, but it is implemented when necessary. D. Changes to layout and work methods are handled by management. E. Employees' rewards and compensation relate mainly to individual performance. Certain conditions underlie the formation of a high-performance work system. Among these is a work design which allows employees to use a variety of skills.

49.

_____ is a necessary condition of high performance because it contributes to good long-term relationships with employees, customers, and the public.

A. Emotional behavior B. Ethical behavior

C. Physical behavior D. Mental behavior E. Cognitive behavior Ethical behavior is a necessary condition of high performance because it contributes to good long-term relationships with employees, customers, and the public.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems 9-77 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

50.

Which of the following is a valid reason for ethical behavior to be a necessary condition for high performance?

E. It encourages people to be highly innovative. Ethical behavior is a necessary condition of high performance because it contributes to good long-term relationships with employees, customers, and the public.

51.

Themost popular way of empowering employees is by

A. narrowing the scope of jobs. B. designing work so that it is performed by teams.

C. adopting a centralized decision-making approach. D. paying bonuses to all employees regardless of contribution. E. providing employees with simple, repetitive jobs. One of the most popular ways to empower employees is to design work so that it is performed by teams. On a work team, employees bring together various skills and experiences to produce goods or provide services.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe the conditions that create a high-performance work system. 9-78 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

52.

A work team can be empowered by

D. confining the scope of work done by the team and its members. E. assigning management of work schedules to the manager. In order to empower teams, an organization may charge the teams with making decisions traditionally made by managers, such as hiring team members and planning work schedules.

53.

Teamwork and empowerment contribute to high performance when they improve _____.

A. job satisfaction

B. organizational goals C. organizational ethics D. job rotation E. job enlargement Teamwork and empowerment contribute to high performance when they improve job satisfaction and give the organization fuller use of employees' ideas and expertise.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe the conditions that create a high-performance work system.

Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

54.

For empowerment to succeed, managers should

D. hold frequent meetings to constantly supervise the progress of the team. E. ensure that a team shares information only after it receives approval. For empowerment to succeed, a manager should help the team and its members interact with employees from other departments or teams and should make sure communication flows in both directions—the manager keeps the team updated on important issues and ensures that the team shares information and resources with others who need them.

55.

Which of the following statements is true about a learning organization?

knowledge. D. It places a relatively low importance on innovation. E. It considers training a superfluous corporate ritual. A learning organization is an organization in which the culture values and supports lifelong learning by enabling all employees to continually acquire and share knowledge.

56.

Zoom Motors pays a lot of attention to improving employee skills on the job. Its training centers and mentors are open to one-on-one sessions, group discussions, and workshops. The organization boasts a world-class resource center that offers the latest editions of many books and journals related to the automotive industry. All employees have free access to the knowledge pool in the organization and are welcome to initiate discussions on topics of interest. In this scenario, Zoom Motors has created a _____.

A. learning organization

B. cultural organization C. static organization D. smart organization E. technology-based organization A learning organization is an organization in which the culture values and supports lifelong learning by enabling all employees to continually acquire and share knowledge.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

57.

For a learning organization to function well, employees ought to

E. distribute highly classified information. People are the essential ingredients in a learning organization. They must be committed to learning and willing to share what they have learned.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 1 Easy Topic: High-Performance Work Systems

58.

Each employee's and each group's ongoing efforts to gather information and apply the information to their decisions in a learning organization is referred to as

A. continuous learning.

B. critical thinking. C. innovation. D. cognition. E. groupthink. Continuous learning refers to each employee's and each group's ongoing efforts to gather information and apply the information to their decisions.

59.

The employees at the Waycliff Foundation are continuously conducting research on ways to improve facilities and benefits for the impoverished children they care for. They then implement the ideas resulting from their research. This is an example of _____.

A. brand alignment B. continuous learning

C. employee engagement D. performance management E. expert systems Continuous learning involves each employee's and each group's ongoing efforts to gather information and apply the information to their decisions.

60.

Which of the following is true about continuous learning?

A. The advancement of technology has put little pressure on employees to learn about their work systems. B. Employees should continuously learn about their work systems to improve performance.

C. Continuous learning may eventually turn out to be a disadvantage because it results in information overload. D. Despite continuous learning, employees do not put into practice what they have learned. E. Continuous learning definitely will result in a job transfer or better job opportunities. To engage in continuous learning, employees must understand the entire work system they participate in, the relationships among jobs, their work units, and the organization as a whole. Employees who continuously learn about their work system are adding to their ability to improve performance.

61.

What is the perception about training in a learning organization?

A. It is treated as a superfluous corporate ritual. B. It is viewed as an investment in the organization's human resources.

C. It is considered as the only driver of continued growth and sustainability. D. It is deemed as the primary means of retaining good employees. E. It is regarded as a tool to minimize organizational anarchy. To create a learning organization, one challenge is to shift the focus of training away from merely teaching skills and toward a broader focus on generating and sharing knowledge. In this view, training is an investment in the organization's human resources; it increases employees' value to the organization.

62.

Which of the following occurs when organizations encourage employees to see relationships among ideas and to test assumptions and observe the results of their actions?

A. high employee turnover B. critical, systematic thinking

C. disruptive, intermittent learning D. organizational change E. organizational anarchy Critical, systematic thinking is widespread in learning organizations. This occurs when organizations encourage employees to see relationships among ideas and to test assumptions and observe the results of their actions. Reward systems can be set up to encourage employees and teams to think in new ways.

63.

A learning culture creates the conditions in which managers

A. encourage experimentation.

B. ensure rigidity. C. help sustain the status quo. D. encourage groupthink. E. demonstrate a high degree of risk aversion. A learning culture is a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives. This culture may be reflected in performance management systems and pay structures that reward employees for gathering and sharing more knowledge. A learning culture creates the conditions in which managers encourage flexibility and experimentation.

64.

At Wakame Beauty Solutions, Sheila created an award-winning line of lip balm, lip gloss, and lipstick after many hours of research and discussions with experts. Now, with her manager's encouragement, she frequently conducts workshops for other employees about lip color and other beauty products. In this scenario, which of the following features of Wakame Beauty Solutions is exemplified?

A. flexible environment B. critical thinking C. learning culture

D. job rotation E. functional organization This scenario demonstrates that Wakame Beauty Solutions has a learning culture—a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives. This culture may be reflected in performance management systems and pay structures that reward employees for gathering and sharing more knowledge.

65.

Georgia, the learning and development manager at StudyWell Inc., believes that in addition to providing superior benefits to employees, it is important to create an environment in which employees are able to develop. She suggests a new program that encourages employees take time out of their workday to research relevant topics and share knowledge with their colleagues. Which of the following statements best supports the value of this program to StudyWell?

of internal talent. E. Employees will use the knowledge they've acquired to assert their intellectual superiority over management. In a learning culture, employees are valued. The organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 3 Hard Topic: Employee Motivation

66.

Calvin, the CEO of Incal Inc., a digital media startup, holds a meeting with his employees, telling them he wants them to put 100% effort into their daily work. He adds that in every quarter the company meets its sales targets, employees will receive a $500 bonus. In this scenario, Calvin's actions are most likely to improve ______.

A. critical thinking B. continuous learning C. ethical behavior D. employee engagement

E. information systems Employee engagement is the degree to which employees are fully involved in their work and the strength of their commitment to their job and company. Organizations can promote job satisfaction and employee engagement in several ways. They include making jobs more interesting, setting clear and challenging goals, and providing valued rewards that are linked to performance in a performance management system that employees consider fair.

67.

Tamara, a human resource manager at Ionic Consulting, believes that it is important for employees to feel a sense of satisfaction about their jobs, because a satisfied employee will contribute more to the organization than an employee who is dissatisfied with his or her job. Which of the following actions by Tamara's department would best contribute to employee satisfaction?

A. rewarding employees for meeting goals

B. paying all employees the same salary, regardless of performance C. giving out trophies instead of extra pay for accomplishments D. simplifying jobs to the most routine activities E. setting easy-to-reach goals Being fully engaged tends to require that employees experience their jobs as fulfilling or allowing them to fulfill important values. Organizations can promote job satisfaction and employee engagement through making jobs more interesting, setting clear and challenging goals, and providing valued rewards that are linked to performance in a performance management system that employees consider fair.

68.

Which of the following is a way in which organizations can promote job satisfaction?

There are a number of ways organizations can promote job satisfaction. They include making jobs more interesting, setting clear and challenging goals, and providing valued rewards that are linked to performance in a performance management system that employees consider fair.

69.

According to your text, the practices that do most to promote employee engagement are opportunities for career progress, recognition for accomplishments, and _____.

A. excellent benefits B. strong leadership C. a corporate learning culture D. brand alignment

E. empowerment The practices that do most to promote employee engagement are opportunities for career progress, recognition for accomplishments, and brand alignment.

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Topic: High-Performance Work Systems

70.

Which of the following processes involves ensuring that HR policies, practices, and programs support or are congruent with an organization's overall culture or brand, including its products and services?

A. brand reinforcement B. brand alignment

C. crowdsourcing D. brand dilution E. corporate social responsibility Brand alignment is the process of ensuring that HR policies, practices, and programs support or are congruent with an organization's overall culture or brand, including its products and services.

71.

The slogan of Natural Care Products is "Loving the Earth." This is more than just an advertising message. The company hires people who not only have job-related skills but also a commitment to sustainability and enjoyment of nature. The employees regularly have opportunities to sign up for service projects such as river cleanups and recycling drives. Employees are enthusiastic about developing and marketing products made with all-natural ingredients sustainably sourced. The HR department uses its communication tools to remind employees about how everyone contributes to realizing this eco-friendly vision for the company. Together, these efforts at Natural Care Products create _____.

A. brand alignment

B. a learning culture C. critical systemic thinking D. knowledge sharing E. continuous learning Brand alignment is the process of ensuring that HR policies, practices, and programs support or are congruent with an organization's overall culture or brand, including its products and services. One way to ensure HR policies align with a company's strategic vision is to educate employees about the company's "brand" and their role in bringing that brand to life as part of everyday work activities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

72.

People experience _____ when they love their work, when they and their co-workers care about one another, and when they find their work meaningful.

A. burnout B. cognitive job satisfaction C. occupational intimacy

D. diminished personal accomplishment E. emotional dissonance People experience occupational intimacy when they love their work, when they and their coworkers care about one another, and when they find their work meaningful.

73.

James works at a publishing house. He is fond of his work and is a passionate team member. His colleagues show concern for him and his work, and he experiences a positive feeling about his work. In the context of job satisfaction, the feeling experienced by Vincent is known as _____.

A. job altruism B. occupational intimacy

C. work loyalty D. task obedience E. job compliance People experience occupational intimacy when they love their work, when they and their coworkers care about one another, and when they find their work meaningful.

AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Apply Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

74.

Which of the following practices is most likely to enhance occupational intimacy?

Human resource managers have a significant role in creating conditions for employees to experience occupational intimacy. For example, they can select people who care about their work and customers, provide methods for sharing knowledge, design work to make jobs interesting, and establish policies and programs that show concern for employees' needs.

75.

A year ago, a production facility of a beverage company became the subject of negative news coverage following complaints that it had been slow to alert the community to some contamination of the water supply. During the reporters' investigation, several employees came forward to blame a supervisor who they claimed was nasty and unfair in his dealings with them. After the stories spread online, the human resource department noticed that the number of workers applying for jobs at the facility had tumbled, and so had the quality of applicants who did apply. The troublesome manager was dismissed, and now the human resource department is investigating how to improve the ethical climate at the facility. Which of the following measures would contribute most to the effort?

In the long run, a high-performance organization meets high ethical standards. Ethical behavior is most likely to result from values held by the organization's leaders combined with systems that promote ethical behavior. Standards alone are not enough—the organization should reinforce ethical behavior. For example, performance measures should include ethical standards.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

76.

Identify the HRM practice that can assist firms in becoming a high-performance organization.

A. a conservative discipline system B. avoiding monitoring employees' satisfaction C. a job related and legal selection system

D. a work design encouraging rigidity E. using technology sparingly There are many HRM practices that help organizations achieve high performance. One practice is that the selection system is job related and legal.

77.

Which of the following is an HRM practice that helps organizations achieve high performance?

A. work performed by individuals B. an organization discouraging continuous learning C. a performance management system measuring customer satisfaction and quality

D. pay systems primarily rewarding loyalty to the company E. technology which increases costs There are many HRM practices that help organizations achieve high performance. One of them is a performance management system that measures customer satisfaction and quality.

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78.

Job design aimed at empowerment

A. is complex. B. limits flexibility. C. includes access to resources.

D. increases employee turnover. E. includes a rigid pay structure. Job design aimed at empowerment includes access to resources such as information technology.

79.

ThinkBig Inc. has been known for its excellent customer service since its start more than 40 years ago. The company carefully selects employees based on their combination of skills and commitment to the company's values of service and quality. How does ThinkBig's selection process contribute to the company's high performance?

committed. Recruitment and selection aim at obtaining employees who are enthusiastic about and able to contribute to teamwork, empowerment, and knowledge sharing. High-performance organizations need selection methods that identify more than technical skills. Employers may use group interviews, open-ended questions, and psychological tests to find employees who innovate, share ideas, and take initiative.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

80.

ITI Inc., a software company, is currently looking for employees to fill vacant positions. It is looking for prospective candidates who are enthusiastic about their work and willing to share their knowledge with their colleagues on various topics related to their field. The HR department is responsible for finding the right type of candidate to fit the roles in the organization. In this scenario, the HR department contributes to high performance through _____.

A. job design B. training C. performance management D. recruitment and selection

E. job search Recruitment and selection aim at obtaining employees who are enthusiastic about and able to contribute to teamwork, empowerment, and knowledge sharing. Qualities such as creativity and ability to cooperate as part of a team may play a large role in selection decisions. Highperformance organizations need selection methods that identify more than technical skills.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

81.

Which of the following selection methods is used by organizations to identify employees who innovate, share ideas, and take initiative?

A. technical proficiency B. psychological testing

C. structured interview D. ambition research E. physical ability High-performance organizations need selection methods that identify more than technical skills like ability to perform accounting and engineering tasks. Employers may use group interviews, open-ended questions, and psychological tests to find employees who innovate, share ideas, and take initiative.

82.

At a high-performance organization, recruitment and selection aim at obtaining the kinds of employees who can thrive in this type of setting. These employees are _____.

A. primarily individual contributors B. enthusiastic about knowledge sharing

C. averse to risk taking D. averse to experimentation E. averse to taking initiative Recruitment and selection aim at obtaining employees who are enthusiastic about and able to contribute to teamwork, empowerment, and knowledge sharing. Qualities such as creativity and ability to cooperate as part of a team may play a large role in selection decisions.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

83.

Ronaldo, the general manager of RipnRoll Furniture, believes that each employee must thoroughly understand the goals of the organization. He understands that adhering to the vision and mission of the organization will help increase employee satisfaction and will also result in improved employee performance. Which of the following strengthens Ronaldo's belief?

A. the vision and mission of the organization are ethical B. understanding the organization's goals helps employees improve their performance

C. employee performance can be enhanced by keeping costs under control D. Ronaldo has too many expectations of his employees E. the organization's goals constantly change Performance management ensures that employees' work contributes to achieving the organization's goals. In a high-performance organization, this requires making sure that employees know the organization's goals and what they must do to contribute to goal achievement. When employees are aware of the overall goals of the organization, they tend to achieve more clarity and focus in the work they do.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 3 Hard Topic: High-Performance Work Systems

84.

The human resource department of Winston Memorial Hospital has played a leading role in helping the hospital become a high-performance work system. Recently, the team has been focusing on the organization's performance management. Which of the following efforts would most directly ensure that performance management supports the development of a highperformance work system?

A. preventing organizational culture from influencing employees' behaviors B. making sure employees know how their work contributes to the hospital's mission

C. ensuring the confidentiality of the organization's primary objectives D. developing the hospital's talent to move into positions of greater responsibility E. identifying and hiring people who are enthusiastic about and able to contribute to teamwork Performance management ensures that employees' work contributes to achieving the organization's goals. In a high-performance organization, this requires making sure that employees know the organization's goals and what they must do to contribute to goal achievement.

85.

Oneway performance management systems can support organizational goals is by

A. defining and measuring performance in broad behavioral terms. B. linking performance measures to meeting internal and external customers' needs.

C. ignoring situational constraints. D. outsourcing those goals to professional behavior management firms. E. choosing business goals based on employees' skills and abilities. Performance management systems can better support organizational goals if performance measures are linked to meeting customer needs. "Customers" may be the organization's external customers, or they may be internal customers (employees receiving services from a co-worker). Service goals for internal customers should be related to satisfying external customers.

86.

To improve the performance of employees at RowYourBoat Inc., the company provides recognition and monetary benefits to those employees whose performance exceeds expectations. This strategy can motivate some employees to perform better. This is an example of a(n) _____ strategy.

A. occupational intimacy B. brand alignment C. appraisal D. compensation

E. job design Compensation supports high-performance organizations when it is linked in part to performance measures.

87.

A media company gives its employees monetary bonuses at the end of the company's fiscal year based on employees' contribution to the firm's financial success. This is a method of

Compensation supports high-performance organizations when it is linked in part to performance measures. Organizations can reinforce the impact of a performance management system that encourages high performance by linking compensation in part to performance measures.

88.

Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increase empowerment and job satisfaction by

A. communicating the basis for decisions about pay.

B. disassociating compensation from performance measures. C. discouraging negotiations regarding pay. D. limiting employee participation in management. E. limiting the use of gainsharing and profit sharing. Organizations can increase empowerment and job satisfaction by including employees in decisions about compensation and by communicating the basis for decisions about pay.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

89.

New technology usually involves _____—that is, using equipment and information processing to perform activities that had been performed by people.

A. downsizing B. outsourcing C. offshoring D. automation

E. diversification New technology usually involves automation and collaboration—that is, using equipment and information processing to perform activities that had been performed by people. Over the last few decades, automation has improved HRM efficiency by reducing the number of people needed to perform routine tasks.

90.

Which of the following refers to the computations and calculations involved in reviewing and documenting HRM decisions and practices?

A. E-HRM B. transaction processing

C. automation D. expert systems E. decision support systems Transaction processing refers to computations and calculations involved in reviewing and documenting HRM decisions and practices.

91.

The HR department at AYM Resources is having a tough time documenting its hiring decisions. In addition, irregularities were uncovered when reviewing the offers made to job candidates during the previous year. As a solution to these issues, the human resource manager proposes that all activities related to employee selection be documented thoroughly with the help of computers. In this scenario, the manager proposes using _____.

A. transformational processing B. expert systems C. decision support systems D. micro processing E. transaction processing

Transaction processing refers to computations and calculations involved in reviewing and documenting HRM decisions and practices.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

92.

Which of the following best defines decision support systems?

A. It refers to computer software systems that allow managers to see how outcomes vary

when assumptions or data are altered. B. It is a network of remote servers used to store reusable data. C. It is a network of systems that incorporates decision rules used by people who are considered to have expertise in a certain area. D. It refers to the set of topics on which a human resource information system collects and maintains information. E. It refers to online training and development materials that employees can access at their own convenience from anywhere around the world. Decision support systems are computer software systems designed to help managers solve problems by showing how results vary when the manager alters assumptions or data.

93.

A human resource manager is developing a plan for ensuring the company has enough engineers. She has already gathered forecasts for the number of mechanical engineering graduates from nearby colleges. Now, she wants to test various salaries and determine the corresponding percentages of graduates that will accept a job offer with her company. This will allow the HR manager to advise the best salary range to offer, given the supply of labor. Which of the following information systems is intended for this kind of analysis?

A. a decision support system

B. an expert system C. an HR dashboard D. a transaction-processing system E. a transitional matrix Decision support systems are computer software systems designed to help managers solve problems by showing how results vary when the manager alters assumptions or data.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 3 Hard Topic: How Technology Influences Human Resource Management?

94.

The senior management of a firm is undecided about the number of employees needed for its new project. To advise the executives, a human resource specialist uses a computer system to estimate how long teams of three different sizes will take to complete the project, assuming the project is of either low, average, or high difficulty. The type of system appropriate for this case is a(n) _____.

A. expert system B. HR dashboard C. decision support system

D. transaction-processing system E. document management system Decision support systems are computer software systems designed to help managers solve problems by showing how results vary when the manager alters assumptions or data. By applying internal data or research results, this type of system can help managers make decisions for human resource planning.

95.

_____ are computer systems that incorporate the decision rules used by people who are considered to have proficiency in a certain area.

A. Decision support systems B. Expert systems

C. E-HRM systems D. Transaction-processing systems E. Clouds Expert systems are computer systems that incorporate the decision rules used by people who are considered to have expertise in a certain area. The systems help users make decisions by recommending actions based on the decision rules and the information provided by the users.

96.

A firm's HR department uses a computer system that assists in the selection of candidates to be interviewed for a job opening. The computer system enables the interviewer to act as both an interviewee and interviewer in a simulation, thus providing the HR specialist with comprehensive knowledge about the firm's overall interview and selection process. This computer system is likely to be a(n) _____.

A. expert system

B. employee retention system C. decision support system D. work-action system E. document management system Expert systems are computer systems that incorporate the decision rules used by people who are considered to have expertise in a certain area. The systems help users make decisions by recommending actions based on the decision rules and the information provided by the users.

97.

Which of the following statements is true of expert systems?

By using the decision processes of experts, an expert system helps many people to arrive at decisions that reflect the expert's knowledge. An expert system helps avoid the errors that can result from fatigue and decision-making biases.

98.

A standard feature of a modern HRIS (Human Resource Information System) is the use of _____, which store data in separate files that can be linked by common elements.

A. graph databases B. hypermedia databases C. relational databases

D. unstructured databases E. parallel databases A standard feature of a modern HRIS is the use of relational databases, which store data in separate files that can be linked by common elements. These common elements are fields identifying the type of data.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. 9-115 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: How Technology Influences Human Resource Management?

99.

Identify the advantage of a relational database.

D. It helps people arrive at decisions that reflect expert knowledge. E. It is designed to exclusively meet the needs of the HR department. A relational database lets a user sort the data by any of the fields. The ability to locate and combine many categories of data has a multitude of uses in human resource management and also meets the needs of line managers.

100.

Which of the following exemplifies one of the most creative developments in human resource information systems technology?

A. decision support system B. transactional processing system C. HR dashboard

D. expert system E. intranet One of the most creative developments in HRIS technology is the HR dashboard, a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them.

101.

Which of the following refers to a display of a series of HR measures, showing human resource goals and objectives and the progress toward meeting them?

A. a performance review template B. a job preview C. an expert system D. an HR dashboard

E. a relational database One of the most creative developments in Human Resource Information Systems (HRIS) technology is the HR dashboard, a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them. Managers with access to the HRIS can look at the HR dashboard for an easy-to-scan review of HR performance.

102.

The HR department at TIP Consulting uses a human resource information system (HRIS). The employees of the department can view and track their individual progress as well as the progress that the department has made using HRIS. The component of the HRIS that enables this is called a(n) _____.

A. HR banner B. HR bulletin board C. HR showcase D. HR dashboard

E. HR scroll One of the most creative developments in HRIS technology is the HR dashboard, a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 3 Hard Topic: How Technology Influences Human Resource Management?

103.

Roger, the vice president of HR at Maestro Inc., claims that the department's effectiveness has improved since it implemented the use of an HR dashboard. What capabilities of an HR dashboard best explain this improvement?

A. The HR dashboard eliminated the need for relational databases. B. The HR dashboard is used by all the employees. C. The HR dashboard provides an easy-to-scan review of HR performance on a

companywide basis. D. The HR dashboard supplies human resource information to managers in their cars. E. The HR dashboard performs computations of routine HR practices. An HR dashboard is a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them. Managers with access to the HRIS can look at the HR dashboard for an easy-to-scan review of HR performance.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 3 Hard Topic: How Technology Influences Human Resource Management?

104.

Hal, a manager at a leading IT firm, is reviewing trends in his department. He notices the programming team has significantly increased the amount of work they have completed, but the testing team continues to stay at the same productivity level. What human resource information system tool would allow Hal to view such data?

A. expert system B. cloud computing database C. decision support system D. HR dashboard

E. judge-advisor system One of the most creative developments in HRIS technology is the HR dashboard, a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them. Managers with access to the HRIS can look at the HR dashboard for an easy-to-scan review of HR performance.

105.

Which of the following is a vital tool in making confidential HR-related information widely accessible only to authorized users within an organization?

A. a decision support system B. an expert system C. an intranet

D. a transactional processing system E. a judge-advisor system More and more organizations are engaging in e-HRM, providing HR-related information over the Internet. Because much human resource information is confidential, organizations may do this with an intranet, which uses Internet technology but allows access only to authorized users (such as the organization's employees).

106.

Enrollment in employee benefits such as health insurance and retirement plans requires the use of private information about employees. Which of the following is the most appropriate and effective way for an organization to meet the need for confidentiality?

A. limiting the amount and type of information made available to company personnel B. placing the information about these benefits on a secure intranet with links to resources on

the broader Internet C. consolidating information into a single file D. forbidding any knowledge sharing within the organization E. allowing only top-level personnel to have access to the database containing that information More and more organizations are engaging in e-HRM, providing HR-related information over the Internet. Because much human resource information is confidential, organizations may do this with an intranet, which uses Internet technology but allows access only to authorized users (such as the organization's employees).

107.

Which of the following statements accurately characterizes social media and e-HRM?

A. Social media and HR practices have no business being together. B. Employee engagement has begun to take the form of videos and networking sites.

C. Business collaboration is unable to occur in a virtual format. D. Both have unfavorable effects on employee manageability. E. Social media is not able to compete with forward-thinking HR tools. As Internet use has increasingly taken the form of social-media applications, e-HRM has moved in this direction as well. As the use of social media continues to expand, creative minds will devise many other applications that forward-thinking HR professionals can introduce as ways to get employees more fully engaged with the organization and one another.

108.

Identify the correct statement regarding e-HRM.

A. Most administrative and information-gathering HRM activities can be part of e-HRM.

B. E-HRM is less economical than traditional HR systems. C. E-HRM has adversely affected employee manageability. D. The number of organizations actively engaged in e-HRM is steadily decreasing. E. A major drawback of e-HRM is that employees cannot help themselves to the information they need when they need it. Most administrative and information-gathering activities in human resource management can be part of e-HRM.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. 9-124 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

109.

WingDing Inc. is a retailer with outlets in more than 30 cities in the United States. After a recent expansion of an additional 25 outlets, WingDing looked to expand its IT infrastructure to make it easier for workers to apply for jobs and for employees to submit their time sheets. The IT department decided against increasing the capacity of the company's servers. Instead, the team used a third-party hosting service for running these applications. The employees at the megastores are allowed access to this information through a web interface. In this scenario, WingDing is employing _____.

A. expert systems B. relational database management C. cloud computing

D. an HR dashboard E. decision support systems Cloud computing involves using a network of remote servers hosted on the Internet to store, manage, and process data. These services are offered by data centers around the world (and not within an organization's offices) and are collectively called "the cloud."

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

110.

Alamos Inc. has extensively made use of cloud computing for several functions of its HR department. This technology has helped manage department functions, store necessary data, and also has given employees access to the required databases to resolve customer queries and complaints. Which of the following, if true, would disrupt the services provided by this arrangement?

A. Internet access in the facility is intermittent for three hours every day.

B. An updated version of the cloud, including multiple new features, has become available. C. Many other companies are making use of this device to store and manage data. D. The company's computers do not have capacity for all the software required. E. The company does not have enough servers to host the system. Cloud computing involves using a network of remote servers hosted on the Internet to store, manage, and process data. These services offer the ability to access information that's delivered on demand from any device, anywhere, at any time. Intermittent Internet access would disrupt the services provided by a cloud computing arrangement.

111.

In the context of an organization's human resource division, which of the following statements is true of its "customers"?

E. The term refers to the labor law enforcement agencies. In recent years, human resource management at some organizations has responded to the quest for total quality management by taking a customer-oriented approach. For an organization's human resource division, "customers" are the organization as a whole and its other divisions.

112.

The three things human resource management needs to define in a customer-oriented approach are

A. the customer needs, the size of the organization, and the number of customers. B. the customer groups, the customer needs, and the activities required to meet those needs.

C. the size of an organization, the customer groups, and the level of motivation of the customers. D. the size of the organization, the number of customers, and the customer needs. E. the dedication to quality, the size of management, and the goals of the organization. Taking a customer-oriented approach, human resource management defines its customer groups, customer needs, and the activities required to meet those needs. These definitions give an organization a basis for defining goals and measures of success.

113.

Sofia, a human resources executive, emphasizes to her staff that the department should focus on serving its "customer," the company's employees. Which of the following activities best expresses treatment of employees as customers?

A. providing employees with the training they need to succeed at work

B. keeping records of whether employees complete training when it is required C. reporting safety performance to the Occupational Safety and Health Administration D. directing employees who call to submit their questions in writing on a certain form E. telling employees what they must do to meet the needs of the HR department At some organizations, human resource management has taken a customer-oriented approach, defining customer groups, customer needs, and the activities required to meet those needs. In this scenario, employees (customer group) need to become competent employees (customer needs) through and training and development. (activities that will meet the customer needs.)

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Evaluating the Effectiveness of HRM Practices

114.

According to your text, a number of techniques are available for measuring HRM's effectiveness in meeting its customers' needs depending on the situation. These techniques include reviewing a set of key indicators, measuring the outcomes of _____, and measuring the economic value of HRM programs.

A. training results B. committed employees C. goals D. specific HRM activity

E. predicted successes Depending on the situation, a number of techniques are available for measuring HRM's effectiveness in meeting its customers' needs. These techniques include reviewing a set of key indicators, measuring the outcomes of specific HRM activity, and measuring the economic value of HRM programs.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Evaluating the Effectiveness of HRM Practices

115.

A formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance, is referred to as a(n) _____.

A. balanced scorecard B. profit-and-loss statement C. evidence-based HRM D. job description E. HRM audit

An HRM audit is a formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance.

116.

The primary focus of an HRM audit is based on

A. motivating customers. B. estimating the costs of implementing an HR practice. C. reviewing the various outcomes of HRM functions.

D. determining the dollar value of the HRM program. E. determining the legality of HR practices. An HRM audit is a formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 1 Easy Topic: Evaluating the Effectiveness of HRM Practices 9-131 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

117.

To determine the outcomes of the HR functions at Vesco International, several top-level managers suggest conducting a formal review of the HR department to evaluate its functions. The CEO approves the implementation of this suggestion. Which of the following ways to measure the effectiveness of human resource management would Vesco use?

A. HRM functions B. HRM audit

C. HRM analytics D. HRM programs E. HRM activities An HRM audit is a formal review of the outcomes of HRM functions. To conduct the audit, the HR department identifies key functions and the key measures of business performance and customer satisfaction that would indicate each function is succeeding.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 3 Hard Topic: Evaluating the Effectiveness of HRM Practices

118.

Which of the following is an HRM function in an HRM audit?

A. production B. appraisal

C. export D. import E. copyright protection HRM functions include: staffing, compensation, benefits, training, appraisal and development, and overall effectiveness.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Understanding Human Resource Management

119.

In the context of an HRM audit, the ratio of acceptances to offers made primarily serves as a business indicator for _____ activities.

A. employee development B. appraisal C. training D. compensation E. staffing

Business indicators for staffing activities include the average days taken to fill open requisitions; the ratio of acceptances to offers made; the ratio of minority/women applicants to representation in the local labor market; per capita requirement costs; and the average years of experience/education of hires per job family.

120.

The HR department of a firm identifies the per capita requirement costs in its annual audit. It also calculates the average number of days taken to fill open positions at the firm. The data gathered were used as business indicators in the audit. The business indicators are most likely to measure the performance of the _____ activity of the firm.

A. training B. employee appraisal C. employee development D. compensation E. staffing

121.

Which of the following is a measure of customer satisfaction that indicates the success of the staffing efforts of an HR department?

A. treatment of applicants

B. average years of experience or education of hires per job family C. average days taken to fill open requisitions D. the ratio of acceptances to offers made E. the ratio of minority or women applicants to representation in local labor market The anticipation of personnel needs; timeliness of referring qualified workers to line supervisors; treatment of applicants; skill in handling terminations; and the adaptability to changing labor market conditions are customer satisfaction measures that indicate the success of staffing activities.

122.

Which of the following is a business indicator for the success of the compensation system designed by the HR department of an organization?

A. competitiveness in the local labor market B. the ratio of average salary offers to average salary in community

C. the relationship between pay and performance D. employee satisfaction with pay E. the fairness of existing job evaluation system in assigning grades and salaries Business indicators for the success of a compensation system include per capita (average) merit increases; the ratio of recommendations for reclassification to number of employees; the percentage of overtime hours to straight time; and the ratio of average salary offers to average salary in the community.

123.

Which of the following is a customer satisfaction measure that indicates the success of the compensation system designed by the HR department of an organization?

A. competitiveness in local labor market

B. the ratio of average salary offers to average salary in community C. per capita (average) merit increases D. the percentage of overtime hours to straight time E. the ratio of recommendations for reclassification to number of employees Customer satisfaction measures for the success of a compensation system include the fairness of the existing job evaluation system in assigning grades and salaries; competitiveness in the local labor market; relationship between pay and performance; and employee satisfaction with pay.

124.

Which of the following is a measure of customer satisfaction that indicates the success of the benefits programs implemented by the HR department of an organization?

A. promptness in handling claims

B. the average unemployment compensation payment C. per capita (average) merit increases D. the benefit cost per payroll dollar E. the percentage of sick leave to total pay Customer satisfaction measures for the success of a benefits program include the average unemployment compensation payment (UCP); the average workers' compensation payment (WCP); the benefit cost per payroll dollar; and the percentage of sick leave to total pay.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 1 Easy Topic: Evaluating the Effectiveness of HRM Practices

125.

In the context of an HRM audit, average unemployment compensation payment primarily serves as a vital business indicator for activities related to _____.

A. staffing B. training C. employee appraisals D. benefits

E. recruitment Customer satisfaction measures for the success of a benefits program include the average unemployment compensation payment (UCP); the average workers' compensation payment (WCP); the benefit cost per payroll dollar; and the percentage of sick leave to total pay.

126.

Which of the following is a business indicator of the success of the training programs implemented by the HR department of an organization?

A. the extent to which training programs meet the needs of employees and the company B. training dollars per employee

C. communication to employees about available training opportunities D. assistance in identifying management potential E. the quality of introduction or orientation programs Business indicators for the success of a training system include the percentage of employees participating in training programs per job family; the percentage of employees receiving tuition refunds; and training dollars per employee.

127.

For a business conducting an HRM audit, which of the following will serve as an important customer satisfaction measure in assessing the success of training programs conducted by HR?

Customer satisfaction measures for the success of a training system include the extent to which training programs meet the needs of employees and the company; the communication to employees about available training opportunities; and the quality of introduction/orientation programs.

128.

Which of the following is a business indicator of the success of the employee appraisal and development programs implemented by the HR department of an organization?

The business indicators for the success of employee appraisal and development programs include the distribution of performance appraisal ratings and the appropriate psychometric properties of appraisal forms.

129.

A business indicator of the overall effectiveness of HR activities includes

A. the ratio of personnel staff to employee population.

B. accuracy and clarity of information provided to managers and employees. C. the competence and expertise of staff. D. the working relationship between organizations and HRM department. E. assistance in identifying management potential. Business indicators for the overall effectiveness of HR activities include the ratio of personnel staff to employee population; the turnover rate; the absenteeism rate; the ratio of per capita revenues to per capita cost; and the net income per employee.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. 9-141 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Evaluating the Effectiveness of HRM Practices

130.

Which of the following is a customer satisfaction measure of the overall effectiveness of HR activities?

E. the turnover rate Customer satisfaction measures for the overall effectiveness of HR activities include the accuracy and clarity of information provided to managers and employees; the competence and expertise of the staff; and the working relationship between organizations and the HRM department.

131.

The use of HR analytics involves measuring a program's success in terms of whether it

A. adopted a pro-innovation approach. B. was perceived as effective by external stakeholders. C. sustained the status quo. D. delivered value in an economic sense.

E. enjoyed the support of trade unions. The process of HR analytics involves measuring a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Evaluating the Effectiveness of HRM Practices

132.

Maridings Inc., an apparel manufacturer, employed a large-scale recruitment drive to hire some of the country's best fashion designers. The company's HR team was responsible for measuring the success of this recruitment drive to quantify its returns. In this scenario, the HR team can use a process is referred to as _____.

A. HR report B. HR audit C. HR analytics

D. HR statistics E. HR scoping The process of HR analytics involves measuring a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense.

133.

In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. In this context, greater efficiency means the HR department

A. has a relatively limited influence over employee performance. B. uses fewer and less-costly resources to perform its functions.

C. spends lavishly on resources. D. has a more beneficial effect on the organization's performance. E. ensures that all operations are legal. In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. Greater efficiency means the HR department uses fewer and less-costly resources to perform its functions.

134.

In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. In this context, greater effectiveness means that

organization's performance. E. there is a relatively narrow gap between the highest and the lowest salaries paid in the organization. In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. Greater effectiveness means that what the HR department does—for example, selecting employees or setting up a performance management system—has a more beneficial effect on employees' and the organization's performance.

Essay Questions

135.

What is a high-performance work system? Explain the different elements of a highperformance work system. What is the role of HRM in such a system?

A high-performance work system is the right combination of people, technology, and organizational structure that makes full use of an organization's resources and opportunities in achieving its goals. Common elements of such a system include (1) organizational structure, (2) task design, (3) people, (4) reward systems, and (5) information systems. Human resource management plays an important role in establishing all of these. (1) Organizational structure refers to the way the organization groups its people into divisions, departments, and reporting relationships. The organization's top management makes most decisions about structure, and these decisions affect how well employees coordinate their activities and respond to change. In a high-performance work system, organizational structure promotes cooperation, learning, and continuous improvement. (2) Task design involves determining how the details of the organization's activities will be grouped into jobs or team responsibilities. In a high-performance work system, task design makes jobs efficient while encouraging high quality. (3) HRM plays a significant role in providing people who are well suited and well prepared for their jobs. Human resource personnel help the organization recruit and select people with the needed qualifications. Training, development, and career management ensure that these people are able to perform their current and future jobs with the organization. (4) Reward systems contribute to high performance by encouraging people to strive for objectives that support the organization's overall goals. These systems include the performance measures by which employees are judged, the methods of measuring performance, and the incentive pay and other rewards linked to success. HRM plays an important role in developing and administering reward systems. (5) The final element is the organization's information systems. Managers make decisions about the types of information to gather and the sources of information. They also must decide who in the organization should have access to the information and how they will make the information available. HR departments take advantage of this technology to give employees access to information about benefits, training opportunities, job openings, and more.

AACSB: Analytical Thinking Blooms: Understand 9-146 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

136.

Discuss the various outcomes of a high-performance work system.

Outcomes of a high-performance work system include higher productivity and efficiency. These outcomes contribute to higher profits. A high-performance work system may have other outcomes, including high product quality, great customer satisfaction, and low employee turnover. Some of these outcomes meet intermediate goals that lead to higher profits. For example, high quality contributes to customer satisfaction, and customer satisfaction contributes to growth of the business. Likewise, improving productivity lets the organization do more with less, which satisfies price-conscious customers and may help the organization win over customers from its competitors. Other ways to lower cost and improve quality are to reduce absenteeism and turnover, providing the organization with a steady supply of experienced workers. In a high-performance work system, the outcomes of each employee and work group contribute to the system's overall high performance. The organization's individuals and groups work efficiently, provide high-quality goods and services, and so on, and in this way, they contribute to meeting the organization's goals. When the organization adds or changes goals, people are flexible and make changes as needed to meet the new goals.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Summarize the outcomes of a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

137.

List the conditions that contribute to the formation of a high-performance work system.

Certain conditions underlie the formation of a high-performance work system: 1) Teams perform work. 2) Employees participate in selection. 3) Employees receive formal performance feedback and are actively involved in the performance improvement process. 4) Ongoing training is emphasized and rewarded. 5) Employees' rewards and compensation relate to the company's financial performance. 6) Equipment and work processes are structured, and technology is used to encourage maximum flexibility and interaction among employees. 7) Employees participate in planning changes in equipment, layout, and work methods. 8) Work design allows employees to use a variety of skills. 9) Employees understand how their jobs contribute to the finished product or service. 10) Ethical behavior is encouraged.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-03 Describe the conditions that create a high-performance work system. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

138.

What is a learning organization? What are its key features?

A learning organization refers to an organization that supports lifelong learning by enabling all employees to acquire and share knowledge. It has the following key features: 1) It engages in continuous learning, which is each employee's and each group's ongoing efforts to gather information and apply the information to their decisions. 2) Knowledge is shared. 3) Critical, systematic thinking is widespread. 4) The organization has a learning culture—a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives. 5) Employees are valued.

139.

What is occupational intimacy? Explain.

Some organizations are moving beyond concern with mere job satisfaction and are trying to foster employees' passion for their work. Passionate people are fully engaged with something so that it becomes part of their sense of who they are. Feeling this way about one's work has been called occupational intimacy. People experience occupational intimacy when they love their work, when they and their co-workers care about one another, and when they find their work meaningful. Human resource managers have a significant role in creating these conditions. For example, they can select people who care about their work and customers, provide methods for sharing knowledge, design work to make jobs interesting, and establish policies and programs that show concern for employees' needs. Such efforts may become increasingly important as the business world increasingly uses employee empowerment, teamwork, and knowledge sharing to build flexible organizations.

140.

Discuss how recruitment and selection practices contribute to high performance in an organization.

At a high-performance organization, recruitment and selection aim at obtaining the kinds of employees who can thrive in this type of setting. These employees are enthusiastic about and able to contribute to teamwork, empowerment, and knowledge sharing. Qualities such as creativity and ability to cooperate as part of a team may play a large role in selection decisions. High-performance organizations need selection methods that identify more than technical skills like ability to perform accounting and engineering tasks. Employers may use group interviews, open-ended questions, and psychological tests to find employees who innovate, share ideas, and take initiative.

Blooms: Understand Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

141.

What are the guidelines that describe how to make the performance management system support organizational goals?

The following guidelines describe how to make the performance management system support organizational goals: 1) Define and measure performance in precise terms: Focus on outcomes that can be defined in terms of how frequently certain behaviors occur. Include criteria that describe ways employees can add value to a product or service (such as through quantity, quality, or timeliness). Include behaviors that go beyond the minimum required to perform a job (such as helping co-workers). 2) Link performance measures to meeting customer needs: "Customers" may be the organization's external customers, or they may be internal customers (employees receiving services from a co-worker). Service goals for internal customers should be related to satisfying external customers. 3) Measure and correct for the effect of situational constraints: Monitor economic conditions, the organization's culture, and other influences on performance. Measures of employees' performance should take these influences into account.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain how human resource management can contribute to high performance. Level of Difficulty: 2 Medium Topic: High-Performance Work Systems

142.

Describe an HR dashboard.

One of the most creative developments in human resource information systems (HRIS) technology is the HR dashboard. It is a display of a series of HR-related indicators, or measures, showing human resource goals and objectives and the progress toward meeting them. Managers with access to the HRIS can look at the HR dashboard for an easy-to-scan review of HR performance.

AACSB: Information Technology Blooms: Understand Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems. Level of Difficulty: 2 Medium Topic: How Technology Influences Human Resource Management?

143.

What is an HRM audit?

An HRM audit is a formal review of the outcomes of HRM functions. To conduct the audit, the HR department identifies key functions and the key measures of business performance and customer satisfaction that would indicate each function is succeeding. These functions could include staffing, compensation, benefits, training, appraisal and development, and overall effectiveness. After identifying performance measures for the audit, the staff carries out the audit by gathering information. The information for the key business indicators is usually available in the organization's documents. However, sometimes the HR department has to create new documents for gathering specific types of data. The usual way to measure customer satisfaction is to conduct surveys, such as the employee attitude survey. Many organizations conduct surveys of top line executives to get a better view of how HRM practices affect the organization's business success. To benefit from the HR profession's best practices, companies also may invite external auditing teams to audit specific HR functions.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management. Level of Difficulty: 2 Medium Topic: Evaluating the Effectiveness of HRM Practices 9-152 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

144.

How can HR departments improve their performance?

HR departments can perform an HRM audit, which is a formal review of the outcomes of HRM functions. Additionally, the department can use HR analytics. This process involves measuring a program's success in terms of whether it achieved its objectives and whether it delivered value in an economic sense. Analysis can take an economic approach that measures the dollar value of the program's costs and benefits. Successful programs should deliver value that is greater than the programs' costs. In general, HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness. Greater efficiency means the HR department uses fewer and less-costly resources to perform its functions. Greater effectiveness means that what the HR department does—for example, selecting employees or setting up a performance management system—has a more beneficial effect on employees' and the organization's performance.

Chapter 10 Managing Employees' Performance

True / False Questions

1. Performance management requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. True

False

2. Performance management systems are established to meet three broad purposes of the organization: strategic, administrative, and developmental. True

False

3. In a performance appraisal, the term validity refers to whether the appraisal measures all aspects of performance, both relevant and irrelevant. True

False

4. The paired-comparison method measures the consistency of results over time. True

False

5. In the simple ranking method of performance measurement, managers rank employees in their group from the highest performer to the poorest performer. True

False

6. The paired-comparison method involves comparing each employee with each other employee to establish rankings. True

False

7. While rating attributes of individuals, measurement of attributes is rarely linked to the organization's strategy. True

False

8. To rate employee behaviors, an organization begins by defining which behaviors are associated with the employee's personality traits. True

False

9. The critical-incident method requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective. True

False

10. A disadvantage of behaviorally anchored rating scales (BARS) is that it can bias a manager's memory. True

False

11. Compared to a behavioral observation scale (BOS), a behaviorally anchored rating scale (BARS) makes it easier for providing feedback, maintaining objectivity, and suggesting training needs. True

False

12. Organizational behavior modification (OBM) is a plan for managing the behavior of employees through an informal system of feedback and reinforcement. True

False

13. Behavioral approaches to performance measurement, such as organizational behavior modification and rating scales, tend to be biased. True

False

14. Management by objectives (MBO) links employee performance with the organization's strategic goals. True

False

15. Traditional performance management differs from total quality management (TQM) in that it assesses both individual performance and the system within which the individual works. True

False

16. Using an employee's manager for feedback is very useful because managers' own success depends so much on their employees' performance. True

False

17. Peer reviews are an excellent source of information about performance in a job where the supervisor does not often observe the employee. True

False

18. Self-appraisals are appropriate as the basis for administrative decisions. True

False

19. In order to minimize distributional errors, raters should use only one part of the rating scale. True

False

20. Appraisal politics are most likely to occur when a performance appraisal is directly linked to highly desirable rewards. True

False

21. In a "tell-and-sell" approach, managers tell the employees their ratings and then justify those ratings. True

False

22. The content of feedback is more effective when it is directed toward personalities. True

False

23. The improvement of an employee's performance varies according to the employee's ability and level of motivation. True

False

24. Lawsuits filed against performance management usually involve charges of discrimination or unjust dismissal. True

False

25. The requirements for job success are clearly communicated to employees to protect against lawsuits. True

False

Multiple Choice Questions

26. _____ is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals.

A. Quality analysis B. Administrative planning C. Project management D. Strategic planning E. Performance management 27. Which of the following statements is true of effective performance management?

A. It can tell top performers they are valued. B. It can evaluate employees without establishing standards. C. It averts communication between managers and their employees. D. It uses just one person as a source of information. E. It does not affect employees who meet expectations. 28. Which of the following is the first step in performance management process?

A. evaluating performance B. developing employee goals, behavior, and actions to achieve outcomes C. providing consequences for performance results D. defining performance outcomes for company division and department E. identifying improvements needed

29. Vanessa is the purchasing manager at General Things, a maker of housewares. She has evaluated the first year's performance of Hunter, a purchasing agent. In the evaluation, she noted that he places orders accurately, but when employees in the company ask about the status of their orders, he has difficulty finding the information for them in a timely manner. What should be the next step in performance management in this situation?

A. Vanessa should define new performance outcomes that do not include checking order status. B. Hunter should develop more realistic goals that do not include checking order status. C. Vanessa and Hunter should set new performance standards that are more realistic. D. Vanessa should arrange for training so Hunter can learn how to look up the status of orders. E. Vanessa should provide Hunter with ongoing performance feedback. 30. Which of the following is the last step in performance management process?

A. defining performance outcomes for company division and department B. identifying improvements needed C. developing employee goals, behavior, and actions to achieve outcomes D. evaluating performance E. providing consequences for performance results 31. Antonio, a vice president of human resources, wants to ensure that his company's performance management process is effective, so he sets up an annual review of the process. What should that review measure?

A. whether the performance management process includes all seven steps B. whether performance discussions are taking place annually C. how well performance standards are tailored to each individual employee D. whether measures of individual performance support the department's and company's objectives E. how effectively the company has defined performance management as an event, not a process

32. Breanna is the new HR manager at Cummins Castings. She meets with the company's leaders to discuss how she intends to support business objectives. Breanna tells them that Cummins has a performance management process that delivers reliable information, but it needs to be more strategic. Which of the following actions would best make performance management more strategic?

A. telling managers not to feel uncomfortable when appraisal information is negative B. using appraisal information to support decisions related to employee retention and termination C. using appraisal information as a basis for developing employees' knowledge and skills D. setting individual performance measures that are linked to the organization's goals E. making employees aware of their strengths and areas in which they can improve 33. The ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs falls under the _____ purpose of a performance management system.

A. structured B. developmental C. strategic D. administrative E. deciding

34. Miguel, the HR manager at A1 Appliances, is preparing a newly promoted employee for her role as a supervisor. In his experience, he will need to address the new supervisor's nervousness about conducting performance appraisals. What is the most likely cause of this nervousness?

A. Performance feedback must be aligned with the company's strategy. B. A performance evaluation can help supervisors decide how to develop employees' skills. C. Effective performance feedback makes employees aware of their strengths and weaknesses. D. Performance management supports administrative decisions that have a great impact on employees. E. Performance management starts with defining what the organization expects from employees. 35. "Performance management serves as a basis for improving employees' knowledge and skills." This statement corresponds to which of the following purposes of performance management?

A. developmental purpose B. administrative purpose C. investigative purpose D. strategic purpose E. executive purpose

36. Bailey, an HR manager, is coaching a supervisor who needs to develop her leadership skills. Bailey suggests that the supervisor use performance feedback as a tool for the development of her employees. Which of the following actions would be an example of this purpose of performance feedback?

A. The supervisor limits performance feedback to formal appraisals conducted once a year. B. The supervisor uses performance information for day-to-day decisions about salary, benefits, and recognition programs. C. The supervisor uses performance measures to guide decisions about employee retention and termination. D. The supervisor uses performance measures to identify assignments that will help employees build on their strengths. E. The supervisor makes sure each employee's goals are aligned with the company's and department's objectives. 37. In the context of effectiveness of performance management, _____ means the extent to which a measurement tool actually measures what it is intended to measure.

A. validity B. dependability C. acceptability D. reliability E. specificity

38. In performance appraisal, _____ refers to whether an appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

A. contamination B. reliability C. acceptability D. validity E. interrater reliability 39. In the context of validity in performance appraisal, information that is gathered but irrelevant is called _____.

A. feedback B. knowledge C. concatenation D. adjunct E. contamination 40. Crimson Inc. is conducting their annual performance review process for employees. The company uses a tool that measures entrepreneurial behavior, and found there was a lot of irrelevant information that was also gathered. The irrelevant information gathered from the results is termed _____.

A. deficiency B. validity C. contamination D. specificity E. reliability

41. The human resource department of Bio-Pharma Enterprises brings in a consultant to evaluate its performance management system. The consultant says he evaluated the validity of the system's performance measures and identified some deficiencies. What does the consultant mean?

A. Some attitudes that are being measured are unrelated to success on the job. B. Results gathered in certain ways are inconsistent from one rater to another. C. Results gathered in certain ways are inconsistent over time. D. Some behaviors that contribute to business success are not being measured. E. The performance measures are too vague to provide useful guidance. 42. Lily, a manager at Pyramid Inc., uses a rating tool to evaluate the performance of her subordinates. However, she finds that the scale she used did not yield consistent results and could not determine if a change had taken place in the performance of the employees. Which of the following was lacking in the rating scale?

A. validity B. acceptability C. reliability D. transparency E. specificity 43. Bill and Nancy, managers at Sanzen Inc., want to the check the consistency of results for a performance measure that uses ratings by a supervisor. They want to know if different supervisors would rate the same behavior the same way. In the context of criteria for effective performance management, Bill and Nancy are interested in the measure's _____.

A. validity B. test-retest reliability C. specificity D. interrater reliability E. accountability

44. Charles, the HR manager at Telcare Inc., establishes a performance management system for his company. He wants to check the consistency of results over time. In the context of criteria for determining the effectiveness of performance measures, Charles is trying to check the _____ of the performance management system.

A. validity B. test-retest reliability C. specificity D. interrater reliability E. acceptability 45. In the context of performance management, which of the following terms refers to a measure that obtains consistency of results over time?

A. validity B. interrater reliability C. acceptability D. test-retest reliability E. specificity

46. When Ziggurat Enterprises was preparing to roll out a new performance management system, Jenna, the human resource executive, insisted that for the new system to succeed, they must first explain it to employees. Jenna said employees need to perceive the system as fair. Why would this effort make the performance management system more effective?

A. The employees who receive feedback must believe that the process of preparing it was not too time consuming. B. Specific feedback helps meet the goals of supporting strategy and developing employees. C. Low interrater reliability means the rating will differ depending on who is scoring the employees. D. When employees see performance measures as fair, they are likelier to apply the feedback. E. A measurement tool should accurately measure what it was designed to measure. 47. Which of the following helps performance management meet the goals of supporting strategy and developing employees?

A. strategic fit B. specific feedback C. overall opinion D. employee orientation E. generalized instruction

48. Payne Corp. wants to assess the performance of its employees. It uses a questionnaire that has a usually high fit with strategy, usually high validity, usually high reliability, moderate acceptability, and very high specificity. Which of the following approaches to employee performance is being focused on by this questionnaire?

A. results B. quality C. behavioral D. comparative E. attribute 49. Donna, a supervisor at Cenate Inc., wants to compare the performance of her employees. If she does this by listing the employees from best to worst performer, which of the following terms describes her method?

A. simple ranking B. mixed-standards scale C. critical-incident method D. graphic rating scale E. organizational behavior modification 50. In the context of methods for measuring performance, alternation ranking is a variation of _____ ranking.

A. simple B. distributed C. paired D. attribute E. scalar

51. Salman, a production manager at Telecal Inc., needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Karim's name as the best-performing employee of the group. He then circles Dillon's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Salman is using the _____ method.

A. forced-distribution B. alternation ranking C. graphic rating D. mixed-standard E. critical-incident 52. Margaret, a production manager at Falcon Inc., needs to measure the performance of 12 of her subordinates. She divides the number of employees into categories like exceptional, above average, average, and below average. She assigns a certain percentage of employees to each category to determine the quality of their performances. In the context of methods for measuring performance, Margaret is using the _____ method.

A. alternation ranking B. rating attribute C. mixed-standard D. paired-comparison E. forced-distribution

53. Paul is a manager at Firefly Corp., and he uses a rating approach to evaluate his employees. He considers one employee at a time and circles a number or a word to signify the degree to which that employee demonstrates a particular trait in the scale. Which of the following approaches is Paul using to assess his employees?

A. mixed-standard scale B. critical-incident approach C. graphic rating scale D. behavioral observation scale E. behaviorally anchored rating scale 54. The _____ method of performance measurement uses several statements describing each trait to produce a final score for that trait.

A. behaviorally anchored rating scale B. mixed-standard scale C. behavioral observation scale D. graphic rating scale E. behavior-response scale 55. Identify a true statement about the mixed-standard scale.

A. It is intended to define performance dimensions specifically using statements of behavior that describe different levels of performance. B. It uses several statements describing each trait to produce a final score for that trait. C. It may use 15 behaviors to define levels of performance. D. It lists traits and provides a rating scale for each trait. E. It involves comparing each employee with each other employee to establish rankings.

56. James was recently made the manager of his department at Patches Inc. He has to evaluate his subordinates' behavior in the next two weeks and is unsure if he should use the behaviorally anchored rating scale (BARS) or the behavioral observation scale (BOS) to assess their behavior. Which of the following characteristics of the two would help James decide the scale that would be most appropriate for him to use?

A. A BARS asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period. B. A BOS discards many items in creating the rating scale. C. A BOS uses many instances to define the behaviors necessary for effective performance. D. A BARS is represented by ease of use and maintains objectivity efficiently. E. A BARS requires a large amount of information as compared to BOS. 57. The _____ performance management method requires managers to rate the frequency with which an employee has exhibited a behavior during a rating period.

A. behaviorally anchored rating scale B. behavioral observation scale C. graphic rating scale D. mixed-standard scale E. forced-distribution scale 58. Joseph, a supervisor at H2O Chemicals Inc., needs to assess the behavior of 25 people, who constitute a large group of his subordinates. Which of the following methods combines ease of use with objectivity and a basis for providing feedback?

A. a behavioral observation scale B. organizational behavior modification C. a behaviorally anchored rating scale D. the critical-incident method E. behaviorism

59. Identify the statement that accurately characterizes behavioral approaches to performance measurement.

A. they link the company's goals to the specific behavior required to achieve those goals B. they work well for complex jobs. C. they provide little feedback on areas of improvement D. they have a low degree of validity and reliability E. they have a low degree of acceptability 60. Ray, the CEO of Textiles Inc., believes the goals of the company must be divided into smaller departmental and individual goals. The accomplishment of these smaller goals will allow employees at all levels to contribute to accomplishment of the bigger goals of the company. In the context of measuring performance results, Ray's belief can be best justified using _____.

A. total quality management B. the behavioral observational scale method C. the critical-incident method D. statistical quality control E. management by objectives 61. Janet, a production manager, thinks management by objectives (MBO) is a good way to measure performance results of employees in an organization. What advantage does this method offer Janet?

A. The goals in this strategy are subjective. B. Managers and employees set their own goals independently. C. Management by objectives can have negative consequences on productivity. D. MBO is relatively easy to link to the organization's goals. E. MBO focuses narrowly on individual goals.

62. Which of the following is an advantage of using results-oriented performance measurement?

A. It is very effective in providing guidance on how an employee can improve. B. It is relatively easy to link to the organization's goals. C. It is generally more subjective than other kinds of performance measurement. D. It is highly acceptable to employees, but not to managers. E. It tends to be highly valid. 63. Lydia, a supervisor at Sansen Inc., needs to appraise the performance of her subordinate, Charlie. In the context of performance information, which of the following is the least biased source of information for appraisal and why?

A. Peers; they often understand an employee better than superiors. B. Managers; their success depends on the employee's productivity. C. Customers; employees are often directly in contact with them. D. Subordinates; the power relationships motivate a subordinate to provide honest information. E. The employee himself; there is generally better agreement between an employee and his or her supervisor. 64. James, the production manager of Zenfax Inc., is writing a recommendation to begin gathering performance appraisal information from peers along with other sources of information. Which of the following statements best supports James's recommendation?

A. Information from peers adds little value to the assessment of performance. B. Peers are comfortable rating employees for decisions that may affect themselves. C. Peers typically share the manager's perspective of the employee being evaluated. D. Peers have expert knowledge of job requirements. E. Peers rarely observe an employee in day-to-day activities.

65. Jose, the human resource manager at Wind Chimes Inc., wants to use subordinates as sources of performance appraisal information. Which statement best supports that idea?

A. Subordinates often have reliable information about a manager's behavior toward employees. B. Subordinates are often willing to say negative things about the person to whom they report. C. When feedback forms need subordinates' names on them, the subordinates tend to give lower ratings to the manager. D. When managers receive ratings from their subordinates, the employees have less power. E. Subordinate evaluations are most appropriate for strategic purposes. 66. Subordinate evaluations are the most appropriate to use for which of the following purposes?

A. administrative B. investigative C. strategic D. developmental E. executive 67. Komali, the founder of Astro Computing, believes in employee empowerment, so as soon as she began hiring managers, she made subordinate reviews part of her company's performance appraisal system. However, she and her human resource manager have realized that the managers don't always place enough emphasis on efficiency and results, perhaps out of fear that their employees will give them lower ratings. What would be the best way for Astro Computing to use subordinate feedback?

A. Discontinue subordinate feedback, because it has undesirable consequences. B. Require that the employees giving subordinate feedback identify themselves. C. Give the employees greater opportunities to observe the behavior of their manager. D. Use the results of subordinate feedback to identify avenues for employee development. E. Limit the information gathering by subordinates to short periods once a year.

68. Barry, a human resource manager at Yenzen Hotels Inc., is considering the use of selfappraisals. Which statement describes a limitation on the validity of self-appraisals?

A. There are no disagreements between a manager and an employee when self-appraisal is used. B. Self-rating is the most preferred source of performance appraisal information. C. Employees have a tendency to inflate their self-assessments. D. Self-appraisals serve as an ideal basis for administrative decisions. E. Self-appraisals are necessary for a 360-degree performance appraisal. 69. Cole, a vice president of human resources, recommends adding self-appraisals to the company's performance management system. The other executives wonder why, since people would certainly want to inflate scores of their own performance. Which of the following statements best supports Cole's idea of using self-appraisals?

A. Self-ratings are rarely used alone as the only source of information. B. Differences between employees' self-ratings and peer's ratings can be fruitful topics for discussion. C. Employees can wait until after a feedback session to evaluate their own performance. D. Evaluating one's contributions gets employees thinking about their performance. E. Self-appraisals are especially important when an employee's job requires direct service to customers.

70. The HR team at Gray Pharma is meeting to discuss ways to improve the validity of its performance management system. One staffer suggests adding customer evaluations of the sales representatives in order to gauge their impact on customer satisfaction and sales. What is the major challenge of this approach?

A. Customers have a tendency to inflate assessments of salespeople's performance. B. The customers are the only people who directly observe a sales representative's performance. C. The employees' jobs do not involved direct services to customer. D. Customer evaluations could cost hundreds of dollars for each salesperson. E. Information about customer satisfaction would be easier to gather from peers. 71. Jonathan, a supervisor, needs to assess Megan, a subordinate's, performance. He considers that Megan is reliable and meets all his requirements, so he will rate her as a good performer. But then Jonathan thinks about an exceptional employee, Sue, in his department, and decides that, compared with her, Megan is just average. In this way, Jonathan's rating is a _____ error.

A. horns B. contrast C. leniency D. halo E. distributional 72. Clayton, a supervisor, needs to rate the performance of 20 subordinates. He uses a rating scale to rate them on a scale of 1 to 10. He rates 18 employees at 5, which leads to central tendency. In the context of types of rating errors, Clayton commits a _____ error.

A. distributional B. contrast C. horns D. statistical E. halo

73. Oswald & Rutabaga, CPAs, brought in an HR consulting firm to evaluate the firm's performance management system. The firm has offices in six locations, and the manager of each location rates the office's staff members using a 5-point rating scale. After studying the appraisal results from the past three years, the consultants reported that they cannot make comparisons among the offices. Which of the following is the most likely problem?

A. The consultants aren't qualified to analyze this type of rating system. B. One office has exceptional people, so contrast errors are occurring. C. The managers let their opinion of one quality color their opinion of others. D. The managers are making distributional errors, each using only part of the rating scale. E. The managers tend to give higher ratings to people they consider similar to themselves. 74. Roberto, a manager at Z-Cart Inc., is asked by his manager to rate his subordinates' performances. He needs to rate 30 employees on a scale that ranges from 1 to 10. He rates 25 employees with a score of 8. In doing so, Roberto commits a rating error. In the context of types of rating errors, Roberto's mistake is called _____.

A. central tendency B. halo error C. horns error D. leniency E. statistical error

75. Jacinta, a production manager at Alphonso Inc., needs to evaluate the performance of her employees. She asks her subordinate, June, to carry out this job. June uses a rating scale, which ranges from 1 to 10, to rate 50 employees. She gives a score of 3 to 39 employees. In doing so, June commits a _____ error.

A. mean inclination B. strictness C. central tendency D. halo effect E. statistical 76. What is the name of the rating error that leads employees to believe that no aspect of their performance needs improvement?

A. contrast error B. halo error C. horn error D. strictness error E. central tendency error 77. When an employee evaluates his or her manager low on all performance criteria due to dissatisfaction with the manager's disposition, the employee has most likely committed a(n) _____.

A. error based on similarity B. halo error C. central tendency D. horns error E. contrast error

78. How can data analytics improve the measurement of employees' performance?

A. by training raters to look at many aspects of performance B. by showing raters how errors affect their rating decisions C. by preventing raters from making distributional errors D. by finding patterns in an employee's behavior E. by indicating all the circumstances, intentions, and outcomes associated with an employee's behavior 79. Under which of the following circumstances is appraisal politics most likely to occur?

A. when top executives forbid distorted ratings B. when the goals of rating are compatible with one another C. when performance appraisal results are directly linked to developmental programs D. when senior employees tell newcomers stories about distorted ratings E. when performance appraisal is not directly linked to highly desirable rewards

80. When Xavier joined Big Tuna Corporation as its human resource manager, he was surprised to hear some of the executives repeatedly laughing over stories about how the company's founder ensured that his fraternity brothers moved into management positions. According to the stories, these employees had a routine of Friday-night drinks and basketball, during which time they painted rosy pictures of one another's accomplishments—stories that embellished the performance appraisals and influenced later staffing decisions. Xavier talked to some employees about performance management at Big Tuna and learned that the system was widely viewed as corrupt. What can Xavier do, besides discouraging the storytelling, to decrease the political behavior related to performance management?

A. He should learn to accept political behavior, because it occurs in every organization. B. He should make sure that raters are accountable to each employee being evaluated. C. He should make sure appraisal results are directly linked to highly desirable rewards. D. He should persuade executives not to tolerate or ignore distorted ratings. E. He should train managers to list only the accomplishments their employees are aware of. 81. Paula, the CEO of Gester Inc., wants to carry out the first company-wide performance appraisal. However, she needs to make sure that the information obtained for performance appraisal is free of bias, and that the managers have provided information about subordinates without any personal issues influencing the information. Which of the following options will be assist Paula in obtaining her objective?

A. Paula must focus on obtaining information only from supervisors of employees being appraised because managers have incentives for giving accurate information. B. Paula must occasionally work alongside the employees to ensure that they are working diligently. C. Paula must personally question all the managers who appraise their subordinates in the performance appraisal as this will ensure integrity of information. D. Paula must devise a policy that focuses on confidentiality of appraisal information once it is gathered from different sources because this will ensure security of information. E. Paula must hold calibration meetings because they hold managers accountable for the appraisal information they provide about their subordinates.

82. Identify a way in which an organization can promote fairness and reduce political behavior in the appraisal system.

A. use different performance standards to evaluate different employees B. train managers to use the appraisal process C. discourage employees from discussing their weaknesses D. require that managers give feedback once a year during the annual appraisal E. encourage managers to recognize accomplishments that only employees have identified 83. Jillian, a supervisor in a shoe store, observes Frank, an employee, becoming anxious and defensive when a customer complains about some shoes. The customer reacts to Frank's behavior by raising her voice and demanding to talk to a manager. When should Jillian give Frank performance feedback related to his handling of customer complaints?

A. at Frank's annual performance appraisal B. within the next few weeks, whenever she has time for a formal meeting with Frank C. as soon as she has time to list all of Frank's areas for improvement D. as soon as she is finished talking with the complaining customer E. during the next month in which performance appraisals are scheduled 84. What attitude do employees typically express toward performance feedback?

A. They prefer not to get feedback, because the experience feels awkward. B. They prefer to get all their feedback at one time, during an annual performance review. C. They like to be surprised, especially if the feedback is positive. D. They appreciate regular feedback, because they want to know if they are on track. E. They are most engaged when the company schedules feedback every few months.

85. Selena, a supervisor at Truck-All Transport, asks Curtis, the human resource manager, for advice on delivering performance feedback. Selena finds that the meetings tend to be confrontational and don't lead to performance improvement. She tells Curtis how she carefully fills out the appraisal form ahead of time and then invites the employee into the conference room to discuss her feedback immediately, before the employee has time to think up excuses for poor performance. What advice should Curtis give Selena for delivering performance feedback?

A. Selena should move the feedback meetings into her own office. B. Selena should have Curtis conduct the feedback meetings. C. Selena should forbid employees from overstating their accomplishments. D. Selena should give employees a chance to complete a self-assessment ahead of time. E. Selena should define all areas for discussion when she fills out the appraisal form. 86. Which of the following approaches to performance feedback is generally most effective?

A. problem-solving B. tell-and-sell C. tell-and-listen D. tell-and-train E. listen-and-sell 87. The _____ approach to performance feedback is used by most managers.

A. problem-solving B. tell-and-sell C. tell-and-listen D. tell-and-train E. listen-and-sell

88. How can managers improve employee satisfaction with the feedback process?

A. by keeping the feedback session short and concentrating on only the positive aspects of performance B. by using the tell-and-sell approach during the feedback session C. by avoiding decisions about following up on goals as these tend to intimidate the employee D. by letting employees voice their opinions and discuss performance goals during the feedback process E. by focusing on the employee's personality 89. Which of the following managers is using the most effective approach to conducting a performance feedback session?

A. Alice focuses on her employees' personalities, as she helps each one work with her to solve problems. B. Rebekah tells each employee his or her ratings and then justifies each rating, citing specific behaviors. C. Colin goes through the evaluation form, point by point, telling why he provided the information in each item. D. Dan works with each employee to solve performance problems respectfully, focusing on behaviors. E. Estelle lets the employee voice his or her opinions, and then she replies with her assessment of the employee's personality traits.

90. Jade is giving feedback to an employee who hopes to move into a supervisory role someday. Which statement represents the most effective kind of feedback?

A. You don't seem very motivated lately. B. You need to demonstrate stronger leadership if you want a promotion. C. You are well organized, and your coworkers really like you. D. Last week, when we had a problem, your comments shifted the team from complaining to problem solving. E. When we have problems, you have a great attitude, and that will help you as a supervisor someday. 91. Besides a discussion of the employee's past behavior, what other topic(s) are most important to include in a performance feedback meeting?

A. a description of the employee's personality B. the supervisor "telling and selling" the ratings C. opinions about other employees in the organization D. goal setting and a decision about when to follow up E. strategic planning and a link to personal goals

92. Ignacio is a hardworking, reliable employee in a warehouse. His supervisor notices that this is the fifth year in a row in which Ignacio's performance appraisal shows that he has met requirements for every performance standard of his job. Even so, the supervisor has identified areas for improvement. Which statement gives the most significant reason for seeking improvement in Ignacio's performance?

A. Ignacio has a poor attitude; the supervisor believes that if Ignacio improves his performance, his attitude will improve as well. B. Ignacio has high levels of ability and motivation, which the supervisor wants to put to good use. C. There is no reason for Ignacio to improve; the supervisor has a policy of always finding something to criticize. D. Ignacio may seek further career development within the company, which will be aided by improving his performance. E. If Ignacio does not respond to the supervisor's suggestions, the supervisor will have to demote or terminate him. 93. Roxanne, a new employee at Fenz Pharmaceuticals, has demonstrated low productivity for a long period. Her manager evaluates her performance and finds that she requires more training to improve her productivity. In the context of improving employee's performance, Roxanne lacks _____.

A. the required motivation B. the necessary abilities C. accountability D. ethical values E. integrity

94. The receptionist at Madcap Advertising is punctual, polite, and always cheerful. The firm's employees and customers all love her. However, she has difficulty with the clerical tasks that the firm's prior receptionists handled. The receptionist's supervisor recommends redesigning the receptionist's job. That recommendation would be most appropriate in which of the following situations?

A. The employee is low in both ability and motivation to meet standards. B. The employee has the ability to do better, but lacks the necessary motivation. C. The employee is highly motivated, but lacks ability unless she gets training. D. The employee is highly motivated but lacks ability, and training is not expected to help. E. The employee is motivated, but does not understand the significance of the problem. 95. Gavin, a supervisor, is discussing an employee with Eileen, the human resource manager at his company. The employee's performance has been falling, and the employee has been absent on several workdays. Gavin is concerned about this change in behavior. The HR manager suggests that Gavin encourage the employee to contact the employee assistance program (EAP) for a referral to a counselor. In which situation would Eileen's advice be most appropriate?

A. The employee no longer has the ability to carry out the tasks required for the job. B. The employee probably would respond to some praise and encouragement. C. The employee is unaware of the significance of the performance problem. D. The employee has the necessary skills, but lacks motivation. E. The employee lacks motivation as well as the necessary knowledge and skills.

96. Jim, a sales manager at Elexon Inc., finds that Bill, a salesman, lacks motivation to perform well in his job. In the context of finding solutions to performance problems, which of the following is the right way to deal with this situation?

A. Jim must reduce Bill's pay to punish him. B. Jim must warn Bill that he will be demoted if his performance continues to be poor. C. Jim must ask Bill to learn from salespeople who perform better than he does. D. Jim must counsel Bill to help him understand the factors that are affecting his motivation. E. Jim must ask Bill to take a vacation to think about what is causing his lack of motivation. 97. Lydia, a supervisor, is meeting with an employee whose performance has deteriorated since the previous year. The employee used to do the same work well, so Lydia believes the problem is not likely to be related to ability. Which of the following responses would be most likely to help in this situation?

A. offering to make coaching available B. enrolling the employee in a training program C. directing the employee's attention to the significance of the problem D. investigating whether the employee feels she has been treated fairly E. demoting the employee 98. Gina considers Craig, her office assistant, to be both highly skilled and highly motivated. Craig frequently surprises Gina with his creative problem solving, above and beyond the basic job requirements. What response should Gina make to Craig's performance?

A. She should not respond to Craig's behavior because no changes are necessary. B. She should refer Craig for help with stress management. C. She should offer Craig feedback that is more detailed in areas needing improvement. D. She should reward Craig and offer him opportunities for career development. E. She should investigate whether Craig feels he is being treated fairly.

99. The human resource department of Alpha-Omega Corp. is reviewing its performance management system to make sure it can show fairness if an employee ever complains of discrimination. Which of the following statements is a problem that must be addressed if AlphaOmega is to meet that goal?

A. Research shows that female managers give fairer appraisals than male managers. B. Most appraisal instruments are so objective that supervisors find them inflexible. C. Employees assume that rating errors are common, though they are rare. D. Evidence shows that raters tend to give higher ratings to persons of the rater's own race. E. Performance management systems often punish people for whistleblowing. 100.According to research evidence, in which of the following situations would an employer most have to guard against raters giving unfair low performance ratings to male employees?

A. when most of the employees in a work group are male B. when supervisors have received rater training C. when the federal government's Uniform Guidelines do not apply to performance ratings D. when most of the employees in a work group are female E. when the performance management system is legally defensible 101.When Bolton Inc. dismissed Matthew, his supervisor told him the reason was that he did not meet performance standards. The supervisor assumed that would prevent Matthew from claiming he had been dismissed unjustly. What is the main flaw in the supervisor's assumption?

A. People who file lawsuits for unjust dismissal are usually lying. B. People who sue for unjust dismissal usually claim the real reason for the dismissal differs from what the employer said. C. People who file lawsuits for unjust dismissal are irrational. D. Lawsuits often challenge an organization's performance management system. E. The supervisor provided Matthew with inadequate coaching.

102.Paige was recently dismissed from her job in a hardware store. She had often been late for work, and she was so unresponsive to customers' needs that the store had received several complaints about her. Furthermore, she frequently complained about policies and procedures. A week after Paige's dismissal, the store's manager learned that Paige intended to sue the company for wrongful dismissal. She was saying she had complained of management's misdeeds, so the company retaliated. How should the human resource department have prepared the company for this situation?

A. by using a single well-trained rater to evaluate each employee and by having upper-level managers review those evaluations B. by dismissing poor performers quickly, rather than raising false hopes with coaching and training programs C. by basing the performance management system on measurement of employee traits, not behaviors D. by setting up a performance management system that documents employee performance problems E. by setting up a performance management system that provides evidence of management's misdeeds 103.How can an organization protect itself against discrimination and unjust dismissal lawsuits?

A. The organization should provide for a review of all top performance ratings by senior managers. B. Performance measures should evaluate personal traits. C. The requirements for job success should be clearly communicated to employees. D. The organization should use a single rater to rate all the employees. E. The organization should dismiss poor performers.

104.Gary, the CEO of Zansofel Inc., believes in providing employees with a flexible and open environment to enhance their skills and growth in the company. In the context of performance management and ethical issues associated with it, which of the following would Gary most likely oppose and why?

A. He would oppose calibration meetings because they question the integrity of performance appraisal information provided by managers. B. He would oppose 360-degree appraisal because it gathers information from colleagues and subordinates, which can make the employees self-conscious. C. He would be against having a legally defensible performance management system because it focuses on scrutinizing employees who file a case against the company. D. He would be against electronic monitoring systems because they make the employees feel like robots and that they are being watched. E. He would be against top management carrying out performance appraisal of employees because it may lead to appraisal politics. 105.The management of Rest Assured Insurance wants to begin electronically monitoring the computer work of the employees who process claims filed by customers. Savannah, the company's human resource executive, expects that employees will resist the monitoring, because they will feel robbed of their human dignity. How could the human resource department best address this concern?

A. by telling employees the company has reason to believe something is wrong with their performance B. by keeping quiet the real purpose of the monitoring C. by making the data available on the company's intranet, so employees can compare their daily results with what others accomplished D. by applying the data to employee development programs that can help employees advance in their careers E. by sending the data to employee assistance programs to help with their mental health problems

Essay Questions

106.Discuss the steps involved in the performance management process.

107.Discuss the various purposes of performance management systems.

108.Briefly describe the five criteria that measure the effectiveness of a performance management system.

109.Distinguish between behavioral observation scales (BOS) and behaviorally anchored rating scales (BARS).

110.List the advantages and disadvantages of using managers, peers, subordinates, self, and customers as sources of performance information.

111.Describe the types of rating errors that influence performance evaluation, and explain the ways in which they can be minimized.

112.Briefly describe a calibration meeting.

113.List three ways a manager can schedule performance feedback. Then, list three ways a manager can prepare for a feedback session. Finally, list three ways a manager can conduct an effective feedback session.

114.Suggest the different means by which an employee's unsatisfactory performance can be improved.

115.Identify the measures that a company should take to ensure a legally defensible performance management system.

Chapter 10 Managing Employees' Performance Answer Key

True / False Questions

Performance management requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. TRUE

Performance management is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals. This process requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. In the course of providing feedback, managers and employees may identify performance problems and establish ways to resolve those problems.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-01 Identify the activities involved in performance management. Level of Difficulty: 1 Easy Topic: What is Performance Management?

Performance management systems are established to meet three broad purposes of the organization: strategic, administrative, and developmental. TRUE

Organizations establish performance management systems to meet three broad purposes: strategic, administrative, and developmental.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-02 Discuss the purposes of performance management systems. Level of Difficulty: 1 Easy Topic: Criteria for Effective Performance Management Systems

In a performance appraisal, the term validity refers to whether the appraisal measures all aspects of performance, both relevant and irrelevant. FALSE

Validity is the extent to which a measurement tool actually measures what it is intended to measure. In the case of performance appraisal, validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 1 Easy Topic: Criteria for Effective Performance Management Systems

The paired-comparison method measures the consistency of results over time. FALSE

Test-retest reliability refers to consistency of results over time. If a performance measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible.

In the simple ranking method of performance measurement, managers rank employees in their group from the highest performer to the poorest performer. TRUE

The simple ranking method requires managers to rank employees in their group from the highest performer to the poorest performer.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 1 Easy Topic: Approaches to Performance Measurement

The paired-comparison method involves comparing each employee with each other employee to establish rankings. TRUE

One of the variations on rankings is the paired-comparison method. This approach involves comparing each employee with each other employee to establish rankings.

While rating attributes of individuals, measurement of attributes is rarely linked to the organization's strategy. TRUE

While rating attributes of individuals, measurement of attributes is rarely linked to the organization's strategy.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10-43 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 1 Easy Topic: Approaches to Performance Measurement Topic: Methods for Measuring Performance

To rate employee behaviors, an organization begins by defining which behaviors are associated with the employee's personality traits. FALSE

To rate behaviors, an organization begins by defining which behaviors are associated with success on the job. The appraisal form asks the manager to rate an employee in terms of each of the identified behaviors that help the organization to achieve its goals.

The critical-incident method requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective. TRUE

One way to rate behaviors is with the critical-incident method. This approach requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective.

10.

A disadvantage of behaviorally anchored rating scales (BARS) is that it can bias a manager's memory. TRUE

Although behaviorally anchored rating scales (BARS) can improve interrater reliability, this method can bias the manager's memory. The statements used as anchors can help managers remember similar behaviors, at the expense of other critical incidents.

11.

Compared to a behavioral observation scale (BOS), a behaviorally anchored rating scale (BARS) makes it easier for providing feedback, maintaining objectivity, and suggesting training needs. FALSE

Compared to a behaviorally anchored rating scale (BARS) and graphic rating scales, managers and employees have said they prefer a behavioral observation scale (BOS) for ease of use, providing feedback, maintaining objectivity, and suggesting training needs.

12.

Organizational behavior modification (OBM) is a plan for managing the behavior of employees through an informal system of feedback and reinforcement. FALSE

Applied to behavior in organizations, organizational behavior modification (OBM) is a plan for managing the behavior of employees through a formal system of feedback and reinforcement.

13.

Behavioral approaches to performance measurement, such as organizational behavior modification and rating scales, tend to be biased. FALSE

Behavioral methods can generate specific feedback, along with guidance in areas requiring improvements. As a result, these methods tend to be valid. The people to be measured often help in developing the measures, so acceptance tends to be high as well. When raters are well trained, reliability also tends to be high.

14.

Management by objectives (MBO) links employee performance with the organization's strategic goals. TRUE

Since staff members are involved in setting goals, it is likely that management by objectives (MBO) effectively links individual employees' performance with the organization's overall goals.

15.

Traditional performance management differs from total quality management (TQM) in that it assesses both individual performance and the system within which the individual works. FALSE

Total quality management (TQM) differs from traditional performance measurement in that it assesses both individual performance and the system within which the individual works.

16.

Using an employee's manager for feedback is very useful because managers' own success depends so much on their employees' performance. TRUE

An advantage of using managers to evaluate performance is that they have an incentive to provide accurate and helpful feedback because their own success depends so much on their employees' performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Sources of Performance Information

17.

Peer reviews are an excellent source of information about performance in a job where the supervisor does not often observe the employee. TRUE

Peers are an excellent source of information about performance in a job where the supervisor does not often observe the employee. Generally, peers are more favorable toward participating in reviews to be used for employee development.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 1 Easy Topic: Sources of Performance Information

18.

Self-appraisals are appropriate as the basis for administrative decisions. FALSE

Social psychologists have found that, in general, people tend to blame outside circumstances for their failures while taking a large part of the credit for their successes. Supervisors can soften this tendency by providing frequent feedback, but because people tend to perceive situations this way, self-appraisals are not appropriate as the basis for administrative decisions.

19.

In order to minimize distributional errors, raters should use only one part of the rating scale. FALSE

Raters make distributional errors when they tend to use only one part of a rating scale. Distributional errors make it difficult to compare employees rated by the same person.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Characteristics of Effective Performance Appraisals

20.

Appraisal politics are most likely to occur when a performance appraisal is directly linked to highly desirable rewards. TRUE

Appraisal politics are most likely to occur when raters are accountable to the employee being rated, the goals of rating are not compatible with one another, performance appraisal is directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings, and senior employees tell newcomers company "folklore" that includes stories about distorted ratings.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 1 Easy Topic: Characteristics of Effective Performance Appraisals

21.

In a "tell-and-sell" approach, managers tell the employees their ratings and then justify those ratings. TRUE

During the feedback session, managers can take any of three approaches. One of them is a "tell-and-sell" approach. In the "tell-and-sell" approach, managers tell the employees their ratings and then justify those ratings.

22.

The content of feedback is more effective when it is directed toward personalities. FALSE

The content of feedback should emphasize behavior, not personalities. For example, "You did not meet the deadline" can open a conversation about what needs to change, but "You're not motivated" may make the employee feel defensive and angry.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-07 Explain how to provide performance feedback effectively. Level of Difficulty: 2 Medium Topic: Approaches to Performance Management

23.

The improvement of an employee's performance varies according to the employee's ability and level of motivation. TRUE

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-08 Summarize ways to produce improvement in unsatisfactory performance. Level of Difficulty: 1 Easy Topic: Approaches to Performance Management

24.

Lawsuits filed against performance management usually involve charges of discrimination or unjust dismissal. TRUE

Since performance measures play a central role in decisions about pay, promotions, and discipline, employment-related lawsuits often challenge an organization's performance management system. Lawsuits related to performance management usually involve charges of discrimination or unjust dismissal.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 1 Easy Topic: Legal Aspects to Performance Appraisals

25.

The requirements for job success are clearly communicated to employees to protect against lawsuits. TRUE

To protect against lawsuits, it is important to have a legally defensible performance management system. Such a system would be based on valid job analyses, with the requirements for job success clearly communicated to employees.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 1 Easy Topic: Legal Aspects to Performance Appraisals

Multiple Choice Questions

26.

_____ is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals.

A. Quality analysis B. Administrative planning C. Project management D. Strategic planning E. Performance management

The process through which managers ensure that employees' activities and outputs contribute to the organization's goals is known as performance management. Effective performance management can tell top performers that they are valued, encourage communication between managers and their employees, establish uniform standards for evaluating employees, and help the organization identify its strongest and weakest performers.

27.

Which of the following statements is true of effective performance management?

A. It can tell top performers they are valued.

B. It can evaluate employees without establishing standards. C. It averts communication between managers and their employees. D. It uses just one person as a source of information. E. It does not affect employees who meet expectations. Effective performance management can tell top performers they are valued, encourage communication between managers and their employees, establish consistent standards for evaluating employees, and help the organization identify its strongest and weakest employees. To meet these objectives, companies must think of effective performance management as a process, not an event.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-01 Identify the activities involved in performance management. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

28.

Which of the following is the first step in performance management process?

E. identifying improvements needed Organizations establish performance management systems to meet three broad purposes: strategic, administrative, and developmental. The first step in the performance management process is defining performance outcomes for company division and department.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 10-01 Identify the activities involved in performance management. Level of Difficulty: 2 Medium Topic: What is Performance Management?

29.

Vanessa is the purchasing manager at General Things, a maker of housewares. She has evaluated the first year's performance of Hunter, a purchasing agent. In the evaluation, she noted that he places orders accurately, but when employees in the company ask about the status of their orders, he has difficulty finding the information for them in a timely manner. What should be the next step in performance management in this situation?

orders. E. Vanessa should provide Hunter with ongoing performance feedback. Step 5 in the performance management process involves identifying improvements needed. Vanessa and Hunter can identify what Hunter can do to capitalize on his performance strengths and address his weaknesses. This includes identifying training needs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-01 Identify the activities involved in performance management. Level of Difficulty: 3 Hard Topic: What is Performance Management?

30.

Which of the following is the last step in performance management process?

The last step in performance management process is providing consequences for achieving (or failing to achieve) performance outcomes (such as pay increases, bonuses, or action plans).

31.

Antonio, a vice president of human resources, wants to ensure that his company's performance management process is effective, so he sets up an annual review of the process. What should that review measure?

objectives E. how effectively the company has defined performance management as an event, not a process To be effective, the entire performance management process should be reviewed each year to ensure that what is being measured at the employee level aligns strategically with company, division, and departmental goals and objectives.

32.

Breanna is the new HR manager at Cummins Castings. She meets with the company's leaders to discuss how she intends to support business objectives. Breanna tells them that Cummins has a performance management process that delivers reliable information, but it needs to be more strategic. Which of the following actions would best make performance management more strategic?

E. making employees aware of their strengths and areas in which they can improve The strategic purpose of effective performance management is to help the organization achieve its business objectives. It does this by helping to link employees' behavior with the organization's goals. Performance management starts with defining what the organization expects from each employee. This enables the organization to take corrective action, such as training, incentives, or discipline. Performance management can achieve its strategic purpose only when measurements are truly linked to the organization's goals and when the goals and feedback about performance are communicated to employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-02 Discuss the purposes of performance management systems. Level of Difficulty: 3 Hard Topic: Criteria for Effective Performance Management Systems

33.

The ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs falls under the _____ purpose of a performance management system.

A. structured B. developmental C. strategic D. administrative

E. deciding The administrative purpose of a performance management system refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-02 Discuss the purposes of performance management systems. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

34.

Miguel, the HR manager at A1 Appliances, is preparing a newly promoted employee for her role as a supervisor. In his experience, he will need to address the new supervisor's nervousness about conducting performance appraisals. What is the most likely cause of this nervousness?

employees. E. Performance management starts with defining what the organization expects from employees. Organizations use the performance management system to provide information for day-to-day decisions about salary, benefits, and recognition programs Performance management can also support decision making related to employee retention, termination for poor behavior, and hiring or layoffs. Because performance management supports these administrative decisions, the information in a performance appraisal can have a great impact on the future of individual employees. Managers recognize this, which is the reason they may feel uncomfortable conducting performance appraisals when the appraisal information is negative.

35.

"Performance management serves as a basis for improving employees' knowledge and skills." This statement corresponds to which of the following purposes of performance management?

A. developmental purpose

B. administrative purpose C. investigative purpose D. strategic purpose E. executive purpose In the context of purposes of performance management, the developmental purpose serves as a basis for developing employees' knowledge and skills. Even employees who are meeting expectations can become more valuable when they hear and discuss performance feedback. Effective performance feedback makes employees aware of their strengths and of the areas in which they can improve.

36.

Bailey, an HR manager, is coaching a supervisor who needs to develop her leadership skills. Bailey suggests that the supervisor use performance feedback as a tool for the development of her employees. Which of the following actions would be an example of this purpose of performance feedback?

employees build on their strengths. E. The supervisor makes sure each employee's goals are aligned with the company's and department's objectives. Performance management has a developmental purpose: it serves as a basis for developing employees' knowledge and skills. Effective performance feedback makes employees aware of their strengths and of the areas in which they can improve.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-02 Discuss the purposes of performance management systems. Level of Difficulty: 3 Hard Topic: Criteria for Effective Performance Management Systems

37.

In the context of effectiveness of performance management, _____ means the extent to which a measurement tool actually measures what it is intended to measure.

A. validity

B. dependability C. acceptability D. reliability E. specificity Validity is the extent to which a measurement tool actually measures what it is intended to measure. In the case of performance appraisal, validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

38.

In performance appraisal, _____ refers to whether an appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

A. contamination B. reliability C. acceptability D. validity

E. interrater reliability In the case of performance appraisal, validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 1 Easy Topic: Criteria for Effective Performance Management Systems

39.

In the context of validity in performance appraisal, information that is gathered but irrelevant is called _____.

A. feedback B. knowledge C. concatenation D. adjunct E. contamination

In the context of validity in performance appraisal, information that is gathered but irrelevant is called contamination. This irrelevant information is often omitted in performance appraisal.

40.

Crimson Inc. is conducting their annual performance review process for employees. The company uses a tool that measures entrepreneurial behavior, and found there was a lot of irrelevant information that was also gathered. The irrelevant information gathered from the results is termed _____.

A. deficiency B. validity C. contamination

D. specificity E. reliability In the case of performance appraisal, validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance. Information that is gathered but irrelevant is "contamination."

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 3 Hard Topic: Criteria for Effective Performance Management Systems

41.

The human resource department of Bio-Pharma Enterprises brings in a consultant to evaluate its performance management system. The consultant says he evaluated the validity of the system's performance measures and identified some deficiencies. What does the consultant mean?

E. The performance measures are too vague to provide useful guidance. Validity refers to whether an appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance. Information that is gathered but irrelevant is contamination. Information that is not gathered but is relevant represents a deficiency.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 3 Hard Topic: Criteria for Effective Performance Management Systems

42.

Lily, a manager at Pyramid Inc., uses a rating tool to evaluate the performance of her subordinates. However, she finds that the scale she used did not yield consistent results and could not determine if a change had taken place in the performance of the employees. Which of the following was lacking in the rating scale?

A. validity B. acceptability C. reliability

D. transparency E. specificity With regard to a performance measure, reliability describes the consistency of the results that the performance measure will deliver. If a performance measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible.

43.

Bill and Nancy, managers at Sanzen Inc., want to the check the consistency of results for a performance measure that uses ratings by a supervisor. They want to know if different supervisors would rate the same behavior the same way. In the context of criteria for effective performance management, Bill and Nancy are interested in the measure's _____.

A. validity B. test-retest reliability C. specificity D. interrater reliability

E. accountability The consistency of results when more than one person measures performance is called interrater reliability.

44.

Charles, the HR manager at Telcare Inc., establishes a performance management system for his company. He wants to check the consistency of results over time. In the context of criteria for determining the effectiveness of performance measures, Charles is trying to check the _____ of the performance management system.

A. validity B. test-retest reliability

C. specificity D. interrater reliability E. acceptability Test-retest reliability refers to consistency of results over time. If a performance measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible.

45.

In the context of performance management, which of the following terms refers to a measure that obtains consistency of results over time?

A. validity B. interrater reliability C. acceptability D. test-retest reliability

E. specificity Test-retest reliability refers to consistency of results over time. If a performance measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible.

46.

When Ziggurat Enterprises was preparing to roll out a new performance management system, Jenna, the human resource executive, insisted that for the new system to succeed, they must first explain it to employees. Jenna said employees need to perceive the system as fair. Why would this effort make the performance management system more effective?

feedback. E. A measurement tool should accurately measure what it was designed to measure. Whether or not a measure is valid and reliable, it must meet the practical standard of being acceptable to the people who use it. If employees believe the measure is unfair, they will not use the feedback as a basis for improving their performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

47.

Which of the following helps performance management meet the goals of supporting strategy and developing employees?

A. strategic fit B. specific feedback

C. overall opinion D. employee orientation E. generalized instruction Specific feedback refers to telling employees what is expected of them and how they can meet those expectations. Being specific helps performance management meet the goals of supporting strategy and developing employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

48.

Payne Corp. wants to assess the performance of its employees. It uses a questionnaire that has a usually high fit with strategy, usually high validity, usually high reliability, moderate acceptability, and very high specificity. Which of the following approaches to employee performance is being focused on by this questionnaire?

A. results B. quality C. behavioral

D. comparative E. attribute Performance measures that focus on employee behavior have a usually high fit with strategy, usually high validity, usually high reliability, moderate acceptability, and very high specificity.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Measurement

49.

Donna, a supervisor at Cenate Inc., wants to compare the performance of her employees. If she does this by listing the employees from best to worst performer, which of the following terms describes her method?

A. simple ranking

B. mixed-standards scale C. critical-incident method D. graphic rating scale E. organizational behavior modification Techniques for comparing one individual's performance with that of others includes simple ranking, which requires managers to rank employees in their group from the highest performer to the poorest performer.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 1 Easy Topic: Approaches to Performance Measurement

50.

In the context of methods for measuring performance, alternation ranking is a variation of _____ ranking.

A. simple

B. distributed C. paired D. attribute E. scalar Alternation ranking is a variation of simple ranking. In this method, the manager decides which employee is best and crosses that person's name off the list. From the remaining names, the manager selects the worst employee and crosses off that name. The process continues with the manager selecting the second best, second worst, third best, and so on, until all employees have been ranked.

51.

Salman, a production manager at Telecal Inc., needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Karim's name as the bestperforming employee of the group. He then circles Dillon's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Salman is using the _____ method.

A. forced-distribution B. alternation ranking

C. graphic rating D. mixed-standard E. critical-incident Alternation ranking method is a variation of simple ranking method. In this method, the manager works from a list of employees. First, the manager decides which employee is best and crosses that person's name off the list. From the remaining names, the manager selects the worst employee and crosses off that name. The process continues with the manager selecting the second best, second worst, third best, and so on, until all the employees have been ranked.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Measurement

52.

Margaret, a production manager at Falcon Inc., needs to measure the performance of 12 of her subordinates. She divides the number of employees into categories like exceptional, above average, average, and below average. She assigns a certain percentage of employees to each category to determine the quality of their performances. In the context of methods for measuring performance, Margaret is using the _____ method.

A. alternation ranking B. rating attribute C. mixed-standard D. paired-comparison E. forced-distribution

A forced-distribution method assigns a certain percentage of employees to each category in a set of categories. A manager completing the performance appraisal may rate 5% of his or her employees as exceptional, 25% as exceeding standards, and so on. A forced-distribution approach works best if the members of a group really do vary this much in terms of their performance. It overcomes the temptation to rate everyone high in order to avoid conflict.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Measurement

53.

Paul is a manager at Firefly Corp., and he uses a rating approach to evaluate his employees. He considers one employee at a time and circles a number or a word to signify the degree to which that employee demonstrates a particular trait in the scale. Which of the following approaches is Paul using to assess his employees?

A. mixed-standard scale B. critical-incident approach C. graphic rating scale

D. behavioral observation scale E. behaviorally anchored rating scale The graphic rating scale method lists traits and provides a rating scale for each trait. The employer uses the scale to indicate the extent to which the employee being rated displays the traits. The rating scale may provide points to a circle (as on a scale going from 1 for poor to 5 for excellent), or it may provide a line representing a range of scores, with the manager marking a place along the line.

54.

The _____ method of performance measurement uses several statements describing each trait to produce a final score for that trait.

A. behaviorally anchored rating scale B. mixed-standard scale

C. behavioral observation scale D. graphic rating scale E. behavior-response scale The method of performance measurement that uses several statements describing each trait to produce a final score for that trait is known as the mixed-standard scale.

55.

Identify a true statement about the mixed-standard scale.

C. It may use 15 behaviors to define levels of performance. D. It lists traits and provides a rating scale for each trait. E. It involves comparing each employee with each other employee to establish rankings. Mixed-standards scales use several statements describing each trait to produce a final score for that trait.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 2 Medium 10-78 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Performance Rating Systems

56.

James was recently made the manager of his department at Patches Inc. He has to evaluate his subordinates' behavior in the next two weeks and is unsure if he should use the behaviorally anchored rating scale (BARS) or the behavioral observation scale (BOS) to assess their behavior. Which of the following characteristics of the two would help James decide the scale that would be most appropriate for him to use?

D. A BARS is represented by ease of use and maintains objectivity efficiently. E. A BARS requires a large amount of information as compared to BOS. While a behaviorally anchored rating scale (BARS) discards many examples in creating the rating scale, a behavioral observation scale (BOS) uses many of them to define all behaviors necessary for effective performance. A BOS asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 3 Hard Topic: Performance Rating Systems

57.

The _____ performance management method requires managers to rate the frequency with which an employee has exhibited a behavior during a rating period.

A. behaviorally anchored rating scale B. behavioral observation scale

C. graphic rating scale D. mixed-standard scale E. forced-distribution scale A behavioral observation scale (BOS) asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period. These ratings are averaged to compute an overall performance rating.

58.

Joseph, a supervisor at H2O Chemicals Inc., needs to assess the behavior of 25 people, who constitute a large group of his subordinates. Which of the following methods combines ease of use with objectivity and a basis for providing feedback?

A. a behavioral observation scale

B. organizational behavior modification C. a behaviorally anchored rating scale D. the critical-incident method E. behaviorism A behavioral observation scale (BOS) is easier than graphic rating scales and other types of behavioral assessment methods. It is often preferred by managers and employees for its ease of use, providing feedback, maintaining objectivity, and suggesting training needs.

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Measurement

59.

Identify the statement that accurately characterizes behavioral approaches to performance measurement.

A. they link the company's goals to the specific behavior required to achieve those goals

B. they work well for complex jobs. C. they provide little feedback on areas of improvement D. they have a low degree of validity and reliability E. they have a low degree of acceptability Behavioral approaches such as organizational behavior modification and rating scales can link the company's goals to the specific behavior required to achieve those goals. Behavioral methods can generate specific feedback, along with guidance in areas requiring improvements.

60.

Ray, the CEO of Textiles Inc., believes the goals of the company must be divided into smaller departmental and individual goals. The accomplishment of these smaller goals will allow employees at all levels to contribute to accomplishment of the bigger goals of the company. In the context of measuring performance results, Ray's belief can be best justified using _____.

A. total quality management B. the behavioral observational scale method C. the critical-incident method D. statistical quality control E. management by objectives

Management by objectives is a system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization's overall goals. These goals become the standards for evaluating each employee's performance.

61.

Janet, a production manager, thinks management by objectives (MBO) is a good way to measure performance results of employees in an organization. What advantage does this method offer Janet?

E. MBO focuses narrowly on individual goals. Results-oriented performance measurement, including management by objectives, is relatively easy to link to the organization's goals. Also, measuring results is often acceptable to both employees and managers.

62.

Which of the following is an advantage of using results-oriented performance measurement?

A. It is very effective in providing guidance on how an employee can improve. B. It is relatively easy to link to the organization's goals.

C. It is generally more subjective than other kinds of performance measurement. D. It is highly acceptable to employees, but not to managers. E. It tends to be highly valid. In general, evaluation of results can be less subjective than other kinds of performance measurement. This makes measuring results highly acceptable to employees and managers alike. Results-oriented performance measurement is also relatively easy to link to the organization's goals.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 2 Medium Topic: Approaches to Performance Measurement

63.

Lydia, a supervisor at Sansen Inc., needs to appraise the performance of her subordinate, Charlie. In the context of performance information, which of the following is the least biased source of information for appraisal and why?

A. Peers; they often understand an employee better than superiors. B. Managers; their success depends on the employee's productivity.

C. Customers; employees are often directly in contact with them. D. Subordinates; the power relationships motivate a subordinate to provide honest information. E. The employee himself; there is generally better agreement between an employee and his or her supervisor. Managers possess the basic qualifications for carrying out performance appraisal. Managers have an incentive to provide accurate and helpful feedback because their own success depends on their subordinates' performance.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 3 Hard Topic: Sources of Performance Information

64.

James, the production manager of Zenfax Inc., is writing a recommendation to begin gathering performance appraisal information from peers along with other sources of information. Which of the following statements best supports James's recommendation?

E. Peers rarely observe an employee in day-to-day activities. An employee's peers act as excellent sources of information because they have expert knowledge of job requirements. They also bring a different perspective to the evaluation and can provide extremely valid assessments of performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 3 Hard Topic: Sources of Performance Information

65.

Jose, the human resource manager at Wind Chimes Inc., wants to use subordinates as sources of performance appraisal information. Which statement best supports that idea?

A. Subordinates often have reliable information about a manager's behavior toward

employees. B. Subordinates are often willing to say negative things about the person to whom they report. C. When feedback forms need subordinates' names on them, the subordinates tend to give lower ratings to the manager. D. When managers receive ratings from their subordinates, the employees have less power. E. Subordinate evaluations are most appropriate for strategic purposes. Subordinates often have the best chance to see how well a manager treats employees.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 3 Hard Topic: Sources of Performance Information

66.

Subordinate evaluations are the most appropriate to use for which of the following purposes?

A. administrative B. investigative C. strategic D. developmental

E. executive When managers receive ratings from their subordinates, the employees have more power, so managers tend to emphasize employee satisfaction, even at the expense of productivity. Therefore, subordinate evaluations are most appropriate for developmental purposes.

67.

Komali, the founder of Astro Computing, believes in employee empowerment, so as soon as she began hiring managers, she made subordinate reviews part of her company's performance appraisal system. However, she and her human resource manager have realized that the managers don't always place enough emphasis on efficiency and results, perhaps out of fear that their employees will give them lower ratings. What would be the best way for Astro Computing to use subordinate feedback?

E. Limit the information gathering by subordinates to short periods once a year. A problem with subordinate evaluations is that when managers receive ratings from their subordinates, the employees have more power, so managers tend to emphasize employee satisfaction, even at the expense of productivity. This issue arises primarily when the evaluations are used for administrative decisions. Therefore, subordinate evaluations are most appropriate for developmental purposes.

68.

Barry, a human resource manager at Yenzen Hotels Inc., is considering the use of selfappraisals. Which statement describes a limitation on the validity of self-appraisals?

D. Self-appraisals serve as an ideal basis for administrative decisions. E. Self-appraisals are necessary for a 360-degree performance appraisal. Employees have a tendency to inflate assessments of their performance. Especially if the ratings will be used for administrative decisions, employees benefit from exaggerating their contributions.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 3 Hard Topic: Sources of Performance Information

69.

Cole, a vice president of human resources, recommends adding self-appraisals to the company's performance management system. The other executives wonder why, since people would certainly want to inflate scores of their own performance. Which of the following statements best supports Cole's idea of using self-appraisals?

E. Self-appraisals are especially important when an employee's job requires direct service to customers. Self-appraisals are rarely used alone, but they can contribute valuable information. A common approach is to have employees evaluate their own performance before the feedback session. This activity gets employees thinking about their performance. Areas of disagreement between the self-appraisal and other evaluations can be fruitful topics for the feedback session.

70.

The HR team at Gray Pharma is meeting to discuss ways to improve the validity of its performance management system. One staffer suggests adding customer evaluations of the sales representatives in order to gauge their impact on customer satisfaction and sales. What is the major challenge of this approach?

E. Information about customer satisfaction would be easier to gather from peers. The weakness of customer surveys for performance measurement is their expense. The expenses of a traditional survey can add up to hundreds of dollars to evaluate one individual.

71.

Jonathan, a supervisor, needs to assess Megan, a subordinate's, performance. He considers that Megan is reliable and meets all his requirements, so he will rate her as a good performer. But then Jonathan thinks about an exceptional employee, Sue, in his department, and decides that, compared with her, Megan is just average. In this way, Jonathan's rating is a _____ error.

A. horns B. contrast

C. leniency D. halo E. distributional If a rater compares an individual, not against an objective standard, but against other employees, contrast errors occur. A competent performer who works with exceptional people may be rated lower than competent, simply because of the contrast.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 3 Hard Topic: Characteristics of Effective Performance Appraisals

72.

Clayton, a supervisor, needs to rate the performance of 20 subordinates. He uses a rating scale to rate them on a scale of 1 to 10. He rates 18 employees at 5, which leads to central tendency. In the context of types of rating errors, Clayton commits a _____ error.

A. distributional

B. contrast C. horns D. statistical E. halo Raters make distributional errors when they tend to use only one part of a rating scale. Distributional errors make it difficult to compare employees rated by the same person. When the rater puts everyone near the middle of the scale, the error is called central tendency.

73.

Oswald & Rutabaga, CPAs, brought in an HR consulting firm to evaluate the firm's performance management system. The firm has offices in six locations, and the manager of each location rates the office's staff members using a 5-point rating scale. After studying the appraisal results from the past three years, the consultants reported that they cannot make comparisons among the offices. Which of the following is the most likely problem?

E. The managers tend to give higher ratings to people they consider similar to themselves. Raters make distributional errors when they tend to use only one part of a rating scale. Distributional errors make it difficult to compare employees rated by the same person, because ratings are clustered together. Also, if different raters make different kinds of distributional errors, scores by these raters cannot be compared.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 3 Hard Topic: Characteristics of Effective Performance Appraisals

74.

Roberto, a manager at Z-Cart Inc., is asked by his manager to rate his subordinates' performances. He needs to rate 30 employees on a scale that ranges from 1 to 10. He rates 25 employees with a score of 8. In doing so, Roberto commits a rating error. In the context of types of rating errors, Roberto's mistake is called _____.

A. central tendency B. halo error C. horns error D. leniency

E. statistical error Raters make distributional errors when they tend to use only one part of a rating scale. The error is called leniency when the reviewer rates everyone near the top.

75.

Jacinta, a production manager at Alphonso Inc., needs to evaluate the performance of her employees. She asks her subordinate, June, to carry out this job. June uses a rating scale, which ranges from 1 to 10, to rate 50 employees. She gives a score of 3 to 39 employees. In doing so, June commits a _____ error.

A. mean inclination B. strictness

C. central tendency D. halo effect E. statistical Raters make distributional errors when they tend to use only one part of a rating scale. The error is called strictness when the rater favors lower rankings.

76.

What is the name of the rating error that leads employees to believe that no aspect of their performance needs improvement?

A. contrast error B. halo error

C. horn error D. strictness error E. central tendency error Raters often let their opinion of one quality color their opinion of others. When the bias is in a favorable direction, this is called the halo error. A halo error can mistakenly tell employees they don't need to improve in any area.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Characteristics of Effective Performance Appraisals

77.

When an employee evaluates his or her manager low on all performance criteria due to dissatisfaction with the manager's disposition, the employee has most likely committed a(n) _____.

A. error based on similarity B. halo error C. central tendency D. horns error

E. contrast error Raters often let their opinion of one quality color their opinion of others. When the bias involves negative ratings, it is called the horns error.

78.

How can data analytics improve the measurement of employees' performance?

E. by indicating all the circumstances, intentions, and outcomes associated with an employee's behavior A growing number of organizations are bringing data analytics into the rating process. While computers and wearable devices can track employees' activities, analytic software can find patterns in what employees do, as well as in the messages they post within the organization's computer network and beyond.

AACSB: Information Technology Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Characteristics of Effective Performance Appraisals

79.

Under which of the following circumstances is appraisal politics most likely to occur?

E. when performance appraisal is not directly linked to highly desirable rewards Appraisal politics are most likely to occur when raters are accountable to the employee being rated, the goals of rating are not compatible with one another, performance appraisal is directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings, and senior employees tell newcomers company "folklore" that includes stories about distorted ratings.

80.

When Xavier joined Big Tuna Corporation as its human resource manager, he was surprised to hear some of the executives repeatedly laughing over stories about how the company's founder ensured that his fraternity brothers moved into management positions. According to the stories, these employees had a routine of Friday-night drinks and basketball, during which time they painted rosy pictures of one another's accomplishments—stories that embellished the performance appraisals and influenced later staffing decisions. Xavier talked to some employees about performance management at Big Tuna and learned that the system was widely viewed as corrupt. What can Xavier do, besides discouraging the storytelling, to decrease the political behavior related to performance management?

E. He should train managers to list only the accomplishments their employees are aware of. Several characteristics of appraisal systems and company culture tend to encourage appraisal politics. Appraisal politics are most likely to occur when raters are accountable to the employee being rated, the goals of rating are not compatible with one another, performance appraisal is directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings, and senior employees tell newcomers company "folklore" that includes stories about distorted ratings. Political behavior occurs in every organization. Organizations can minimize appraisal politics by establishing an appraisal system that is fair.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

81.

Paula, the CEO of Gester Inc., wants to carry out the first company-wide performance appraisal. However, she needs to make sure that the information obtained for performance appraisal is free of bias, and that the managers have provided information about subordinates without any personal issues influencing the information. Which of the following options will be assist Paula in obtaining her objective?

appraisal information they provide about their subordinates. Organizations can minimize appraisal politics by establishing an appraisal system that is fair. One technique is to hold a calibration meeting, a gathering at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 3 Hard Topic: Characteristics of Effective Performance Appraisals

82.

Identify a way in which an organization can promote fairness and reduce political behavior in the appraisal system.

A. use different performance standards to evaluate different employees B. train managers to use the appraisal process

C. discourage employees from discussing their weaknesses D. require that managers give feedback once a year during the annual appraisal E. encourage managers to recognize accomplishments that only employees have identified Organizations can minimize appraisal politics by establishing an appraisal system that is fair. One technique is to hold a calibration meeting. The organization can also help managers give accurate and fair appraisals by training them to use the appraisal process, encouraging them to recognize accomplishments that the employees themselves have not identified, and fostering a climate of openness in which employees feel they can be honest about their weaknesses.

83.

Jillian, a supervisor in a shoe store, observes Frank, an employee, becoming anxious and defensive when a customer complains about some shoes. The customer reacts to Frank's behavior by raising her voice and demanding to talk to a manager. When should Jillian give Frank performance feedback related to his handling of customer complaints?

E. during the next month in which performance appraisals are scheduled Performance feedback should be a regular, expected management activity. The custom or policy at many organizations is to give performance feedback once a year. But annual feedback is not enough. One reason is that managers are responsible for correcting performance deficiencies as soon as they occur.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-07 Explain how to provide performance feedback effectively. Level of Difficulty: 2 Medium Topic: Approaches to Performance Management

84.

What attitude do employees typically express toward performance feedback?

E. They are most engaged when the company schedules feedback every few months. Employees have indicated that they are motivated and directed by regular feedback; they want to know if they are on the right track. In this way, frequent feedback supports employee engagement.

85.

Selena, a supervisor at Truck-All Transport, asks Curtis, the human resource manager, for advice on delivering performance feedback. Selena finds that the meetings tend to be confrontational and don't lead to performance improvement. She tells Curtis how she carefully fills out the appraisal form ahead of time and then invites the employee into the conference room to discuss her feedback immediately, before the employee has time to think up excuses for poor performance. What advice should Curtis give Selena for delivering performance feedback?

E. Selena should define all areas for discussion when she fills out the appraisal form. Managers should enable employees to be well prepared. A manager should ask the employee being appraised to complete a self-assessment ahead of time. The self-assessment requires employees to think about their performance over the past rating period and to be aware of their strengths and weaknesses so they can participate more fully in the discussion.

86.

Which of the following approaches to performance feedback is generally most effective?

A. problem-solving

B. tell-and-sell C. tell-and-listen D. tell-and-train E. listen-and-sell In the "problem-solving" approach, managers and employees work together to solve performance problems in an atmosphere of respect and encouragement. Research demonstrates that the problem-solving approach is superior as compared to other methods.

87.

The _____ approach to performance feedback is used by most managers.

A. problem-solving B. tell-and-sell

C. tell-and-listen D. tell-and-train E. listen-and-sell Most managers rely on the tell-and-sell approach during the feedback session. In the "tell-andsell" approach, managers tell the employees their ratings and then justify those ratings.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-07 Explain how to provide performance feedback effectively. Level of Difficulty: 1 Easy Topic: Approaches to Performance Management 10-105 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

88.

How can managers improve employee satisfaction with the feedback process?

feedback process E. by focusing on the employee's personality Managers can improve employee satisfaction with the feedback process by letting employees voice their opinions and discuss performance goals.

89.

Which of the following managers is using the most effective approach to conducting a performance feedback session?

behaviors. E. Estelle lets the employee voice his or her opinions, and then she replies with her assessment of the employee's personality traits. During the feedback session, managers can take any of three approaches. In the tell-and-sell approach, managers tell the employees their ratings and then justify those ratings. In the telland-listen approach, managers tell employees their ratings and then let the employees explain their side of the story. In the problem-solving approach, managers and employees work together to solve performance problems in an atmosphere of respect and encouragement. Not surprisingly, research demonstrates that the problem-solving approach is superior. The content of the feedback should emphasize behavior, not personalities.

90.

Jade is giving feedback to an employee who hopes to move into a supervisory role someday. Which statement represents the most effective kind of feedback?

problem solving. E. When we have problems, you have a great attitude, and that will help you as a supervisor someday. The content of feedback should emphasize behavior, not personalities.

91.

Besides a discussion of the employee's past behavior, what other topic(s) are most important to include in a performance feedback meeting?

E. strategic planning and a link to personal goals The feedback session should end with goal setting and a decision about when to follow up.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 10-07 Explain how to provide performance feedback effectively. Level of Difficulty: 1 Easy 10-108 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Approaches to Performance Management

92.

Ignacio is a hardworking, reliable employee in a warehouse. His supervisor notices that this is the fifth year in a row in which Ignacio's performance appraisal shows that he has met requirements for every performance standard of his job. Even so, the supervisor has identified areas for improvement. Which statement gives the most significant reason for seeking improvement in Ignacio's performance?

improving his performance. E. If Ignacio does not respond to the supervisor's suggestions, the supervisor will have to demote or terminate him. When performance evaluation indicates that an employee's performance is below standard, the feedback process should launch an effort to correct the problem. Even when an employee is meeting current standards, the feedback session may identify areas in which the employee can improve in order to contribute more to the organization in a current or future job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-08 Summarize ways to produce improvement in unsatisfactory performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Management

93.

Roxanne, a new employee at Fenz Pharmaceuticals, has demonstrated low productivity for a long period. Her manager evaluates her performance and finds that she requires more training to improve her productivity. In the context of improving employee's performance, Roxanne lacks _____.

A. the required motivation B. the necessary abilities

C. accountability D. ethical values E. integrity In this scenario, Roxanne lacks the necessary abilities to perform her job, her manager finding Roxanne needs more training to improve her productivity. When a motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer coaching, training, and more detailed feedback.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-08 Summarize ways to produce improvement in unsatisfactory performance. Level of Difficulty: 3 Hard Topic: Approaches to Performance Management

94.

The receptionist at Madcap Advertising is punctual, polite, and always cheerful. The firm's employees and customers all love her. However, she has difficulty with the clerical tasks that the firm's prior receptionists handled. The receptionist's supervisor recommends redesigning the receptionist's job. That recommendation would be most appropriate in which of the following situations?

E. The employee is motivated, but does not understand the significance of the problem. The most effective way to improve performance varies according to the employee's ability and motivation. The type of action called for depends on what the employee lacks. When a motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer coaching, training, and more detailed feedback. Sometimes it is appropriate to restructure the job so the employee can handle it.

95.

Gavin, a supervisor, is discussing an employee with Eileen, the human resource manager at his company. The employee's performance has been falling, and the employee has been absent on several workdays. Gavin is concerned about this change in behavior. The HR manager suggests that Gavin encourage the employee to contact the employee assistance program (EAP) for a referral to a counselor. In which situation would Eileen's advice be most appropriate?

E. The employee lacks motivation as well as the necessary knowledge and skills. Managers with an unmotivated employee can explore ways to demonstrate that the employee is being treated fairly and rewarded adequately. The solution may be as simple as more positive feedback (praise). Employees may need a referral for counseling or help with stress management. Since the employee's performance used to be better, the problem is not likely to be a lack of ability.

96.

Jim, a sales manager at Elexon Inc., finds that Bill, a salesman, lacks motivation to perform well in his job. In the context of finding solutions to performance problems, which of the following is the right way to deal with this situation?

E. Jim must ask Bill to take a vacation to think about what is causing his lack of motivation. Managers with an unmotivated employee can explore ways to demonstrate that the employee is being treated fairly and rewarded adequately. The solution may be as simple as more positive feedback (praise). Employees may need a referral for counseling or help with stress management.

97.

Lydia, a supervisor, is meeting with an employee whose performance has deteriorated since the previous year. The employee used to do the same work well, so Lydia believes the problem is not likely to be related to ability. Which of the following responses would be most likely to help in this situation?

E. demoting the employee When employees lack ability, motivation, or both, corrective action is needed. The type of action called for depends on what the employee lacks. In this case, Lydia has ruled out a lack of ability. Managers with an unmotivated employee can explore ways to demonstrate that the employee is being treated fairly and rewarded adequately. The solution may be as simple as more positive feedback (praise). Employees may need a referral for counseling or help with stress management.

98.

Gina considers Craig, her office assistant, to be both highly skilled and highly motivated. Craig frequently surprises Gina with his creative problem solving, above and beyond the basic job requirements. What response should Gina make to Craig's performance?

E. She should investigate whether Craig feels he is being treated fairly. As a rule, employees who combine high ability with high motivation are solid performers. However, managers should by no means ignore these employees on the grounds of leaving well enough alone. Such employees are likely to appreciate opportunities for further development. Rewards and direct feedback help to maintain these employees' high motivation levels.

99.

The human resource department of Alpha-Omega Corp. is reviewing its performance management system to make sure it can show fairness if an employee ever complains of discrimination. Which of the following statements is a problem that must be addressed if Alpha-Omega is to meet that goal?

E. Performance management systems often punish people for whistleblowing. The selection guidelines in the federal government's Uniform Guidelines on Employee

Selection Procedures also apply to performance management. In general, these guidelines require that organizations avoid using criteria such as race and age as a basis for employment decisions. This requires overcoming widespread rating errors. A substantial body of evidence has shown that white and black raters tend to give higher ratings to members of their own racial group, even after rater training.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 3 Hard Topic: Legal Aspects to Performance Appraisals

100.

According to research evidence, in which of the following situations would an employer most have to guard against raters giving unfair low performance ratings to male employees?

E. when the performance management system is legally defensible Organizations must avoid using criteria such as race and age as a basis for employment decisions. This requires overcoming widespread rating errors. A substantial body of evidence has shown that white and black raters tend to give higher ratings to members of their own racial group, even after rater training. In addition, evidence suggests that this tendency is strongest when one group is only a small percentage of the total work group. When the vast majority of the group is male, females receive lower ratings; when the minority is male, males receive lower ratings.

101.

When Bolton Inc. dismissed Matthew, his supervisor told him the reason was that he did not meet performance standards. The supervisor assumed that would prevent Matthew from claiming he had been dismissed unjustly. What is the main flaw in the supervisor's assumption?

A. People who file lawsuits for unjust dismissal are usually lying. B. People who sue for unjust dismissal usually claim the real reason for the dismissal differs

from what the employer said. C. People who file lawsuits for unjust dismissal are irrational. D. Lawsuits often challenge an organization's performance management system. E. The supervisor provided Matthew with inadequate coaching. With regard to lawsuits filed on the grounds of unjust dismissal, the usual claim is that the person was dismissed for reasons besides the ones that the employer states. In this type of situation, courts generally focus on the employer's performance management system, looking to see whether the firing could have been based on poor performance. To defend itself, the employer would need a performance management system that provides evidence to support its employment decisions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 3 Hard Topic: Legal Aspects to Performance Appraisals

102.

Paige was recently dismissed from her job in a hardware store. She had often been late for work, and she was so unresponsive to customers' needs that the store had received several complaints about her. Furthermore, she frequently complained about policies and procedures. A week after Paige's dismissal, the store's manager learned that Paige intended to sue the company for wrongful dismissal. She was saying she had complained of management's misdeeds, so the company retaliated. How should the human resource department have prepared the company for this situation?

problems E. by setting up a performance management system that provides evidence of management's misdeeds To protect against lawsuits, it is important to have a legally defensible performance management system. With regard to lawsuits filed on the grounds of unjust dismissal, the usual claim is that the person was dismissed for reasons besides the ones that the employer states. In this type of situation, courts generally focus on the employer's performance management system, looking to see whether the firing could have been based on poor performance. To defend itself, the employer would need a performance management system that provides evidence to support its employment decisions. Such a system would be based on valid job analyses with the requirements for job success clearly communicated to employees.

103.

How can an organization protect itself against discrimination and unjust dismissal lawsuits?

D. The organization should use a single rater to rate all the employees. E. The organization should dismiss poor performers. To protect against discrimination or unjust dismissal lawsuits, it is important to have a legally defensible performance management system. Such a system would be based on valid job analyses, with the requirements for job success clearly communicated to employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 2 Medium Topic: Legal Aspects to Performance Appraisals

104.

Gary, the CEO of Zansofel Inc., believes in providing employees with a flexible and open environment to enhance their skills and growth in the company. In the context of performance management and ethical issues associated with it, which of the following would Gary most likely oppose and why?

like robots and that they are being watched. E. He would be against top management carrying out performance appraisal of employees because it may lead to appraisal politics. In this scenario, Gary would oppose electronic monitoring systems. Although electronic monitoring can improve productivity, it also generates privacy concerns. Critics point out that an employer should not monitor employees when it has no reason to believe anything is wrong. They complain that monitoring systems threaten to make the workplace an electronic sweatshop in which employees are treated as robots, robbing them of dignity.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

105.

The management of Rest Assured Insurance wants to begin electronically monitoring the computer work of the employees who process claims filed by customers. Savannah, the company's human resource executive, expects that employees will resist the monitoring, because they will feel robbed of their human dignity. How could the human resource department best address this concern?

advance in their careers E. by sending the data to employee assistance programs to help with their mental health problems Critics of electronic monitoring complain that monitoring systems threaten to make the workplace an electronic sweatshop in which employees are treated as robots, robbing them of dignity. Electronic systems should not be a substitute for careful management. When monitoring is necessary, managers should communicate the reasons for using it. Monitoring may be used more positively to gather information for coaching employees and helping them develop their skills.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

Essay Questions

106.

Discuss the steps involved in the performance management process.

The first two steps of the process involve identifying what the company is trying to accomplish (its goals or objectives) and developing employee goals and actions to achieve these outcomes. Typically the outcomes benefit customers, the employee's peers or team members, and the organization itself. The goals, behaviors, and activities should be measurable and become part of the employee's job description. Step three in the process—organizational support—involves providing employees with training, necessary resources and tools, and ongoing feedback between the employee and manager, which focuses on accomplishments as well as issues and challenges that influence performance. For effective performance management, both the manager and the employee have to value feedback and exchange it on a regular basis—not just once or twice a year. Also, the manager needs to make time to provide ongoing feedback to the employee and learn how to give and receive it. Step four involves evaluating performance; that is, when the manager and employee discuss and compare targeted goals and supporting behavior with actual results. This step includes the annual formal performance review. The final steps of the performance management process involve both the employee and manager identifying what the employee can do to capitalize on performance strengths and address weaknesses (step 5) and providing consequences for achieving (or failing to achieve) performance outcomes, such as pay increases, bonuses, or action plans (step 6). This includes identifying training needs; adjusting the type or frequency of feedback the manager provides to the employee; clarifying, adjusting, or modifying performance outcomes; and discussing behaviors or activities that need improvement.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-01 Identify the activities involved in performance management. Level of Difficulty: 2 Medium Topic: What is Performance Management?

107.

Discuss the various purposes of performance management systems.

Organizations establish performance management systems to meet three broad purposes: strategic, administrative, and developmental. The strategic purpose refers to effective performance management that helps the organization achieve its business objectives. It does this by helping to link employees' behavior with the organization's goals. Performance management starts with defining what the organization expects from each employee. It measures each employee's performance to identify where those expectations are and are not being met. This enables the organization to take corrective action, such as training, incentives, and discipline. The administrative purpose refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Performance management can also support decision making related to employee retention, termination for poor behavior, and hiring or layoffs. Because performance management supports these administrative decisions, the information in a performance appraisal can have a great impact on the future of individual employees. Managers recognize this, which is the reason they may feel uncomfortable conducting performance appraisals when the appraisal information is negative and, therefore, likely to lead to a layoff, a disappointing pay increase, or other negative outcomes. The developmental purpose serves as a basis for developing employees' knowledge and skills. Even employees who are meeting expectations can become more valuable when they hear and discuss performance feedback. Effective performance feedback makes employees aware of both their strengths as well as areas in which they can improve. For performance feedback to serve a developmental purpose, managers should adjust their approach to the level of performance. For a high-performing employee, the manager should open up a conversation about the employee's ambitions and the organization's developmental opportunities, so the employee sees an inviting career path. Employees who are falling short in some areas will require an effort to uncover the source of poor performance. Even among employees meeting standards, managers should identify areas for future growth.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-02 Discuss the purposes of performance management systems. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems 10-124 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

108.

Briefly describe the five criteria that measure the effectiveness of a performance management system.

The five criteria for measuring the effectiveness of a performance management system are fit with strategy, validity, reliability, acceptability, and specific feedback. First, performance measures should fit with the organization's strategy by supporting its strategy, goals, and culture. Second, performance measures should be valid, so they measure all the relevant aspects of performance and do not measure irrelevant aspects of performance. These measures should minimize both contamination and deficiency. Third, performance measures should provide interrater and test-retest reliability, so that appraisals are consistent among raters and over time. Fourth, performance measurement systems should be acceptable to the people who use them or receive feedback from them. Finally, a performance measure should specifically tell employees what is expected of them and how they can meet those expectations.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-03 Define five criteria for measuring the effectiveness of a performance management system. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

109.

Distinguish between behavioral observation scales (BOS) and behaviorally anchored rating scales (BARS).

A behaviorally anchored rating scale (BARS) builds on the critical-incidents approach. The BARS method is intended to define performance dimensions specifically using statements of behavior that describe different levels of performance. When experts about the job agree the statements clearly represent levels of performance, they are used as anchors to guide the rater. Although BARS can improve interrater reliability, this method can bias the manager's memory. The statements used as anchors can help managers remember similar behaviors, at the expense of other critical incidents. A behavioral observation scale (BOS) is a variation of a BARS. Like a BARS, a BOS is developed from critical incidents. However, whereas BARS discards a large number of the behaviors that exemplify effective or ineffective performance, BOS uses many of them to specifically define all the behaviors that are necessary for effective performance. As a result, a BOS may use 15 behaviors to define levels of performance. Also, rather than assessing which behavior best reflects an individual's performance, BOS requires managers to rate the frequency with which the employee has exhibited each behavior during the rating period. These ratings are averaged to compute an overall performance rating. A major drawback of this method is the amount of information required. A BOS can have 80 or more behaviors, and the manager must remember how often the employee exhibited each behavior in a 6- to 12-month rating period. This is taxing enough for one employee, but managers often must rate 10 or more employees. Even so, compared to BARS and graphic rating scales, managers and employees have said they prefer BOS for ease of use, providing feedback, maintaining objectivity, and suggesting training needs.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-04 Compare the major methods for measuring performance. Level of Difficulty: 2 Medium Topic: Performance Rating Systems

110.

List the advantages and disadvantages of using managers, peers, subordinates, self, and customers as sources of performance information.

Managers. Advantages: Supervisors have extensive knowledge of the job requirements and the opportunity to observe their employees; they have an incentive to provide accurate and helpful feedback since their own success depends so much on their employees' performance; and when managers try to observe employee behavior or discuss performance issues in the feedback session, their feedback can improve performance and employees tend to perceive the appraisal as accurate. Disadvantages: In some jobs, the supervisor may not have enough opportunity to observe the employee performing job duties. Peers. Advantages: Peers are an excellent source of information about performance where the supervisor does not often observe the employee, such as law enforcement and sales; peers have expert knowledge of job requirements; and they bring a different perspective to the evaluation and can provide an extremely valid assessment of performance. Disadvantages: Friendships have the potential to bias ratings, although research has provided little evidence that this is a problem; and peers are uncomfortable rating themselves and others for administrative decision-making purposes. Subordinates. Advantages: For evaluating the performance of managers, subordinates are an especially valuable source of information, as they often have the best chance to see how well a manager treats employees. Disadvantages: Subordinates may be reluctant to say negative things about the person to whom they report; when required to identify themselves, subordinates tend to give managers higher ratings; and given the power employees have in this type of evaluation, managers tend to emphasize employee satisfaction, even at the expense of productivity. Self. Advantages: No one has a greater chance to observe the employee's behavior than the employee himself or herself; it is useful to get employees thinking about their performance before the feedback session; and areas of disagreement between the self-appraisal and other evaluations can be fruitful topics for the feedback session. Disadvantages: Individuals have a tendency to inflate assessments of their performance, especially when used for administrative decisions; people tend to blame outside circumstances for their failures while taking a large part of the credit for their successes; and self-appraisals are not appropriate for administrative decision-making. 10-127 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Customers. Advantages: Services are often produced and consumed on the spot, so the customer is often the only person who directly observes the service performance and may be the best source of performance information. Using customer evaluations of employee performance is appropriate in two situations. The first is when an employee's job requires direct service to the customer or linking the customer to other services within the organization. Second, customer evaluations are appropriate when the organization is interested in gathering information to determine what products and services the customer wants. Disadvantages: Customer surveys are expensive, and as a result, many organizations limit the information gathering to short periods of once a year.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-05 Describe major sources of performance information in terms of their advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Sources of Performance Information

111.

Describe the types of rating errors that influence performance evaluation, and explain the ways in which they can be minimized.

Several kinds of errors and biases commonly influence performance measurements. People observe behavior often without a practical way of knowing all the relevant circumstances and outcomes, so they necessarily interpret what they see. A common tendency is to give higher evaluations to people we consider similar to ourselves. If the rater compares an individual, not against an objective standard, but against other employees, contrast errors occur. When a rater uses only a part of the rating scale, it is called a distributional error. Giving all employees ratings at the high end of the scale is called leniency. Rating everyone at the low end of the scale is called strictness. Rating all employees at or near the middle is called central tendency. Distributional errors make it difficult to compare employees rated by the same person. Also, if different raters make different kinds of distributional errors, scores by these raters cannot be compared. Raters often let their opinion of one quality color their opinion of others. The halo error refers to rating employees positively in all areas because of strong performance observed in one area. The horns error refers to rating employees negatively in all areas because of weak performance observed in one area. Halo error can mistakenly tell employees they don't need to improve in any area, while horns error can cause employees to feel frustrated and defensive. Usually people make these errors unintentionally, especially when the criteria for measuring performance are not very specific. To prevent this, raters can be trained to avoid rating errors. One training method is for raters to learn to look at many aspects of performance that deserve their attention. Actual examples of performance are studied to bring out various performance dimensions and the standards for those dimensions. This training aims to help raters evaluate employees' performance more thoroughly and accurately. A second method would be to hold a calibration meeting, which is a gathering at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors. Besides training raters, a growing number of organizations are bringing data analytics into the rating process. Analytic software, for example, can find patterns in what employees do, as well as in the messages they post.

AACSB: Analytical Thinking

Blooms: Understand Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Characteristics of Effective Performance Appraisals

112.

Briefly describe a calibration meeting.

Political behavior occurs in every organization. Organizations can minimize appraisal politics by establishing an appraisal system that is fair. One technique is to hold a calibration meeting, a gathering at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors. As they discuss ratings and the ways they arrive at ratings, managers may identify undervalued employees, notice whether they are much harsher or more lenient than other managers, and help each other focus on how well ratings are associated with relevant performance outcomes.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-06 Define types of rating errors, and explain how to minimize them. Level of Difficulty: 2 Medium Topic: Criteria for Effective Performance Management Systems

113.

List three ways a manager can schedule performance feedback. Then, list three ways a manager can prepare for a feedback session. Finally, list three ways a manager can conduct an effective feedback session.

Possible answers for scheduling of a performance feedback session include: 1. Schedule performance feedback regularly, beyond once a year. 2. Conduct performance feedback immediately when necessary, such as when correcting an employee's performance deficiency as soon as they occur. 3. Give employees frequent feedback, so much so that they know what will be said during their annual performance review. 4. Provide employees with regular feedback. This results in motivation, as well as directing them to the right track. Possible answers for preparing for a feedback session include: 1. Create the right context for the meeting, such as holding it in a conference room. 2. Announce the session as a way for the employee and the manager to discuss their roles and the relationship between them. 3. Managers should say (and believe) that they would like the meeting to be an open dialogue. 4. Have the employee perform a self-assessment ahead of time. Possible answers for conducting an effective feedback session include: 1. Managers can take any of the three approaches during the feedback session: tell-and-sell, tell-and-listen, or problem solving. In the "tell-and-sell" approach, managers tell the employees their ratings and then justify those ratings. In the "tell-and-listen" approach, managers tell employees their ratings and then let the employees explain their side of the story. In the "problem-solving" approach, managers and employees work together to solve performance problems in an atmosphere of respect and encouragement. Most managers use the tell-andsell approach. The most effective approach is usually the problem-solving approach. 2. Let employees voice their opinions and discuss performance goals. 3. Talk about behavior and results, not about personalities—Especially when feedback is about negative performance, it is essential for the manager's words to distinguish between the person and his or her behavior. Do not use words like, "You're not motivated," instead, talk 10-131 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

about results: "You did not meet the deadline that you agreed to." 4. Managers and employees should agree to specific goals. 5. Make a decision on when to follow up.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-07 Explain how to provide performance feedback effectively. Level of Difficulty: 2 Medium Topic: Approaches to Performance Management

114.

Suggest the different means by which an employee's unsatisfactory performance can be improved.

The most effective way to improve performance varies according to the employee's ability and motivation. In general, when employees have high levels of ability and motivation, they perform at or above standards. But when they lack ability, motivation, or both, corrective action is needed. The type of action called for depends on what the employee lacks. For an employee who is motivated but lacks ability, the manager should provide coaching and training, give detailed feedback about performance, and consider restructuring the job. For an employee who has the ability but lacks motivation, the manager should investigate whether outside problems are a distraction and if so, refer the employee for counseling. If the problem has to do with the employee's not feeling appreciated or rewarded, the manager should try to deliver more praise and evaluate whether additional pay and other rewards are appropriate. For an employee lacking both ability and motivation, the manager should consider whether the employee is a good fit for the position. Specific feedback or withholding rewards may spur improvement, or the employee may have to be demoted or terminated. As a rule, employees who combine high ability with high motivation are solid performers. Managers should by no means ignore these employees on the grounds of leaving well enough alone. Rather, such employees are likely to appreciate opportunities for further development. Rewards and direct feedback help to maintain these employees' high motivation levels.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-08 Summarize ways to produce improvement in unsatisfactory performance. Level of Difficulty: 2 Medium Topic: Approaches to Performance Management 10-132 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

115.

Identify the measures that a company should take to ensure a legally defensible performance management system.

1. The system should be based on valid job analyses, with the requirements clearly communicated to employees. 2. Performance management should evaluate behaviors or results, not traits. 3. The organization should use multiple raters and train raters in how to use the system. 4. The organization should provide for a review of all performance ratings by upper-level managers and set up a system for employees to appeal when they believe they were evaluated unfairly. 5. Along with feedback, the system should include a process for coaching or training employees to help them improve, rather than simply dismissing poor performers.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 10-09 Discuss legal and ethical issues that affect performance management. Level of Difficulty: 2 Medium Topic: Legal Aspects to Performance Appraisals

Chapter 11 Separating and Retaining Employees

True / False Questions

1. Generally, organizations encourage voluntary turnover among top performers because it is inexpensive. True

False

2. Employees cannot sue employers for wrongful discharge if the employee was contracted under the employment-at-will doctrine. True

False

3. Outcome fairness involves the ends of a discipline process, while procedural and interactional justice focus on the means to those ends. True

False

4. In procedural justice, the procedures should be consistent from one person to another, and the manager using them should suppress any personal biases. True

False

5. A disciplinary action meets the standards of outcome fairness if the manager explains to the employee how the action is procedurally just, treats the employee with dignity and respect, and empathizes with the employee's feelings. True

False

6. Emily, a human resource specialist, has been asked to investigate complaints that an employee is bullying coworkers. Emily is obligated to protect this employee's privacy by ensuring that any information gathered is relevant to the complaint. True

False

7. In general, employers may conduct random searches of areas like desks, lockers, and toolboxes at any point in time without any justification to the employee. True

False

8. Under federal law, any U.S. employer that is planning layoffs must give employees 60 days' notice of the layoffs. True

False

9. The principles of justice convey that the organization must prepare for problems by establishing a formal discipline process in which the consequences become severe if the employee repeats the offense. True

False

10. Developing a formal discipline process is a prime responsibility of the human resource department. True

False

11. The open-door policy is an example of alternative dispute resolution. True

False

12. Since arbitration is a formal process involving an outsider, it is much slower and more tedious than a lawsuit. True

False

13. Job withdrawal is a set of behaviors that discontented individuals display to avoid the work situation physically, mentally, or emotionally. True

False

14. Core self-evaluation refers to pervasive low levels of satisfaction in all aspects of life, compared with other people's feelings. True

False

15. When employees are unclear about work methods, scheduling, and performance criteria because others hold different ideas about these, they are likely to suffer from role ambiguity. True

False

16. Role conflict is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it. True

False

17. If an employee disputes policies on the grounds that they violate state and federal laws, he or she can go outside the organization for help to file a lawsuit. True

False

18. Job involvement is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. True

False

19. Personal dispositions do not play a role in creating job satisfaction. True

False

20. Job satisfaction is always based on an objective and complete measurement of the situation and not on perception. True

False

21. To help employees manage role conflict, employers have sought a number of family-friendly policies. True

False

22. The two primary sets of people in an organization who most affect job satisfaction are co-workers and supervisors. True

False

23. Job satisfaction of employees remains unaffected from organizational changes such as mergers. True

False

24. The Job Descriptive Index is an example of a job satisfaction instrument. True

False

25. HR professionals can help make exit interviews more successful by arranging for the departing employee to talk to his or her supervisor. True

False

Multiple Choice Questions

26. Karl, an employee at BizVentures Inc., is known for his short-tempered and argumentative nature. During a heated exchange at work one day, Karl makes a derogatory gesture toward his manager, which causes Karl to be fired. This scenario is an example of

A. revolving door policy. B. open-door policy. C. voluntary turnover. D. progressive discipline. E. involuntary turnover. 27. Terminating an employee for the use of illegal drugs is an example of a(n) _____ turnover.

A. retentive B. external C. voluntary D. absenteeism E. involuntary 28. Bella, an employee at Lavender Holdings, was suspended for two weeks for drug use. Six months later, she was fired from the job because her productivity did not show any improvement even after undergoing treatment for drug use. Which of the following is the form of discharge experienced by Bella?

A. involuntary turnover B. voluntary turnover C. downsizing D. early retirement E. open-door policy

29. More than 40% of the employees at Valley Corp. lost their jobs during a recent recession. The human resource department of Valley Corp. would term this as _____.

A. role ambiguity B. voluntary turnover C. role conflict D. involuntary turnover E. role overload 30. Which of the following situations is an example of involuntary turnover?

A. Jia, an employee at DotPrint, is suspended for a week because of workplace violence. B. Natasha, a supervisor at JBX Inc., decides to leave her job because she is moving to another country. C. Hector, a manager at EuroCare Co., resigns from his job because he has a better job offer from another company. D. Ming, an employee at FantaFurnish Corp., wants to leave her job to pursue a college degree. E. Gizela, an employee at Future Tech Inc., is fired because of theft. 31. When employees initiate a turnover, when the organization would prefer to keep them, it is called _____ turnover.

A. dysfunctional B. involuntary C. retentive D. external E. voluntary

32. Zohrina is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which of the following forms of turnover is illustrated in this scenario?

A. involuntary turnover B. external turnover C. voluntary turnover D. internal turnover E. dysfunctional turnover 33. Which of the following situations is an example of a voluntary turnover?

A. Clara, a supervisor at Green Xpress LLC, is demoted from her current position. B. Samuel, a manager at Travellerz Co., is suspended for a month due to drug use. C. Fatima, an employee at Flora Inc., is about to resign her job to start her own business. D. Alex, a trainee at RandomWorks Inc., is reprimanded for arriving late at work every day. E. Carissa, an employee at Beta Corp., is transferred to another city for career growth. 34. Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not require a specific time to end the employment relationship. This is referred to as the _____ doctrine.

A. force majeure B. laissez faire C. employment-at-will D. due process E. implied in fact

35. Jarvis, a manager at Livingston Corp., believes that he can fire Yolanda, his subordinate, at any time he wishes to do so. Which of the following, if true, would help strengthen Jarvis' belief?

A. Yolanda has not submitted her required paperwork as part of her job offer. B. Jarvis has not provided Yolanda with an offer letter. C. Yolanda is an underperformer and fails to arrive at work on time. D. Yolanda does not have a specific employment contract with the company. E. Yolanda has not received a letter of employment from the company. 36. Holly refuses her employer's request to falsify the contents of a report to the Equal Employment Opportunity Commission (EEOC). The employer subsequently discharges Holly for "not following orders." Identify the exception to the employment-at-will doctrine that Holly is likely to choose when she files a wrongful discharge suit.

A. equal employment B. public policy C. implied contract D. reverse discrimination E. affirmative action 37. Retaining top performers is not always easy because _____ for high-demand positions, such as software engineers, from other companies has become the norm.

A. brainstorming B. poaching talent C. mind mapping D. headhunting E. reverse discriminating

38. Talent poaching makes it difficult for companies to _____.

A. retain their top performers B. keep their searches discreet C. search for relevant information D. eliminate quality control processes E. look for employee profiles 39. People's perception of _____ depends on their judgment that the consequences of a decision to employees are just.

A. employment at will B. procedural justice C. interactional justice D. arbitration E. outcome fairness 40. Franco, an employee at Fundz Corp., arrives late at the office on a Monday morning due to a personal emergency. His manager fires him, although this was the first instance of Franco arriving late at work. Franco is upset because some of his other coworkers are chronically late to work, but they have not been fired. In this scenario, Franco would conclude a lack of _____ in dealing with employees who arrive late at work.

A. arbitration B. laissez faire C. outcome fairness D. benchmarking E. interactional justice

41. Zahra is an employee at Colorz Inc. She loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, Dan. A few days later, Dan fires Gunther, another subordinate, from work for a similar reason. The employees reporting to Dan are most likely to conclude he demonstrates a lack of _____ in dealing with employees who gossip at work.

A. benchmarking B. interactional justice C. laissez faire D. outcome fairness E. arbitration 42. Yolanda and Marvin are both data-entry clerks in the same department of a company. On the anniversary of her employment, Yolanda receives a 2 percent increase in salary. Later that day, while talking to Marvin, she learns that his pay increase was 4 percent. How could the company's supervisor and human resource department best ensure that Yolanda will perceive outcome fairness in this situation?

A. by reducing Marvin's raise, so everyone gets the same amount B. by demonstrating that raises of different sizes are associated with differences in performance C. by increasing Yolanda's raise, so everyone gets the same amount D. by reserving the largest raises for the most serious offenses E. by treating Yolanda with dignity and respect

43. Ricardo reprimanded five of his employees for coming to work drunk after a lunch outing. The next week, Ricardo fired another employee for being drunk at work. The employees under Ricardo can conclude a lack of _____ in dealing with employees being drunk at work.

A. benchmarking B. outcome fairness C. summary dismissal D. downsizing E. onboarding 44. People's perception of _____ is their judgment that impartial methods were used to determine the consequences an employee obtains.

A. interactional justice B. expatriation C. outcome fairness D. procedural justice E. progressive discipline 45. A perception of _____ is a judgment that the organization carried out its actions in a manner that took the employee's feelings into account.

A. interactional justice B. employee turnover C. progressive discipline D. summary dismissal E. outcome fairness

46. Explanation of decision, respectful treatment, consideration, and empathy are features of _____.

A. retributive justice B. interactional justice C. distributive justice D. benchmarking E. outcome fairness 47. Bob, an employee at Machina Corp., is well-known for his short temper. One morning, he gets into a heated argument with one of his supervisors and responds with hostility. Rather than immediately terminating Bob, his manager, Mia, calls him in for a discussion. Mia treats Bob with dignity and respect, listening to what he has to say about the incident. This scenario can be best categorized as one that uses _____.

A. restorative justice B. distributive justice C. interactional justice D. impassive justice E. retributive justice 48. Armando, a manager at a top engineering company, believes he can hire a few employees by promising them job security and later terminating them if business slows down. On what grounds could such a termination be considered a wrongful discharge?

A. Desperate times call for desperate measures. B. The terminations deviate from the promise of job security in the work agreement. C. The company overpaid the terminated employees. D. The company has policies for handling misbehavior. E. The company is under financial constraints and, at times, has to layoff employees.

49. Which of the following does an employer violate when it terminates an employee for refusing to do something unethical, unsafe, and illegal?

A. affirmative action B. public policy C. fair representation D. equal opportunity employment E. reverse discrimination 50. Sean is employed as a supervisor at MaxCharge Industries. He gets fired from his job because he refused to break local laws and discharge harmful chemicals from MaxCharge into a nearby river. Which of the following is the exception to the employment-at-will doctrine that Sean is likely to choose when he files a wrongful discharge suit?

A. affirmative action B. reverse discrimination C. implied contract D. information seizure E. public policy

51. Rashid was an employee at a chemical company called HCD Inc. He noticed that several of the security personnel at HCD allowed tankers to be filled over the legal limit with highly inflammable gases. Rashid gathered ample evidence of such instances and presented it to senior management. A few months later, the company had not acted, and Rashid contacted the Occupational Safety and Health Administration. Less than a week later, the company fired Rashid. Assuming that Rashid had not had disciplinary issues and wanted to file a claim alleging he was wrongfully discharged, what would be the strongest basis for his claim?

A. He was disciplined for doing what the law requires. B. He was disciplined for violating public policy. C. His dismissal was a result of racial discrimination. D. His dismissal violated his privacy. E. The company did not provide proper notification of the layoff. 52. When conducting a workplace search, employers can act fairly and minimize the likelihood of a lawsuit by

A. hushing the company's search policies prior to the search. B. searching employees' workplace without their knowledge. C. using non-company personnel to conduct the search. D. conducting random searches with or without a probable cause. E. justifying that the organization has work rules that provide for searches.

53. The top management at Zion Manufacturers decides to search its employees on the job. However, Raul, Zion's HR manager, believes that it could generate privacy issues. Which of the following would strengthen Raul's belief and maximize the likelihood of a lawsuit?

A. if the search is done after asking for the employees' consent B. if the search policy is publicized and applied and carried out consistently C. if the search includes random legal and permissible searches of desks, lockers, and toolboxes D. if the search is a random check, and it is clarified that no one has been accused of misdeeds E. if the search involves communications, such as e-mails, that are searched without probable cause 54. After Clair, a human resource manager, hears reports that some employees are drinking liquor on the job, she arranges to conduct a random search for evidence. Which of the following actions would be the most appropriate way for Clair's company to act fairly regarding employees' privacy in this scenario?

A. requesting consent before gathering information B. confining the search to lower-performing employees C. telling employees the company is accusing them of drinking D. excluding the accusers' work areas from the search E. sharing search results with a reporter who learned about the search

55. The board of directors of LiveCrop Industries is worried about company theft and decides to institute an immediate search of the employees on the job. However, the head of the HR department, Heidi, believes that doing so could maximize the likelihood of a lawsuit due to privacy concerns. Which of the following would strengthen Heidi's belief?

A. if the search is a random one, and it is clarified that no one has been accused of misdeeds B. if the search policies and consequences have been publicized C. if the search is done only after gathering consent from employees D. if the search is done only on employees and not supervisors E. if the search information is shared only with those who need it 56. If employers covered by the _____ do not notify the employees (and their union, if applicable) of layoffs, they may have to offer back pay and fringe benefits and pay penalties as well.

A. Davis-Bacon Act B. Workers' Adjustment Retraining and Notification Act C. Right-to-Work Act D. Employee Free Choice Act E. Fair Labor Standards Act

57. The Workers' Adjustment Retraining and Notification Act requires that

A. organizations with unionized operations negotiate any closing or layoff that will affect employees within the bargaining unit. B. organizations with more than 100 employees conduct and publicize the results of an environmental community impact study before closing a plant that will affect at least 50 fulltime employees. C. organizations with 50 or more employees and $10,000 or more in federal contracts prepare and post an affirmation plan. D. organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 full-time employees. E. organizations with more than 50 employees provide fringe benefits and pay penalties before any closing or layoff. 58. PrettiGud Furniture has seen sales decline in a highly competitive environment. To be able to offer a lower-cost product, management decides to close its factory in Alabama, laying off 85 workers from the company's 465-person workforce. Under the Workers' Adjustment Retraining and Notification Act, what must PrettiGud Furniture do?

A. It must explain employment-at-will principles to the employees. B. It must give the employees 60 days' notice before it can begin the layoffs. C. It must provide all the employees with exit interviews. D. It is required to seek legal advice to identify any exemptions available. E. It must request employees' consent before releasing their job records.

59. Which of the following principles of discipline holds that an organization's discipline should give a clear-cut warning and follow up with consistent, objective, and immediate consequences?

A. per se rule B. laissez faire rule C. fundamental attribution rule D. outcome fairness E. hot-stove rule 60. According to the hot-stove rule, which of the following qualities makes discipline more effective?

A. The punishment meted is always inconsistent. B. The consequences for breaking a rule are immediate. C. The rule breaker will be warned multiple times before termination. D. The consequences follow a gradual increase in seriousness. E. The ideology is to prevent misbehavior rather than to merely punish it. 61. Which of the following processes seeks to avert misbehavior and to correct, rather than merely punish, misbehavior?

A. hot-stove rule B. fair representation C. progressive discipline D. benchmarking E. peer review technique

62. Which of the following statements is true of a progressive discipline system?

A. It includes peer reviews, mediation, and arbitration. B. It always involves four parties: the employee, the union, the company, and the courts. C. It communicates unacceptable behavior and responds to a series of offenses with increasing forcefulness. D. It is a speedy process. E. It is objective, immediate, and impersonal. 63. Petro Construction Company has a system of progressive discipline. Even so, in which of the following situations would it be appropriate for the company to follow a stricter policy and dismiss an employee after a first offense?

A. A welder ignored safety procedures and started a fire that caused serious damage. B. The last employee to leave a production area forgot to turn off a hot stove. C. An employee's work quality has been declining for a week. D. A manager was late to work twice, setting a bad example. E. A supervisor told a joke that some employees considered offensive. 64. Which of the following is a typical first response in the progressive discipline system?

A. official spoken warning B. written warning with threat of temporary suspension C. temporary suspension with no written notice D. unofficial spoken warning E. termination

65. MediaTxt Corp. is an organization that follows the process of progressive discipline. The organization communicates with Leila, an employee, about unacceptable behavior and responds to a series of her offenses. Which of the following would be the step that immediately precedes a threat of temporary suspension?

A. a letter informing about her demotion B. an unofficial spoken warning C. an official written warning D. a termination letter E. a letter informing Leila about her transfer 66. With which of the following steps does the progressive discipline process end?

A. a written warning and a threat of temporary suspension B. an unofficial spoken warning C. an official written warning D. temporary suspension and a written notice E. termination 67. Which of the following has the main responsibility of developing a formal discipline process for the workplace?

A. human resource department B. outplacement counselors C. legal department D. sales force E. arbitrators

68. Conducting personal business online during work hours is called

A. cybersquatting. B. cyberbullying. C. cyberdefamation. D. cyberstalking. E. cyberslacking. 69. Eli, a human resource manager, tells managers in his organization that following the system of progressive discipline requires written documentation at every step of the process. In which of the following situations could this be optional?

A. The organization is suspending an employee. B. The manager responds to the second of a series of unacceptable behaviors. C. The manager reminds an employee that a minor first-time offense is against policy. D. The manager decides to dismiss the employee. E. The organization does not follow the principles of the hot-stove rule. 70. Open-door policy, peer review, and mediation are methods of

A. the strategy decision-making process. B. alternative dispute resolution. C. collective bargaining. D. a fair representation policy. E. performance appraisal.

71. Which of the following types of alternative dispute resolution functions well only to the extent that employees trust management and managers who hear complaints listen and are able to act?

A. mediation B. behavioral modeling C. open-door policy D. fair representation E. peer review system 72. What is the simplest, most direct, and least expensive way to settle a dispute?

A. benchmarking B. arbitration C. mediation D. open-door policy E. peer review 73. Based on the expectation that two people in conflict should first try to arrive at a settlement together, organizations have a policy of making managers available to hear complaints. Typically, the first "open door" is that of the employee's

A. immediate supervisor. B. choice of a neutral party. C. peers. D. immediate subordinates. E. personal counselor.

74. Peer review is an example of _____.

A. alternative dispute resolution B. an employee assistance program C. outplacement counseling D. fair representation E. an employee carve-out 75. _____ is a process for resolving disagreements by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.

A. Outplacement counseling B. Mediation C. Carve-out D. Arbitration E. Peer review 76. If peer review does not lead to a compromise, a neutral party from outside the organization hears the case and tries to resolve the conflict and attempts to reach a compromise. This process is called

A. mediation. B. carve-out. C. open-door policy. D. fair representation. E. attrition.

77. Adam Wallace, a neutral party outside of La Mesa Inc., helped simplify issues between two technical teams of the company. Though Wallace's solution had no binding power, both the teams decided to accept his solution. This is an example of

A. mediation. B. arbitration. C. open-door policy. D. progressive discipline. E. fair representation. 78. Which of the following is an example of an alternative dispute resolution method?

A. carve-out B. employment assistance programs C. benchmarking D. arbitration E. outplacement counseling 79. The result reached in _____ must be accepted by both employee and employer.

A. peer review B. mediation C. an open-door policy D. arbitration E. outplacement counseling

80. Who among the following would be most likely to hear and resolve a case if the alternative dispute resolution method of arbitration is used?

A. an immediate supervisor B. a higher-level manager C. a panel of nonmanagement employees D. a peer of the employee E. a retired judge 81. Which of the following terms refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?

A. alternative dispute resolution B. outplacement counseling C. employee assistance program D. progressive discipline program E. request for proposal 82. Identify the correct statement regarding an employee assistance program.

A. It is a system supervisors can use to refer their employees for professional treatment when necessary. B. It is a company-sponsored program to help employees manage the transition from one job to another. C. It cannot be recommended by union representatives. D. It involves taking the help of a neutral party though a nonbinding process to solve issues among employees. E. It involves hiring an arbitrator from outside the organization to hear cases or disputes among employees.

83. Which of the following is an option of an employee assistance program (EAP) in which a patient uses video conferencing equipment to participate in online meetings with a therapist?

A. headhunting B. videohealth C. alternative dispute resolution D. outplacement counseling E. telepsychiatry 84. Brandon, an employee of EduTech Corp., demonstrates a series of unacceptable behaviors. Marian, his manager, wants to refer Brandon to the company's employee assistance program. Which of the following situations would call for such a referral?

A. Marian has reason to believe Brandon's behavior problems are related to alcohol abuse. B. EduTech Corp. wants managers to use only the simplest, most direct, and least expensive way to settle behavior problems. C. Marian wants an experienced and retired judge to resolve Brandon's situation. D. Marian and Brandon agree that a neutral party from outside the organization should hear this case. E. Brandon wants a panel of his peers to hear Marian's complaint.

85. Outplacement counseling programs are

A. long-distance educational programs using instruction via video or audio tapes, computers etc. provided by the company to augment employee skills. B. services in which professionals try to help dismissed employees manage the transition from one job to another. C. third-party programs to assist employees with their mental health and chemical dependency needs. D. university-sponsored executive training programs that require participants to live on campus while completing short, custom-designed courses. E. services rendered to employees to manage drug or alcohol addiction. 86. SourceCodes Inc. is an organization that tries to avoid the potential for violence or a lawsuit each time an employee is asked to leave the company. It does this by having the former employees meet with a specialized member of the HR staff to discuss their feelings while also getting help to find a new job. Which of the following strategies does SourceCodes Inc. use in this scenario?

A. an employee assistance program B. outcome fairness C. alternative dispute resolution D. fair representation E. outplacement counseling

87. Vincent has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Vincent threatens to sue the company for reparations. Which of the following programs can help the company avoid such situations from exiting employees?

A. outplacement counseling B. employee assistance program C. benchmarking D. progressive disciplining program E. expatriation 88. Johanna, a professional counselor, was recently asked to talk to an ex-employee of Highlanders Corp., a manufacturing company, about his performance issues. Johanna talked to this exemployee about his grief and fear, as well as some strategies for finding a new job. Which of the following roles is Johanna performing?

A. CEO of Highlanders Corp. B. mediator C. arbitrator D. outplacement counselor E. volunteer at Highlanders Corp.'s employee assistance program

89. Nigel is a trainee at ZenNext Corp., who is known among colleagues for his arrogance, rude behavior, and short-tempered nature. His supervisor, Ravi, wants to fire him. However, Rhonda, the manager of the HR department, advises Ravi to rethink his decision in order to avoid the possibilities of Nigel reacting violently or filing a lawsuit when he receives the news. In this scenario, which of the following situations is most likely to result in an amicable discharge of Nigel from ZenNext Corp.?

A. Ravi accuses Nigel of substance abuse and warns him to get help or be fired. B. Nigel and Ravi arguing about Nigel's performance since he joined ZenNext. C. Ravi encourages Nigel to think about whether he is a good fit for the job and whether he might want help finding another. D. Ravi does not believe in the concept of outcome fairness, so he does not intend to consider Rhonda's advice. E. Nigel thinks the source of his troubles at ZenNext is that Ravi dislikes him and wants him to fail. 90. Which of the following best defines job withdrawal?

A. It is the loss of jobs within an organization due to adverse economic forces. B. It is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. C. It is the retracting of a job offer following the results of a pre-employment physical examination. D. It is a psychological state employees experience upon a job dismissal or retirement. E. It is the retraction of an employment offer following failure to join on an agreed date.

91. _____ results when situations such as the nature of the job, supervisors and co-workers, pay levels, or the employee's own disposition cause the employee to become unhappy with the job.

A. Fundamental attribution error B. Due diligence C. Social loafing D. Job withdrawal E. Cognitive dissonance 92. _____ means pervasive low levels of satisfaction with all aspects of life, compared with other people's feelings.

A. Negative affectivity B. Outplacement C. Expatriation D. Systemic discrimination E. Cognitive dissonance 93. Employees with negative affectivity are inclined to

A. experience high job satisfaction. B. experience feelings of anger, contempt, fear, and guilt. C. seek change in socially acceptable ways. D. look for the good in others, but not themselves. E. think highly of themselves, but not others.

94. The positive or negative bottom-line views that people have of themselves are known as

A. negative affectivities. B. factor comparisons. C. core self-evaluations. D. fair representations. E. behavioral models. 95. Choose the correct statement about personal dispositions.

A. People with a positive core self-evaluation tend to experience job satisfaction. B. Rather than doing nothing, people with negative core self-evaluations always act aggressively toward the people they blame. C. In general, job turnover is higher among employees who are high in emotional stability and conscientiousness. D. People with negative affectivity tend to be satisfied with their jobs after changing their occupations. E. Core self-evaluations are bottom-line opinions that are positive in nature. 96. When in situations they dislike, employees with positive core self-evaluation tend to

A. experience high job dissatisfaction. B. blame other people for their problems. C. seek change in socially acceptable ways. D. act aggressively toward others. E. experience feelings of anger, guilt, and nervousness more than others.

97. As a predictor of job dissatisfaction, nothing exceeds

A. the nature of the task itself. B. the geographical location of the firm. C. negative affectivity. D. relationships with co-workers. E. negative self-evaluations. 98. The aspects of a task—namely the complexity of the task, the degree of physical strain and exertion required, and the value an employee places on the task—have particular significance when they are viewed as linked to _____.

A. brand alignment B. job dissatisfaction C. promotional marketing D. sole arbitrations E. mediations 99. _____ is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.

A. Role underload B. Role ambiguity C. Role conflict D. Role overload E. Role autonomy

100._____ is an employee's recognition that demands of the job are incompatible or contradictory.

A. Role conflict B. Role overload C. Role underload D. Role ambiguity E. Role autonomy 101.Devon was recently told by senior management that they expected him to exercise more authority and leadership with his work group. Just two days prior to that, his team told him that while they appreciated the initiative he demonstrated, they expected him to be less authoritative and more democratic in the future. The term that best describes what Devon is experiencing is

A. role carve-out. B. role distance. C. role conflict. D. role underload. E. role autonomy.

102.Benjamin is an employee at Apex Inc. Recently, he was moved to a new work team to help in the development of a new product. Sam, his supervisor on the new team, describes the set of behaviors that other team members will expect of Benjamin. Benjamin, however, feels that these demands contradict the expectations set forth in his primary role at Apex. Which of the following situations is most likely to be the primary source of Benjamin's dissatisfaction about his role?

A. Apex Inc. has brought together employees from different functions to form a team, leading to conflicting expectations. B. Benjamin is involved in Apex Inc.'s grapevine communications channel. C. Benjamin is unclear about his work methods because others have different ideas about work processes. D. Apex Inc. has downsized recently, and employees' work is still going through quality checks. E. Benjamin is unsure how Apex Inc. will evaluate his performance on this new work team. 103.Carol is a single mother who works full-time and attends to the needs of her two young children. Carol has opted to work from home for a short period after one of her children suffered a fractured arm while playing soccer. Even though she works from home, she often feels a lot of pressure in balancing her work and looking after her children. Which of the following is being experienced by Carol?

A. role ambiguity B. role carve-out C. role conflict D. role overload E. role underload

104.Foreign assignments can be highly disruptive to family members, and the resulting role _____ is the top reason that people quit overseas assignments.

A. autonomy B. overload C. underload D. ambiguity E. conflict 105.After an organization downsizes, it may expect much of its remaining employees. This high expectation and demand occur in a state of _____ for the employees.

A. role autonomy B. role carve-out C. role underload D. role distance E. role overload 106.Mark, a highly skilled technician, has been one of the most productive employee at Swenovo Inc. But after the company went through a downsizing effort, Mark has taken on many more responsibilities and is struggling to keep up. What is the most likely consequence of this situation?

A. Mark experiences role conflict and becomes confused about what to do. B. Mark experiences role conflict because Swenovo asks him to transfer to a position overseas. C. Mark wonders how Swenovo will evaluate his performance, so he asks for a transfer. D. Mark experiences role overload and becomes dissatisfied with his job. E. Mark places the responsibility for maintaining positive relationships on his direct supervisor.

107.Mark, an employee at Timber Holdings, decides to leave the company. However, during his exit interview, an HR supervisor learns that Mark had no complaints about the work he did or the pay he received. Which of the following would be a source of job dissatisfaction for Mark and likely to lead to his departure?

A. Mark's supervisor defined expectations so clearly, there was no role ambiguity. B. Mark worked on a team with employees from different functional units. C. Mark experienced uncivil behavior from his co-workers, and it was not addressed by management. D. Mark's co-workers were unclear about his work methods, scheduling, and performance criteria. E. Timber Holdings focused too much on pay as a source of satisfaction. 108.The amount of income linked to each job is called the

A. pay rank. B. pay status. C. pay differential. D. incentive pay. E. pay level.

109.Maria is the supervisor of the recruiting department at Innovex Inc. She is currently in charge of filling a few high-demand positions at Innovex and is planning to poach talent from rival companies, luring their employees with job benefits. Hassan, the HR head of Innovex, however, argues that Maria's plan will not work. Which of the following is most likely to strengthen Hassan's argument?

A. the candidates have very low self-worth B. Maria assures the candidates that they will receive a company car C. Innovex Inc. offers the candidates more vacation time than their current employer D. Innovex Inc. offers the candidates better health insurance than their current employer E. the candidates are looking for higher pay, not better benefits 110.When employees cannot work with management to make changes, they may engage in _____, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.

A. scapegoating B. progressive discipline C. benchmarking D. media manipulation E. whistle-blowing 111.In terms of job dissatisfaction, an employee who calls in sick or arrives to work late is engaging in

A. behavior change. B. benchmarking. C. physical job withdrawal. D. whistle-blowing. E. emotional withdrawal.

112.Christina, an employee at Value Depot, is regularly late for work and takes excessive sick days. In this scenario, which of the following types of job withdrawal is being experienced by Christina?

A. behavior change B. physical job withdrawal C. high job involvement D. emotional withdrawal E. psychological job withdrawal 113.Employee turnover at RandomThoughts Corp. is low, but many employees in the Consumer Book Division seek transfers to other divisions. Which of the following situations is most likely to explain the employees seeking to leave the Consumer Book Division?

A. The pay structure at RandomThoughts is too low. B. Employees consider the manager of the Consumer Book Division to be unfair. C. The manager of the Consumer Book Division properly channels employees' expressions of dissatisfaction. D. Employees in the Consumer Book Division are looking for help from outside RandomThoughts. E. Employees' complaints, confrontations, and grievances feel threatening to others. 114.Akira is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about non-work matters. Which of the following is being experiencing by Akira?

A. physical withdrawal B. psychological job withdrawal C. role overload D. benchmarking E. whistle-blowing

115.Low job involvement and low organizational commitment are

A. essentially the same thing. B. examples of psychological withdrawal. C. examples of physical withdrawal that are related to job dissatisfaction. D. examples of behavior change. E. examples of physiological withdrawal. 116._____ is a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.

A. Employee engagement B. Fair representation C. Job complexity D. Social support E. Job satisfaction 117.According to your text, people will be satisfied with their jobs as long as they perceive that

A. their jobs are the greatest source of happiness. B. their jobs can lead to the obtainment of everything they've ever wanted. C. their jobs meet their important values. D. there are no better employment options available. E. they are doing better than their subordinates.

118.The _____ is a process of formally identifying expectations associated with a role.

A. role playing method B. role analysis technique C. role carve-out D. role enrichment E. role overload 119.Serena is concerned about an unacceptable level of job dissatisfaction among a number of work teams in her organization. She has determined that the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be

A. factor comparison. B. role analysis technique. C. job rotation. D. role carve-out. E. progressive discipline. 120.Inthe role analysis technique, role occupant refers to

A. the person who is hiring the employee for a particular role in the organization. B. the employee who fills a role in the organization. C. the individual who will directly interact with the employee filling a new role in the organization. D. the individual who has written guidelines for a new role in the organization. E. the employee who is assigned the task to write expectations from a new role in the organization.

121.In the role analysis technique, the people who directly interact with the person who is filling a new role are referred to as the person's

A. role occupants. B. role managers. C. role set. D. role sitters. E. benchmarkers. 122.The two types of people in the organization who most affect an individual's job satisfaction are

A. subordinates and supervisors. B. supervisors and family members. C. co-workers and subordinates. D. supervisors and co-workers. E. supervisors and upper-level managers. 123.Which of the following aspects of satisfaction is among those emphasized by the Job Descriptive Index?

A. outplacements B. promotions C. skills D. customers E. qualifications

124.A(n) _____ refers to the meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.

A. exit interview B. affirmative action C. carve-out D. observation interview E. summary dismissal 125._____ can uncover reasons why employees leave and perhaps set the stage for some of them to return.

A. Mock interviews B. Job Descriptive Indices C. Pay satisfaction questionnaires D. Exit interviews E. Summary dismissals

Essay Questions

126.Distinguish between involuntary and voluntary turnover, and give examples of each.

127.Discuss the principles of justice that are to be followed in a system of disciplining or discharging employees.

128.Discuss the legal requirements that must be met by employers to avoid wrongful discharge.

129.Discuss the following approaches to discipline: hot-stove rule and progressive discipline.

130.Describe alternative dispute resolution, including the most common techniques. Explain its increase in use.

131.Explain what job withdrawal is and discuss the four types of conditions that lead up to it.

132.What is job satisfaction? Describe the components of job satisfaction.

133.Describe how organizations contribute to employees' job satisfaction and retain key employees by defining the role analysis technique and listing its steps.

134.Discuss the primary sets of people in an organization who affect job satisfaction. What are the reasons a person may be satisfied with these people?

135.Briefly describe exit interviews.

Chapter 11 Separating and Retaining Employees Answer Key

True / False Questions

Generally, organizations encourage voluntary turnover among top performers because it is inexpensive. FALSE

In general, organizations try to avoid the need for involuntary turnover and to minimize voluntary turnover, especially among top performers. Both kinds of turnover are costly.

Employees cannot sue employers for wrongful discharge if the employee was contracted under the employment-at-will doctrine. FALSE

Historically, if an organization and an employee do not have a specific employment contract, the employer or employee may end the employment relationship at any time. This is the employment-at-will doctrine. This doctrine has eroded significantly, however. Employees who have been terminated sometimes sue their employers for wrongful discharge.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 1 Easy Topic: Voluntary and Involuntary Turnover 11-47 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Outcome fairness involves the ends of a discipline process, while procedural and interactional justice focus on the means to those ends. TRUE

Outcome fairness involves the ends of a discipline process, while procedural and interactional justice focus on the means to those ends. Not only is ethical behavior in accord with these principles, but research has also linked the last two categories of justice with employee satisfaction and productivity.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

In procedural justice, the procedures should be consistent from one person to another, and the manager using them should suppress any personal biases. TRUE

People's perception of procedural justice is their judgment that fair methods were used to determine the consequences an employee receives. The procedures should be consistent from one person to another, and the manager using them should suppress any personal biases.

A disciplinary action meets the standards of outcome fairness if the manager explains to the employee how the action is procedurally just, treats the employee with dignity and respect, and empathizes with the employee's feelings. FALSE

A perception of interactional justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. A disciplinary action meets the standards of interactional justice if the manager explains to the employee how the action is procedurally just. The manager should listen to the employee. The manager should treat the employee with dignity and respect and should empathize with the employee's feelings. Even when a manager discharges an employee for doing something wrong, the manager can speak politely and state the reasons for the action.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 2 Medium Topic: Approaches to and Uses of Employee Discipline

Emily, a human resource specialist, has been asked to investigate complaints that an employee is bullying coworkers. Emily is obligated to protect this employee's privacy by ensuring that any information gathered is relevant to the complaint. TRUE

The courts have long protected individuals' privacy in many situations. No matter how sensitively the organization gathers information leading to disciplinary actions, it should also consider privacy issues when deciding who will see the information. Measures for protecting employees' privacy include ensuring that the information is relevant.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 2 Medium Topic: Balancing Management's and Employees' Rights

In general, employers may conduct random searches of areas like desks, lockers, and toolboxes at any point in time without any justification to the employee. FALSE

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 1 Easy Topic: Balancing Management's and Employees' Rights

Under federal law, any U.S. employer that is planning layoffs must give employees 60 days' notice of the layoffs. FALSE

The Workers' Adjustment Retraining and Notification Act requires that organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 full-time employees. Several states have similar laws, and the federal law contains a number of exemptions.

The principles of justice convey that the organization must prepare for problems by establishing a formal discipline process in which the consequences become severe if the employee repeats the offense. TRUE

The principles of justice suggest that the organization prepare for problems by establishing a formal discipline process in which the consequences become more serious if the employee repeats the offense.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

10.

Developing a formal discipline process is a prime responsibility of the human resource department. TRUE

Creating a formal discipline process is a primary responsibility of the human resource department. The HR professional should consult with supervisors and managers to identify unacceptable behaviors and establish rules and consequences for violating the rules.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 1 Easy Topic: Approaches to and Uses of Employee Discipline

11.

The open-door policy is an example of alternative dispute resolution. TRUE

Sometimes problems are easier to solve when an impartial person helps to create the solution. Therefore, at various points in the discipline process, the employee or organization might want to bring in someone to help with problem solving. Rather than turning to the courts every time an outsider is desired, more and more organizations are using alternative dispute resolution (ADR). An open-door policy, one of the techniques of an ADR, is an organization's policy of making managers available to hear complaints.

12.

Since arbitration is a formal process involving an outsider, it is much slower and more tedious than a lawsuit. FALSE

At some organizations, if mediation fails, the process moves to arbitration as a third and final option. Although arbitration is a formal process involving an outsider, it tends to be much faster, simpler, and more private than a lawsuit.

13.

Job withdrawal is a set of behaviors that discontented individuals display to avoid the work situation physically, mentally, or emotionally. TRUE

Job withdrawal results when circumstances such as the nature of the job, supervisors and coworkers, pay levels or the employee's own disposition cause the employee to become dissatisfied with the job. It may take the form of behavior change, physical job withdrawal, or psychological withdrawal.

14.

Core self-evaluation refers to pervasive low levels of satisfaction in all aspects of life, compared with other people's feelings. FALSE

Core self-evaluations are bottom-line opinions individuals have of themselves and may be positive or negative.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 1 Easy Topic: Job Satisfaction

15.

When employees are unclear about work methods, scheduling, and performance criteria because others hold different ideas about these, they are likely to suffer from role ambiguity. TRUE

Role ambiguity is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it. Employees suffer when they are unclear about work methods, scheduling, and performance criteria, perhaps because others hold different ideas about these.

16.

Role conflict is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it. FALSE

Role conflict is an employee's recognition that demands of the job are incompatible or contradictory.

17.

If an employee disputes policies on the grounds that they violate state and federal laws, he or she can go outside the organization for help to file a lawsuit. TRUE

One way employees may go outside the organization for help is to file a lawsuit. This way to force change is available if the employee is disputing policies on the grounds that they violate state and federal laws, such as those forbidding employment discrimination or requiring safe working conditions.

18.

Job involvement is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. FALSE

Job involvement is the degree to which people identify themselves with their jobs.

19.

Personal dispositions do not play a role in creating job satisfaction. FALSE

Different employees have different views of which values are important, so the same circumstances can produce different levels of job satisfaction. Sometimes personal qualities of the employee, such as negative affectivity and negative core self-evaluation, are associated with job dissatisfaction. This linkage suggests employee selection in the first instance plays a role in raising overall levels of employee satisfaction. People making the selection decisions should look for evidence of whether employees are predisposed to being satisfied.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 2 Medium Topic: Job Satisfaction

20.

Job satisfaction is always based on an objective and complete measurement of the situation and not on perception. FALSE

Job satisfaction is based on perception, not always on an objective and complete measurement of the situation. Each person compares the job situation to his or her values, and people are likely to differ in what they perceive.

21.

To help employees manage role conflict, employers have sought a number of family-friendly policies. TRUE

To help employees manage role conflict, employers have turned to a number of family-friendly policies. These policies may include provisions for child care, elder care, flexible work schedules, job sharing, telecommuting, and extended parental leaves.

22.

The two primary sets of people in an organization who most affect job satisfaction are coworkers and supervisors. TRUE

The two primary sets of people in an organization who affect job satisfaction are co-workers and supervisors.

23.

Job satisfaction of employees remains unaffected from organizational changes such as mergers. FALSE

An organizational change, such as a merger, might have important consequences for job satisfaction. Ongoing surveys give the organization a way to measure whether policies adopted to improve job satisfaction and employee retention are working.

24.

The Job Descriptive Index is an example of a job satisfaction instrument. TRUE

A widely used measure of job satisfaction, the Job Descriptive Index (JDI), emphasizes specific aspects of satisfaction—pay, the work itself, supervision, co-workers, and promotions.

25.

HR professionals can help make exit interviews more successful by arranging for the departing employee to talk to his or her supervisor. FALSE

HR professionals can help make exit interviews more successful by arranging for the employee to talk to someone from the HR department (rather than the departing employee's supervisor) in a neutral location or over the phone.

Multiple Choice Questions

26.

Karl, an employee at BizVentures Inc., is known for his short-tempered and argumentative nature. During a heated exchange at work one day, Karl makes a derogatory gesture toward his manager, which causes Karl to be fired. This scenario is an example of

A. revolving door policy. B. open-door policy. C. voluntary turnover. D. progressive discipline. E. involuntary turnover.

This scenario is an example of involuntary turnover. When the organization initiates the turnover (often with employees who would prefer to stay), the result is involuntary turnover.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply 11-59 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 3 Hard Topic: Voluntary and Involuntary Turnover

27.

Terminating an employee for the use of illegal drugs is an example of a(n) _____ turnover.

A. retentive B. external C. voluntary D. absenteeism E. involuntary

When an organization initiates a turnover (often with employees who would prefer to stay), the result is involuntary turnover. Examples include terminating an employee for drug use or laying off employees during a downturn.

28.

Bella, an employee at Lavender Holdings, was suspended for two weeks for drug use. Six months later, she was fired from the job because her productivity did not show any improvement even after undergoing treatment for drug use. Which of the following is the form of discharge experienced by Bella?

A. involuntary turnover

B. voluntary turnover C. downsizing D. early retirement E. open-door policy When the organization initiates the turnover (often with employees who would prefer to stay), the result is involuntary turnover. Examples include terminating an employee for drug use. Organizations must try to ensure that good performers want to stay with the organization and that employees whose performance is chronically low are encouraged—or forced—to leave.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 2 Medium Topic: Voluntary and Involuntary Turnover

29.

More than 40% of the employees at Valley Corp. lost their jobs during a recent recession. The human resource department of Valley Corp. would term this as _____.

A. role ambiguity B. voluntary turnover C. role conflict D. involuntary turnover

E. role overload When the organization initiates the turnover (often with employees who would prefer to stay), the result is involuntary turnover. Examples include terminating an employee for drug use or laying off employees during a downturn.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 3 Hard Topic: Voluntary and Involuntary Turnover

30.

Which of the following situations is an example of involuntary turnover?

Gizela, who is fired because of theft, exemplifies an involuntary turnover. When an organization initiates the turnover (often with employees who would prefer to stay), the result is involuntary turnover.

31.

When employees initiate a turnover, when the organization would prefer to keep them, it is called _____ turnover.

A. dysfunctional B. involuntary C. retentive D. external E. voluntary

When employees initiate a turnover (often when the organization would prefer to keep them), it is voluntary turnover. Employees may leave to retire or to take a job with a different organization.

32.

Zohrina is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which of the following forms of turnover is illustrated in this scenario?

A. involuntary turnover B. external turnover C. voluntary turnover

D. internal turnover E. dysfunctional turnover When the employees initiate the turnover (often when the organization would prefer to keep them), it is voluntary turnover. Employees may leave to retire or to take a job with a different organization.

33.

Which of the following situations is an example of a voluntary turnover?

D. Alex, a trainee at RandomWorks Inc., is reprimanded for arriving late at work every day. E. Carissa, an employee at Beta Corp., is transferred to another city for career growth. Fatima, who resigns her job because she wants to start her own business, is a case of voluntary turnover. When the employees initiate the turnover (often when the organization would prefer to keep them), it is voluntary turnover. Employees may leave to retire or to take a job with a different organization. Typically, the employees who leave voluntarily are either the organization's worst performers, who quit before they are fired, or its best performers, who can most easily find attractive new opportunities.

34.

Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not require a specific time to end the employment relationship. This is referred to as the _____ doctrine.

A. force majeure B. laissez faire C. employment-at-will

D. due process E. implied in fact Historically, if an organization and employee do not have a specific employment contract, the employer or employee may end the employment relationship at any time. This is the employment-at-will doctrine. This doctrine has eroded significantly, however.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 2 Medium Topic: Voluntary and Involuntary Turnover

35.

Jarvis, a manager at Livingston Corp., believes that he can fire Yolanda, his subordinate, at any time he wishes to do so. Which of the following, if true, would help strengthen Jarvis' belief?

E. Yolanda has not received a letter of employment from the company. Historically, if an organization and employee do not have a specific employment contract, the employer or employee may end the employment relationship at any time. This is the employment-at-will doctrine.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 3 Hard Topic: Voluntary and Involuntary Turnover

36.

Holly refuses her employer's request to falsify the contents of a report to the Equal Employment Opportunity Commission (EEOC). The employer subsequently discharges Holly for "not following orders." Identify the exception to the employment-at-will doctrine that Holly is likely to choose when she files a wrongful discharge suit.

A. equal employment B. public policy

C. implied contract D. reverse discrimination E. affirmative action A discharge can be found illegal if it violates a public policy (for example, firing an employee for refusing to do something illegal). In this case, employment at will is limited because Holly can establish that the discharge violated public policy because she refused her employer's request to falsify the contents of a report to the Equal Employment Opportunity Commission.

37.

Retaining top performers is not always easy because _____ for high-demand positions, such as software engineers, from other companies has become the norm.

A. brainstorming B. poaching talent

C. mind mapping D. headhunting E. reverse discriminating Retaining top performers is not always easy, and recent trends have made this more difficult than ever. Competing organizations are constantly looking at each other's top performers. For high-demand positions, such as software engineers, "poaching talent" from other companies has become the norm.

38.

Talent poaching makes it difficult for companies to _____.

A. retain their top performers

B. keep their searches discreet C. search for relevant information D. eliminate quality control processes E. look for employee profiles Retaining top performers is not always easy, and recent trends have made this more difficult than ever. Competing organizations are constantly looking at each other's top performers. For high-demand positions, such as software engineers, "poaching talent" from other companies has become the norm.

39.

People's perception of _____ depends on their judgment that the consequences of a decision to employees are just.

A. employment at will B. procedural justice C. interactional justice D. arbitration E. outcome fairness

People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just. One employee's consequences should be consistent with other employees' consequence.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

40.

Franco, an employee at Fundz Corp., arrives late at the office on a Monday morning due to a personal emergency. His manager fires him, although this was the first instance of Franco arriving late at work. Franco is upset because some of his other coworkers are chronically late to work, but they have not been fired. In this scenario, Franco would conclude a lack of _____ in dealing with employees who arrive late at work.

A. arbitration B. laissez faire C. outcome fairness

D. benchmarking E. interactional justice Franco would conclude a lack of outcome fairness in dealing with employees who arrive late at work. People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 3 Hard Topic: Approaches to and Uses of Employee Discipline

41.

Zahra is an employee at Colorz Inc. She loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, Dan. A few days later, Dan fires Gunther, another subordinate, from work for a similar reason. The employees reporting to Dan are most likely to conclude he demonstrates a lack of _____ in dealing with employees who gossip at work.

A. benchmarking B. interactional justice C. laissez faire D. outcome fairness

E. arbitration The employees under Dan's supervision are most likely to conclude a lack of outcome fairness in dealing with employees who gossip at work. People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

42.

Yolanda and Marvin are both data-entry clerks in the same department of a company. On the anniversary of her employment, Yolanda receives a 2 percent increase in salary. Later that day, while talking to Marvin, she learns that his pay increase was 4 percent. How could the company's supervisor and human resource department best ensure that Yolanda will perceive outcome fairness in this situation?

A. by reducing Marvin's raise, so everyone gets the same amount B. by demonstrating that raises of different sizes are associated with differences in

performance C. by increasing Yolanda's raise, so everyone gets the same amount D. by reserving the largest raises for the most serious offenses E. by treating Yolanda with dignity and respect People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just. Another basis for outcome fairness is that everyone should know what to expect.

43.

Ricardo reprimanded five of his employees for coming to work drunk after a lunch outing. The next week, Ricardo fired another employee for being drunk at work. The employees under Ricardo can conclude a lack of _____ in dealing with employees being drunk at work.

A. benchmarking B. outcome fairness

C. summary dismissal D. downsizing E. onboarding People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just.

44.

People's perception of _____ is their judgment that impartial methods were used to determine the consequences an employee obtains.

A. interactional justice B. expatriation C. outcome fairness D. procedural justice

E. progressive discipline People's perception of procedural justice is their judgment that fair methods were used to determine the consequences an employee receives.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. 11-75 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

45.

A perception of _____ is a judgment that the organization carried out its actions in a manner that took the employee's feelings into account.

A. interactional justice

B. employee turnover C. progressive discipline D. summary dismissal E. outcome fairness A perception of interactional justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. Interactional justice is a judgment about the ways that managers interact with their employees.

46.

Explanation of decision, respectful treatment, consideration, and empathy are features of _____.

A. retributive justice B. interactional justice

C. distributive justice D. benchmarking E. outcome fairness A perception of interactional justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. Explanation of decision, respectful treatment, consideration, and empathy are the features of interactional justice.

47.

Bob, an employee at Machina Corp., is well-known for his short temper. One morning, he gets into a heated argument with one of his supervisors and responds with hostility. Rather than immediately terminating Bob, his manager, Mia, calls him in for a discussion. Mia treats Bob with dignity and respect, listening to what he has to say about the incident. This scenario can be best categorized as one that uses _____.

A. restorative justice B. distributive justice C. interactional justice

D. impassive justice E. retributive justice A perception of interactional justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. The efforts to achieve interactional justice are especially important when managing an employee who has a high level of hostility and is at greater risk of responding with violence.

48.

Armando, a manager at a top engineering company, believes he can hire a few employees by promising them job security and later terminating them if business slows down. On what grounds could such a termination be considered a wrongful discharge?

A. Desperate times call for desperate measures. B. The terminations deviate from the promise of job security in the work agreement.

C. The company overpaid the terminated employees. D. The company has policies for handling misbehavior. E. The company is under financial constraints and, at times, has to layoff employees. Terminating an employee may violate an implied agreement if the employer had promised the employee job security or if the action is inconsistent with company policies.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 3 Hard Topic: Employment-at-Will, Wrongful Discharge, Implied Contract, and Constructive Discharge

49.

Which of the following does an employer violate when it terminates an employee for refusing to do something unethical, unsafe, and illegal?

A. affirmative action B. public policy

C. fair representation D. equal opportunity employment E. reverse discrimination One reason a discharge may be considered wrongful is that it violates public policy. Violations of public policy include terminating the employee for refusing to do something illegal, unethical, or unsafe.

AACSB: Ethics Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 1 Easy Topic: Employment-at-Will, Wrongful Discharge, Implied Contract, and Constructive Discharge

50.

Sean is employed as a supervisor at MaxCharge Industries. He gets fired from his job because he refused to break local laws and discharge harmful chemicals from MaxCharge into a nearby river. Which of the following is the exception to the employment-at-will doctrine that Sean is likely to choose when he files a wrongful discharge suit?

A. affirmative action B. reverse discrimination C. implied contract D. information seizure E. public policy

In this scenario, employment at will is limited because Sean can establish that the discharge violated public policy. A discharge can be found illegal if it violates a law (such as antidiscrimination laws) or public policy (for example, firing an employee for refusing to do something illegal).

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 3 Hard Topic: Employment-at-Will, Wrongful Discharge, Implied Contract, and Constructive Discharge

51.

Rashid was an employee at a chemical company called HCD Inc. He noticed that several of the security personnel at HCD allowed tankers to be filled over the legal limit with highly inflammable gases. Rashid gathered ample evidence of such instances and presented it to senior management. A few months later, the company had not acted, and Rashid contacted the Occupational Safety and Health Administration. Less than a week later, the company fired Rashid. Assuming that Rashid had not had disciplinary issues and wanted to file a claim alleging he was wrongfully discharged, what would be the strongest basis for his claim?

A. He was disciplined for doing what the law requires.

B. He was disciplined for violating public policy. C. His dismissal was a result of racial discrimination. D. His dismissal violated his privacy. E. The company did not provide proper notification of the layoff. Rashid's discharge was wrongful because he did what the law requires. It is a violation of public policy to terminate an employee for doing what the law requires—for example, cooperating with a government investigation, reporting illegal behavior by the employer, or reporting for jury duty.

52.

When conducting a workplace search, employers can act fairly and minimize the likelihood of a lawsuit by

In general, random searches of areas such as desks, lockers, toolboxes, and communications such as e-mails are permissible, so long as the employer can justify that there is probable cause for the search and the organization has work rules that provide for searches. Employers can act fairly and minimize the likelihood of a lawsuit by publicizing the search policy, applying it consistently, asking for the employee's consent before the search begins, and conducting the search discreetly.

53.

The top management at Zion Manufacturers decides to search its employees on the job. However, Raul, Zion's HR manager, believes that it could generate privacy issues. Which of the following would strengthen Raul's belief and maximize the likelihood of a lawsuit?

cause A search could maximize the likelihood of a lawsuit if it involves communications such as emails that are searched without probable cause. Employers can act fairly and minimize the likelihood of a lawsuit by publicizing the search policy, applying it consistently, asking for the employee's consent before the search begins, and conducting the search discreetly.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 3 Hard Topic: Balancing Management's and Employees' Rights

54.

After Clair, a human resource manager, hears reports that some employees are drinking liquor on the job, she arranges to conduct a random search for evidence. Which of the following actions would be the most appropriate way for Clair's company to act fairly regarding employees' privacy in this scenario?

A. requesting consent before gathering information

B. confining the search to lower-performing employees C. telling employees the company is accusing them of drinking D. excluding the accusers' work areas from the search E. sharing search results with a reporter who learned about the search Employers can act fairly by publicizing the search policy, applying it consistently, asking for the employee's consent before the search begins, and conducting the search discreetly. Also, when a search is a random check, it is important to clarify that no one has been accused of misdeeds.

55.

The board of directors of LiveCrop Industries is worried about company theft and decides to institute an immediate search of the employees on the job. However, the head of the HR department, Heidi, believes that doing so could maximize the likelihood of a lawsuit due to privacy concerns. Which of the following would strengthen Heidi's belief?

E. if the search information is shared only with those who need it In this scenario, if the search is done only on employees and not supervisors, there is likelihood of a lawsuit due to a lack of consistency in the search policy. Employers can act fairly and minimize the likelihood of a lawsuit by publicizing the search policy, applying it consistently, asking for the employee's consent before the search begins, and conducting the search discreetly.

56.

If employers covered by the _____ do not notify the employees (and their union, if applicable) of layoffs, they may have to offer back pay and fringe benefits and pay penalties as well.

A. Davis-Bacon Act B. Workers' Adjustment Retraining and Notification Act

C. Right-to-Work Act D. Employee Free Choice Act E. Fair Labor Standards Act An organization that plans broad-scale layoffs may be subject to the Workers' Adjustment Retraining and Notification Act. This federal law requires that organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 fulltime employees. If employers covered by this law do not give notice to the employees (and their union, if applicable), they may have to provide back pay and fringe benefits and pay penalties as well.

57.

The Workers' Adjustment Retraining and Notification Act requires that

layoff that will affect at least 50 full-time employees. E. organizations with more than 50 employees provide fringe benefits and pay penalties before any closing or layoff. An organization that plans broad-scale layoffs may be subject to the Workers' Adjustment Retraining and Notification Act. This federal law requires that organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 fulltime employees.

58.

PrettiGud Furniture has seen sales decline in a highly competitive environment. To be able to offer a lower-cost product, management decides to close its factory in Alabama, laying off 85 workers from the company's 465-person workforce. Under the Workers' Adjustment Retraining and Notification Act, what must PrettiGud Furniture do?

A. It must explain employment-at-will principles to the employees. B. It must give the employees 60 days' notice before it can begin the layoffs.

C. It must provide all the employees with exit interviews. D. It is required to seek legal advice to identify any exemptions available. E. It must request employees' consent before releasing their job records. The Workers' Adjustment Retraining and Notification Act requires that organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 full-time employees.

59.

Which of the following principles of discipline holds that an organization's discipline should give a clear-cut warning and follow up with consistent, objective, and immediate consequences?

A. per se rule B. laissez faire rule C. fundamental attribution rule D. outcome fairness E. hot-stove rule

According to the hot-stove principle, discipline should be like a hot stove: The glowing or burning stove gives warning not to touch. Anyone who ignores the warning will be burned. The stove has no feelings to influence which people it burns, and it delivers the same burn to any touch. Finally, the burn is immediate. Like the hot stove, an organization's discipline should give warning and have consequences that are consistent, objective, and immediate.

60.

According to the hot-stove rule, which of the following qualities makes discipline more effective?

A. The punishment meted is always inconsistent. B. The consequences for breaking a rule are immediate.

C. The rule breaker will be warned multiple times before termination. D. The consequences follow a gradual increase in seriousness. E. The ideology is to prevent misbehavior rather than to merely punish it. The hot-stove rule is a principle of discipline that says discipline should be like a hot stove. The glowing or burning stove gives warning not to touch. Anyone who ignores the warning will be burned. The stove has no feelings to influence which people it burns, and it delivers the same burn to any touch. Finally, the burn is immediate.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 2 Medium Topic: Approaches to and Uses of Employee Discipline

61.

Which of the following processes seeks to avert misbehavior and to correct, rather than merely punish, misbehavior?

A. hot-stove rule B. fair representation C. progressive discipline

D. benchmarking E. peer review technique A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination. This process seeks to prevent misbehavior and to correct, rather than merely punish, misbehavior.

62.

Which of the following statements is true of a progressive discipline system?

increasing forcefulness. D. It is a speedy process. E. It is objective, immediate, and impersonal. A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 2 Medium Topic: Approaches to and Uses of Employee Discipline

63.

Petro Construction Company has a system of progressive discipline. Even so, in which of the following situations would it be appropriate for the company to follow a stricter policy and dismiss an employee after a first offense?

A. A welder ignored safety procedures and started a fire that caused serious damage.

B. The last employee to leave a production area forgot to turn off a hot stove. C. An employee's work quality has been declining for a week. D. A manager was late to work twice, setting a bad example. E. A supervisor told a joke that some employees considered offensive. A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination. For situations in which misbehavior is dangerous, the organization may establish a stricter policy, even terminating an employee for the first offense. In that case, it is especially important to communicate the procedure—not only to ensure fairness but also to prevent the dangerous misbehavior.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 3 Hard Topic: Issues and Procedures Related to Employee Termination

64.

Which of the following is a typical first response in the progressive discipline system?

A. official spoken warning B. written warning with threat of temporary suspension C. temporary suspension with no written notice D. unofficial spoken warning

E. termination A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination.

65.

MediaTxt Corp. is an organization that follows the process of progressive discipline. The organization communicates with Leila, an employee, about unacceptable behavior and responds to a series of her offenses. Which of the following would be the step that immediately precedes a threat of temporary suspension?

A. a letter informing about her demotion B. an unofficial spoken warning C. an official written warning

D. a termination letter E. a letter informing Leila about her transfer An official written warning would precede immediately a 2nd written warning along with a threat of temporary suspension. The principles of justice suggest that the organization prepare for problems by establishing a formal discipline process in which the consequences become more serious if the employee repeats the offense. Such a system is called progressive discipline. A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses—spoken and then written warnings, temporary suspension, and finally, termination.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 3 Hard Topic: Approaches to and Uses of Employee Discipline

66.

With which of the following steps does the progressive discipline process end?

A. a written warning and a threat of temporary suspension B. an unofficial spoken warning C. an official written warning D. temporary suspension and a written notice E. termination

A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination.

67.

Which of the following has the main responsibility of developing a formal discipline process for the workplace?

A. human resource department

B. outplacement counselors C. legal department D. sales force E. arbitrators Creating a formal discipline process is a primary responsibility of the human resource department. The HR professional should consult with supervisors and managers to identify unacceptable behaviors and establish rules and consequences for violating the rules.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. 11-95 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Approaches to and Uses of Employee Discipline

68.

Conducting personal business online during work hours is called

A. cybersquatting. B. cyberbullying. C. cyberdefamation. D. cyberstalking. E. cyberslacking.

Cyberslacking is conducting personal business online during work hours.

69.

Eli, a human resource manager, tells managers in his organization that following the system of progressive discipline requires written documentation at every step of the process. In which of the following situations could this be optional?

D. The manager decides to dismiss the employee. E. The organization does not follow the principles of the hot-stove rule. A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions—spoken and then written warnings, temporary suspension, and finally, termination. For issuing an unofficial warning about a lessserious offense, it may be enough to have a witness present. Even then, a written record would be helpful in case the employee repeats the offense.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 2 Medium Topic: Issues and Procedures Related to Employee Termination

70.

Open-door policy, peer review, and mediation are methods of

A. the strategy decision-making process. B. alternative dispute resolution.

C. collective bargaining. D. a fair representation policy. E. performance appraisal. Open-door policy, peer review, mediation, and arbitration are four techniques of alternative dispute resolution.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 1 Easy Topic: Approaches to and Uses of Employee Discipline

71.

Which of the following types of alternative dispute resolution functions well only to the extent that employees trust management and managers who hear complaints listen and are able to act?

A. mediation B. behavioral modeling C. open-door policy

D. fair representation E. peer review system Open-door policy is an organization's policy of making managers available to hear complaints. This policy works only to the degree that managers who hear complaints listen and are able to act.

72.

What is the simplest, most direct, and least expensive way to settle a dispute?

A. benchmarking B. arbitration C. mediation D. open-door policy

E. peer review Typically, an organization's alternative dispute resolution process begins with an open-door policy, which is the simplest, most direct, and least expensive way to settle a dispute. When the parties to a dispute cannot resolve it themselves, the organization can move the dispute to peer review, mediation, or arbitration.

73.

Based on the expectation that two people in conflict should first try to arrive at a settlement together, organizations have a policy of making managers available to hear complaints. Typically, the first "open door" is that of the employee's

A. immediate supervisor.

B. choice of a neutral party. C. peers. D. immediate subordinates. E. personal counselor. Based on the expectation that two people in conflict should first try to arrive at a settlement together, an open-door policy encourages organizations to have a policy of making managers available to hear complaints. Typically, the first "open door" is that of the employee's immediate supervisor, and if the employee does not get a resolution from that person, the employee may appeal to managers at higher levels.

74.

Peer review is an example of _____.

A. alternative dispute resolution

B. an employee assistance program C. outplacement counseling D. fair representation E. an employee carve-out Peer review is an example of alternative dispute resolution.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 1 Easy Topic: Approaches to and Uses of Employee Discipline

75.

_____ is a process for resolving disagreements by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.

A. Outplacement counseling B. Mediation C. Carve-out D. Arbitration E. Peer review

In peer review, if the people in a conflict cannot reach an agreement, they take their conflict to a panel composed of representatives from the organization at the same levels as the people in the dispute. The panel hears the case and tries to help the parties arrive at a settlement.

76.

If peer review does not lead to a compromise, a neutral party from outside the organization hears the case and tries to resolve the conflict and attempts to reach a compromise. This process is called

A. mediation.

B. carve-out. C. open-door policy. D. fair representation. E. attrition. Mediation is a nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement.

77.

Adam Wallace, a neutral party outside of La Mesa Inc., helped simplify issues between two technical teams of the company. Though Wallace's solution had no binding power, both the teams decided to accept his solution. This is an example of

A. mediation.

B. arbitration. C. open-door policy. D. progressive discipline. E. fair representation. Mediation is a nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement.

AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Apply Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 3 Hard Topic: Approaches to and Uses of Employee Discipline

78.

Which of the following is an example of an alternative dispute resolution method?

A. carve-out B. employment assistance programs C. benchmarking D. arbitration

E. outplacement counseling Arbitration is an example of an alternative dispute resolution method. It is a formal process involving an outsider, and tends to be much faster, simpler, and more private than a lawsuit.

79.

The result reached in _____ must be accepted by both employee and employer.

A. peer review B. mediation C. an open-door policy D. arbitration

E. outplacement counseling Arbitration is a process in which a professional arbitrator from outside the organization hears the case and resolves it by making a decision. The employee and employer both have to accept this person's decision.

80.

Who among the following would be most likely to hear and resolve a case if the alternative dispute resolution method of arbitration is used?

A. an immediate supervisor B. a higher-level manager C. a panel of nonmanagement employees D. a peer of the employee E. a retired judge

In arbitration, a professional arbitrator from outside the organization hears the case and resolves it by making a decision. Most arbitrators are experienced employment lawyers or retired judges. The employee and employer both have to accept this person's decision.

81.

Which of the following terms refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?

A. alternative dispute resolution B. outplacement counseling C. employee assistance program

D. progressive discipline program E. request for proposal An employee assistance program (EAP) is a referral service that employees can use to seek professional treatment for emotional problems or substance abuse.

82.

Identify the correct statement regarding an employee assistance program.

A. It is a system supervisors can use to refer their employees for professional treatment when

necessary. B. It is a company-sponsored program to help employees manage the transition from one job to another. C. It cannot be recommended by union representatives. D. It involves taking the help of a neutral party though a nonbinding process to solve issues among employees. E. It involves hiring an arbitrator from outside the organization to hear cases or disputes among employees. Supervisors of an organization are trained to use the referral service of an employee assistance program (EAP) for employees whom they suspect of having health-related problems. The organization also trains employees to use the system to refer themselves when necessary.

83.

Which of the following is an option of an employee assistance program (EAP) in which a patient uses video conferencing equipment to participate in online meetings with a therapist?

A. headhunting B. videohealth C. alternative dispute resolution D. outplacement counseling E. telepsychiatry

An employee assistance program (EAP) is a referral service that employees can use to seek professional treatment for emotional problems or substance abuse. One of the options is telepsychiatry, in which the patient uses video conferencing equipment to participate in online meetings with a therapist.

84.

Brandon, an employee of EduTech Corp., demonstrates a series of unacceptable behaviors. Marian, his manager, wants to refer Brandon to the company's employee assistance program. Which of the following situations would call for such a referral?

A. Marian has reason to believe Brandon's behavior problems are related to alcohol abuse.

B. EduTech Corp. wants managers to use only the simplest, most direct, and least expensive way to settle behavior problems. C. Marian wants an experienced and retired judge to resolve Brandon's situation. D. Marian and Brandon agree that a neutral party from outside the organization should hear this case. E. Brandon wants a panel of his peers to hear Marian's complaint. While alternative dispute resolution (ADR) is effective in dealing with problems related to performance and disputes between people at work, many of the problems that lead an organization to terminate an employee involve drug or alcohol abuse. In these cases, the organization's discipline program should also incorporate an employee assistance program (EAP). An EAP is a referral service that employees can use to seek professional treatment for emotional problems or substance abuse.

85.

Outplacement counseling programs are

from one job to another. C. third-party programs to assist employees with their mental health and chemical dependency needs. D. university-sponsored executive training programs that require participants to live on campus while completing short, custom-designed courses. E. services rendered to employees to manage drug or alcohol addiction. Outplacement counseling tries to help dismissed employees manage the transition from one job to another.

86.

SourceCodes Inc. is an organization that tries to avoid the potential for violence or a lawsuit each time an employee is asked to leave the company. It does this by having the former employees meet with a specialized member of the HR staff to discuss their feelings while also getting help to find a new job. Which of the following strategies does SourceCodes Inc. use in this scenario?

A. an employee assistance program B. outcome fairness C. alternative dispute resolution D. fair representation E. outplacement counseling

If an employee who has been discharged feels there is nothing to lose and nowhere else to turn, the potential for violence or a lawsuit is greater than most organizations are willing to tolerate. This concern is one reason why many organizations provide outplacement counseling. Some organizations have their own staff for conducting outplacement counseling. Other organizations have contracts with outside providers. Either way, the goals for outplacement programs are to help the former employee address the psychological issues associated with losing a job while at the same time helping the person find a new job.

87.

Vincent has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Vincent threatens to sue the company for reparations. Which of the following programs can help the company avoid such situations from exiting employees?

A. outplacement counseling

B. employee assistance program C. benchmarking D. progressive disciplining program E. expatriation An employee who has been discharged is likely to feel angry and confused about what to do next. If the person feels there is nothing to lose and nowhere else to turn, the potential for violence or a lawsuit is greater than most organizations are willing to tolerate. This concern is one reason many organizations provide outplacement counseling, which tries to help dismissed employees manage the transition from one job to another.

88.

Johanna, a professional counselor, was recently asked to talk to an ex-employee of Highlanders Corp., a manufacturing company, about his performance issues. Johanna talked to this ex-employee about his grief and fear, as well as some strategies for finding a new job. Which of the following roles is Johanna performing?

A. CEO of Highlanders Corp. B. mediator C. arbitrator D. outplacement counselor

E. volunteer at Highlanders Corp.'s employee assistance program Some organizations have their own staff for conducting outplacement counseling. Other organizations have contracts with outside providers to help with individual cases. Either way, the goals for outplacement programs are to help the former employee address the psychological issues associated with losing a job—grief, depression, and fear—while at the same time helping the person find a new job.

89.

Nigel is a trainee at ZenNext Corp., who is known among colleagues for his arrogance, rude behavior, and short-tempered nature. His supervisor, Ravi, wants to fire him. However, Rhonda, the manager of the HR department, advises Ravi to rethink his decision in order to avoid the possibilities of Nigel reacting violently or filing a lawsuit when he receives the news. In this scenario, which of the following situations is most likely to result in an amicable discharge of Nigel from ZenNext Corp.?

might want help finding another. D. Ravi does not believe in the concept of outcome fairness, so he does not intend to consider Rhonda's advice. E. Nigel thinks the source of his troubles at ZenNext is that Ravi dislikes him and wants him to fail. Organizations may address ongoing poor performance with discussion about whether the employee is a good fit for the current job. Rather than simply firing the poor performer, the supervisor may encourage this person to think about leaving. In this situation, the availability of outplacement counseling may help the employee decide to look for another job. This approach may protect the dignity of the employee and promote a sense of fairness.

90.

Which of the following best defines job withdrawal?

A. It is the loss of jobs within an organization due to adverse economic forces. B. It is a set of behaviors with which employees try to avoid the work situation physically,

mentally, or emotionally. C. It is the retracting of a job offer following the results of a pre-employment physical examination. D. It is a psychological state employees experience upon a job dismissal or retirement. E. It is the retraction of an employment offer following failure to join on an agreed date. Job withdrawal is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally.

91.

_____ results when situations such as the nature of the job, supervisors and co-workers, pay levels, or the employee's own disposition cause the employee to become unhappy with the job.

A. Fundamental attribution error B. Due diligence C. Social loafing D. Job withdrawal

E. Cognitive dissonance Job withdrawal is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. It results when circumstances such as the nature of the job, supervisors and co-workers, pay levels, or the employee's own disposition cause the employee to become dissatisfied with the job.

92.

_____ means pervasive low levels of satisfaction with all aspects of life, compared with other people's feelings.

A. Negative affectivity

B. Outplacement C. Expatriation D. Systemic discrimination E. Cognitive dissonance People with negative affectivity experience feelings such as anger, contempt, disgust, guilt, fear, and nervousness more than other people do, at work and away.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 1 Easy Topic: Job Satisfaction

93.

Employees with negative affectivity are inclined to

A. experience high job satisfaction. B. experience feelings of anger, contempt, fear, and guilt.

C. seek change in socially acceptable ways. D. look for the good in others, but not themselves. E. think highly of themselves, but not others. People with negative affectivity experience feelings such as anger, contempt, disgust, guilt, fear, and nervousness more than other people do, at work and away. They tend to focus on the negative aspects of themselves and others.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 2 Medium Topic: Job Satisfaction

94.

The positive or negative bottom-line views that people have of themselves are known as

A. negative affectivities. B. factor comparisons. C. core self-evaluations.

D. fair representations. E. behavioral models. Core self-evaluations are bottom-line opinions individuals have of themselves and may be positive or negative.

95.

Choose the correct statement about personal dispositions.

A. People with a positive core self-evaluation tend to experience job satisfaction.

B. Rather than doing nothing, people with negative core self-evaluations always act aggressively toward the people they blame. C. In general, job turnover is higher among employees who are high in emotional stability and conscientiousness. D. People with negative affectivity tend to be satisfied with their jobs after changing their occupations. E. Core self-evaluations are bottom-line opinions that are positive in nature. People with a positive core self-evaluation have high self-esteem, believe in their ability to accomplish their goals, and are emotionally stable. They also tend to experience job satisfaction.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 2 Medium Topic: Job Satisfaction

96.

When in situations they dislike, employees with positive core self-evaluation tend to

A. experience high job dissatisfaction. B. blame other people for their problems. C. seek change in socially acceptable ways.

D. act aggressively toward others. E. experience feelings of anger, guilt, and nervousness more than others. People with a positive core self-evaluation tend to experience job satisfaction. Part of the reason for their satisfaction is that they tend to seek out and obtain jobs with desirable characteristics, and when they are in a situation they dislike, they are more likely to seek change in socially acceptable ways.

97.

As a predictor of job dissatisfaction, nothing exceeds

A. the nature of the task itself.

B. the geographical location of the firm. C. negative affectivity. D. relationships with co-workers. E. negative self-evaluations. As a predictor of job dissatisfaction, nothing surpasses the nature of the task itself. Many aspects of a task have been linked to dissatisfaction. Of particular significance are the complexity of the task, the degree of physical strain and exertion required, and the value the employee places on the task.

98.

The aspects of a task—namely the complexity of the task, the degree of physical strain and exertion required, and the value an employee places on the task—have particular significance when they are viewed as linked to _____.

A. brand alignment B. job dissatisfaction

C. promotional marketing D. sole arbitrations E. mediations As a predictor of job dissatisfaction, nothing surpasses the nature of the task itself. Many aspects of a task have been linked to dissatisfaction. Of particular significance are the complexity of the task, the degree of physical strain and exertion required, and the value the employee places on the task.

99.

_____ is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.

A. Role underload B. Role ambiguity

C. Role conflict D. Role overload E. Role autonomy Role ambiguity is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 1 Easy Topic: Job Satisfaction

100.

_____ is an employee's recognition that demands of the job are incompatible or contradictory.

A. Role conflict

B. Role overload C. Role underload D. Role ambiguity E. Role autonomy Role conflict is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands.

101.

Devon was recently told by senior management that they expected him to exercise more authority and leadership with his work group. Just two days prior to that, his team told him that while they appreciated the initiative he demonstrated, they expected him to be less authoritative and more democratic in the future. The term that best describes what Devon is experiencing is

A. role carve-out. B. role distance. C. role conflict.

D. role underload. E. role autonomy. Role conflict is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 3 Hard Topic: Job Satisfaction

102.

Benjamin is an employee at Apex Inc. Recently, he was moved to a new work team to help in the development of a new product. Sam, his supervisor on the new team, describes the set of behaviors that other team members will expect of Benjamin. Benjamin, however, feels that these demands contradict the expectations set forth in his primary role at Apex. Which of the following situations is most likely to be the primary source of Benjamin's dissatisfaction about his role?

A. Apex Inc. has brought together employees from different functions to form a team, leading

to conflicting expectations. B. Benjamin is involved in Apex Inc.'s grapevine communications channel. C. Benjamin is unclear about his work methods because others have different ideas about work processes. D. Apex Inc. has downsized recently, and employees' work is still going through quality checks. E. Benjamin is unsure how Apex Inc. will evaluate his performance on this new work team. Role conflict is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands. For example, a company might bring together employees from different functions to work on a team to develop a new product. Team members feel role conflict when they realize that their team leader and functional manager have conflicting expectations of them.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 3 Hard Topic: Job Satisfaction

103.

Carol is a single mother who works full-time and attends to the needs of her two young children. Carol has opted to work from home for a short period after one of her children suffered a fractured arm while playing soccer. Even though she works from home, she often feels a lot of pressure in balancing her work and looking after her children. Which of the following is being experienced by Carol?

A. role ambiguity B. role carve-out C. role conflict

D. role overload E. role underload Role conflict is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands. Many employees may feel conflict between work roles and family roles.

104.

Foreign assignments can be highly disruptive to family members, and the resulting role _____ is the top reason that people quit overseas assignments.

A. autonomy B. overload C. underload D. ambiguity E. conflict

Role conflict is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands. Foreign assignments can be highly disruptive to family members, and the resulting role conflict is the top reason that people quit overseas assignments.

105.

After an organization downsizes, it may expect much of its remaining employees. This high expectation and demand occur in a state of _____ for the employees.

A. role autonomy B. role carve-out C. role underload D. role distance E. role overload

Role overload results when too many expectations or demands are placed on a person. After an organization downsizes, it may expect so much of the remaining employees that they experience role overload.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 1 Easy Topic: Stress and Burnout

106.

Mark, a highly skilled technician, has been one of the most productive employee at Swenovo Inc. But after the company went through a downsizing effort, Mark has taken on many more responsibilities and is struggling to keep up. What is the most likely consequence of this situation?

E. Mark places the responsibility for maintaining positive relationships on his direct supervisor. Role-related sources of job dissatisfaction include role overload, a state in which too many expectations or demands are placed on a person. After an organization downsizes, it may expect so much of the remaining employees that they experience role overload.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 3 Hard Topic: Stress and Burnout

107.

Mark, an employee at Timber Holdings, decides to leave the company. However, during his exit interview, an HR supervisor learns that Mark had no complaints about the work he did or the pay he received. Which of the following would be a source of job dissatisfaction for Mark and likely to lead to his departure?

management. D. Mark's co-workers were unclear about his work methods, scheduling, and performance criteria. E. Timber Holdings focused too much on pay as a source of satisfaction. Uncivil behavior by co-workers generates unhappiness that manifests in a variety of ways, such as decreased commitment, effort, and performance. Conflicts between employees left unaddressed by management may cause job dissatisfaction severe enough to lead to withdrawal or departure. Employees want some evidence that the company's leaders care about them, so they are more likely to be dissatisfied if management is distant and unresponsive.

108.

The amount of income linked to each job is called the

A. pay rank. B. pay status. C. pay differential. D. incentive pay. E. pay level.

With regard to job satisfaction, the pay level—that is, the amount of income associated with each job—is especially important. Employers seeking to lure away another organization's employees often do so by offering higher pay.

109.

Maria is the supervisor of the recruiting department at Innovex Inc. She is currently in charge of filling a few high-demand positions at Innovex and is planning to poach talent from rival companies, luring their employees with job benefits. Hassan, the HR head of Innovex, however, argues that Maria's plan will not work. Which of the following is most likely to strengthen Hassan's argument?

Employers seeking to lure away another organization's employees often do so by offering higher pay. Benefits, such as insurance and vacation time, are also important, but employees often have difficulty measuring their worth. Therefore, although benefits influence job satisfaction, employees may not always consider them as much as pay itself.

110.

When employees cannot work with management to make changes, they may engage in _____, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.

A. scapegoating B. progressive discipline C. benchmarking D. media manipulation E. whistle-blowing

When employees cannot work with management to make changes, they may look for help from outside the organization. Some employees may engage in whistle-blowing, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.

111.

In terms of job dissatisfaction, an employee who calls in sick or arrives to work late is engaging in

A. behavior change. B. benchmarking. C. physical job withdrawal.

D. whistle-blowing. E. emotional withdrawal. If behavior change has failed or seems impossible, a dissatisfied worker may physically withdraw from the job. Options for physically leaving a job range from arriving late to calling in sick, requesting a transfer, or leaving the organization altogether.

112.

Christina, an employee at Value Depot, is regularly late for work and takes excessive sick days. In this scenario, which of the following types of job withdrawal is being experienced by Christina?

A. behavior change B. physical job withdrawal

C. high job involvement D. emotional withdrawal E. psychological job withdrawal If behavior change has failed or seems impossible, a dissatisfied worker may physically withdraw from the job. Options for physically leaving a job range from arriving late to calling in sick, requesting a transfer, or leaving the organization altogether.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 3 Hard Topic: Managing Retention

113.

Employee turnover at RandomThoughts Corp. is low, but many employees in the Consumer Book Division seek transfers to other divisions. Which of the following situations is most likely to explain the employees seeking to leave the Consumer Book Division?

A. The pay structure at RandomThoughts is too low. B. Employees consider the manager of the Consumer Book Division to be unfair.

C. The manager of the Consumer Book Division properly channels employees' expressions of dissatisfaction. D. Employees in the Consumer Book Division are looking for help from outside RandomThoughts. E. Employees' complaints, confrontations, and grievances feel threatening to others. An employee who is dissatisfied because of circumstances related to the specific job—for example, an unpleasant workplace or unfair supervisor—may be able to resolve that problem with a job transfer. If the source of the dissatisfaction is organizational policies or practices, such as low pay scales, the employee may leave the organization altogether.

114.

Akira is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about nonwork matters. Which of the following is being experiencing by Akira?

A. physical withdrawal B. psychological job withdrawal

C. role overload D. benchmarking E. whistle-blowing Employees need not leave the company in order to withdraw from their jobs. Especially if they have been unable to find another job, they may psychologically remove themselves. They are physically at work, but their minds are elsewhere.

115.

Low job involvement and low organizational commitment are

A. essentially the same thing. B. examples of psychological withdrawal.

C. examples of physical withdrawal that are related to job dissatisfaction. D. examples of behavior change. E. examples of physiological withdrawal. Psychological withdrawal can take several forms. If an employee is primarily dissatisfied with the job itself, the employee may display a very low level of job involvement. When an employee is dissatisfied with the organization as a whole, the person's organizational commitment may be low.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 1 Easy Topic: Managing Retention

116.

_____ is a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.

A. Employee engagement B. Fair representation C. Job complexity D. Social support E. Job satisfaction

To prevent job withdrawal, organizations need to promote job satisfaction, a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 1 Easy Topic: Managing Retention

117.

According to your text, people will be satisfied with their jobs as long as they perceive that

A. their jobs are the greatest source of happiness. B. their jobs can lead to the obtainment of everything they've ever wanted. C. their jobs meet their important values.

D. there are no better employment options available. E. they are doing better than their subordinates. People will be satisfied with their jobs as long as they perceive that their jobs meet their important values.

118.

The _____ is a process of formally identifying expectations associated with a role.

A. role playing method B. role analysis technique

C. role carve-out D. role enrichment E. role overload The role analysis technique is a process of formally identifying expectations associated with a role.

119.

Serena is concerned about an unacceptable level of job dissatisfaction among a number of work teams in her organization. She has determined that the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be

A. factor comparison. B. role analysis technique.

C. job rotation. D. role carve-out. E. progressive discipline. The role analysis technique is a process of formally identifying expectations associated with a role.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 3 Hard Topic: Managing Retention

120.

Inthe role analysis technique, role occupant refers to

A. the person who is hiring the employee for a particular role in the organization. B. the employee who fills a role in the organization.

C. the individual who will directly interact with the employee filling a new role in the organization. D. the individual who has written guidelines for a new role in the organization. E. the employee who is assigned the task to write expectations from a new role in the organization. In the role analysis technique, role occupant refers to the employee who fills a role in the organization.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 1 Easy Topic: Managing Retention

121.

In the role analysis technique, the people who directly interact with the person who is filling a new role are referred to as the person's

A. role occupants. B. role managers. C. role set.

D. role sitters. E. benchmarkers. In the role analysis technique, the people who directly interact with the person who is filling a new role is referred to as the person's role set.

122.

The two types of people in the organization who most affect an individual's job satisfaction are

A. subordinates and supervisors. B. supervisors and family members. C. co-workers and subordinates. D. supervisors and co-workers.

E. supervisors and upper-level managers. The two primary sets of people in an organization who affect job satisfaction are co-workers and supervisors.

123.

Which of the following aspects of satisfaction is among those emphasized by the Job Descriptive Index?

A. outplacements B. promotions

C. skills D. customers E. qualifications The Job Descriptive Index (JDI) emphasizes specific aspects of satisfaction—pay, the work itself, supervision, co-workers, and promotions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 1 Easy Topic: Job Satisfaction 11-138 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

124.

A(n) _____ refers to the meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.

A. exit interview

B. affirmative action C. carve-out D. observation interview E. summary dismissal The exit interview is a meeting of the departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.

125.

_____ can uncover reasons why employees leave and perhaps set the stage for some of them to return.

A. Mock interviews B. Job Descriptive Indices C. Pay satisfaction questionnaires D. Exit interviews

E. Summary dismissals A well-conducted exit interview can uncover reasons why employees leave and perhaps set the stage for some of them to return.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. 11-139 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Managing Retention

Essay Questions

126.

Distinguish between involuntary and voluntary turnover, and give examples of each.

Organizations must try to ensure that good performers want to stay with the organization and those employees whose performance is chronically low are encouraged—or forced—to leave. Both of these challenges involve employee turnover, that is, employees leaving the organization. When the organization initiates the turnover (often with employees who would prefer to stay), the result is involuntary turnover. Examples include terminating an employee for drug use or laying off employees during a downturn. Most organizations use the word termination to refer only to a discharge related to a discipline problem, but some organizations call any involuntary turnover a termination. When the employees initiate the turnover (often when the organization would prefer to keep them), it is voluntary turnover. Employees may leave to retire or to take a job with a different organization.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-01 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization. Level of Difficulty: 2 Medium Topic: Voluntary and Involuntary Turnover

127.

Discuss the principles of justice that are to be followed in a system of disciplining or discharging employees.

The sensitivity of a system for disciplining and possibly terminating employees is obvious, and it is critical that the system be seen as fair. Employees form conclusions about the system's fairness based on the system's outcomes and procedures and the way managers treat employees when carrying out those procedures. The perception of these conclusions results in three important principles: outcome fairness, procedural justice, and interactional justice. 1) Outcome fairness: This type of justice refers to the judgment that the consequences of a decision to employees are just. One employee's consequences should be consistent with other employees' consequences. For example, in a situation where one person loses his or her job while others are not, employees might well conclude that outcomes are not fair because they are inconsistent. The outcome should be proportionate to the behavior. Organizations promote outcome fairness when they clearly communicate policies regarding the consequences of inappropriate behavior. Determinants of outcome fairness or justice include consistent outcomes, knowledge of outcomes, and outcomes in proportion to behavior. 2) Procedural justice: This type of justice focuses on the judgment that fair methods were used to determine the consequences an employee receives. The procedures should be consistent from one person to another, and the manager using them should suppress any personal biases. The procedures should be based on accurate information, not rumors or falsehoods. The procedures should also be correctable, meaning the system includes safeguards, such as channels for appealing a decision or correcting errors. The procedures should take into account the concerns of all the groups affected. Finally, the procedures should be consistent with prevailing ethical standards, such as concerns for privacy and honesty. The determinants of procedural justice include consistent procedures, avoidance of bias, accurate information, a way to correct mistakes, representation of all interests, and ethical standards. 3) Interactional justice: This type of justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account. It is a judgment about the ways in which managers interact with their employees. A disciplinary action meets the standards of interactional justice if the manager explains to the employee how the action is procedurally just. The manager should listen to the employee. The manager should also treat the employee with dignity and respect and should empathize with the employee's feelings. Even when a manager discharges an employee for doing something wrong, the manager can speak politely and state the reasons for the action. These efforts are especially important 11-141 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

when managing an employee who has a high level of hostility and is at greater risk of responding with violence. The four determinants of interactional justice are explanation, respectful treatment, consideration, and empathy.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-02 Discuss how employees determine whether the organization treats them fairly. Level of Difficulty: 2 Medium Topic: Approaches to and Uses of Employee Discipline

128.

Discuss the legal requirements that must be met by employers to avoid wrongful discharge.

Discipline practices must avoid the charge of wrongful discharge. First, this means the discharge may not violate an implied agreement. Terminating an employee may violate an implied agreement if the employer had promised the employee job security or if the action is inconsistent with company policies. Another reason a discharge may be considered wrongful is that it violates public policy. Violations of public policy include terminating the employee for refusing to do something illegal, unethical, or unsafe. It is also a violation of public policy to terminate an employee for doing what the law requires. HR professionals can help organizations avoid (and defend against) charges of wrongful discharge by establishing and communicating policies for handling misbehavior. They should define unacceptable behaviors and identify how the organization will respond to them. Managers should follow these procedures consistently and document precisely the reasons for disciplinary action. In addition, the organization should train managers to avoid making promises that imply job security. Finally, in writing and reviewing employee handbooks, HR professionals should avoid any statements that could be interpreted as employment contracts. When there is any doubt about a statement, the organization should seek legal advice.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-03 Identify legal requirements for employee discipline. Level of Difficulty: 2 Medium Topic: Employment-at-Will, Wrongful Discharge, Implied Contract, and Constructive Discharge

129.

Discuss the following approaches to discipline: hot-stove rule and progressive discipline.

According to the hot-stove rule, discipline should be like a hot stove: The glowing or burning stove gives warning not to touch. Anyone who ignores the warning will be burned. The stove has no feelings to influence which people it burns, and it delivers the same burn to any touch. Finally, the burn is immediate. Like the hot stove, an organization's discipline should give warning and have consequences that are consistent, objective, and immediate. Additionally, immediately after becoming aware of an offense, the supervisor should complete and discuss the documentation. A copy of the records should then be placed in the employee's personnel file. Under a progressive discipline system, organizations prepare for problems by establishing a formal discipline process in which the consequences become more serious if the employee repeats the offense. A typical discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with spoken and then written warnings, temporary suspension, and, finally, termination. Progressive discipline seeks to prevent misbehavior and to correct it, rather than merely punish it. The organization must communicate these rules and consequences in writing to every employee. Along with rules and a progression of consequences for violating the rules, a progressive discipline system should have requirements for documenting the rules, offenses, and responses. These documents are important for demonstrating to a problem employee why he or she has been suspended or terminated. They also back up the organization's actions if it should have to defend a lawsuit.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-04 Summarize ways in which organizations can discipline employees fairly. Level of Difficulty: 2 Medium Topic: Approaches to and Uses of Employee Discipline

130.

Describe alternative dispute resolution, including the most common techniques. Explain its increase in use.

Alternative dispute resolution (ADR) systems are company-sponsored attempts to resolve a problem by bringing in an impartial outsider but not using the court system. ADR techniques show promise in terms of resolving disputes in a timely, constructive, and cost-effective manner. In addition, even the arbitration stage tends to be much faster, simpler, and more private than a lawsuit. While ADR systems take many different forms, most proceed through four stages: 1) Open-door policy: Based on the expectation that two people in conflict should first try to arrive at a settlement together, the organization has a policy of making managers available to hear complaints. Typically, the first "open door" is that of the employee's immediate supervisor, and if the employee does not get a resolution from that person, the employee may appeal to managers at higher levels. 2) Peer review: A panel, composed of representatives from the organization that are at the same level as the people in the dispute, hears the case and attempts to help the parties arrive at a settlement. 3) Mediation: A neutral party from outside the organization hears the case and, via a nonbinding process, tries to help the disputants arrive at a settlement. 4) Arbitration: A professional arbitrator from outside the organization hears the case and resolves it unilaterally by rendering a specific decision or award. Most arbitrators are experienced employment lawyers or retired judges. Generally, both the employee and employer have to accept this person's decision.

131.

Explain what job withdrawal is and discuss the four types of conditions that lead up to it.

Job withdrawal is a set of behaviors that dissatisfied individuals enact to avoid a work situation. Job withdrawal results when circumstances such as the nature of the job, supervisors and co-workers, pay levels, or the employee's own disposition cause the employee to become dissatisfied with the job. This job dissatisfaction produces job withdrawal. Job withdrawal may take the form of behavior change, physical job withdrawal, or psychological withdrawal. The four general conditions that may cause job dissatisfaction, and thus job withdrawal, include personal dispositions, tasks and roles, supervisors and co-workers, and pay and benefits. 1) Personal dispositions: Several personal qualities have been found to be associated with job dissatisfaction, including negative affectivity and negative core self-evaluation. Negative affectivity means pervasive low levels of satisfaction with all aspects of life. Core selfevaluations are bottom-line opinions individuals have of themselves, either positive or negative. Individuals with negative affectivity and negative self-evaluations generally experience high job dissatisfaction, even after changing employers and occupations. 2) Tasks and roles: As a predictor of job dissatisfaction, nothing surpasses the nature of the task itself. While many aspects of a task have a link to dissatisfaction, of particular significance are the complexity of the task, the degree of physical strain and exertion required, and the value the employee places on the task. In addition, a person's role—the set of behaviors that people expect of a person in a job—may not be well defined or may be contradictory in nature. Role ambiguity (uncertainty about what the organization expects from the employee in terms of what to do or how to do it), role conflict (recognition that demands of the job are incompatible or contradictory and that a person cannot meet all the demands), and role overload (a state in which too many expectations or demands are placed on a person) may result in employee dissatisfaction and job withdrawal. 3) Supervisors and co-workers: Negative behavior, particularly on the part of supervisors, can produce tremendous dissatisfaction. Employees want supervisors to see them as individuals and help create the conditions in which they can succeed—for example, giving assignments suitable for their skills and providing access to the necessary resources. Employees want some evidence that the company's leaders care about them, so they are more likely to be dissatisfied if management is distant and unresponsive. 11-145 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

4) Pay and benefits: Employees also care about their earnings. For most, a job is their primary source of income. In addition, pay may also be an indicator of status within the organization and in society at large, so it contributes to some people's self-worth.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-05 Explain how job dissatisfaction affects employee behavior. Level of Difficulty: 2 Medium Topic: Job Satisfaction

132.

What is job satisfaction? Describe the components of job satisfaction.

The driving force behind job withdrawal is dissatisfaction. To prevent job withdrawal, organizations therefore need to promote job satisfaction, a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values. This definition has three components: • Job satisfaction is related to a person's values, defined as "what a person consciously or unconsciously desires to obtain." • Different employees have different views of which values are important, so the same circumstances can produce different levels of job satisfaction. • Job satisfaction is based on perception, not always on an objective and complete measurement of the situation. Each person compares the job situation to his or her values, and people are likely to differ in what they perceive. In sum, people will be satisfied with their jobs as long as they perceive that their jobs meet their important values. Organizations can contribute to job satisfaction by addressing the four sources of job dissatisfaction: personal dispositions, job tasks and roles, supervisors and coworkers, and pay and benefits.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 11-06 Describe how organizations contribute to employees' job satisfaction and retain key employees. Level of Difficulty: 2 Medium Topic: Job Satisfaction

133.

Describe how organizations contribute to employees' job satisfaction and retain key employees by defining the role analysis technique and listing its steps.

Because role problems rank just behind job problems in creating job dissatisfaction, some interventions aim directly at role elements. One of these, the role analysis technique, is a process of formally identifying expectations associated with a role. The role occupant (the person who fills a role) and each member of the person's role set (people who directly interact with this employee) each write down their expectations for the role. They meet to discuss their expectations and develop a preliminary list of the role's duties and behaviors, trying to resolve any conflicts among expectations. Next, the role occupant lists what he or she expects of others in the set, and the group meets again to reach a consensus on these expectations. Finally, the group modifies its preliminary list and reaches a consensus on the occupant's role. This process may uncover instances of overload and underload, and the group tries to trade off requirements to develop more balanced roles.

134.

Discuss the primary sets of people in an organization who affect job satisfaction. What are the reasons a person may be satisfied with these people?

The two primary sets of people in an organization who affect job satisfaction are co-workers and supervisors. A person may be satisfied with these people for one of three reasons: 1) The people share the same values, attitudes, and philosophies. Most individuals find this very important, and many organizations try to foster a culture of shared values. Even when this does not occur across the whole organization, values shared between workers and their supervisor can increase satisfaction. 2) The co-workers and supervisor may provide social support. Social support greatly increases job satisfaction, whether the support comes from supervisors or co-workers. Turnover is also lower among employees who experience support from other members of the organization. 3) The co-workers or supervisor may help the person attain some valued outcome. In addition, because a supportive environment reduces dissatisfaction, many organizations foster team building both on and off the job (such as with softball or bowling leagues). The idea is that playing together as a team will strengthen ties among group members and develop relationships in which individuals feel supported by one another. Organizations also create a supportive environment by developing their managers' mentoring skills and helping to set up these beneficial relationships. Employees' own job satisfaction also interacts with the job satisfaction of co-workers. In a study of more than 5,000 employees in 150 businesses, employees with declining job satisfaction were more likely to stay on the job if co-workers' satisfaction was rising. Employees who experienced rising satisfaction were more likely to quit if their co-workers were growing less satisfied. In effect, when employees were out of step with their co-workers, their likelihood of quitting was influenced by the co-workers' job satisfaction.

135.

Briefly describe exit interviews.

In spite of surveys and other efforts to retain employees, some employees inevitably will leave the organization. This presents an opportunity to gather information for retaining employees: the exit interview—a meeting of the departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving. A well-conducted exit interview can uncover reasons why employees leave and perhaps set the stage for some of them to return. HR professionals can help make exit interviews more successful by arranging for the employee to talk to someone from the HR department (rather than the departing employee's supervisor) in a neutral location. Questions should start out open-ended and general, to give the employee a chance to name the source of the dissatisfaction. A recruiter armed with information about what caused a specific person to leave may be able to negotiate a return when the situation changes. When several exiting employees give similar reasons for leaving, management should consider whether this indicates a need for change.

Chapter 12 Establishing a Pay Structure

True / False Questions

1. Pay level is the total amount an employee pays to the organization. True

False

2. A pay structure helps an organization achieve goals related to cost control. True

False

3. The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization. True

False

4. If state laws specify minimum wages, in addition to the federal level, employees are entitled to receive whichever rate is higher. True

False

5. Paying a salary does not necessarily mean that a job is exempt from overtime pay. True

False

6. Under the FLSA, children aged 14 and 15 may not be employed outside school hours. True

False

7. Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area. True

False

8. In a product market, different organizations have exclusive customer bases. True

False

9. The pay offered by an organization is not limited by its presence in a product market. True

False

10. Product markets place an upper limit on the pay an organization will offer. This upper limit is significant when the organization's total costs are mainly comprised of labor costs, and when price is a significant factor for the organization's consumers. True

False

11. Organizations use pay surveys to benchmark compensation. True

False

12. According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs. True

False

13. In a two-tier wage system, employees doing the same job are paid two different rates, depending on their technical background and training. True

False

14. Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees. True

False

15. The job characteristics that an organization deems valuable and decides to pay for are called compensable factors. True

False

16. Key jobs are uncommon and have unstable content, making them very difficult to evaluate using pay surveys. True

False

17. When job structure conflicts with market data, organizations should base their pay only on market forces because this approach does not have any practical drawbacks. True

False

18. Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure. True

False

19. Themost common approach to pay differentials is to move an employee lower in the pay structure to compensate for higher living costs. True

False

20. Implementing broad bands increases the opportunities for promoting employees. True

False

21. Skill-based pay systems do not support empowerment of employees. True

False

22. If the average pay is below the midpoint of an organization, the compa-ratio is 1. True

False

23. Issues affecting an organization's pay structure do not affect its reputation in general. True

False

24. Military pay often exceeds what service members would earn in their civilian jobs. True

False

25. The equity of executive pay affects a select few of an organization's employees. True

False

Multiple Choice Questions

26. Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated?

A. dissatisfied employees B. equal pay distribution C. rates that are stable D. easy employment E. cost control

27. Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument?

A. An unplanned approach will likely result in unfairness and dissatisfaction among the employees. B. Most of the employees prefer planned pay because negotiation with the management takes time. C. Independently negotiated pay will increase the workload and rivalry among the employees. D. When the pay is planned by the organization, it creates more employment opportunities. E. The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated. 28. Which of the following best defines an organization's job structure?

A. It consists of the relative pay for different jobs within the organization. B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state law. 29. Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. Which of the following is being exemplified in this scenario?

A. straight piecework plan B. job structure C. merit pay system D. pay differential E. balanced scorecard

30. Which of the following elements establish an organization's pay structure?

A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level 31. Which of the following statements is true of equal employment opportunity laws?

A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work. C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations. 32. Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy?

A. Alex is white, and Cindy is black. B. Alex has more experience than Cindy. C. Cindy has a hearing impairment. D. Men have more stamina, so they can work longer hours. E. Cindy is an immigrant.

33. Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe?

A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen. 34. Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company.

A. comparable-worth policy B. minimum wage policy C. average pay policy D. merit pay policy E. piecework rate policy

35. Which of the following sentences best describes a situation that comparable-worth policies were designed to address?

A. In a manufacturing company, there are no female managers. B. A consumer products company has been sued for racial discrimination. C. An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities. D. In a city government, positions mostly held by women pay less than positions mostly held by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs. 36. Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?

A. The employer is at an economic disadvantage because of increased pay for some jobs. B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish a pay structure based on market rates. D. The employer ignores the evaluation points for each job. E. Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.

37. Which of the following is a drawback of a comparable-worth policy?

A. A free-market economy assumes people will not take differences in pay into account when they choose a career. B. Employees may conclude that pay rates are unfair. C. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. D. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate. 38. Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?

A. Fair Labor Standards Act B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act 39. Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario?

40. Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay?

A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) provisions for minimum wage C. Fair Labor Standards Act (FLSA) provisions for overtime D. laws governing prevailing wages E. Fair Labor Standards Act (FLSA) provisions for child labor 41. Which of the following provisions is included in the Fair Labor Standards Act (FLSA)?

A. personal finance B. minimum wage C. wage discrimination D. environmental hazards E. retirement plans 42. Which of the following is a drawback of a minimum wage in terms of social policy?

A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.

43. David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week?

A. $480 B. $600 C. $500 D. $520 E. $250 44. Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which of the following laws is Blyrie Pharma abiding by in this scenario?

A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws 45. Which of the following statements is true of the FLSA requirements for overtime pay?

A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.

46. John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay?

A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee. E. John has lower educational qualifications than his subordinates. 47. Under the FLSA, exempt status of employees depends on their

A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications. 48. _____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work.

A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis

49. According to the FLSA, which of the following individuals is most likely a nonexempt employee?

A. the CEO B. a senior administrative employee C. an hourly paid employee D. an HR manager E. the director of marketing 50. Which of the following statements is true about the Fair Labor Standards Act (FLSA)?

A. The overtime rate under the FLSA is two and a half times the employee's hourly rate. B. The FLSA permits federal contractors to pay less than the prevailing wage rate. C. The FLSA permits a subminimum training wage equal to 95% of the minimum wage. D. Nonexempt employees are covered by FLSA and include most hourly workers. E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees. 51. Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to forbid Noah from doing heavy machinery work?

A. Noah cannot be employed in hazardous occupations because he is 17 years old. B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties.

52. Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws?

A. The employees are all paid the same amount. B. The teenage employees earn a training wage for the first year. C. Only the workers over 20 earn overtime pay. D. All the employees have part-time schedules. E. The employees aged 14 and 15 work only in office jobs and for limited time periods. 53. Under the FLSA, which of the following statements is true of child labor?

A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.

54. Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?

A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate. 55. SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30% of the local labor force. In this case, which of the following laws does the company comply with?

A. the Lloyd-La Follette Act of 1912 B. the Smith-Connally Act of 1943 C. the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 D. the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 E. the Humphrey-Hawkins Full Employment Act

56. Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued?

A. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hired employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company. 57. The Davis-Bacon Act of 1931

A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.

58. The Walsh-Healy Public Contracts Act of 1936

A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds. 59. An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges 60. Which of the following statements is true about a product market?

A. The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. B. Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. C. Organizations in a product market are competing to serve the same customers. D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter.

61. Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expense per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work?

A. It produces high quality goods and charges more for these products than competitors. B. It does not provide overtime pay to employees who work more than 40 hours in one week. C. It has recently introduced the comparable-worth policy for employees. D. It provides free home delivery of purchased goods. E. It has a company website where customers can purchase goods online. 62. Organizations under pressure to cut labor costs may respond by

A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks. 63. Which of the following statements is true about labor markets?

A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products.

64. Guangli is a human resource specialist at Quasio Inc., a business consulting company. To support human resource planning, Guangli monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Guangli predict based on this information?

A. A rising cost of living will lead workers in the labor market to seek higher pay. B. A falling cost of living will cause workers to leave the labor market. C. A rise in employment costs will lead companies to demand more labor. D. Competitors in Quasio's product markets will hold wages steady. E. Uncertainty about prices will cause workers to accept lower-paying jobs. 65. Which of the following statements is true about the Consumer Price Index (CPI)?

A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees. 66. Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the

A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment. D. quality of employees. E. organization's global reputation.

67. Economic theory holds that the most profitable pay level, all things being equal, would be at the _____.

A. lowest possible level B. market rate C. highest possible level D. mid-range level E. CPI rate 68. Trevor, the human resource manager at XTech, is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Trevor's idea be most valid?

A. XTech pays more to attract top talent, applying employees' knowledge to be more innovative than competitors. B. XTech intends to charge more for than competitors for the same kinds of products. C. XTech hopes other companies will eventually match XTech's pay scale. D. Labor costs are a large part of XTech's total costs. E. XTech is developing a low-price strategy that will generate more sales. 69. Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness?

A. It considers its employees as resources. B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs.

70. Pay policies are one of the most important human resource tools for

A. reducing competition in the product market. B. automating routine activities. C. persuading customers that high quality is worth a premium price. D. making decisions about product pricing. E. encouraging desired employee behaviors. 71. Capnos Inc., an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which of the following procedures is adopted by Capnos?

A. benchmarking B. job evaluation C. regression analysis D. delayering E. pay structuring 72. Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees?

A. Bureau of Labor Statistics B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis

73. According to _____, people measure outcomes such as pay in terms of their inputs.

A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory 74. Employees' conclusions about equity depend on

A. what they choose as a standard of comparison. B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay. 75. Which of the following is an advantage of a two-tier wage system?

A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.

76. Research on the effects of two-tier wage plans found that

A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate. 77. Some employees at Los Amigos Inc., a clothing manufacturer, investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs. In this case, which of the following is the most likely reaction of the employees at Los Amigo?

A. The employees will conclude that there must be regional differences in pay. B. The employees will be motivated to work much harder. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees' attitudes and behaviors will continue unchanged.

78. Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario?

A. job rotation B. job evaluation C. merit pay system D. job enrichment E. work structure 79. Which of the following statements is true of compensable factors?

A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees. 80. Which of the following statements is true about key jobs?

A. Organizations usually have no survey data available for key jobs. B. Key jobs are jobs that have highly unstable content. C. Key jobs are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.

81. A pay policy line

A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis. C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization. 82. Which of the following is a drawback of setting pay rates based strictly on a pay policy line?

A. It increases the administrative burden of managing the compensation system. B. Employees have difficulty interpreting regression analysis. C. The estimated pay for a job may not reflect conditions in the labor market. D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market. 83. Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company?

A. Employees might conclude that the pay rates are unfair. B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees.

84. Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job?

A. pay grade B. pay range C. pay differential D. compa-ratio E. compensation differential 85. Pay ranges are most common for _____.

A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers 86. Which of the following statements is true about pay ranges?

A. Pay ranges are most common for blue-collar jobs and those covered by union contracts. B. Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points. C. Pay ranges generally are designed so that they do not overlap. D. The market rate or the pay policy line generally serves as the midpoint of a range for the job. E. The less overlap, the more flexibility in transferring employees among jobs.

87. Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

A. pay rates B. pay ranges C. pay policies D. pay differentials E. pay ranks 88. Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to

A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next. E. use a fixed interval promotion policy. 89. John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa?

A. John works the night shift, and night hours are less desirable for most workers. B. John is a U.S. citizen; therefore his pay should be higher than that of non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher.

90. Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex?

A. Thomas lives in a location where living expenses are higher B. Alex is younger than Thomas C. Thomas is a U.S. citizen D. Alex is physically disabled E. Alex works the night shift 91. Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

A. bonus B. pay differential C. green-circle rate D. rank-and-file adjustment E. red-circle rate 92. Which of the following statements is true about job-based pay structures?

A. A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves. B. Their focus on higher pay for higher status can work in favor of efforts for empowerment. C. They typically reward desired behaviors, particularly in a rapidly changing environment. D. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork. E. They always encourage flexibility, innovation, quality, and customer service.

93. Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

A. It does not focus on setting pay for groups of jobs. B. It does not make adjustments to a pay rate to reflect differences in labor markets. C. It discourages employees from gaining valuable experience through lateral career moves. D. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. E. It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs. 94. Which of the following is a characteristic of delayering?

A. It increases an organization's flexibility. B. It increases the opportunities for promoting employees. C. It sets pay according to the employees' level of knowledge. D. It encourages a climate of learning. E. It decreases the flexibility of managers in making assignments. 95. Joy Limon, a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which of the following alternatives to job-based pay structures would best help the organization to respond to this problem?

A. straight piecework plan B. skill-based pay system C. delayering D. quality-based pay system E. benchmarking

96. Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases?

A. outsourcing B. broad bands C. rightsizing D. benchmarks E. downsizing 97. Which of the following is a disadvantage of broad bands?

A. They reduce managers' flexibility in making assignments. B. They always result in pay decreases. C. They increase the number of levels in the organization's job structure. D. They reduce the opportunities for promoting employees. E. They discourage employees from gaining valuable experience through lateral career moves. 98. Instruck Inc. is a real estate firm based in Colorado. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Instruck.

A. straight piecework plan B. skill-based pay systems C. merit pay system D. differential piece rates E. standard hour plan

99. Which of the following is a disadvantage of skill-based pay systems?

A. It makes organizations inflexible. B. It reduces employee empowerment. C. It may result in paying employees for skills they don't use. D. It reduces opportunities for promoting employees. E. It limits the number of pay levels by delayering. 100.Which of the following statements is true about skill-based pay?

A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C. Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. D. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. E. Skill-based pay does not require records related to skills, training, and knowledge acquired. 101.Compa-ratio

A. is defined as the ratio of average pay to the midpoint of the pay range. B. is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade. C. can range from 0 to 100 percent. D. uses data from market-pay surveys. E. measures the degree to which new skills learnt are consistent with the increases in pay.

102.Perlis Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Perlis most likely underpaying for human resources?

A. shipping clerks: average salary of $22,000, range midpoint of $24,000 B. inventory clerks: average salary of $20,000, range midpoint of $30,000 C. order packers: average salary of $24,000, range midpoint of $22,000 D. purchasing agents: average salary of $30,000, range midpoint of $20,000 E. warehouse workers: average salary of $20,000, range midpoint of $20,000 103.At Carbon Fine Inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?

A. The company may have difficulty keeping costs under control. B. The company may have difficulty attracting and keeping qualified employees. C. The company may be in violation of the Fair Labor Standards Act. D. The company may have misclassified these employees as exempt when they are nonexempt. E. The company may not have met minimum-wage requirements. 104.The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

A. Uniformed Services Employment and Reemployment Rights Act B. Fair Labor Standards Act C. Equal Employment Opportunity Act D. National Labor Relations Board E. Family and Medical Leave Act

105.Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason?

A. Top executives' pay is much higher than average workers' pay. B. Most of the top executives' pay is in the form of a salary. C. Top executives come under the category of exempt employees. D. Top executives are paid in the form of commissions. E. Executives are denied short-term or long-term incentives with their pay.

Essay Questions

106.Define job structure, pay level, and pay structure.

107.Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

108.What is benchmarking?

109.How do employees judge the fairness of a pay structure?

110.Define hourly wage, piecework rate, and salary.

111.What is a pay policy line? What is its relevance?

112.What are the limitations of using a job-based pay structure?

113.What is skill-based pay? What are its advantages and disadvantages?

114.How do organizations compare actual pay to pay structure?

115.How does equity theory explain how workers are likely to interpret the high pay of CEOs?

Chapter 12 Establishing a Pay Structure Answer Key

True / False Questions

Pay level is the total amount an employee pays to the organization. FALSE

Pay level is the average amount (including wages, salaries, and bonuses) the organization pays for a particular job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-01 Identify the kinds of decisions involved in establishing a pay structure. Level of Difficulty: 1 Easy Topic: Formulating Strategic Compensation Programs

A pay structure helps an organization achieve goals related to cost control. TRUE

Together, job structure and pay levels establish a pay structure that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented human resources.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-01 Identify the kinds of decisions involved in establishing a pay structure. Level of Difficulty: 2 Medium Topic: Formulating Strategic Compensation Programs

The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization. FALSE

The laws governing equal employment opportunity do not guarantee equal pay for men and women, whites and minorities, or any other groups, because so many legitimate factors, from education to choice of occupation, affect a person's earnings.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 1 Easy Topic: Legislation Governing Employee Compensation

If state laws specify minimum wages, in addition to the federal level, employees are entitled to receive whichever rate is higher. TRUE

Some states have laws specifying minimum wages; in these states, employers must pay whichever rate is higher.

Paying a salary does not necessarily mean that a job is exempt from overtime pay. TRUE

Most workers paid on an hourly basis are nonexempt and therefore subject to the laws governing overtime pay. However, paying a salary does not necessarily mean a job is exempt.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 12-38 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 1 Easy Topic: Legislation Governing Employee Compensation

Under the FLSA, children aged 14 and 15 may not be employed outside school hours. FALSE

Under the FLSA, children aged 14 and 15 may work only outside school hours in jobs defined as nonhazardous and for limited time periods. A child under age 14 may not be employed in any work associated with interstate commerce, except work performed in a nonhazardous job for a business entirely owned by the child's parent or guardian. A few additional exemptions from this ban include acting, babysitting, and delivering newspapers to consumers.

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area. FALSE

Two additional federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors. Under these laws, federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.

In a product market, different organizations have exclusive customer bases. FALSE

The organizations in a product market are competing to serve the same customers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 1 Easy Topic: Market Forces Affecting Compensation Decisions

The pay offered by an organization is not limited by its presence in a product market. FALSE

Product markets place an upper limit on the pay an organization will offer.

10.

Product markets place an upper limit on the pay an organization will offer. This upper limit is significant when the organization's total costs are mainly comprised of labor costs, and when price is a significant factor for the organization's consumers. TRUE

Product markets place an upper limit on the pay an organization will offer. This upper limit is most important when labor costs are a large part of an organization's total costs and when the organization's customers place great importance on price.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. 12-40 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Market Forces Affecting Compensation Decisions

11.

Organizations use pay surveys to benchmark compensation. TRUE

In terms of compensation, benchmarking involves the use of pay surveys. These provide information about the going rates of pay at competitors in the organization's product and labor markets.

12.

According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs. FALSE

According to equity theory, people measure outcomes such as pay in terms of their inputs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

13.

In a two-tier wage system, employees doing the same job are paid two different rates, depending on their technical background and training. FALSE

In a two-tier wage system, existing employees continue on at their current (upper-tier) pay rate while new employees sign on for less pay (the lower tier).

14.

Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees. FALSE

One might expect reaction among employees in the lower tier that the pay structure is unfair. But a study of these employees found that they were more satisfied than the top-tier employees.

15.

The job characteristics that an organization deems valuable and decides to pay for are called compensable factors. TRUE

To conduct a job evaluation, a job evaluation committee identifies each job's compensable factors, meaning the characteristics of a job that the organization values and chooses to pay for.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 1 Easy Topic: How to Establish Pay Rates?

16.

Key jobs are uncommon and have unstable content, making them very difficult to evaluate using pay surveys. FALSE

Key jobs are jobs that have relatively stable content and are common among many organizations, so it is possible to obtain survey data about what people earn in these jobs.

17.

When job structure conflicts with market data, organizations should base their pay only on market forces because this approach does not have any practical drawbacks. FALSE

When job structure and market data conflict, organizations have to decide on a way to resolve the two. One approach is to stick to the job evaluations and pay according to the employees' worth to the organization. A way to moderate this approach is to consider the importance of each position to the organization's goals. At the other extreme, the organization could base pay entirely on market forces. However, this approach also has some practical drawbacks.

18.

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure. FALSE

A drawback of pay grades is that grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure.

19.

Themost common approach to pay differentials is to move an employee lower in the pay structure to compensate for higher living costs. FALSE

The most common approach to pay differentials is to move an employee higher in the pay structure to compensate for higher living costs.

20.

Implementing broad bands increases the opportunities for promoting employees. FALSE

Broad bands reduce the opportunities for promoting employees, so organizations that eliminate layers in their job descriptions must find other ways to reward employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-06 Describe alternatives to job-based pay. Level of Difficulty: 1 Easy Topic: Advantages and Disadvantages of Various Compensation Programs

21.

Skill-based pay systems do not support empowerment of employees. FALSE

Skill-based pay supports efforts to empower employees and enrich jobs because it encourages employees to add to their knowledge so they can make decisions in many areas.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-06 Describe alternatives to job-based pay. 12-45 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Advantages and Disadvantages of Various Compensation Programs

22.

If the average pay is below the midpoint of an organization, the compa-ratio is 1. FALSE

Assuming that an organization has pay grades, the organization would find a compa-ratio for each pay grade. If the average equals the midpoint, the compa-ratio is 1. Below 1 means the average pay is below the midpoint.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-07 Summarize how to ensure that pay is actually in line with the pay structure. Level of Difficulty: 1 Easy Topic: How to Establish Pay Rates?

23.

Issues affecting an organization's pay structure do not affect its reputation in general. FALSE

An organization's policies regarding pay structure greatly influence employees' and even the general public's opinions about the organization. Issues affecting pay structure therefore can hurt or help the organization's reputation and ability to recruit, motivate, and keep employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-08 Discuss issues related to paying employees serving in the military and paying executives. Level of Difficulty: 1 Easy Topic: Factors Related to Pay Structure Decisions

24.

Military pay often exceeds what service members would earn in their civilian jobs. FALSE

The armed services pay service members during their time of duty, but military pay often falls short of what they would earn in their civilian jobs.

25.

The equity of executive pay affects a select few of an organization's employees. FALSE

Top executives help to set the tone or culture of the organization, and employees at all levels are affected by behavior at the top. As a result, the equity of executive pay can affect more employees than, say, equity among warehouse workers or salesclerks.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-08 Discuss issues related to paying employees serving in the military and paying executives. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

Multiple Choice Questions

26.

Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated?

A. dissatisfied employees

B. equal pay distribution C. rates that are stable D. easy employment E. cost control An unplanned approach, in which each employee's pay is independently negotiated, will likely result in unfairness, dissatisfaction, and rates that are either overly expensive or so low that positions are hard to fill.

27.

Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument?

A. An unplanned approach will likely result in unfairness and dissatisfaction among the

employees. B. Most of the employees prefer planned pay because negotiation with the management takes time. C. Independently negotiated pay will increase the workload and rivalry among the employees. D. When the pay is planned by the organization, it creates more employment opportunities. E. The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated. Because pay is important both in its effect on employees and on account of its cost, organizations need to plan what they will pay employees in each job. An unplanned approach in which each employee's pay is independently negotiated will likely result in unfairness, dissatisfaction, and rates that are either overly expensive or so low that positions are hard to fill.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 12-01 Identify the kinds of decisions involved in establishing a pay structure. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

28.

Which of the following best defines an organization's job structure?

A. It consists of the relative pay for different jobs within the organization.

B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state law. Job structure consists of the relative pay for different jobs within the organization. It establishes relative pay among different functions and different levels of responsibility.

29.

Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. Which of the following is being exemplified in this scenario?

A. straight piecework plan B. job structure

C. merit pay system D. pay differential E. balanced scorecard Job structure consists of the relative pay for different jobs within the organization. It establishes relative pay among different functions and different levels of responsibility. For example, job structure defines the difference in pay between an entry-level accountant and an entry-level assembler, as well as the difference between an entry-level accountant, the accounting department manager, and the organization's comptroller.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-01 Identify the kinds of decisions involved in establishing a pay structure. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

30.

Which of the following elements establish an organization's pay structure?

A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level

31.

Which of the following statements is true of equal employment opportunity laws?

A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work.

C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations. Under the laws governing equal employment opportunity, employers may not base differences in pay on an employee's age, sex, race, or other protected status. Any differences in pay must instead be tied to such business-related considerations as job responsibilities or performance. The goal is for employers to provide equal pay for equal work.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 2 Medium Topic: Legislation Governing Employee Compensation

32.

Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy?

A. Alex is white, and Cindy is black. B. Alex has more experience than Cindy.

C. Cindy has a hearing impairment. D. Men have more stamina, so they can work longer hours. E. Cindy is an immigrant. The goal of equal employment opportunity laws is for employers to provide equal pay for equal work. Job descriptions, job structures, and pay structures can help organizations demonstrate that they are upholding these laws. These laws do not guarantee equal pay for men and women, whites and minorities, or any other groups, because so many legitimate factors, from education to choice of occupation, affect a person's earnings.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 3 Hard Topic: Legislation Governing Employee Compensation

33.

Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe?

A. Mark meets higher productivity targets than Chloe.

B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen. Since Mark meets higher productivity targets than Chloe, the organization's decision to pay him more than Chloe is justified. The laws governing equal employment opportunity do not guarantee equal pay for men and women, whites and minorities, or any other groups, because so many legitimate factors, from education to choice of occupation, affect a person's earnings. Any differences in pay must instead be tied to such business-related considerations as job responsibilities or performance.

34.

Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company.

A. comparable-worth policy

B. minimum wage policy C. average pay policy D. merit pay policy E. piecework rate policy There are several instances where employers have undervalued work performed by women. Some policy makers have proposed a remedy for this called equal pay for comparable worth. This policy uses job evaluation to establish the worth of an organization's jobs in terms of such criteria as their difficulty and their importance to the organization. The employer then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, they should be paid equally. If they are not, pay of the lower-paid job is raised to meet the goal of comparable worth.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 3 Hard Topic: Comparable Worth Theory

35.

Which of the following sentences best describes a situation that comparable-worth policies were designed to address?

by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs. One explanation for historically lower pay for women has been that employers have undervalued work performed by women—in particular, placing a lower value on occupations traditionally dominated by women. Some policy makers have proposed a remedy for this called equal pay for comparable worth. This policy uses job evaluation to establish the worth of an organization's jobs in terms of such criteria as their difficulty and their importance to the organization. If jobs have the same number of evaluation points, they should be paid equally.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 3 Hard Topic: Comparable Worth Theory

36.

Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?

A. The employer is at an economic disadvantage because of increased pay for some jobs.

B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish a pay structure based on market rates. D. The employer ignores the evaluation points for each job. E. Employees in lower-paid jobs are encouraged to meet the goal of comparable worth. There are several instances where employers have undervalued work performed by women. Some policy makers have proposed a remedy for this called equal pay for comparable worth. Comparable-worth policies are controversial. From an economic standpoint, the obvious drawback of such a policy is that raising pay for some jobs places the employer at an economic disadvantage relative to employers that pay the market rate.

37.

Which of the following is a drawback of a comparable-worth policy?

that pay the market rate. Comparable-worth policies are controversial. From an economic standpoint, the obvious drawback of such a policy is that raising pay for some jobs places the employer at an economic disadvantage relative to employers that pay the market rate. A free-market economy assumes people will take differences in pay into account when they choose a career.

38.

Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?

A. Fair Labor Standards Act

B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act The Fair Labor Standards Act is a federal law that establishes a minimum wage and requirements for overtime pay and child labor.

39.

Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario?

A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage

C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws In the United States, employers must pay at least the minimum wage established by law. At the federal level, the 1938 Fair Labor Standards Act (FLSA) establishes a minimum wage that is now $7.25 per hour.

AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Apply Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 3 Hard Topic: Legislation Governing Employee Compensation

40.

Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay?

A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) provisions for minimum wage

C. Fair Labor Standards Act (FLSA) provisions for overtime D. laws governing prevailing wages E. Fair Labor Standards Act (FLSA) provisions for child labor At the federal level, the 1938 Fair Labor Standards Act (FLSA) establishes a minimum wage that is now $7.25 per hour. The FLSA also permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days.

41.

Which of the following provisions is included in the Fair Labor Standards Act (FLSA)?

A. personal finance B. minimum wage

C. wage discrimination D. environmental hazards E. retirement plans The Fair Labor Standards Act (FLSA) includes provisions for minimum wage, overtime pay, and child labor.

42.

Which of the following is a drawback of a minimum wage in terms of social policy?

poverty level. From the standpoint of social policy, an issue related to the minimum wage is that it tends to be lower than the earnings required for a full-time worker to rise above the poverty level.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 2 Medium 12-61 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Topic: Legislation Governing Employee Compensation

43.

David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week?

A. $480 B. $600 C. $500

D. $520 E. $250 Since David earns a base rate of $12 an hour for 40 hours, he earns $480. He also receives a weekly award of $20. This increases his compensation to $500 for this week.

44.

Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which of the following laws is Blyrie Pharma abiding by in this scenario?

A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime

D. laws governing prevailing wages E. product market laws The overtime rate under the FLSA is one and a half times the employee's usual hourly rate, including any bonuses and piece-rate payments (amounts paid per item produced). The overtime rate applies to the hours worked beyond 40 in one week.

45.

Which of the following statements is true of the FLSA requirements for overtime pay?

employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay. The FLSA requires that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours.

46.

John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay?

A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee.

E. John has lower educational qualifications than his subordinates. Under the FLSA, executive, professional, administrative, and highly compensated white-collar employees are considered exempt employees, meaning employers need not pay them one and a half times their regular pay for working more than 40 hours per week.

47.

Under the FLSA, exempt status of employees depends on their

A. job responsibilities and salary.

B. organizational commitment. C. job title. D. work experience. E. job qualifications. Exempt status depends on the employee's job responsibilities, salary level, and "salary basis."

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-02 Summarize legal requirements for pay policies. 12-65 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Legislation Governing Employee Compensation

48.

_____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work.

A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis

Salary basis means that an employee is paid a given amount regardless of the number of hours worked or quality of work. Paying an employee on a salary basis means the organization expects that this person can manage his or her own time to get the work done, so the employer may deduct from the employee's pay only in certain limited circumstances, such as disciplinary action or for unpaid leave for personal reasons.

49.

According to the FLSA, which of the following individuals is most likely a nonexempt employee?

A. the CEO B. a senior administrative employee C. an hourly paid employee

D. an HR manager E. the director of marketing Under the FLSA, executive, professional, administrative, and highly compensated white-collar employees are considered exempt employees. Any employee who is not in one of the exempt categories is called a nonexempt employee. Most workers paid on an hourly basis are nonexempt and therefore subject to the laws governing overtime pay.

50.

Which of the following statements is true about the Fair Labor Standards Act (FLSA)?

E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees. Most workers paid on an hourly basis are nonexempt and therefore subject to the laws governing overtime pay. Under the FLSA, executive, professional, administrative, and highly compensated white-collar employees are considered exempt employees.

51.

Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to forbid Noah from doing heavy machinery work?

A. Noah cannot be employed in hazardous occupations because he is 17 years old.

B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties. Under the FLSA, children aged 16 and 17 may not be employed in hazardous occupations defined by the Department of Labor, such as mining, meatpacking, and certain kinds of manufacturing using heavy machinery.

52.

Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws?

Under the FLSA, children aged 14 and 15 may work only outside school hours in jobs defined as nonhazardous and for limited time periods.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 3 Hard Topic: Legislation Governing Employee Compensation

53.

Under the FLSA, which of the following statements is true of child labor?

D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors. The FLSA's restrictions on the use of child labor apply to children younger than 18. Under the FLSA, children aged 16 and 17 may not be employed in hazardous occupations defined by the Department of Labor. Children aged 14 and 15 may work only outside school hours in jobs defined as nonhazardous and for limited time periods. A child under age 14 may not be employed in any work associated with interstate commerce, except work performed in a nonhazardous job for a business entirely owned by the child's parent or guardian.

54.

Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?

wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate. Two federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors. Under these laws, federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.

55.

SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30% of the local labor force. In this case, which of the following laws does the company comply with?

E. the Humphrey-Hawkins Full Employment Act Two federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors. Under these laws, federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.

56.

Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued?

A. The employees of the company are not being paid at rates at least equal to the prevailing

wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hired employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company. Two federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors. Under these laws, federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.

57.

The Davis-Bacon Act of 1931

Davis-Bacon covers construction contractors that receive more than $2,000 in federal money. Walsh-Healy covers all government contractors receiving $10,000 or more in federal funds.

58.

The Walsh-Healy Public Contracts Act of 1936

A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds.

Walsh-Healy covers all government contractors receiving $10,000 or more in federal funds. Davis-Bacon covers construction contractors that receive more than $2,000 in federal money.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 2 Medium Topic: Legislation Governing Employee Compensation

59.

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

A. pay rates B. pay structure

C. pay differentials D. pay grades E. pay ranges Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about pay structure.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 1 Easy Topic: Market Forces Affecting Compensation Decisions

60.

Which of the following statements is true about a product market?

D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter. The organization's product market includes organizations that offer competing goods and services. In other words, the organizations in a product market are competing to serve the same customers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 2 Medium Topic: Market Forces Affecting Compensation Decisions

61.

Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expense per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work?

A. It produces high quality goods and charges more for these products than competitors.

B. It does not provide overtime pay to employees who work more than 40 hours in one week. C. It has recently introduced the comparable-worth policy for employees. D. It provides free home delivery of purchased goods. E. It has a company website where customers can purchase goods online. If an organization's labor costs are higher than those of its competitors, it will be under pressure to charge more than competitors charge for similar products. The company with higher labor costs will be more profitable if it can justify its higher price to customers.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 3 Hard Topic: Market Forces Affecting Compensation Decisions

62.

Organizations under pressure to cut labor costs may respond by

A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions.

D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks. Organizations under pressure to cut labor costs may respond by reducing staff levels, freezing pay levels, postponing hiring decisions, or requiring employees to bear more of the cost of benefits such as insurance premiums.

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 2 Medium Topic: Factors Related to Pay Structure Decisions

63.

Which of the following statements is true about labor markets?

A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an

employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. If an organization pays less than the minimum, employees will look for jobs with other organizations.

64.

Guangli is a human resource specialist at Quasio Inc., a business consulting company. To support human resource planning, Guangli monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Guangli predict based on this information?

A. A rising cost of living will lead workers in the labor market to seek higher pay.

B. A falling cost of living will cause workers to leave the labor market. C. A rise in employment costs will lead companies to demand more labor. D. Competitors in Quasio's product markets will hold wages steady. E. Uncertainty about prices will cause workers to accept lower-paying jobs. When the cost of living is rising rapidly, labor markets demand pay increases. The federal government tracks trends in the nation's cost of living with a measure called the Consumer Price Index (CPI). Following and studying changes in the CPI can help employers prepare for changes in the demands of the labor market.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 3 Hard Topic: Market Forces Affecting Compensation Decisions

65.

Which of the following statements is true about the Consumer Price Index (CPI)?

A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the

demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees. The federal government tracks trends in the nation's cost of living with a measure called the Consumer Price Index (CPI). Following and studying changes in the CPI can help employers prepare for changes in the demands of the labor market.

66.

Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the

A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment.

D. quality of employees. E. organization's global reputation. Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the details of the organization's competitive environment.

67.

Economic theory holds that the most profitable pay level, all things being equal, would be at the _____.

A. lowest possible level B. market rate

C. highest possible level D. mid-range level E. CPI rate Economic theory holds that the most profitable level, all things being equal, would be at the market rate.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. 12-81 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Market Forces Affecting Compensation Decisions

68.

Trevor, the human resource manager at XTech, is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Trevor's idea be most valid?

A. XTech pays more to attract top talent, applying employees' knowledge to be more

innovative than competitors. B. XTech intends to charge more for than competitors for the same kinds of products. C. XTech hopes other companies will eventually match XTech's pay scale. D. Labor costs are a large part of XTech's total costs. E. XTech is developing a low-price strategy that will generate more sales. An organization may gain an advantage by paying above the market rate if it uses the higher pay as one means to attract top talent and then uses these employees' knowledge to be more innovative, produce higher quality, or work more efficiently.

69.

Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness?

A. It considers its employees as resources.

B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs. Higher pay may be an investment in superior human resources. Having higher labor costs than your competitors is not necessarily bad if you also have the best and most effective workforce, which produces more products of better quality. Pay policies are one of the most important human resource tools for encouraging desired employee behaviors and discouraging undesired behaviors. Therefore, organizations must evaluate pay as more than a cost—it is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

70.

Pay policies are one of the most important human resource tools for

Pay policies are one of the most important human resource tools for encouraging desired employee behaviors and discouraging undesired behaviors.

71.

Capnos Inc., an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which of the following procedures is adopted by Capnos?

A. benchmarking

B. job evaluation C. regression analysis D. delayering E. pay structuring To compete for talent, organizations use benchmarking, a procedure in which an organization compares its own practices against those of successful competitors.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. 12-84 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: Market Forces Affecting Compensation Decisions

72.

Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees?

A. Bureau of Labor Statistics

B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis Pay surveys are available for many kinds of industries and jobs. The primary collector of this kind of data in the United States is the Bureau of Labor Statistics, which conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees.

73.

According to _____, people measure outcomes such as pay in terms of their inputs.

A. expectancy theory B. equity theory

C. retributive justice theory D. progressive justice theory E. economic theory According to equity theory, people measure outcomes such as pay in terms of their inputs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 12-85 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 1 Easy Topic: The Role of Ethics in Human Resource Management

74.

Employees' conclusions about equity depend on

A. what they choose as a standard of comparison.

B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay. Employees' conclusions about equity depend on what they choose as a standard of comparison. In general, employees compare their pay and contributions against several yardsticks: • What they think employees in other organizations earn for doing the same job. • What they think other employees holding different jobs within the organization earn for doing work at the same or different levels. • What they think other employees in the organization earn for doing the same job as theirs.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 3 Hard Topic: Economic Influences on Pay

75.

Which of the following is an advantage of a two-tier wage system?

A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries.

D. It helps provide more pay to new employees. E. It provides better standards for benchmarking. Some organizations have set up two-tier wage systems as a way to cut labor costs without cutting employees' existing salaries.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 2 Medium Topic: Advantages and Disadvantages of Various Compensation Programs

76.

Research on the effects of two-tier wage plans found that

A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees

because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate. In a two-tier wage system, existing employees continue at their current (upper-tier) pay rate while new employees sign on for less pay (the lower tier). One might expect reaction among employees in the lower tier that the pay structure is unfair. But a study found that these employees were more satisfied than the top-tier employees. They were not comparing their pay with that of the upper-tier employees but with the other alternatives they saw for themselves: lower-paying jobs or unemployment.

77.

Some employees at Los Amigos Inc., a clothing manufacturer, investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs. In this case, which of the following is the most likely reaction of the employees at Los Amigo?

A. The employees will conclude that there must be regional differences in pay.

B. The employees will be motivated to work much harder. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees' attitudes and behaviors will continue unchanged. Typically, if employees see their pay as equitable, their attitudes and behavior continue unchanged. If employees see themselves as receiving an advantage, they usually rethink the situation to see it as merely equitable.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 3 Hard Topic: Advantages and Disadvantages of Various Compensation Programs

78.

Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario?

A. job rotation B. job evaluation

C. merit pay system D. job enrichment E. work structure Job evaluation is an administrative procedure for measuring the relative worth of the organization's jobs. Usually, the organization does this by assembling and training a job evaluation committee, consisting of people familiar with the jobs to be evaluated. The committee often includes a human resource specialist and, if its budget permits, may hire an outside consultant.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 3 Hard Topic: How to Establish Pay Rates?

79.

Which of the following statements is true of compensable factors?

A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for.

C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees. To conduct a job evaluation, the job evaluation committee identifies each job's compensable factors, meaning the characteristics of a job that the organization values and chooses to pay for.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 2 Medium Topic: How to Establish Pay Rates?

80.

Which of the following statements is true about key jobs?

that key job. Pay for the key jobs can be based on survey data, and pay for the organization's other jobs can be based on the organization's job structure. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Understand Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 2 Medium Topic: How to Establish Pay Rates?

81.

A pay policy line

A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis.

C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization. A pay policy line is a graphed line showing the mathematical relationship between job evaluation points and pay rate. This can be done statistically on a computer, using a procedure called regression analysis.

82.

Which of the following is a drawback of setting pay rates based strictly on a pay policy line?

D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market. The pay policy line reflects the pay structure in the market, which does not always match rates in the organization. Survey data may show that people in certain jobs are actually earning significantly more or less than the amount shown on the pay policy line. Some kinds of expertise are in short supply, and in other cases, conditions may create a surplus of labor needed for certain jobs.

83.

Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company?

A. Employees might conclude that the pay rates are unfair.

B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees. An organization could base pay entirely on market forces. However, this approach also has some practical drawbacks. One is that employees may conclude that pay rates are unfair.

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 3 Hard Topic: Advantages and Disadvantages of Various Compensation Programs

84.

Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job?

A. pay grade B. pay range

C. pay differential D. compa-ratio E. compensation differential Pay range is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.

85.

Pay ranges are most common for _____.

A. white-collar jobs

B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers Pay ranges are most common for white-collar jobs and for jobs that are not covered by union contracts.

86.

Which of the following statements is true about pay ranges?

job. E. The less overlap, the more flexibility in transferring employees among jobs. Pay ranges are most common for white-collar jobs and for jobs that are not covered by union contracts. The range is widest for employees who are at higher levels in terms of their job evaluation points. That is because the performance of these higher-level employees will likely have more effect on the organization's performance, so the organization needs more latitude to reward them. A typical approach is to use the market rate or the pay policy line as the midpoint of a range for the job or pay grade.

87.

Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

A. pay rates B. pay ranges

C. pay policies D. pay differentials E. pay ranks Overlapping pay ranges gives the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

88.

Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to

A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next.

E. use a fixed interval promotion policy. Assuming the organization wants to motivate employees through promotions (and assuming enough opportunities for promotions are available), the organization will want to limit the overlap from one level to the next.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. 12-97 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: How to Establish Pay Rates?

89.

John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa?

A. John works the night shift, and night hours are less desirable for most workers.

B. John is a U.S. citizen; therefore his pay should be higher than that of non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher. In some situations organizations adjust pay to reflect differences in working conditions or labor markets. For example, an organization may pay extra to employees who work the night shift because night hours are less desirable for most workers. Similarly, organizations may pay extra to employees in locations where living expenses are higher.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 3 Hard Topic: How to Establish Pay Rates?

90.

Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex?

A. Thomas lives in a location where living expenses are higher

B. Alex is younger than Thomas C. Thomas is a U.S. citizen D. Alex is physically disabled E. Alex works the night shift In some situations organizations adjust pay to reflect differences in working conditions or labor markets. For example, an organization may pay extra to employees who work the night shift because night hours are less desirable for most workers. Organizations may pay extra to employees in locations where living expenses are higher. These adjustments are called pay differentials.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 3 Hard Topic: Legislation Governing Employee Compensation

91.

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

A. bonus B. pay differential

C. green-circle rate D. rank-and-file adjustment E. red-circle rate Pay differential is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

92.

Which of the following statements is true about job-based pay structures?

process of creating job descriptions and related paperwork. E. They always encourage flexibility, innovation, quality, and customer service. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-06 Describe alternatives to job-based pay. 12-100 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Advantages and Disadvantages of Various Compensation Programs

93.

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

D. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. E. It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs. A pay structure that rewards employees for winning promotions may discourage them from gaining valuable experience through lateral career moves.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-06 Describe alternatives to job-based pay. Level of Difficulty: 2 Medium Topic: Advantages and Disadvantages of Various Compensation Programs

94.

Which of the following is a characteristic of delayering?

A. It increases an organization's flexibility.

B. It increases the opportunities for promoting employees. C. It sets pay according to the employees' level of knowledge. D. It encourages a climate of learning. E. It decreases the flexibility of managers in making assignments. Some organizations have found greater flexibility through delayering, or reducing the number of levels in the organization's job structure. By combining more assignments into a single layer, organizations give managers more flexibility in making assignments and awarding pay increases.

95.

Joy Limon, a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which of the following alternatives to job-based pay structures would best help the organization to respond to this problem?

A. straight piecework plan B. skill-based pay system C. delayering

D. quality-based pay system E. benchmarking Some organizations have found greater flexibility through delayering, or reducing the number of levels in the organization's job structure. By combining more assignments into a single layer, organizations give managers more flexibility in making assignments and awarding pay increases.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-06 Describe alternatives to job-based pay. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

96.

Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases?

A. outsourcing B. broad bands

C. rightsizing D. benchmarks E. downsizing By combining more assignments into a single layer, organizations give managers more flexibility in making assignments and awarding pay increases. These broader groupings often are called broad bands.

97.

Which of the following is a disadvantage of broad bands?

E. They discourage employees from gaining valuable experience through lateral career moves. Broad bands reduce the opportunities for promoting employees, so organizations that eliminate layers in their job descriptions must find other ways to reward employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 12-06 Describe alternatives to job-based pay. 12-104 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Advantages and Disadvantages of Various Compensation Programs

98.

Instruck Inc. is a real estate firm based in Colorado. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Instruck.

A. straight piecework plan B. skill-based pay systems

C. merit pay system D. differential piece rates E. standard hour plan Skill-based pay systems are pay structures that set pay according to the employees' level of skill or knowledge and what they are capable of doing. Paying for skills makes sense at organizations where changing technology requires employees to continually widen and deepen their knowledge. Skill-based pay also supports efforts to empower employees and enrich jobs because it encourages employees to add to their knowledge so they can make decisions in many areas.

99.

Which of the following is a disadvantage of skill-based pay systems?

A. It makes organizations inflexible. B. It reduces employee empowerment. C. It may result in paying employees for skills they don't use.

D. It reduces opportunities for promoting employees. E. It limits the number of pay levels by delayering. Skill-based pay has its own disadvantages. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. The result may be that the organization is paying employees more for learning skills that the employer is not benefiting from.

100.

Which of the following statements is true about skill-based pay?

paperwork of traditional pay structures. E. Skill-based pay does not require records related to skills, training, and knowledge acquired. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures, because it requires records related to skills, training, and knowledge acquired. Gathering market data about skill-based pay is difficult because most wage and salary surveys are job-based.

101.

Compa-ratio

A. is defined as the ratio of average pay to the midpoint of the pay range.

B. is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade. C. can range from 0 to 100 percent. D. uses data from market-pay surveys. E. measures the degree to which new skills learnt are consistent with the increases in pay. As part of its management responsibility, the HR department should compare actual pay to the pay structure, making sure that policies and practices match. A common way to do this is to measure a compa-ratio, the ratio of average pay to the midpoint of the pay range.

102.

Perlis Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Perlis most likely underpaying for human resources?

A. shipping clerks: average salary of $22,000, range midpoint of $24,000 B. inventory clerks: average salary of $20,000, range midpoint of $30,000

C. order packers: average salary of $24,000, range midpoint of $22,000 D. purchasing agents: average salary of $30,000, range midpoint of $20,000 E. warehouse workers: average salary of $20,000, range midpoint of $20,000 A compa-ratio is the ratio of average pay to the midpoint of the pay range. Assuming that the pay structure is well planned to support the organization's goals, the compa-ratios should be close to 1. A compa-ratio less than 1 suggests that the organization is underpaying for human resources relative to its target and may have difficulty attracting and keeping qualified employees. In this scenario, the compa-ratio is below 1 for the shipping clerks (0.92) and the inventory clerks (0.67).

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-07 Summarize how to ensure that pay is actually in line with the pay structure. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

103.

At Carbon Fine Inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a comparatio of this size?

A. The company may have difficulty keeping costs under control.

B. The company may have difficulty attracting and keeping qualified employees. C. The company may be in violation of the Fair Labor Standards Act. D. The company may have misclassified these employees as exempt when they are nonexempt. E. The company may not have met minimum-wage requirements. Assuming that an organization's pay structure is well planned to support its goals, the comparatios should be close to 1. A compa-ratio greater than 1 suggests that the organization is paying more than planned for human resources and may have difficulty keeping costs under control.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 12-07 Summarize how to ensure that pay is actually in line with the pay structure. Level of Difficulty: 3 Hard Topic: Formulating Strategic Compensation Programs

104.

The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

A. Uniformed Services Employment and Reemployment Rights Act

B. Fair Labor Standards Act C. Equal Employment Opportunity Act D. National Labor Relations Board E. Family and Medical Leave Act The Uniformed Services Employment and Reemployment Rights Act (USERRA) requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

105.

Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason?

A. Top executives' pay is much higher than average workers' pay.

B. Most of the top executives' pay is in the form of a salary. C. Top executives come under the category of exempt employees. D. Top executives are paid in the form of commissions. E. Executives are denied short-term or long-term incentives with their pay. The media have drawn public attention to the issue of executive pay. The issue attracts notice because of the very high pay that the top executives of major U.S. companies have received in recent years.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Analyze Learning Objective: 12-08 Discuss issues related to paying employees serving in the military and paying executives. Level of Difficulty: 3 Hard Topic: Factors Related to Pay Structure Decisions

Essay Questions

106.

Define job structure, pay level, and pay structure.

Job structure consists of the relative pay for different jobs within an organization. It establishes relative pay among different functions and different levels of responsibility. Pay level is the average amount (including wages, salaries, and bonuses) the organization pays for a particular job. Together, job structure and pay levels establish a pay structure that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented human resources.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 12-01 Identify the kinds of decisions involved in establishing a pay structure. Level of Difficulty: 1 Easy Topic: Formulating Strategic Compensation Programs

107.

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

The FLSA establishes a minimum wage and requirements for overtime pay and child labor. 1. Minimum Wage: At the federal level, the 1938 FLSA establishes a minimum wage that is now $7.25 per hour. The FLSA also permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days. This subminimum wage is approximately about 85 percent of the minimum wage. Some states have laws specifying minimum wages, and in these states, employers must pay whichever rate is higher. 2. Overtime Pay: The overtime rate under the FLSA is one and a half times the employee's usual hourly rate, including any bonuses and piece-rate payments. The overtime rate applies to the hours worked beyond 40 in one week. Time worked includes not only hours spent on production or sales, but also time on such activities as attending required classes, cleaning up the work site, or traveling between work sites. In addition, overtime is required whether or not the employer specifically asked or expected the employee to work the extra hours. Under the FLSA, executives, professionals, administrative personnel, and highly compensated whitecollar employees are exempt from the overtime pay requirements. 3. Child Labor: The FLSA restricts the use of child labor, with the aim of protecting children's health, safety, and educational opportunities. The restrictions apply to children younger than 18. Under the FLSA, children aged 16 and 17 may not be employed in hazardous occupations, while children aged 14 and 15 may work only outside school hours in jobs defined as nonhazardous and for limited periods of time. A child under age 14 may not be employed in any work associated with interstate commerce, except work performed in a nonhazardous job for a business entirely owned by the child's parent or guardian. A few additional exemptions from this ban include acting, babysitting, and delivering newspapers to consumers.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-02 Summarize legal requirements for pay policies. Level of Difficulty: 2 Medium Topic: Legislation Governing Employee Compensation

108.

What is benchmarking?

To compete for talent, organizations use benchmarking, a procedure in which an organization compares its own practices against those of successful competitors. In terms of compensation, benchmarking involves the use of pay surveys. These provide information about the going rates of pay at competitors in the organization's product and labor markets.

AACSB: Analytical Thinking Blooms: Remember Learning Objective: 12-03 Discuss how economic forces influence decisions about pay. Level of Difficulty: 1 Easy Topic: Market Forces Affecting Compensation Decisions

109.

How do employees judge the fairness of a pay structure?

Employees evaluate their pay relative to the pay of other employees. According to equity theory, people measure outcomes such as pay in terms of their inputs. In general, employees compare their pay and contributions against several yardsticks: what they think employees in other organizations earn for doing the same job; what they think other employees holding different jobs within the organization earn for doing work at the same or different levels; and what they think other employees in the organization earn for doing the same job as theirs. Employees' conclusions about equity depend on what they choose as a standard of comparison. The ways employees respond to their impressions about equity can have a great impact on the organization. Typically, if employees see their pay as equitable, their attitudes and behavior continue unchanged. If employees see themselves as receiving an advantage, they usually rethink the situation to see it as merely equitable. But if employees conclude that they are underrewarded, they are likely to make up the difference in one of three ways. They might put forth less effort (reducing their inputs), find a way to increase their outcomes, or withdraw by leaving the organization or refusing to cooperate. Employees' beliefs about fairness also influence their willingness to accept transfers or promotions.

AACSB: Analytical Thinking Blooms: Understand 12-114 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 12-04 Describe how employees evaluate the fairness of a pay structure. Level of Difficulty: 2 Medium Topic: The Role of Ethics in Human Resource Management

110.

Define hourly wage, piecework rate, and salary.

An organization's pay structure should reflect what the organization knows about market forces, as well as its own unique goals and the relative contribution of each job to achieving the goals. Within this structure, it may state the pay in terms of a rate per hour, commonly called an hourly wage; a rate of pay for each unit produced, known as a piecework rate; or a rate of pay per month or year, called a salary.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 2 Medium Topic: How to Establish Pay Rates?

111.

What is a pay policy line? What is its relevance?

Mathematically, a pay policy line shows the relationship between job evaluation and rate of pay. The line is plotted on a graph in which the vertical axis shows a range of possible pay rates, and the horizontal axis measures the points from the job evaluation. The line slopes upward from left to right, and if higher-level jobs are especially valuable to the organization, the line may curve upward to indicate even greater pay for high-level jobs. Using this line, an analyst can estimate the market pay level for a given job evaluation. Looking at the graph will give approximate numbers, or the regression analysis will provide an equation for calculating the rate of pay. The pay policy line reflects the pay structure in the market, which does not always match rates in the organization.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-05 Explain how organizations design pay structures related to jobs. Level of Difficulty: 2 Medium

Topic: How to Establish Pay Rates?

112.

What are the limitations of using a job-based pay structure?

Some of the limitations of job-based pay are as follows: 1. The precise definition of a job's responsibilities can contribute to an attitude that some activities "are not in my job description," at the expense of flexibility, innovation, quality, and customer service. 2. The job structure's focus on higher pay for higher status can work against an effort at empowerment. 3. Changes to job descriptions involve significant investments of time and money, therefore becoming a barrier to change. 4. The structure may reward undesired behaviors, particularly in a rapidly changing environment where a new set of knowledge, skills, and abilities is required. 5. The structure discourages lateral employee movement and encourages promotion-seeking behavior.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-06 Describe alternatives to job-based pay. Level of Difficulty: 2 Medium Topic: Advantages and Disadvantages of Various Compensation Programs

113.

What is skill-based pay? What are its advantages and disadvantages?

Skill-based pay systems are pay structures that set pay according to the employees' level of skill or knowledge and what they are capable of doing. Skill-based pay is desirable in situations where employees need to learn more skills and become more flexible in the jobs they perform, particularly in environments where the technology is changing. Skill-based pay has its advantages. It helps organizations become more flexible and innovative. It encourages a climate of learning and adaptability. It helps employees use their knowledge and ideas more productively. It gives employees a broader view of how the organization functions. Skill-based pay also has its disadvantages. It rewards employees for acquiring skills, but does not provide a way to ensure that employees use their new skills, resulting in the organization paying employees for learning skills that the employer is not benefiting from. Additionally, it does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. Finally, gathering market data about skill-based pay is difficult because most wage and salary surveys are job-based.

114.

How do organizations compare actual pay to pay structure?

As part of its management responsibility, the HR department should compare actual pay to the pay structure, making sure that policies and practices match. A common way to do this is to measure a compa-ratio, the ratio of average pay to the midpoint of the pay range. Assuming the organization has pay grades, the organization would find a compa-ratio for each pay grade: the average paid to all employees in the pay grade divided by the midpoint for the pay grade. If the average equals the midpoint, the compa-ratio is 1. More often, the compa-ratio is somewhat above 1 or below 1. Assuming that the pay structure is well planned to support the organization's goals, the compa-ratios should be close to 1. A compa-ratio greater than 1 suggests that the organization is paying more than planned for human resources and may have difficulty keeping costs under control. A compa-ratio less than 1 suggests that the organization is underpaying for human resources relative to its target and may have difficulty attracting and keeping qualified employees. When compa-ratios are more or less than 1, the numbers signal a need for the HR department to work with managers to identify whether to adjust the pay structure or the organization's pay practices. The compa-ratios may indicate that the pay structure no longer reflects market rates of pay, or maybe performance appraisals need to be more accurate.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-07 Summarize how to ensure that pay is actually in line with the pay structure. Level of Difficulty: 2 Medium Topic: How to Establish Pay Rates?

115.

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

The issue of executive pay is relevant to pay structure in terms of equity theory. By many comparisons, U.S. CEOs' pay is high. A study by the research and analytics firm MSCI found that among makers of consumer staples, such as food and personal-care products, the highest-paid executive made 123 times more than the average worker in that industry. To assess the fairness of this ratio, equity theory would consider not only the size of executive pay relative to pay for other employees but also the amount the CEOs contribute. An organization's executives potentially have a much greater effect on the organization's performance than its lowest-paid employees have. But if they do not seem to contribute 123 times more, employees will see the compensation as unfair. In a study comparing the pay of rank-and-file employees with executives in various business units, customer satisfaction was lower in units where the difference in pay was greater. The researchers speculated that employees thought pay was inequitable and adjusted their pay to provide lower inputs by putting forth less effort to satisfy customers.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 12-08 Discuss issues related to paying employees serving in the military and paying executives. Level of Difficulty: 2 Medium Topic: The Role of Ethics in Human Resource Management

Chapter 13 Recognizing Employee Contributions with Pay

True / False Questions

1. Incentive pay is specifically designed to energize, direct, or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes. True

False

2. Under incentive pay, piecework rates are most suited for routine, standardized jobs with output that is easy to measure. True

False

3. Standard hour plans are quality-oriented incentives for professional employees. True

False

4. Merit pay is a system of linking pay increases to ratings on performance appraisals. True

False

5. A merit pay incentive system is used to attract employees who are more team-oriented. True

False

6. From employers' perspective, an advantage of merit pay is that it is cheap. True

False

7. As in the case of merit pay, performance bonuses for rewarding individual performance are rolled into an employee's base pay. True

False

8. Retention bonuses are one-time incentives paid to top managers, engineers, top-performing salespeople, and information technology specialists in exchange for remaining with the company. True

False

9. The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. True

False

10. Group bonuses typically reward the performance of all employees in an organization. True

False

11. Under the team awards type of group incentive, cost savings is excluded as a performance measure. True

False

12. Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk. True

False

13. Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary. True

False

14. The costs associated with profit sharing increase substantially when the organization experiences financial difficulties. True

False

15. In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the company's stock price. True

False

16. Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases. True

False

17. An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust. True

False

18. Successful gainsharing plans include employee stock ownership plans. True

False

19. An ESOP denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange. True

False

20. Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers. True

False

21. A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals. True

False

22. The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals. True

False

23. An organization should keep information, such as changes made to its incentive plan, confidential from its employees. True

False

24. The balanced-scorecard approach should be avoided while designing executive pay. True

False

25. Incentive pay for executives lays the groundwork for significant ethical issues. True

False

Multiple Choice Questions

26. A pay structure specifically designed to energize, direct, or control employees' behavior is known as

A. monthly salary. B. wage. C. incentive pay. D. annual salary. E. fixed pay. 27. Vactin Motors, an automobile company, ties individual performance, profits, and other measures of employees' success to a particular form of pay. This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. Which of the following is exemplified in this scenario?

A. minimum wage B. overtime pay C. incentive pay D. piecework rates E. salary 28. A feature of an effective incentive pay plan is that it should

A. have performance measures based on employees' requirements. B. not be provided as a direct percentage of employees' performance. C. encourage group performance and sideline individual achievements. D. be the same for all employees in the organization. E. have performance measures linked to the organization's goals.

29. For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which of the following statements describes a characteristic of a well-designed plan?

A. Performance measures are to be linked to the individual's goals. B. Employees are given unattainable performance standards. C. Employees value the rewards or incentives that are being offered. D. Employees are given limited resources to meet their goals. E. The pay plan takes into account that employees will accept all goals irrespective of their rewards. 30. Which of the following is a disadvantage of using incentive plans?

A. The goals of an incentive plan may interfere with other management goals. B. The goals of incentive plans can seldom be linked to particular outcomes or behaviors. C. Incentive plans cannot be used to promote group and organizational performance. D. Incentive plans cause dissatisfaction among the non-performing employees in the organization. E. Incentive plans are not very effective for jobs other than sales and service. 31. In the process of designing incentives, managers should make sure that

A. all the employees are paid the same amount. B. even the lowest performing employees are rewarded. C. employees focus only on completing the task quickly. D. employees believe that the pay plan is fair. E. they hire employees who consider earning money as the sole reason to perform well.

32. The many kinds of incentive pay fall into three broad categories: _____.

A. incentives linked to individual, group, or organizational performance B. incentives linked to output, productivity, or quality of a product C. pay linked to goals, focus, or achievements of an organization D. pay related to base salary, bonus, and travel allowance E. incentives obtained in the form of company shares, gift coupons, and trial products 33. Which of the following types of incentive plans are used to reward individual performance?

A. gainsharing B. merit pay C. Scanlon plan D. profit sharing E. stock ownership 34. Jules & Co., a smartphone manufacturing company, provides wages to its employees based on the number of smartphones the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

A. piecework rate plan. B. merit pay plan. C. Scanlon plan. D. profit-sharing plan. E. rapid hour plan.

35. As an incentive to work efficiently, some organizations pay production workers _____, a wage based on the amount they produce.

A. merit pay B. a sales commission C. standard hour pay D. a piecework rate E. a special bonus 36. Wayan Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayan pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayan pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate?

A. straight piecework plan B. falling differential C. rising differential D. standard hour plan E. straight commission plan 37. An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10) per hour, while another employee who produces 15 components earns $13.50 ($.90 × 15). This is an example of a

A. commission plan. B. differential piece rate plan. C. direct commission plan. D. profit-sharing plan. E. straight piecework plan.

38. _____ refers to incentive pay in which the wage paid is higher when a greater amount is produced.

A. Profit sharing B. Differential piece rate C. Gainsharing D. Scanlon pay E. Merit pay 39. The differential piece rate system refers to

A. an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. B. a system that gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. C. an incentive pay in which the piece rate is higher when a greater amount is produced. D. a system of linking pay increases to ratings on performance appraisals. E. an incentive pay plan where employees are paid different wages based on the skills they possess. 40. Token Inc. is an envelope manufacturer based in Dallas. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which of the following incentives is offered by Token Inc.?

A. differential piecework rate B. minimum wage C. merit pay D. retention bonus E. group bonus

41. Which of the following statements is true about a piecework rate plan?

A. It can be used for all types of jobs and in all types of industries. B. It is best suited for complex jobs and tasks. C. It can be used to encourage teamwork and collaboration. D. It has a direct link between the work done by the employee and the amount earned. E. It encourages the employee's peers to perform and reduces conflicts. 42. Piecework rate plans are most suited for _____.

A. innovative tasks B. non-standard jobs C. managerial jobs D. jobs with difficult-to-measure output E. routine jobs 43. A piecework rate plan is best suited for

A. HR professionals. B. executives. C. production workers. D. managers. E. knowledge workers.

44. Jeff owns and manages a small electronics repair store. He determines the time required by his employees to complete each task assigned by him. When employees complete the repairs in less time, they receive an amount of pay equal to that time determined by him. In this scenario, Jeff is using a

A. standard hour plan. B. differential piecework plan. C. merit pay plan. D. straight piecework plan. E. Scanlon plan. 45. Jupiter Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which of the following payment methods does this scenario illustrate?

A. piecework plan B. differential plan C. standard hour plan D. merit pay E. performance bonus 46. Which of the following statements is true about standard hour plans?

A. They encourage employees to focus exclusively on customer service. B. They succeed only for employees who are not motivated by money. C. They encourage employees to focus mainly on quality. D. In terms of their pros and cons, they are very different from piecework plans. E. They encourage employees to work as fast as they can.

47. Which of the following is a drawback of a standard hour plan?

A. It does not focus on quality or customer service. B. It escalates costs for an employer in the long term. C. It is applicable only in team-based work environments. D. It helps employees work at a comfortable pace. E. It does not pay workers extra for work done in less than the standard time. 48. A standard hour incentive plan is likely to be successful if

A. most or all of a salesperson's compensation is in the form of commissions. B. employers keep labor costs to a minimum. C. the pay increase is linked to ratings on performance appraisals. D. employees want the extra money more than they want to work at a pace that feels comfortable. E. the organization values employee satisfaction, product quality, and customer service more than profits. 49. An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

A. commissions B. the Scanlon plan C. merit pay D. gainsharing E. profit sharing

50. The primary function of a merit increase grid is to

A. make pay increases consistent. B. further increase the pay of those whose pay is relatively higher for their job. C. increase the employees' compa-ratios. D. stabilize economic conditions. E. increase incentives on a year-by-year basis. 51. Julianna, the HR manager at Hudson Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julianna would be applying the system of

A. merit pay. B. piecework pay. C. standard hour pay. D. commissions. E. attendance bonus. 52. Merit pay system decisions are based on two factors: an individual's performance rating and their

A. compa-ratio. B. seniority. C. pay grade. D. educational qualifications. E. experience.

53. To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the

A. number of grades in the pay structure. B. individual's performance ratings. C. number of new hires in the company. D. company's stock price in the current financial year. E. average pay of the area where the organization is based. 54. In a company's merit pay program, an individual's compa-ratio represents

A. the individual's pay relative to the individual's performance rating. B. the individual's pay relative to company's average pay for that position. C. the individual's worth versus that of others in the organization. D. the ratio of the individual's pay to benefits. E. the average worth of the skills possessed by the individual. 55. A _____ gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job.

A. piecework pay system B. merit pay system C. standard hour plan D. differential plan E. skill-based plan

56. Songreen Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which of the following payment plans is exemplified in this scenario?

A. piecework plan B. merit pay C. standard hour plan D. differential plan E. skill-based plan 57. Which of the following is an advantage of the merit pay incentive system?

A. It makes the reward more valuable by relating it to economic conditions. B. It promotes group performance instead of promoting individual behavior. C. It provides merit increases to employees solely on the basis of performance. D. It is the most economical incentive system for the employers. E. It provides a direct link between the work done by the employee and the amount earned. 58. _____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

A. Differential piece rate B. Standard hour plan C. Merit pay D. Piece rate E. Commission

59. Which of the following is a disadvantage of a merit pay system?

A. It does not relate the rewards to economic conditions. B. It cannot be used effectively with performance appraisals. C. Comparative pay is not considered in its evaluation. D. It does not provide rewards for performance in all the dimensions measured in the organization's performance management system. E. It can quickly become expensive for the company. 60. Which of the following statements is true of a performance bonus?

A. It is designed to reward group performance. B. It should be re-earned by employees during each performance period. C. It is rolled into base pay and provided yearly or monthly. D. It lacks flexibility and hence it is less popular. E. It is exclusively linked to subjective ratings, rather than objective performance measures. 61. Retention bonuses refer to

A. the special reward programs used to satisfy the lower and middle-level managers. B. the bonuses provided to union members to withhold a strike. C. the bonuses provided to employees who take long leaves without pay. D. annual incentives paid to daily wage workers to remain in the organization. E. one-time incentives paid in exchange for remaining with the company.

62. When Greater Aircraft acquired Middling Aircraft, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Michael, the vice president of engineering. The executives offered Michael a one-time bonus of $25,000 if he stayed with Greater Middling for 12 months following the acquisition. In this scenario, Michael's the $25,000 represents _____.

A. a commission B. a retention bonus C. stock options D. merit pay E. a differential piece rate 63. When an employee's pay is calculated as a percentage of sales, it is referred to as

A. commissions. B. gainsharing. C. a merit plan. D. a variable wage plan. E. profit sharing. 64. Straight commission plans are plans which

A. provide a straight salary to employees. B. are useful when the organization wants salespeople to concentrate on listening to customers. C. help to attract risk-averse employees. D. are common among insurance and real estate agents. E. are uncommon among car salespeople.

65. Which of the following is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?

A. It encourages the salesperson to focus on closing the sale. B. It frees the salesperson to focus on developing customer goodwill. C. It encourages teamwork over individual performance. D. It makes the employee appreciate the reward as the reward relates to economic conditions. E. It will quickly become expensive for the employer. 66. Which of the following incentive plans are specifically designed to promote group performance?

A. performance bonuses B. gainsharing C. standard hour plans D. merit pay E. commissions 67. QVO Financial, an auditing firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60% of the improvement is the company's share. The other 40% is distributed among the employees in the company. Which of the following is being exemplified in this scenario?

A. profit rate B. gainsharing C. commission sharing D. merit gain E. group bonus

68. Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

A. gainsharing B. standard hour C. bonus D. commission E. piece rate pay 69. _____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

A. Profit rate B. Gainsharing C. Commission sharing D. Merit rate E. Group bonus 70. Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?

A. merit pay B. team award C. commission D. standard hour plans E. gainsharing

71. Brendan, the HR manager at Baretta & Co., is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Brendan should apply the incentive scheme of _____.

A. piecework rate B. gainsharing C. sales commission D. merit pay E. ESOPs 72. East Bay Hospital was concerned about rising costs for patients who have surgery for joint replacement. It tried rewarding staff in any quarter they met targets for lower use of supplies, but costs continued to rise. An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery. The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections. Which statement about gainsharing best supports this recommendation?

A. With gainsharing, employees are freed to collaborate on how to improve performance. B. Gainsharing creates a competitive environment, so employees will try to outdo one another. C. Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards. D. Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards. E. The success of gainsharing requires management acceptance of employee input.

73. For five years, Speed-All Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. In the first year of that incentive program, 23 employees earned the bonus, but last year, only 7 submitted ideas, and only two of the ideas would actually save more than a few dollars. The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. Which of the following statements best supports this argument?

A. Gainsharing succeeds regardless of whether employees understand how performance is measured. B. Gainsharing is likely to succeed under almost any organizational conditions. C. Gainsharing broadens employees' horizons beyond the range of activities they can influence. D. Gainsharing measures oversimplify the complex responsibilities of production work. E. Gainsharing expands employees' thinking beyond their individual interests. 74. Which of the following is a common condition for gainsharing to be a success in an organization?

A. employees who value working in groups B. employers who do not set short-term goals for employees C. work environment with minimum management commitment D. employees who prefer minimum interaction and cooperation E. low levels of cooperation and interaction 75. The CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay. April proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed?

A. hiring employees who prefer to work alone and equipping them with cost data B. sharing data about costs and setting up time for employees to interact C. indicating that failure to achieve goals will lead to job cuts D. using incentive pay as a substitute for goal setting and performance standards E. promoting continuous improvement and limiting time spent on personal interactions

76. Developed in the 1930s, the Scanlon plan is a variation of a(n)

A. profit-sharing plan. B. gainsharing plan. C. merit pay plan. D. individual bonus. E. commission plan. 77. A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. This incentive plan is referred to as

A. a group bonus. B. merit pay. C. the Scanlon plan. D. a piecework rate. E. a team award. 78. What should employees typically do to earn bonuses under the Scanlon plan?

A. They should produce products at a rate that is much higher than the standard production time. B. They should create goodwill with customers and close as many sales as possible. C. They should follow a defined set of quality standard to produce the desired outcome. D. They should keep labor costs to a minimum and produce as much as possible with that amount of labor. E. They should improve their performance year after year so that they re-earn the bonus during each performance period.

79. The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $5 million. The target ratio set by the organization is 30%. The employees will be given a bonus if the actual labor costs are less than

A. $0.5 million. B. $1 million. C. $1.5 million. D. $2 million. E. $2.5 million. 80. What is the difference between bonuses and team awards?

A. Bonuses are for bigger work groups, whereas team awards are for small teams. B. Unlike bonuses, team awards encourage cooperation. C. Bonuses are usually given to employees who meet deadlines, whereas team awards are given only when the team as a whole meets the targets. D. Unlike team awards, bonuses encourage competition among individuals. E. Bonuses reward attainment of a specific goal, whereas team awards reward performance measured more broadly. 81. Team awards differ from group bonuses in that they

A. are typically plant-wide group incentive programs. B. make payments in company stock rather than in cash. C. are more likely to use a broad range of performance measures. D. encourage competition among individual employees to achieve higher bonuses. E. give more importance to organizational performance than small groups' performances.

82. Which of the following is a disadvantage of using group bonuses?

A. Physical outputs are not rewarded. B. It reduces the level of cooperation between the members of the group. C. The performance measures used are narrow. D. It could result in competition among groups. E. It cannot be used to promote specific goals. 83. In which of the following conditions is an advantage when group incentives encourage competition between groups of employees?

A. when concern for costs obscures customer service B. when groups try to outdo one another in satisfying customers C. when competition replaces cooperation to meet company goals D. when competition for sales obscures the importance of ethical behavior E. when performance goals consider only one objective, such as sales growth 84. _____ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

A. Merit pay B. Gainsharing C. Group bonus D. Profit sharing E. Commission

85. Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

A. profit sharing B. gainsharing C. merit pay D. group bonus E. Scanlon plan 86. Which of the following best describes profit sharing?

A. a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard B. incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary C. a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees D. a combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay E. an incentive plan where a percentage of the previous year's profits is provided to the employees as a part of their salary 87. Which of the following incentive plans would enable its employees to think like owners, taking a broad view of what they need to do in order to make the organization more effective?

A. merit pay B. gainsharing C. the Scanlon plan D. performance bonuses E. profit sharing

88. Mike, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which of the following statements strengthens Mike's argument?

A. In a profit-sharing plan, employees are the owners of the organization. B. Profit sharing helps employees to cooperate and to focus on organizational interests. C. Profit sharing makes employees workaholics. D. In profit sharing, employees contribute their base salary for the development of the organization. E. Profit sharing benefits employees even if the organization makes less profit or no profit. 89. Sheldon, the manager of a manufacturing firm, wants the organization to perform better. He expects his employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective. In this case, Sheldon should

A. pay his employees per piece that is manufactured. B. create a balanced scorecard. C. reorganize the departments in the organization. D. implement a profit-sharing incentive plan. E. hire new employees and pay them above the market rate. 90. Identify the disadvantage of using profit-sharing plans.

A. They cannot be used to improve the organization's performance as a whole. B. The employees may develop a narrow view of their roles in the organization. C. They cost more when the organization experiences financial difficulties. D. Sharing profit with the employees ultimately reduces the organization's profitability. E. Profit sharing is not directly linked to individual behavior.

91. What is the drawback of stock ownership as a form of incentive pay?

A. Financial benefits mostly come when the employee leaves the organization. B. Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. C. It causes the employers to lose control over their employees. D. The employees will not benefit even if the organization is performing well. E. Stock options do not provide any ownership to employees, instead offering an equivalent sum. 92. The link between employees' performance and pay is hardest to establish in

A. piece rate plans. B. merit pay plans. C. standard hour plans. D. stock ownership plans. E. Scanlon plans. 93. If a company distributes stock to employees by granting stock options, employees exercise the option when they

A. purchase the stock. B. sell the stock. C. retain the stock. D. distribute the stock. E. liquidate the stock.

94. Which of the following statements is true of using stock options as incentive pay?

A. The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction. B. Stock options require an option holder to purchase the organization's stocks at its present market rate. C. Stock options are rewarding for employees who exercise their option when the company's stock value has risen. D. Low-level employees with stock options are more likely to think like owners than executives who have stock options. E. A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options. 95. Maria, the financial officer at Boone & Borowitz, encourages the human resource manager to consider using stock options as incentive pay for all employees. The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash. Which of the following statements supports this concern?

A. Stock options are not profitable to employees. B. Option owners must exercise the options, no matter what the market price. C. Employees may not purchase their employer's stock. D. Offering stock options discourages employees from thinking like owners. E. Stock prices in the market may fall below the exercise price of the options. 96. In 2017, a company employee received an option to purchase the company's stock at $45 per share. If the stock is trading at $40 a share in 2019, the employee will most likely

A. exercise the option, receiving a gain of $5. B. exercise the option, receiving a gain of $40. C. not bother to exercise the options. D. buy the stock at $45 per share. E. sell the shares to a third party slightly above the market price.

97. _____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price.

A. "Backdating" B. "Option revising" C. "Retro-vising" D. "Adjusting" E. "Rechecking" 98. In the context of stock ownership, what is meant by "backdating" a stock option?

A. reaping windfall in the stock market by selling stock based on company's nonpublic information B. falsifying numbers in the company's annual report to hide losses and inflate the stock prices C. buying a company's stock just before the date of key product launch D. changing the date or price in an option agreement so that the option holder can buy stock at a bargain price E. hiding losses and inflating the recorded value of revenues to boost the price of the company's stock 99. Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

A. stock options B. employee stock ownership plan C. Scanlon plan D. collective stock options E. profit-sharing plan

100.Electrix Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. Which of the following has been implemented by Electrix in this scenario?

A. Scanlon plan B. balanced scorecard C. piecework stock plan D. employee stock ownership plan E. differential piece stock plan 101.By law, what is the minimum percentage of assets that an ESOP must invest in its company's stock?

A. 10 B. 26 C. 51 D. 60 E. 76 102.What is the difference between stock options and an employee stock ownership plan (ESOP)?

A. Stock options carry significant risk, whereas ESOPs are risk-free. B. Stock options are usually granted to company executives, whereas ESOPs are provided to all employees. C. In stock options, stocks are placed into a trust, whereas ESOPs give employees the right to buy a certain number of shares of stock. D. Under stock options, employees can sell their stocks, whereas ESOPs do not allow employees to sell their stocks. E. Earnings from stock options are exempt from income taxes, whereas earnings from ESOPs are taxable.

103.Which of the following is a reason for the popularity of employee stock ownership plans (ESOPs)?

A. ESOPs provide tax advantages to employers. B. ESOPs provide very high risk-free retirement income. C. Employees can use ESOPs to buy their company during financial crises. D. ESOPs must invest at least 51 percent of their assets in the company's own stocks. E. The employees are provided with many more shares of stock than they actually own. 104.Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which of the following statements weakens this argument?

A. Employees are not allowed to participate in general body meetings as shareholders. B. The stocks within the trust are too widely diversified to earn high returns. C. The stock earnings are taxed at high rates. D. Employees are forced to return the stock profits to the organization. E. Risks involved will directly affect employees' retirement income. 105.A major problem with ESOPs is that

A. they carry a significant risk for employees. B. employees are not allowed to participate in votes by shareholders. C. the stocks within the trust are too widely diversified to earn high returns. D. any earnings from the trust holdings are taxed at an extremely high rate. E. they result in reduced profitability for the employees.

106.Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

A. merit pay B. profit sharing C. gainsharing D. balanced scorecard E. Scanlon plan 107.Kelltech Inc. is a sales and marketing company based in Baltimore. It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals. Which of the following will help the company accomplish this goal?

A. the Scanlon plan B. a balanced scorecard C. a dashboard D. an employee stock ownership plan E. a differential piece rate system 108.Which of the following best describes a balanced scorecard?

A. a combination of performance measures directed toward the company's long and short-term goals and used as the basis for awarding incentive pay B. a performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card C. an arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust D. a type of incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary E. a system designed to measure the performance of HR personnel based on the quality of recruitment

109.Organizations customize their balanced scorecards according to their

A. earnings. B. profits, benefits, and incentives. C. markets, products, and objectives. D. objectives as set by the organization's CEO and board of directors. E. research on what drives employee motivation. 110.Which of the following is an advantage of using balanced scorecard?

A. It eliminates the need to communicate the details of an incentive plan to the employees. B. It eliminates managerial effort when providing incentives to employees. C. It increases the pay for all employees in the organization regardless of their performances. D. It reduces employee stress because it does not focus on financial targets. E. It helps employees understand the organization's goals. 111.Which of the following statements is true about a balanced scorecard?

A. It encourages employees to compete at the expense of cooperating to achieve organizational goals. B. It allows employees to buy their company when it is experiencing financial problems. C. It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. D. It increases cooperation, but does little to motivate day-to-day effort or to attract and retain top individual performers. E. It is the only measure used by top management to measure the performance of HR professionals and managers.

112.An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish. It is planning to implement an incentive plan that helps employees understand the organization's goals. Which of the following should be used by this organization?

A. a retention bonus B. a piecework rate system C. a merit pay system D. the Scanlon plan E. a balanced scorecard 113.Employee participation in pay-related decisions can be part of a general move toward

A. employee empowerment. B. centralized decision making. C. self ownership. D. high power distance. E. federalism. 114.Employees should participate in pay-related decisions. This will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which of the following statements weakens this argument?

A. Employees will make decisions that are in their best interests at the expense of the organization's interests. B. It is difficult to monitor an employee's work output when decisions are made by the employee. C. When employees become more involved in pay decisions, they neglect the work assigned to them. D. Employees should be a part of the human resource department to be involved in pay-related decisions. E. It will have a negative impact on the top-level management of the company.

115.If employee participation in making pay-related decisions is encouraged in an organization, then

A. administering the plans become simple. B. the organization's interests can be best protected. C. the cost borne by the organization decreases. D. monitoring performance becomes difficult. E. the incentive plan has more chances of being successful. 116.Keytechi and Sons, a marketing company, has implemented a few incentive plans to motivate its employees. The organization encourages employees to learn new skills and cooperate with others. Which of the following will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue?

A. Employees must be able to understand the requirements of the incentive pay plan. B. Equal incentives should be offered to all the employees of the organization. C. Employees must be the key decision makers when creating incentive pay plans. D. The company should not inform the employees about incentive plan changes. E. Employees should make decisions that are only in favor of their interests. 117.Deep Space Aeronautics is developing a profit-sharing plan. Randy, the human resource manager, assumes the employees are excited to participate in this start-up company's success. However, a supervisor tells Randy about anxiety surrounding a rumor that employees will lose money if the company has a bad year. How should Randy address this problem with employee morale?

A. by recalling that employees are also motivated by factors other than pay B. by removing non-management employees from the team designing the incentive plan C. by conducting meetings to teach about profit sharing and how employees will benefit D. by reminding employees that rumors are against company policy E. by shutting down the company's intranet to prevent further spreading of rumors

118.The human resource, accounting, and legal departments of GloryB Software, a company with locations in seven states plus Australia, are working together on developing a profit-sharing plan. Of the following options for communicating with employees about the plan, which would be the most practical and effective?

A. Call a meeting of all the employees to discuss the plan face-to-face. B. Set up a balanced scorecard to measure opinions about the plan. C. Ask employees not to engage in rumors. D. Post descriptions and videos on the company's intranet. E. Hold off on any communications until all employees can be brought together. 119.Most pay-related communications come through

A. the company newsletter. B. one designated company speaker. C. rumors between employees from various departments. D. an employee's annual review. E. individual discussions between employees and their supervisor. 120.Executive pay at Ashance Inc., a manufacturing company, includes bonuses based on the year's profits or other measures related to the organization's goals. Sometimes, to gain tax advantages, the bonus is made part of executives' retirement plans. Which of the following is being exemplified in this scenario?

A. long-term incentives B. balanced scorecards C. piecework plans D. employee stock ownership plans E. short-term incentives

121.Global Solutions Corp. pays its executives short-term incentives for meeting financial targets. Which of the following could be included in this incentive pay?

A. bonus for meeting the return on investment goal for last year B. bonus for meeting a target for greater customer satisfaction C. stock options D. stock purchase plans E. merit pay 122.Which of the following is a long-term incentive?

A. sales commission B. group bonus C. merit pay D. stock option E. piece rate 123.Kolese Inc., a manufacturing company, includes stock options and stock purchase plans in executive pay. Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow. Which of the following is being exemplified in this scenario?

A. Scanlon plan B. balanced scorecard C. long-term incentive D. merit plan E. short-term incentive

124.How does the balanced scorecard help organizations deal with unethical behaviors of executives?

A. It allows companies to deduct executive pay that exceeds $1 million. B. It ensures that by rewarding the achievement of a variety of goals, temptation on the executive's part to gain bonuses by manipulating data are reduced. C. It encourages executives to hold on to their stock options when the company is undergoing financial problems. D. It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. E. It mandates that an ESOP invest at least 51% of its assets in the company's own stock. 125.The _____ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

A. National Credit Union Administration B. Financial Industry Regulatory Authority C. Commodity Futures Trading Commission D. Securities and Exchange Commission E. Omnibus Budget Reconciliation Act 126.How does linking executive pay to stock performance make unethical behavior tempting?

A. Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. B. Executives can roll in the stock price into their base pay to avoid paying a huge tax. C. Executives will lower the stock prices in order to enjoy bonuses. D. Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. E. The executives can obtain as many shares as they need at a price that is much lower than the market rate.

Essay Questions

127.What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

128.What are the different types of piecework rates? Explain each of them.

129.What are the advantages and disadvantages of a merit pay system?

130.What are the different types of pay for rewarding individual performance?

131.Elaborate on how gainsharing can be successful as a form of group incentive.

132.What are group bonuses and team awards? What are their advantages and disadvantages?

133.What are the implications of designing pay for organizational performance?

134.Explain how employee stock ownership plans differ from stock options.

135.What is a balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

136.How does allowing employees to participate in pay-related decisions affect the incentive process?

Chapter 13 Recognizing Employee Contributions with Pay Answer Key

True / False Questions

Incentive pay is specifically designed to energize, direct, or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes. TRUE

Along with wages and salaries, many organizations offer incentive pay—that is, pay specifically designed to energize, direct, or control employees' behavior. Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. Level of Difficulty: 1 Easy Topic: Pay-for-Performance Systems

Under incentive pay, piecework rates are most suited for routine, standardized jobs with output that is easy to measure. TRUE

Most jobs, including those of managers, have no physical output, so it is hard to develop an appropriate performance measure. So piecework rates are most suited for very routine, standardized jobs with output that is easy to measure.

Standard hour plans are quality-oriented incentives for professional employees. FALSE

Standard hour plans are quantity-oriented incentives for production workers. They are an incentive plan that pays workers extra for work done in less than a preset "standard time." Standard hour plans are much like piecework plans: they encourage employees to work as fast as they can, but not necessarily to care about quality or customer service.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 2 Medium Topic: Types of Individual Incentives

Merit pay is a system of linking pay increases to ratings on performance appraisals. TRUE

Almost all organizations have established a program of merit pay, which links pay increases to ratings on performance appraisals. To make the merit increases consistent, so they will be seen as fair, many merit pay programs use a merit increase grid.

A merit pay incentive system is used to attract employees who are more team-oriented. FALSE

The decisions about merit pay are based on two factors: the individual's performance rating and the individual's compa-ratio (pay relative to average pay).

From employers' perspective, an advantage of merit pay is that it is cheap. FALSE

A drawback of merit pay, from the employer's standpoint, is that it can quickly become expensive.

As in the case of merit pay, performance bonuses for rewarding individual performance are rolled into an employee's base pay. FALSE

Like merit pay, performance bonuses reward individual performance, but bonuses are not rolled into base pay. The employee must re-earn them during each performance period.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 13-45 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 1 Easy Topic: Types of Individual Incentives

Retention bonuses are one-time incentives paid to top managers, engineers, top-performing salespeople, and information technology specialists in exchange for remaining with the company. TRUE

Retention bonuses are one-time incentives paid in exchange for remaining with the company to top managers, engineers, top-performing salespeople, and information technology specialists.

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. TRUE

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. To keep this ratio low enough to earn the bonus, workers have to keep labor costs to a minimum and produce as much as possible with that amount of labor.

10.

Group bonuses typically reward the performance of all employees in an organization. FALSE

Bonuses for group performance tend to be for smaller work groups. These bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output.

11.

Under the team awards type of group incentive, cost savings is excluded as a performance measure. FALSE

Team awards are similar to group bonuses, but they are more likely to use a broad range of performance measures, such as cost savings, successful completion of a project, or even meeting deadlines.

12.

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk. TRUE

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk. Profits and stock price can soar very high very fast, but they can also fall. The result is a great deal of uncertainty about the amount of incentive pay each employee will receive in each period.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 1 Easy Topic: Advantages and Disadvantages of Various Pay Programs

13.

Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary. FALSE

Under profit sharing, payments are a percentage of the organization's profits and do not become part of the employees' base salary.

14.

The costs associated with profit sharing increase substantially when the organization experiences financial difficulties. FALSE

Profit sharing has the practical advantage of costing less when the organization is experiencing financial difficulties.

15.

In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the company's stock price. TRUE

The drawback of stock ownership as a form of incentive pay is that employees may not see a strong link between their actions and the company's stock price, especially in larger organizations.

16.

Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases. FALSE

If the stock price falls, employees do not need to exercise the options.

17.

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust. TRUE

Employee stock ownership plan refers to an arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust managed on the employees' behalf.

18.

Successful gainsharing plans include employee stock ownership plans. FALSE

An employee stock ownership plan (ESOP) is an example of an organizational performance incentive plan. A gainsharing plan is an example of pay for group performance.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 1 Easy Topic: Stock Options and Profit Sharing as Incentives

19.

An ESOP denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange. FALSE

Employees have a right to participate in votes by shareholders if the stock is registered on a national exchange, such as the New York Stock Exchange.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 2 Medium Topic: Stock Options and Profit Sharing as Incentives

20.

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers. FALSE

Relying heavily on profit sharing or stock ownership may increase cooperation but do little to motivate day-to-day effort or to attract and retain top individual performers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-05 Describe how organizations combine incentive plans in a "balanced scorecard." Level of Difficulty: 1 Easy Topic: Advantages and Disadvantages of Various Pay Programs

21.

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals. TRUE

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay.

22.

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals. TRUE

Not only does the balanced scorecard combine the advantages of different incentive-pay plans, it helps employees understand the organization's goals. By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish.

23.

An organization should keep information, such as changes made to its incentive plan, confidential from its employees. FALSE

Along with empowerment, communicating with employees is important. It demonstrates to employees that the pay plan is fair. It is particularly important to communicate with employees when changing the plan. Employees tend to feel concerned about changes.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 1 Easy Topic: Steps in Designing Effective Incentive Plans

24.

The balanced-scorecard approach should be avoided while designing executive pay. FALSE

The balanced-scorecard approach is useful in designing executive pay.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 1 Easy Topic: Types of Executive Incentives

25.

Incentive pay for executives lays the groundwork for significant ethical issues. TRUE

Incentive pay for executives lays the groundwork for significant ethical issues. When an organization links pay to its stock performance, executives need the ethical backbone to be honest about their company's performance even when dishonesty or clever shading of the truth offers the tempting potential for large earnings.

Multiple Choice Questions

26.

A pay structure specifically designed to energize, direct, or control employees' behavior is known as

A. monthly salary. B. wage. C. incentive pay.

D. annual salary. E. fixed pay. Along with wages and salaries, many organizations offer incentive pay—that is, pay specifically designed to energize, direct, or control employees' behavior.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. 13-54 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Pay-for-Performance Systems

27.

Vactin Motors, an automobile company, ties individual performance, profits, and other measures of employees' success to a particular form of pay. This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. Which of the following is exemplified in this scenario?

A. minimum wage B. overtime pay C. incentive pay

D. piecework rates E. salary Incentive pay is the pay specifically designed to energize, direct, or control employees' behavior. Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. Incentive pay is exemplified in this scenario.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. Level of Difficulty: 3 Hard Topic: Pay-for-Performance Systems

28.

A feature of an effective incentive pay plan is that it should

An effective incentive pay plan should have performance measures that are linked to the organization's goals.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. Level of Difficulty: 2 Medium Topic: Pay-for-Performance Systems

29.

For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which of the following statements describes a characteristic of a well-designed plan?

A. Performance measures are to be linked to the individual's goals. B. Employees are given unattainable performance standards. C. Employees value the rewards or incentives that are being offered.

D. Employees are given limited resources to meet their goals. E. The pay plan takes into account that employees will accept all goals irrespective of their rewards. For incentive pay to motivate employees to contribute to the organization's success, employees should value the rewards or incentives that are being offered.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. 13-56 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: Pay-for-Performance Systems

30.

Which of the following is a disadvantage of using incentive plans?

A. The goals of an incentive plan may interfere with other management goals.

B. The goals of incentive plans can seldom be linked to particular outcomes or behaviors. C. Incentive plans cannot be used to promote group and organizational performance. D. Incentive plans cause dissatisfaction among the non-performing employees in the organization. E. Incentive plans are not very effective for jobs other than sales and service. An incentive pay designed to support a management goal may interfere with other management goals. If incentive pay is extremely rewarding, employees may focus on only the performance measures rewarded under the plan and ignore measures that are not rewarded.

31.

In the process of designing incentives, managers should make sure that

E. they hire employees who consider earning money as the sole reason to perform well. Attitudes that influence the success of incentive pay include whether employees value the rewards and think the pay plan is fair.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 13-57 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Understand Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. Level of Difficulty: 2 Medium Topic: Pay-for-Performance Systems

32.

The many kinds of incentive pay fall into three broad categories: _____.

A. incentives linked to individual, group, or organizational performance

B. incentives linked to output, productivity, or quality of a product C. pay linked to goals, focus, or achievements of an organization D. pay related to base salary, bonus, and travel allowance E. incentives obtained in the form of company shares, gift coupons, and trial products The many kinds of incentive pay fall into three broad categories: incentives linked to individual, group, or organizational performance. Choices from these categories should consider not only their strengths and weaknesses, but also their fit with the organization's goals.

33.

Which of the following types of incentive plans are used to reward individual performance?

A. gainsharing B. merit pay

C. Scanlon plan D. profit sharing E. stock ownership Organizations may reward individual performance with a variety of incentives such as merit pay, piecework rates, sales commission, and so on.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 1 Easy Topic: Types of Individual Incentives

34.

Jules & Co., a smartphone manufacturing company, provides wages to its employees based on the number of smartphones the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

A. piecework rate plan.

B. merit pay plan. C. Scanlon plan. D. profit-sharing plan. E. rapid hour plan. As an incentive to work efficiently, some organizations pay production workers a piecework rate, a wage based on the amount they produce.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 3 Hard Topic: Types of Individual Incentives

35.

As an incentive to work efficiently, some organizations pay production workers _____, a wage based on the amount they produce.

A. merit pay B. a sales commission C. standard hour pay D. a piecework rate

E. a special bonus As an incentive to work efficiently, some organizations pay production workers a piecework rate, a wage based on the amount they produce.

36.

Wayan Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayan pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayan pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate?

A. straight piecework plan

B. falling differential C. rising differential D. standard hour plan E. straight commission plan A straight piecework plan is incentive pay in which an employer pays the same rate per piece, no matter how much a worker produces.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 2 Medium Topic: Types of Individual Incentives

37.

An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10) per hour, while another employee who produces 15 components earns $13.50 ($.90 × 15). This is an example of a

A. commission plan. B. differential piece rate plan. C. direct commission plan. D. profit-sharing plan. E. straight piecework plan.

Incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces is referred to as straight piecework plan.

38.

_____ refers to incentive pay in which the wage paid is higher when a greater amount is produced.

A. Profit sharing B. Differential piece rate

C. Gainsharing D. Scanlon pay E. Merit pay Differential piece rate refers to an incentive pay in which the piece rate is higher when a greater amount is produced.

39.

The differential piece rate system refers to

D. a system of linking pay increases to ratings on performance appraisals. E. an incentive pay plan where employees are paid different wages based on the skills they possess. Differential piece rates refers to an incentive pay in which the piece rate is higher when a greater amount is produced.

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Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 2 Medium Topic: Types of Individual Incentives

40.

Token Inc. is an envelope manufacturer based in Dallas. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which of the following incentives is offered by Token Inc.?

A. differential piecework rate

B. minimum wage C. merit pay D. retention bonus E. group bonus Piecework rate is the wage based on the amount of work produced. Differential piece rates (also called rising and falling differentials) occurs when the piece rate depends on the amount produced. If the worker produces more than the standard output, the piece rate is higher.

41.

Which of the following statements is true about a piecework rate plan?

E. It encourages the employee's peers to perform and reduces conflicts. An obvious advantage of piece rates is the direct link between how much work the employee does and the amount the employee earns.

42.

Piecework rate plans are most suited for _____.

A. innovative tasks B. non-standard jobs C. managerial jobs D. jobs with difficult-to-measure output E. routine jobs

43.

A piecework rate plan is best suited for

A. HR professionals. B. executives. C. production workers.

D. managers. E. knowledge workers. The piecework rate plan is most suited for very routine, standardized jobs with output that is easy to measure. For complex jobs or jobs with hard-to-measure outputs, piecework plans do not apply very well.

44.

Jeff owns and manages a small electronics repair store. He determines the time required by his employees to complete each task assigned by him. When employees complete the repairs in less time, they receive an amount of pay equal to that time determined by him. In this scenario, Jeff is using a

A. standard hour plan.

B. differential piecework plan. C. merit pay plan. D. straight piecework plan. E. Scanlon plan. An incentive plan that pays workers extra for work done in less than a preset "standard time" is referred to as a standard hour plan.

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Blooms: Apply Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 3 Hard Topic: Types of Individual Incentives

45.

Jupiter Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which of the following payment methods does this scenario illustrate?

A. piecework plan B. differential plan C. standard hour plan

D. merit pay E. performance bonus In a standard hour plan, an organization determines a standard time to complete a task. If the employee completes the work in less than the standard time, the employee receives an amount of pay equal to the wage for the full standard time.

46.

Which of the following statements is true about standard hour plans?

Standard hour plans encourage employees to work as fast as they can, but not necessarily to care about quality or customer service.

47.

Which of the following is a drawback of a standard hour plan?

A. It does not focus on quality or customer service.

B. It escalates costs for an employer in the long term. C. It is applicable only in team-based work environments. D. It helps employees work at a comfortable pace. E. It does not pay workers extra for work done in less than the standard time. Standard hour plans encourage employees to work as fast as they can, but not necessarily to care about quality or customer service. Also, they only succeed if employees want the extra money more than they want to work at a pace that feels comfortable.

48.

A standard hour incentive plan is likely to be successful if

comfortable. E. the organization values employee satisfaction, product quality, and customer service more than profits. A standard hour plan is an incentive plan that pays workers extra for work done in less than a preset "standard time." This plan can only succeed if employees want the extra money more than they want to work at a pace that feels comfortable.

49.

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

A. commissions B. the Scanlon plan C. merit pay

D. gainsharing E. profit sharing Merit pay is a system of linking pay increases to ratings on performance appraisals.

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Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 1 Easy Topic: Types of Individual Incentives

50.

The primary function of a merit increase grid is to

A. make pay increases consistent.

B. further increase the pay of those whose pay is relatively higher for their job. C. increase the employees' compa-ratios. D. stabilize economic conditions. E. increase incentives on a year-by-year basis. To make the merit increases consistent, so they will be seen as fair, many merit pay programs use a merit increase grid.

51.

Julianna, the HR manager at Hudson Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and comparatios. In this scenario, Julianna would be applying the system of

A. merit pay.

B. piecework pay. C. standard hour pay. D. commissions. E. attendance bonus. Merit pay is a system of linking pay increases to ratings on performance appraisals. The decisions about merit pay are based on two factors: the individual's performance rating and the individual's compa-ratio.

52.

Merit pay system decisions are based on two factors: an individual's performance rating and their

A. compa-ratio.

B. seniority. C. pay grade. D. educational qualifications. E. experience. The decisions about merit pay are based on two factors: the individual's performance rating and the individual's compa-ratio.

53.

To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the

A. number of grades in the pay structure. B. individual's performance ratings.

C. number of new hires in the company. D. company's stock price in the current financial year. E. average pay of the area where the organization is based. The decisions about merit pay are based on two factors: the individual's performance rating and the individual's compa-ratio.

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Topic: Steps in Designing Effective Incentive Plans

54.

In a company's merit pay program, an individual's compa-ratio represents

A. the individual's pay relative to the individual's performance rating. B. the individual's pay relative to company's average pay for that position.

C. the individual's worth versus that of others in the organization. D. the ratio of the individual's pay to benefits. E. the average worth of the skills possessed by the individual. Compa-ratio refers to the individual's pay relative to average pay for the position.

55.

A _____ gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job.

A. piecework pay system B. merit pay system

C. standard hour plan D. differential plan E. skill-based plan A merit pay system gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job.

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56.

Songreen Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which of the following payment plans is exemplified in this scenario?

A. piecework plan B. merit pay

C. standard hour plan D. differential plan E. skill-based plan This scenario exemplifies a merit pay program. To make merit increases consistent, so they will be seen as fair, many merit pay programs use a merit increase grid. The decisions about merit pay are based on two factors: an individual's performance rating and the individual's compa-ratio. This system gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job.

57.

Which of the following is an advantage of the merit pay incentive system?

A. It makes the reward more valuable by relating it to economic conditions.

B. It promotes group performance instead of promoting individual behavior. C. It provides merit increases to employees solely on the basis of performance. D. It is the most economical incentive system for the employers. E. It provides a direct link between the work done by the employee and the amount earned. An advantage of merit pay is that it makes the reward more valuable by relating it to economic conditions.

58.

_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

A. Differential piece rate B. Standard hour plan C. Merit pay

D. Piece rate E. Commission An advantage of merit pay is that it provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system. If that system is appropriately designed to measure all the important job behaviors, then the merit pay is linked to the behaviors the organization desires.

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Level of Difficulty: 1 Easy Topic: Types of Individual Incentives

59.

Which of the following is a disadvantage of a merit pay system?

A drawback of merit pay, from the employer's standpoint, is that it can quickly become expensive. Managers at a majority of organizations rate most employees' performance in the top two categories (out of four or five). Therefore, the majority of employees are eligible for the biggest merit increases, and their pay rises rapidly.

60.

Which of the following statements is true of a performance bonus?

A. It is designed to reward group performance. B. It should be re-earned by employees during each performance period.

C. It is rolled into base pay and provided yearly or monthly. D. It lacks flexibility and hence it is less popular. E. It is exclusively linked to subjective ratings, rather than objective performance measures. Like merit pay, performance bonuses reward individual performance, but bonuses are not rolled into base pay. The employee must re-earn them during each performance period.

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61.

Retention bonuses refer to

Retention bonuses refer to one-time incentives paid in exchange for remaining with the company—to top managers, engineers, top-performing salespeople, and information technology specialists.

62.

When Greater Aircraft acquired Middling Aircraft, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Michael, the vice president of engineering. The executives offered Michael a one-time bonus of $25,000 if he stayed with Greater Middling for 12 months following the acquisition. In this scenario, Michael's the $25,000 represents _____.

A. a commission B. a retention bonus

C. stock options D. merit pay E. a differential piece rate Retention bonuses are one-time incentives paid in exchange for remaining with the company.

63.

When an employee's pay is calculated as a percentage of sales, it is referred to as

A. commissions.

B. gainsharing. C. a merit plan. D. a variable wage plan. E. profit sharing. A variation on piece rates and bonuses is the payment of commissions, or pay calculated as a percentage of sales.

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Level of Difficulty: 1 Easy Topic: Incentive Plans for Sales Personnel

64.

Straight commission plans are plans which

E. are uncommon among car salespeople. Some salespeople earn a commission in addition to a base salary; others earn only commissions—a pay arrangement called a straight commission plan. Straight commissions are common among insurance and real estate agents and car salespeople.

65.

Which of the following is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?

A. It encourages the salesperson to focus on closing the sale.

B. It frees the salesperson to focus on developing customer goodwill. C. It encourages teamwork over individual performance. D. It makes the employee appreciate the reward as the reward relates to economic conditions. E. It will quickly become expensive for the employer. Paying most or all of a salesperson's compensation in the form of commissions encourages the salesperson to focus on closing sales.

66.

Which of the following incentive plans are specifically designed to promote group performance?

A. performance bonuses B. gainsharing

C. standard hour plans D. merit pay E. commissions To win group incentives, employees must cooperate and share knowledge so that the entire group can meet its performance targets. Common group incentives include gainsharing, bonuses, and team awards.

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Learning Objective: 13-03 Identify ways to recognize group performance. Level of Difficulty: 1 Easy Topic: Gain-Sharing Plan

67.

QVO Financial, an auditing firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60% of the improvement is the company's share. The other 40% is distributed among the employees in the company. Which of the following is being exemplified in this scenario?

A. profit rate B. gainsharing

C. commission sharing D. merit gain E. group bonus Organizations that want employees to focus on efficiency may adopt a gainsharing program, which measures increases in productivity and effectiveness and distributes a portion of each gain to employees. This scenario exemplifies gainsharing.

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68.

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

A. gainsharing

B. standard hour C. bonus D. commission E. piece rate pay Organizations that want employees to focus on efficiency and on group incentives may adopt a gainsharing program, which measures increases in productivity and effectiveness and distributes a portion of each gain to employees.

69.

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

A. Profit rate B. Gainsharing

C. Commission sharing D. Merit rate E. Group bonus Gainsharing is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

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Level of Difficulty: 1 Easy Topic: Gain-Sharing Plan

70.

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?

A. merit pay B. team award C. commission D. standard hour plans E. gainsharing

Gainsharing refers to a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

71.

Brendan, the HR manager at Baretta & Co., is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Brendan should apply the incentive scheme of _____.

A. piecework rate B. gainsharing

C. sales commission D. merit pay E. ESOPs A gainsharing program measures increases in productivity and effectiveness and distributes a portion of each gain to employees.

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72.

East Bay Hospital was concerned about rising costs for patients who have surgery for joint replacement. It tried rewarding staff in any quarter they met targets for lower use of supplies, but costs continued to rise. An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery. The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections. Which statement about gainsharing best supports this recommendation?

A. With gainsharing, employees are freed to collaborate on how to improve performance.

B. Gainsharing creates a competitive environment, so employees will try to outdo one another. C. Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards. D. Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards. E. The success of gainsharing requires management acceptance of employee input. Gainsharing addresses the challenge of identifying appropriate performance measures for complex jobs. Gainsharing frees employees to determine how to improve their own and their group's performance. It also broadens employees' focus beyond their individual interests.

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73.

For five years, Speed-All Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. In the first year of that incentive program, 23 employees earned the bonus, but last year, only 7 submitted ideas, and only two of the ideas would actually save more than a few dollars. The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. Which of the following statements best supports this argument?

Employers may address the drawbacks of individual incentives by including group incentives in the organization's compensation plan. Gainsharing, one type of group incentives, frees employees to determine how to improve their own and their group's performance. It broadens employees' focus beyond their individual interests. It keeps the performance measures within a range of activity that most employees believe they can influence.

74.

Which of the following is a common condition for gainsharing to be a success in an organization?

A. employees who value working in groups

B. employers who do not set short-term goals for employees C. work environment with minimum management commitment D. employees who prefer minimum interaction and cooperation E. low levels of cooperation and interaction Gainsharing is most likely to succeed when organizations provide the right conditions. One of the common conditions is the presence of employees who value working in groups.

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75.

The CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay. April proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed?

A. hiring employees who prefer to work alone and equipping them with cost data B. sharing data about costs and setting up time for employees to interact

C. indicating that failure to achieve goals will lead to job cuts D. using incentive pay as a substitute for goal setting and performance standards E. promoting continuous improvement and limiting time spent on personal interactions Gainsharing is most likely to succeed when organizations provide the right conditions. Among the conditions identified the most common include management commitment; need for change or strong commitment to continuous improvement; management acceptance and encouragement of employee input; high levels of cooperation and interaction; employment security; information sharing on productivity and costs; goal setting; commitment of all involved parties to the process of change and improvement; performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives; and employees who value working in groups.

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76.

Developed in the 1930s, the Scanlon plan is a variation of a(n)

A. profit-sharing plan. B. gainsharing plan.

C. merit pay plan. D. individual bonus. E. commission plan. The Scanlon plan is a gainsharing program where employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.

77.

A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. This incentive plan is referred to as

A. a group bonus. B. merit pay. C. the Scanlon plan.

D. a piecework rate. E. a team award. The Scanlon plan is a gainsharing program where employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.

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Topic: Scanlon-Type Plans

78.

What should employees typically do to earn bonuses under the Scanlon plan?

amount of labor. E. They should improve their performance year after year so that they re-earn the bonus during each performance period. The Scanlon plan gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. To keep this ratio low enough to earn the bonus, workers have to keep labor costs to a minimum and produce as much as possible with that amount of labor.

79.

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $5 million. The target ratio set by the organization is 30%. The employees will be given a bonus if the actual labor costs are less than

A. $0.5 million. B. $1 million. C. $1.5 million.

D. $2 million. E. $2.5 million. The target ratio refers to the ratio of labor costs and sales value of production. In this example, the standard is a ratio of 30/100, or 30 percent, and the workers produced parts worth $5 million. To meet the standard, the labor costs should be less than 30 percent of $5 million, or $1.5 million.

80.

What is the difference between bonuses and team awards?

measured more broadly. Bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output. Team awards are similar to group bonuses, but they are more likely to use a broad range of performance measures, such as cost savings, successful completion of a project, or even meeting deadlines.

81.

Team awards differ from group bonuses in that they

A. are typically plant-wide group incentive programs. B. make payments in company stock rather than in cash. C. are more likely to use a broad range of performance measures.

D. encourage competition among individual employees to achieve higher bonuses. E. give more importance to organizational performance than small groups' performances. Team awards are similar to group bonuses, but they are more likely to use a broad range of performance measures, such as cost savings, successful completion of a project, or even meeting deadlines.

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Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-03 Identify ways to recognize group performance. Level of Difficulty: 2 Medium Topic: Group Incentives

82.

Which of the following is a disadvantage of using group bonuses?

E. It cannot be used to promote specific goals. When using group bonuses, depending on the reward system, competition among individuals may be replaced by competition among groups.

83.

In which of the following conditions is an advantage when group incentives encourage competition between groups of employees?

A. when concern for costs obscures customer service B. when groups try to outdo one another in satisfying customers

C. when competition replaces cooperation to meet company goals D. when competition for sales obscures the importance of ethical behavior E. when performance goals consider only one objective, such as sales growth In group bonuses, depending on the reward system, competition among individuals may be replaced by competition among groups. Competition may be healthy in some situations, as when groups try to outdo one another in satisfying customers.

84.

_____ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

A. Merit pay B. Gainsharing C. Group bonus D. Profit sharing

E. Commission Profit sharing is incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.

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Level of Difficulty: 1 Easy Topic: Stock Options and Profit Sharing as Incentives

85.

Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

A. profit sharing

B. gainsharing C. merit pay D. group bonus E. Scanlon plan Organizations offer incentive pay tied to organizational performance measures. These organization-level incentives can motivate employees to align their activities with the organization's goals. Profit sharing is an example of organizational incentives.

86.

Which of the following best describes profit sharing?

become part of the employees' base salary C. a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees D. a combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay E. an incentive plan where a percentage of the previous year's profits is provided to the employees as a part of their salary Incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary is termed profit sharing.

87.

Which of the following incentive plans would enable its employees to think like owners, taking a broad view of what they need to do in order to make the organization more effective?

A. merit pay B. gainsharing C. the Scanlon plan D. performance bonuses E. profit sharing

Profit sharing is an incentive-pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. Organizations use profit sharing may encourage employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective.

88.

Mike, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which of the following statements strengthens Mike's argument?

A. In a profit-sharing plan, employees are the owners of the organization. B. Profit sharing helps employees to cooperate and to focus on organizational interests.

C. Profit sharing makes employees workaholics. D. In profit sharing, employees contribute their base salary for the development of the organization. E. Profit sharing benefits employees even if the organization makes less profit or no profit. Organizations use profit sharing for a number of reasons. It may encourage employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective. They are more likely to cooperate and less likely to focus on narrow self-interests.

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89.

Sheldon, the manager of a manufacturing firm, wants the organization to perform better. He expects his employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective. In this case, Sheldon should

A. pay his employees per piece that is manufactured. B. create a balanced scorecard. C. reorganize the departments in the organization. D. implement a profit-sharing incentive plan.

E. hire new employees and pay them above the market rate. Organizations use profit sharing for a number of reasons. It may encourage employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 3 Hard Topic: Stock Options and Profit Sharing as Incentives

90.

Identify the disadvantage of using profit-sharing plans.

Profit-sharing plans are not directly linked to individual behavior, as they are designed to promote organizational goals. Employees also may feel that small profit-sharing checks are unfair because they have little control over profits. If profit sharing is offered to all employees but most employees think only management decisions about products, price, and marketing have much impact on profits, they will conclude that there is little connection between their actions and their rewards.

91.

What is the drawback of stock ownership as a form of incentive pay?

A. Financial benefits mostly come when the employee leaves the organization.

B. Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. C. It causes the employers to lose control over their employees. D. The employees will not benefit even if the organization is performing well. E. Stock options do not provide any ownership to employees, instead offering an equivalent sum. Employees may not see a strong link between their actions and the company's stock price, especially in larger organizations. The link between pay and performance is even harder to appreciate because the financial benefits mostly come when the stock is sold—typically when the employee leaves the organization.

92.

The link between employees' performance and pay is hardest to establish in

A. piece rate plans. B. merit pay plans. C. standard hour plans. D. stock ownership plans.

E. Scanlon plans. In stock ownership plans, employees may not see a strong link between their actions and the company's stock price, especially in larger organizations. The link between pay and performance is even harder to appreciate because the financial benefits mostly come when the stock is sold—typically when the employee leaves the organization.

93.

If a company distributes stock to employees by granting stock options, employees exercise the option when they

A. purchase the stock.

B. sell the stock. C. retain the stock. D. distribute the stock. E. liquidate the stock. Employers grant stock options with the right to buy a certain number of shares of stock at a specified price. Purchasing the stock is called exercising the option.

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Level of Difficulty: 1 Easy Topic: Stock Options and Profit Sharing as Incentives

94.

Which of the following statements is true of using stock options as incentive pay?

stock value has risen. D. Low-level employees with stock options are more likely to think like owners than executives who have stock options. E. A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options. Suppose that in 2018 a company's employees received options to purchase the company's stock at $10 per share. If in 2021 the stock is worth $30, they can exercise their options and buy stock for $10 a share.

95.

Maria, the financial officer at Boone & Borowitz, encourages the human resource manager to consider using stock options as incentive pay for all employees. The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash. Which of the following statements supports this concern?

Stock prices can soar very high very fast, but they can also fall. This can result in a great deal of uncertainty about the amount of incentive pay each employee will receive in each period. When stock prices fall below a stock option's specified price, employees may not bother to exercise their options, leading to small or nonexistent employee incentives.

96.

In 2017, a company employee received an option to purchase the company's stock at $45 per share. If the stock is trading at $40 a share in 2019, the employee will most likely

A. exercise the option, receiving a gain of $5. B. exercise the option, receiving a gain of $40. C. not bother to exercise the options.

D. buy the stock at $45 per share. E. sell the shares to a third party slightly above the market price. If the stock price falls below the options level, employees are not likely to exercise the options.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 3 Hard Topic: Stock Options and Profit Sharing as Incentives

97.

_____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price.

A. "Backdating"

B. "Option revising" C. "Retro-vising" D. "Adjusting" E. "Rechecking" "Backdating" stock options refers to when companies changed the date or price in the option agreement so that the option holder could buy shares at a bargain price (this practice may be illegal if done secretly).

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 2 Medium Topic: Stock Options and Profit Sharing as Incentives

98.

In the context of stock ownership, what is meant by "backdating" a stock option?

at a bargain price E. hiding losses and inflating the recorded value of revenues to boost the price of the company's stock "Backdating" involves changing the date and/or price in the original option agreement so that the option holder can buy stock at a bargain price—making the backdated option profitable or more profitable.

99.

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

A. stock options B. employee stock ownership plan

C. Scanlon plan D. collective stock options E. profit-sharing plan Employee stock ownership plan refers to an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

100.

Electrix Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. Which of the following has been implemented by Electrix in this scenario?

A. Scanlon plan B. balanced scorecard C. piecework stock plan D. employee stock ownership plan

E. differential piece stock plan Employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-04 Explain how organizations link pay to their overall performance. 13-105 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: Stock Options and Profit Sharing as Incentives

101.

By law, what is the minimum percentage of assets that an ESOP must invest in its company's stock?

A. 10 B. 26 C. 51

D. 60 E. 76 By law, an ESOP must invest at least 51 percent of its assets in the company's own stock.

102.

What is the difference between stock options and an employee stock ownership plan (ESOP)?

A. Stock options carry significant risk, whereas ESOPs are risk-free. B. Stock options are usually granted to company executives, whereas ESOPs are provided to

all employees. C. In stock options, stocks are placed into a trust, whereas ESOPs give employees the right to buy a certain number of shares of stock. D. Under stock options, employees can sell their stocks, whereas ESOPs do not allow employees to sell their stocks. E. Earnings from stock options are exempt from income taxes, whereas earnings from ESOPs are taxable. While stock options are most often used with top management, a broader arrangement is the employee stock ownership plan (ESOP). In an ESOP, the organization distributes shares of stock to its employees by placing the stock into a trust managed on the employees' behalf.

103.

Which of the following is a reason for the popularity of employee stock ownership plans (ESOPs)?

A. ESOPs provide tax advantages to employers.

B. ESOPs provide very high risk-free retirement income. C. Employees can use ESOPs to buy their company during financial crises. D. ESOPs must invest at least 51 percent of their assets in the company's own stocks. E. The employees are provided with many more shares of stock than they actually own. ESOPs can be attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization.

104.

Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which of the following statements weakens this argument?

A disadvantage of ESOPs is that they carry a significant risk for employees. By law, an ESOP must invest at least 51 percent of its assets in the company's own stock in contrast to other kinds of stock funds that hold a wide diversity of companies. Problems with the company's performance therefore can take away significant value from the ESOP. Many companies set up ESOPs to hold retirement funds, so these risks directly affect employees' retirement income.

105.

A major problem with ESOPs is that

A. they carry a significant risk for employees.

B. employees are not allowed to participate in votes by shareholders. C. the stocks within the trust are too widely diversified to earn high returns. D. any earnings from the trust holdings are taxed at an extremely high rate. E. they result in reduced profitability for the employees. A disadvantage of ESOPs is that they carry a significant risk for employees. By law, an ESOP must invest at least 51 percent of its assets in the company's own stock in contrast to other kinds of stock funds that hold a wide diversity of companies. Problems with the company's performance therefore can take away significant value from the ESOP. Many companies set up ESOPs to hold retirement funds, so these risks directly affect employees' retirement income.

106.

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

A. merit pay B. profit sharing C. gainsharing D. balanced scorecard

E. Scanlon plan A balanced scorecard refers to a combination of performance measures directed toward the company's long and short-term goals and used as the basis for awarding incentive pay.

107.

Kelltech Inc. is a sales and marketing company based in Baltimore. It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals. Which of the following will help the company accomplish this goal?

A. the Scanlon plan B. a balanced scorecard

C. a dashboard D. an employee stock ownership plan E. a differential piece rate system A combination of performance measures directed toward a company's long- and short-term goals and used as the basis for awarding incentive pay is called a balanced scorecard.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply 13-111 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 13-05 Describe how organizations combine incentive plans in a "balanced scorecard." Level of Difficulty: 3 Hard Topic: Pay-for-Performance Systems

108.

Which of the following best describes a balanced scorecard?

A. a combination of performance measures directed toward the company's long and short-

term goals and used as the basis for awarding incentive pay B. a performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card C. an arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust D. a type of incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary E. a system designed to measure the performance of HR personnel based on the quality of recruitment A balanced scorecard refers to a combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay.

109.

Organizations customize their balanced scorecards according to their

A. earnings. B. profits, benefits, and incentives. C. markets, products, and objectives.

D. objectives as set by the organization's CEO and board of directors. E. research on what drives employee motivation. Organizations customize their balanced scorecards according to their markets, products, and objectives.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-05 Describe how organizations combine incentive plans in a "balanced scorecard." Level of Difficulty: 2 Medium Topic: Pay-for-Performance Systems

110.

Which of the following is an advantage of using balanced scorecard?

The balanced scorecard combines the advantages of different incentive-pay plans and it helps employees understand the organization's goals.

111.

Which of the following statements is true about a balanced scorecard?

understand the organization's goals. D. It increases cooperation, but does little to motivate day-to-day effort or to attract and retain top individual performers. E. It is the only measure used by top management to measure the performance of HR professionals and managers. The balanced scorecard combines the advantages of different incentive-pay plans and it helps employees understand the organization's goals.

112.

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish. It is planning to implement an incentive plan that helps employees understand the organization's goals. Which of the following should be used by this organization?

A. a retention bonus B. a piecework rate system C. a merit pay system D. the Scanlon plan E. a balanced scorecard

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-05 Describe how organizations combine incentive plans in a "balanced scorecard." Level of Difficulty: 3 Hard Topic: Pay-for-Performance Systems

113.

Employee participation in pay-related decisions can be part of a general move toward

A. employee empowerment.

B. centralized decision making. C. self ownership. D. high power distance. E. federalism. Employee participation in pay-related decisions can be part of a general move toward employee empowerment.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 1 Easy Topic: Steps in Designing Effective Incentive Plans

114.

Employees should participate in pay-related decisions. This will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which of the following statements weakens this argument?

A. Employees will make decisions that are in their best interests at the expense of the

organization's interests. B. It is difficult to monitor an employee's work output when decisions are made by the employee. C. When employees become more involved in pay decisions, they neglect the work assigned to them. D. Employees should be a part of the human resource department to be involved in payrelated decisions. E. It will have a negative impact on the top-level management of the company. If employees are involved in decisions about incentive pay plans and employees' eligibility for incentives, the process of creating and administering these plans can be more complex. There is also a risk that employees will make decisions that are in their interests at the expense of the organization's interests.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 3 Hard Topic: Steps in Designing Effective Incentive Plans

115.

If employee participation in making pay-related decisions is encouraged in an organization, then

Employee participation can contribute to the success of an incentive plan.

116.

Keytechi and Sons, a marketing company, has implemented a few incentive plans to motivate its employees. The organization encourages employees to learn new skills and cooperate with others. Which of the following will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue?

A. Employees must be able to understand the requirements of the incentive pay plan.

B. Equal incentives should be offered to all the employees of the organization. C. Employees must be the key decision makers when creating incentive pay plans. D. The company should not inform the employees about incentive plan changes. E. Employees should make decisions that are only in favor of their interests. Along with empowerment, communicating with employees is important. It demonstrates to employees that the pay plan is fair. Also, when employees understand the requirements of the incentive pay plan, the plan is more likely to influence their behavior as desired.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply 13-117 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 3 Hard Topic: The Role of Ethics in Human Resource Management

117.

Deep Space Aeronautics is developing a profit-sharing plan. Randy, the human resource manager, assumes the employees are excited to participate in this start-up company's success. However, a supervisor tells Randy about anxiety surrounding a rumor that employees will lose money if the company has a bad year. How should Randy address this problem with employee morale?

D. by reminding employees that rumors are against company policy E. by shutting down the company's intranet to prevent further spreading of rumors Communicating with employees is important. It demonstrates to employees that the pay plan is fair. It is particularly important to communicate with employees when changing the plan. Employees tend to feel concerned about changes. Pay is a frequent topic of rumors and assumptions based on incomplete information, partly because of pay's importance to employees. When making any changes, the human resource department should determine the best ways to communicate the reasons for the change.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 2 Medium Topic: Steps in Designing Effective Incentive Plans

118.

The human resource, accounting, and legal departments of GloryB Software, a company with locations in seven states plus Australia, are working together on developing a profit-sharing plan. Of the following options for communicating with employees about the plan, which would be the most practical and effective?

E. Hold off on any communications until all employees can be brought together. It is particularly important to communicate with employees when changing an incentive plan. Employees tend to feel concerned about changes. Pay is a frequent topic of rumors and assumptions based on incomplete information, partly because of pay's importance to employees. When making the changes, the human resource department should determine the best ways to communicate the reasons for the change. Options include videos, descriptions, and scenarios in brochures, or online, as well as face-to-face discussions. In this example, online distribution (the intranet) is most practical, because the employees are geographically spread out.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 3 Hard Topic: Steps in Designing Effective Incentive Plans

119.

Most pay-related communications come through

Most pay-related communications come through individual discussions between employees and their supervisor.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 1 Easy Topic: Steps in Designing Effective Incentive Plans

120.

Executive pay at Ashance Inc., a manufacturing company, includes bonuses based on the year's profits or other measures related to the organization's goals. Sometimes, to gain tax advantages, the bonus is made part of executives' retirement plans. Which of the following is being exemplified in this scenario?

A. long-term incentives B. balanced scorecards C. piecework plans D. employee stock ownership plans E. short-term incentives

Short-term incentives include bonuses based on the year's profits, return on investment, or other measures related to an organization's goals. Sometimes, to gain tax advantages, the actual payment of the bonus is deferred (for example, by making it part of a retirement plan).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply 13-120 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 3 Hard Topic: Types of Executive Incentives

121.

Global Solutions Corp. pays its executives short-term incentives for meeting financial targets. Which of the following could be included in this incentive pay?

A. bonus for meeting the return on investment goal for last year

B. bonus for meeting a target for greater customer satisfaction C. stock options D. stock purchase plans E. merit pay Short-term incentives include bonuses based on the year's profits, return on investment, or other measures related to the organization's goals. In this example, customer satisfaction scores are not a financial target, but a return on investment is.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 2 Medium Topic: Types of Executive Incentives

122.

Which of the following is a long-term incentive?

A. sales commission B. group bonus C. merit pay D. stock option

E. piece rate Long-term incentives include stock options and stock purchase plans.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 1 Easy Topic: Types of Executive Incentives

123.

Kolese Inc., a manufacturing company, includes stock options and stock purchase plans in executive pay. Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow. Which of the following is being exemplified in this scenario?

A. Scanlon plan B. balanced scorecard C. long-term incentive

D. merit plan E. short-term incentive Long-term incentives include stock options and stock purchase plans. The rationale for these long-term incentives is that executives will want to do what is best for an organization because that will cause the value of their stock to grow.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 3 Hard Topic: Types of Executive Incentives

124.

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

A. It allows companies to deduct executive pay that exceeds $1 million. B. It ensures that by rewarding the achievement of a variety of goals, temptation on the

executive's part to gain bonuses by manipulating data are reduced. C. It encourages executives to hold on to their stock options when the company is undergoing financial problems. D. It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. E. It mandates that an ESOP invest at least 51% of its assets in the company's own stock. Rewarding achievement of a variety of goals in a balanced scorecard reduces the temptation to win bonuses by manipulating financial data.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 13-07 Discuss issues related to performance-based pay for executives. Level of Difficulty: 2 Medium Topic: Issues Related to Executive Pay

125.

The _____ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

A. National Credit Union Administration B. Financial Industry Regulatory Authority C. Commodity Futures Trading Commission D. Securities and Exchange Commission

E. Omnibus Budget Reconciliation Act The Securities and Exchange Commission (SEC) has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

126.

How does linking executive pay to stock performance make unethical behavior tempting?

A. Executives can use the advantage of knowing the company's inside information to buy or

sell stock and create huge personal gains. B. Executives can roll in the stock price into their base pay to avoid paying a huge tax. C. Executives will lower the stock prices in order to enjoy bonuses. D. Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. E. The executives can obtain as many shares as they need at a price that is much lower than the market rate. When executives are stockholders, they have a dual role as owners and managers. This places them at an advantage over others who want to invest in the company. An individual, a pension fund, or other investors have less information about the company than its managers do. An executive who knows about these activities could therefore reap a windfall in the stock market by buying or selling stock based on knowledge about the company's future.

Essay Questions

127.

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

The kinds of incentive pay fall into three broad categories: incentives linked to individual, group, or organizational performance. The choice of incentive pay may affect not only the level of motivation, but also the kinds of employees who are attracted to and stay with the organization. For example, there is some evidence that organizations with team-based rewards will tend to attract employees who are more team-oriented, while rewards tied to individual performance make an organization more attractive to those who think and act independently as individuals. Given the potential impact, organizations not only should weigh the strengths and weaknesses in selecting types of incentive pay, but also should measure the results of these programs.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-01 Discuss the connection between incentive pay and employee performance. Level of Difficulty: 2 Medium Topic: Steps in Designing Effective Incentive Plans

128.

What are the different types of piecework rates? Explain each of them.

The two types of piecework rates are the straight piecework plan and the differential piece rates plan. Straight piece work pay is an incentive pay in where the employer pays the same rate per piece, no matter how much the worker produces. Differential piece rates (also called rising and falling differentials) refers to the incentive pay in which the piece rate is higher when a greater amount is produced.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-02 Describe how organizations recognize individual performance. Level of Difficulty: 2 Medium Topic: Types of Individual Incentives

129.

What are the advantages and disadvantages of a merit pay system?

Almost all organizations have established some program of merit pay—a system of linking pay increases to ratings on performance appraisals. An advantage of merit pay is that it makes the reward more valuable by relating it to economic conditions. Another advantage is that it provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system. If that system is appropriately designed to measure all the important job behaviors, then the merit pay is linked to the behaviors the organization desires. A drawback of merit pay is that conditions can shrink the available range of increases. It also has a long-term focus. Over an entire career, the bigger increases for top performers can grow into a major change, but viewed on a year-by-year basis, they are not much of an incentive to excel. A drawback of merit pay, from the employer's standpoint, is that it can quickly become expensive.

130.

What are the different types of pay for rewarding individual performance?

Organizations may reward individual performance with incentives such as piecework rates, standard hour plans, merit pay, individual bonuses, and sales commissions. Piecework rates: As an incentive to work efficiently, some organizations pay production workers a piecework rate, a wage based on the amount they produce. The amount paid per unit is set at a level that rewards employees for above-average production volume. Under the straight piecework plan, the employer pays the same rate per piece, no matter how much the worker produces. Under differential piece rates, the piece rate depends on the amount produced. If the worker produces more than the standard output, the piece rate is higher. If the worker produces at or below the standard, the amount paid per piece is lower. This type of incentive is most suited for very routine, standardized jobs with output that is easy to measure. Standard hour plans: Another quantity-oriented incentive for production workers is the standard hour plan, an incentive plan that pays workers extra for work done in less than a preset "standard time." They encourage employees to work as fast as they can, but not necessarily to care about the quality or customer service. Also, they succeed only if employees want the extra money more than they want to work at a pace that feels comfortable. Merit pay: Merit pay links pay increases to ratings on performance appraisals and the employee's compa-ratio, his/her pay relative to average pay. Thus, the system gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job. Advantages include the fact that rewards are made more valuable by relating them to economic conditions and that they provide a method for rewarding performance in all of the dimensions measured in the organization's performance management system. Disadvantages include the fact that they can, from the employer's standpoint, quickly become very expensive and they may be viewed by employees as unfair if superior performance ratings are based on factors other than employee ability and motivation. Performance bonuses: Like merit pay, performance bonuses reward individual performance, but bonuses are not rolled into base pay. In some cases, the bonus is a one-time reward. Bonuses can be linked to objective performance measures, rather than subjective ratings, and they allow organizations great flexibility in deciding what kinds of behavior to reward and whether such rewards will be one-time or ongoing. Sales commissions: Commissions are calculated as a percentage of sales. Some salespeople earn a commission in addition to a base salary; others earn only a commission, a pay arrangement called a straight commission plan. Paying most or all of a salesperson's 13-128 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

compensation in the form of salary frees the salesperson to focus on developing customer goodwill, while paying most or all of a salesperson's compensation in the form of commissions encourages the salesperson to focus on closing sales.

131.

Elaborate on how gainsharing can be successful as a form of group incentive.

Gainsharing is most likely to succeed when organizations provide the right conditions. Among the conditions identified, the following are among the most common: 1. Management commitment. 2. Need for change or strong commitment to continuous improvement. 3. Management acceptance and encouragement of employee input. 4. High levels of cooperation and interaction. 5. Employment security. 6. Information sharing on productivity and costs. 7. Goal setting. 8. Commitment of all involved parties to the process of change and improvement. 9. Performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives. 10. Employees who value working in groups.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-03 Identify ways to recognize group performance. Level of Difficulty: 2 Medium Topic: Gain-Sharing Plan

132.

What are group bonuses and team awards? What are their advantages and disadvantages?

Bonuses for group performance tend to be for smaller work groups. These bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output. Team awards are similar to group bonuses, but they are more likely to use a broad range of performance measures, such as cost savings, successful completion of a project, or even meeting deadlines. Both types of incentives have the advantage that they encourage group or team members to cooperate so that they can achieve their goal. However, depending on the reward system, competition among individuals may be replaced by competition among groups. Competition may be healthy in some situations, as when groups try to outdo one another in satisfying customers. On the downside, competition may also prevent necessary cooperation among groups. To avoid this, the organization should carefully set the performance goals for these incentives so that concern for costs or sales does not obscure other objectives such as quality, customer service, and ethical behavior.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-03 Identify ways to recognize group performance. Level of Difficulty: 2 Medium Topic: Group Incentives

133.

What are the implications of designing pay for organizational performance?

Many organizations offer incentive pay tied to organizational performance measures. The expectation is that employees will focus on what is best for the organization. These organization-level incentives can motivate employees to align their activities with the organization's goals. At the same time, linking incentives to the organization's profits or stock price exposes employees to a high degree of risk. Profits and stock price can soar very high very fast, but they can also fall. The result is a great deal of uncertainty about the amount of incentive pay each employee will receive in each period. Therefore, these kinds of incentive pay are likely to be most effective in organizations that emphasize growth and innovation, which tend to need employees who thrive in a risk-taking environment.

Blooms: Understand Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 2 Medium Topic: Stock Options and Profit Sharing as Incentives

134.

Explain how employee stock ownership plans differ from stock options.

Stock options give employees the right to buy a certain number of shares of stock at a specified price. In an employee stock ownership plan, the organization distributes shares of stock to its employees by placing the stock into a trust managed on the employees' behalf. Both encourage employees to focus on the success of the organization as a whole. However, stock option plans give employees the opportunity to buy stock at a price that has been previously fixed. Employees may focus so much on stock price that they lose sight of other goals, including ethical behavior. Ideally, managers would bring about an increase in stock price by adding value in terms of efficiency, innovation, and customer satisfaction. But there are other unethical ways to increase stock price. ESOPs are more common and usually have broader eligibility to a larger group of employees. They carry more risk for employees since an ESOP must invest at least 51 percent of assets in the company's stock. Problems with the company's performance therefore can take away significant value from the ESOP. Many companies set up ESOPs to hold retirement funds, so these risks directly affect employees' retirement income. Adding to the risk, funds in an ESOP are not guaranteed by the Pension Benefit Guarantee Corporation. Finally, employees sometimes use an ESOP to buy their company when it is experiencing financial problems. Still, ESOPs can be attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Employees have a right to participate in votes by shareholders (if the stock is registered on a national exchange), meaning that employees participate somewhat in corporate-level decision making. Research suggests that the benefits of ESOPs are greatest when employee participation is high.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-04 Explain how organizations link pay to their overall performance. Level of Difficulty: 2 Medium Topic: Stock Options and Profit Sharing as Incentives

135.

What is a balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

The balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay. Its purpose is to allow the organization to have a mix of measures that can be customized according to its markets, products, and objectives. The balanced scorecard combines the advantages of different incentive-pay plans and it helps employees understand the organization's goals. By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 13-05 Describe how organizations combine incentive plans in a "balanced scorecard." Level of Difficulty: 2 Medium Topic: Pay-for-Performance Systems

136.

How does allowing employees to participate in pay-related decisions affect the incentive process?

Employee participation in pay-related decisions can be part of a general move toward employee empowerment. If employees are involved in decisions about incentive pay plans and employees' eligibility for incentives, the process of creating and administering these plans can be more complex. There is also a risk that employees will make decisions that are in their interests at the expense of the organization's interests. However, employees have hands-on knowledge about the kinds of behavior that can help the organization perform well, and they can see whether individuals are displaying that behavior. Therefore, in spite of the potential risks, employee participation can contribute to the success of an incentive plan. This is especially true when monetary incentives encourage the monitoring of performance and when the organization fosters a spirit of trust and cooperation.

AACSB: Analytical Thinking Blooms: Understand 13-132 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 13-06 Summarize processes that can contribute to the success of incentive programs. Level of Difficulty: 2 Medium Topic: Steps in Designing Effective Incentive Plans

Chapter 14 Providing Employee Benefits

True / False Questions

1. Because benefits packages are more complex than pay structures, they are harder for employees to understand and appreciate. True

False

2. Tax laws generally make benefits unfavorable to employees. True

False

3. The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization. True

False

4. All U.S. employees, including federal, state, and local government employees, are covered under the Old Age, Survivors, Disability, and Health Insurance program. True

False

5. Social security benefits increase if a worker earns wages above the exempt amount. True

False

6. The funding for unemployment insurance comes from federal and state taxes on employees. True

False

7. Under the workers' compensation laws, employees are eligible to receive their regular paycheck in the event of a disability. True

False

8. The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees. True

False

9. Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses. True

False

10. Employers in the United States are legally required to provide 30 days of paid vacation to both new and existing employees every year. True

False

11. Floating holidays are standardized on an annual basis in the United States. True

False

12. For an average employee, the most common type of insurance offered as benefits is the pension program. True

False

13. Health maintenance organizations charge patients half the fee for each visit and service. True

False

14. Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums. True

False

15. Disability insurance payments are usually less than 25 percent of the employee's salary. True

False

16. A defined contribution plan guarantees a specified or fixed level of retirement income. True

False

17. According to Employee Retirement Income Security Act (ERISA), employees whose contributions are vested meet the requirements to receive a pension at retirement age. True

False

18. Employees who are parents always need child care and family leave. True

False

19. Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children. True

False

20. The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of health care benefits. True

False

21. Cafeteria-style plans increase benefits costs for employers. True

False

22. According to the Americans with Disabilities Act (ADA), employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits. True

False

23. According to the Financial Accounting Standards Board, employers fund retirement benefits on a pay-as-you-go basis. True

False

24. Employees and job applicants often have a poor idea of what benefits they have and what the market value of their benefits is. True

False

25. To increase the likelihood of employees understanding messages about benefits, employers must limit communications. True

False

Multiple Choice Questions

26. Which of the following benefits provided by employer is required by law in the United States?

A. paid vacation B. personal leave C. flextime D. Social Security contributions E. retirement savings plan

27. John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument?

A. John's competitor, Mark, gives many benefits to his employees. B. The state has introduced mandatory requirements for employee benefits. C. Benefit packages are more difficult to understand by employees than pay structures. D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state. 28. Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument?

A. Some benefits have become so common that today's employees expect them. B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans. 29. On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits.

A. 75 B. 30 C. 50 D. 15 E. 20

30. As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument?

A. Employees do not pay income taxes on most benefits they receive. B. Benefits are harder for employees to understand than pay structures. C. Employees could get a better deal if they bought their own insurance policies. D. Higher cash compensation gives employees more purchasing power. E. Different employees look for different types of benefits. 31. Which of the following is an advantage of providing benefits instead of cash compensation?

A. It is simpler to pay compensation in benefits than in cash. B. Benefits give greater control to employees over cash compensation. C. All companies that provide benefits become eligible for tax breaks by state and federal agencies. D. Younger employees place more importance on benefits than cash compensation. E. Employers can assemble creative benefits packages that give them a competitive advantage. 32. Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan?

A. unqualified retirement plan B. vested-benefit plan C. Social Security D. defined-benefit plan E. work-sharing plan

33. Which of the following is characteristic of benefits required by the Social Security Act?

A. Workers receive no benefits until they reach the full retirement age. B. Workers are compensated according to their past earnings and retirement age. C. Workers receive increased benefits when they earn more than the exempt amount. D. The cost of the program is borne entirely by the employers, who pay a payroll tax. E. The program benefits persons who are financially dependent on current workers. 34. Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true?

A. he will receive full retirement benefits B. he will receive retirement benefits only according to his earnings history C. he will not be eligible for worker's compensation D. he will receive benefits at a permanently reduced level E. his exempt amount limits will be lifted 35. Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument?

A. Unemployment insurance provides employers a competitive advantage in the talent market. B. The amount of an employer's unemployment insurance tax depends on the number of employees. C. Federal and state taxes paid by employers fund most of unemployment insurance. D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

36. Which of the following is a true of unemployment insurance?

A. It provides payments to offset lost income during voluntary unemployment. B. Most funding for unemployment insurance is provided by employees. C. Unfavorable experience ratings of employers lead to higher premiums. D. Costs for unemployment insurance are standard across the country. E. It is a voluntary program based on number of employers in a specific state. 37. In which of the following situations will workers become eligible for unemployment benefits?

A. when they have worked only for a few days B. when they are out of work because they are sick C. when they are discharged because of willful misconduct D. when they are actively seeking work E. when they are out of work because of a labor dispute 38. Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits?

A. Both of the programs are funded by the federal taxes on employees. B. Both of the programs' costs depend on the organization's experience ratings. C. Both of the programs have the same funding costs across the states. D. Both of the programs replace the same percentage of an individual's previous earnings. E. Both of the programs provide the same amount of compensation to the employees.

39. Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born.

A. 12 days B. 56 days C. 12 weeks D. 30 weeks E. 11 months 40. Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave?

A. They should be working for an organization with 50 or more employees within a 75-mile radius. B. They should have worked at least 15 hours per week. C. They should have worked for the employer for more than 5 years. D. They should belong to the top 10 percent of highest paid executives. E. They should be working for an organization with at least 100 employees. 41. Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do?

A. He should direct the employee to use the Family and Medical Leave Act. B. He should forbid the employee from taking time off for jury duty. C. He should ask the employee to use her sick leave for jury duty. D. He should ask the employee to use her vacation time for jury duty. E. He should establish, and then apply, policies for other situations requiring time off.

42. In the United States, what is the legal requirement for giving employees paid vacation?

A. Paid vacation in the United States must take place on specified days in addition to holidays. B. In the United States, employers must give the amount of paid vacation that makes economic sense. C. In the United States, employers must give employees 10 paid vacation days each year. D. U.S. law requires that new employees receive 25 or 30 days off. E. U.S. law lets employers decide on paid time off; there is no minimum. 43. Contrary to Western European countries, the United States has no legal requirements regarding employee _______.

A. paid vacation time B. Social Security benefits C. unemployment insurance D. pension plans E. 401k contributions 44. Sick leave programs

A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness. D. are mandatory forms of unpaid leave. E. are forms of floating holidays.

45. In the U.S., the amount of sick leave given to employees is often based on _____.

A. length of service B. position within the company C. age D. educational background E. prior job experience 46. Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?

A. vacation and sick leave do not make economic sense B. most companies offer this arrangement C. the company won't have to set a schedule for holidays D. the company won't have to pay for the time the employees take off E. employees have more flexibility and privacy for their personal matters 47. Kelsey, the engineering manager at Tek Solutions, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Tek Solutions' policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Kelsey?

A. her leave is based on length of service, so it accumulates over time B. her time off is an example of personal days C. the Family and Medical Leave Act requires the employer to grant unpaid time off D. she uses her paid time off for the leave E. she retains her seniority and benefits during the leave

48. Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument?

A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than those of individual policies. C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan. 49. Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?

A. managed care B. health maintenance organization C. employee wellness D. flexible spending account E. consumer-driven health plan 50. Rita, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs?

A. a managed care plan B. a health maintenance organization C. a preferred provider organization D. an employee wellness program E. a flexible spending account

51. Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees?

A. flexible spending account B. preferred provider organization C. health maintenance organization D. consumer-driven health plan E. managed care plan 52. Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference?

A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. The money in the flexible spending accounts must meet IRS requirements. D. At the end of each year, money remaining in a flexible spending account reverts to the employer. E. Contributions to a flexible spending account may not exceed $5,000 per year. 53. Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using?

A. managed care B. health maintenance organization C. preferred provider organization D. flexible health plan E. consumer-driven health plan

54. Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Ron has introduced a(n) _____.

A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program 55. Which of the following is true of short-term disability insurance?

A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time. 56. Which of the following is true about disability insurance?

A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are less than that of long-term plans. C. It pays about 50% to 70% of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.

57. During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement?

A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage. 58. Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan?

A. the state where the person was employed during the retirement year B. number of dependents C. employees' years of service, age, and earnings level D. average earning during the last 20 years of employment E. number of unused leaves at the end of the retirement year 59. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

A. the Consolidated Omnibus Budget Reconciliation Act (COBRA) B. the Age Discrimination in Employment Act (ADEA) C. the American Disabilities Act (ADA) D. the Fair Labor Standards Act (FLSA) E. the Employee Retirement Income Security Act (ERISA)

60. Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation?

A. Old Thyme must give the employees the option to sell their stock in the company. B. The employees will receive payouts from their 401(k) plans. C. The employees will receive a share of profits as part of the company's ESOP. D. Because the plan was underfunded, the retirees will no longer receive benefits. E. The Pension Benefit Guarantee Corporation will provide them with a basic benefit. 61. Which of the following is an example of a defined-contribution pension plan?

A. consumer-driven pension plan B. money purchase plan C. cost-sharing plan D. flexible spending account plan E. unfunded PBGC plan 62. Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea?

A. The plan makes employees part-owners of the company. B. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. C. Employees can buy an annuity with the contributions when they retire. D. The amount employees contribute is not taxed when they contribute it. E. Contributing a share of profits gives the company more flexibility as it establishes itself.

63. Under a 401(k) plan, the _____ is responsible for choosing specific investments.

A. employee B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer 64. Which of the following is true of a cash balance plan?

A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans. 65. Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans?

A. organizations with many experienced employees B. organizations with a few skilled employees C. organizations with many young employees D. organizations with many retired employees E. organizations with highly skilled, young employees

66. Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees?

A. all the employees are under the age of 30 B. the nature of work demands college graduates C. the firm employs experienced, older people D. the firm employs young and creative minds E. the firm mainly employs freelancers 67. What are vesting rights?

A. the ability of retired employees to retain their seniority if they return to work at their former employer B. government commitment to provide retirement benefits to all U.S. workers C. the designation that retired workers will receive cost-of-living increases as part of their monthly pension checks D. the guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer E. the ability of younger workers to move their retirement savings to another account after leaving a specific employer 68. A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution

69. FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave?

A. Only 13% of workers currently have paid family leave. B. Most industrialized nations provide this type of employee benefit. C. Management doesn't want exhausted workers in the office. D. These benefits are required by the Family and Medical Leave Act. E. It makes the company more attractive to workers who are in high demand. 70. Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company?

A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan. 71. Which of the following is true of child care?

A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.

72. Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented?

A. 529 savings plan B. 401k savings plan C. 207 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan 73. Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include?

A. a 529 savings plan to save money for long-term care facilities B. providing professional caregivers and nursing care C. vacation days and sick leave D. paid time off and part-time jobs for the parents E. flexible hours and decision support from experts in geriatric care 74. Which of the following is a function of elder care benefits offered by organizations?

A. direct financial assistance B. tax exemptions on medical bills of the dependent elders C. setting up elderly care facilities close to the workplace D. information, referrals, and support E. providing vouchers and discounts to help employees access the existing elderly care facilities

75. Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans 76. James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so?

A. tuition reimbursement program B. employee wellness program C. worker's compensation program D. short-term vesting program E. mature education program 77. Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an onsite massage therapist. In what way are these benefits most likely to support the company's business goals?

A. by meeting the standards of most U.S. businesses B. by making the workplace more family-friendly C. by protecting the company against charges of employment discrimination D. by complying with legal requirements for benefits E. by helping employees cope with demanding, high-stress jobs

78. According to your text, a logical place to begin selecting employee benefits is to establish _____ for the benefits package.

A. a basic hierarchy B. limits C. costs D. goals E. objectives 79. Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement?

A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. A health insurance rate is higher than a general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating. 80. Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?

A. Employees expect to receive benefits that are legally required and widely available. B. Software is the only method employees will accept to help them choose their benefits. C. The costs of turnover at Isaiah's company are high. D. The employees only value medical insurance. E. Employees have very different opinions about what they value.

81. Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits?

A. women of childbearing age B. disabled workers C. older people D. young people E. unmarried people 82. Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans. 83. Which of the following is an advantage of cafeteria-style plans?

A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. These types of plans have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

84. Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so?

A. He will save time by using software packages to offer benefits packages. B. He will avoid the cost of providing employees with benefits they don't value. C. Having a non-standardized plan will make Ravi's company seem cutting-edge. D. Employees of the company, including Ravi, will be given more vacation days. E. Costs will be easy to estimate since all benefits options will be taken into consideration. 85. Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteriastyle benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage?

A. opt for communication methods that do not stress the value of each benefit B. avoid standardized plans available for employers opting for cafeteria-style benefits C. use software packages to design the plan D. discourage employees from choosing lower-cost options E. encourage employees to choose benefits they need the most 86. How do cafeteria-style plans increase costs for employers?

A. Employers pay much higher premiums for an HMO than a preferred health care plan. B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. Employers bear the cost of providing employees with benefits they do not value.

87. Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?

A. accept the high cost and look for other areas in which to reduce spending B. replace the workers' compensation insurance with disability insurance C. shop for a better deal on workers' compensation insurance D. cancel the workers' compensation insurance E. improve safety to lower the company's experience rating 88. Which of the following actions help organizations reduce the cost of health care benefits offered to employees?

A. increasing the amount employers pay for deductibles and coinsurance B. selecting traditional health insurance over HMOs and PPOs as a preferred option C. expanding the coverage for different types of claims D. paying some or all of the difference in cost between an HMO or PPO plan E. shifting from traditional health insurance plans to PPOs and CDHPs 89. Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

A. using more independent contractors rather than hiring additional employees B. limiting the coverage on life insurance based upon an employee's age C. using more full-time rather than part-time employees D. recruiting new employees instead of demanding overtime from existing employees E. substituting HMO and PPO plans with traditional health insurance plans

90. _____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

A. The Internal Revenue Service B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics 91. Which of the following is an advantage of a qualified plan in retirement benefits?

A. immediate tax deductions for the funds employees contribute to the plan B. taxable earnings on the money in the retirement fund C. tax-free withdrawals for highly compensated employees D. exemption of contribution from employees E. a retirement plan that provides benefits exclusively to its owners and top managers 92. Which of the following must be true for a pension plan to be deemed as a qualified plan?

A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

93. In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief?

A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will triple the costs. E. Pension plans are determined exclusively by state and federal laws. 94. Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor?

A. Benefits apply whether a spouse is of the same or the opposite sex. B. Females may not be required to contribute more than men to defined-benefit plans. C. Fatherhood is a protected category in the antidiscrimination laws. D. Mario has not yet used all of his sick leave. E. Equal employment opportunity requires that access to benefits not be limited by sex. 95. Which of the following is legally required by an organization while offering early-retirement incentives?

A. setting an age at which retirement benefits stop growing B. asking female employees to pay more to defined-benefit plans C. ensuring there is no coercion used to force employees to retire D. asking employees to sign compulsory waiver under ERISA E. providing employees no more than 48 hours to make an early retirement decision

96. Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

A. Inform employees that they may consult with a lawyer before signing. B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement. 97. Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges?

A. an employer who switches to a risk-based policy after hiring a disabled employee B. an employer who sets guidelines for using waivers C. an employer who discriminates against workers over age 40 in providing pay or benefits D. an employer who has risk-based insurance and then hires an employee with a disability E. an employer who does not have risk-based insurance 98. An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?

A. The organization has a risk-based insurance in place before recruiting Rick. B. The organization plans to stop Rick's benefits when he reaches the age of 50. C. The organization switched to a risk-based policy after hiring Rick. D. The organization gave Rick access to the same health insurance that is provided to the other employees. E. The organization does not have a risk-based insurance.

99. Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement. 100.Organizations must communicate benefits information to employees so that they will

A. be motivated to work harder. B. choose the least-expensive benefits package. C. be legally liable in an employee lawsuit. D. be informed of future career opportunities within the organization. E. appreciate the value of their benefits. 101.Which of the following is true of employee benefits?

A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees have a hard time understanding the cost and value of their benefits. C. It is up to employees to determine the cost and value of their benefits. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.

102.Which of the following actions related to benefits can best give employers an advantage in the labor market?

A. teaching employees about the value of their benefits B. limiting benefits to a few simple options C. explaining complex benefits with sophisticated language D. keeping messages about benefits basic and uncreative E. simplifying messages about benefits by delivering them through one medium 103.Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation?

A. accept that it is difficult for employees to understand the value of insurance B. save money by reducing printed messages about health insurance C. downplay the role of health insurance in the benefits package, relative to other benefits D. discontinue health insurance, since it is a source of dissatisfaction E. introduce software that will guide employees to the insurance option for their needs 104.Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees?

A. issue a revised employee handbook to new employees B. mention the changes to a few employees and hope they spread the word C. say little about the changes D. ask the CEO to say a few words about the changes at the company holiday party E. set up Q&A sessions with each department to discuss the changes

105.Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion?

A. It lowered the cost of communicating with employees, because now the company doesn't need to use printed media. B. It lowered the cost of providing benefits, because employees know what to sign up for. C. It increased employees' commitment to saving for retirement, so they won't need Social Security. D. It increased employees' happiness and job commitment, so they are more fun to be around. E. It increased employees' commitment and satisfaction, so they contribute more to the company.

Essay Questions

106.What is the importance of benefits as a part of employee compensation?

107.What are the objectives of the unemployment insurance program established by the Social Security Act of 1935? How is this program funded?

108.Discuss the Family and Medical Leave Act (FMLA) of 1993, including its eligibility requirements, scope of coverage, and effectiveness.

109.What are sick leave programs? What are the pros and cons of allowing employees to accumulate sick leave year after year?

110.What are HMOs and PPOs? How do they differ from each other and from traditional health care providers?

111.How are cash balance plans different from defined-benefit and defined-contribution plans?

112.What are family-friendly benefits? Explain the common types of family-friendly benefits.

113.What are flexible benefit plans? What are their advantages and disadvantages?

114.Discuss the role of the Age Discrimination in Employment Act (ADEA) in employee benefits packages.

115.Why is it essential for organizations to communicate the nature and value of benefits to their employees?

116.Discuss several strategies the HR department might use to communicate the type and value of employee benefits.

Chapter 14 Providing Employee Benefits Answer Key

True / False Questions

Because benefits packages are more complex than pay structures, they are harder for employees to understand and appreciate. TRUE

Benefits packages are more complex than pay structures, so benefits are harder for employees to understand and appreciate.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-01 Discuss the importance of benefits as a part of employee compensation. Level of Difficulty: 1 Easy Topic: Overview of Employee Benefits

Tax laws generally make benefits unfavorable to employees. FALSE

Tax laws can make benefits favorable to employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-01 Discuss the importance of benefits as a part of employee compensation. Level of Difficulty: 2 Medium Topic: Overview of Employee Benefits

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization. TRUE

Some employers assemble creative benefits packages that set them apart in the competition for talent.

All U.S. employees, including federal, state, and local government employees, are covered under the Old Age, Survivors, Disability, and Health Insurance program. FALSE

The Old Age, Survivors, Disability, and Health Insurance (OASDHI) program covers over 90 percent of U.S. employees. The main exceptions are railroad and federal, state, and local government employees, who often have their own plans.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 1 Easy Topic: Employee Benefits Required by Law

Social security benefits increase if a worker earns wages above the exempt amount. FALSE

Social security benefits may be reduced if the worker is still earning wages above a maximum, called the exempt amount.

The funding for unemployment insurance comes from federal and state taxes on employees. FALSE

Most of the funding for unemployment insurance comes from federal and state taxes on employers.

Under the workers' compensation laws, employees are eligible to receive their regular paycheck in the event of a disability. FALSE

The amount of income varies from state to state but is typically two-thirds of the worker's earnings before the disability.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand 14-38 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 2 Medium Topic: Employee Benefits Required by Law

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees. TRUE

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses. FALSE

Benefits provided to domestic partners do not have the same tax advantages as benefits provided to spouses. The partner's benefits are taxed as wages of the employee receiving the benefits.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-03 Describe the most common forms of paid leave. Level of Difficulty: 1 Easy Topic: Overview of Employee Benefits

10.

Employers in the United States are legally required to provide 30 days of paid vacation to both new and existing employees every year. FALSE

Western European countries require a minimum number of paid vacation days, with new employees receiving 25 or 30 days off in many countries. The United States, in contrast, has no such legal requirement.

11.

Floating holidays are standardized on an annual basis in the United States. FALSE

Floating holidays are paid holidays that vary from year to year. The organization may schedule floating holidays so that they extend a Tuesday or Thursday holiday into a long weekend. Organizations may also give employees discretion over the scheduling of floating holidays.

12.

For an average employee, the most common type of insurance offered as benefits is the pension program. FALSE

The most common types of insurance offered as employee benefits are medical, life, and disability insurance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-04 Identify the kinds of insurance benefits offered by employers. Level of Difficulty: 1 Easy Topic: Insurance Plans

13.

Health maintenance organizations charge patients half the fee for each visit and service. FALSE

A health maintenance organization (HMO) is a health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis.

14.

Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums. TRUE

Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums.

15.

Disability insurance payments are usually less than 25 percent of the employee's salary. FALSE

Disability payments are a percentage of the employee's salary—typically 50 to 70 percent.

16.

A defined contribution plan guarantees a specified or fixed level of retirement income. FALSE

Defined contribution plans set up an individual account for each employee and specify the size of the investment into that account, rather than the amount to be paid out upon retirement. The amount the retiree receives will depend on the account's performance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 14-42 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 1 Easy Topic: Retirement and Pension Plans

17.

According to Employee Retirement Income Security Act (ERISA), employees whose contributions are vested meet the requirements to receive a pension at retirement age. TRUE

Employees whose contributions are vested have met the requirements (enrolling and length of service) to receive a pension at retirement age, regardless of whether they remained with the employer until that time.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 1 Easy Topic: Retirement and Pension Plans

18.

Employees who are parents always need child care and family leave. FALSE

As workers' children grow up, their needs shift from maternity leave and child care to college tuition.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 2 Medium Topic: Various Types of Flexible Benefits

19.

Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children. FALSE

To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills, many organizations offer tuition reimbursement programs, which cover tuition and related expenses for courses that are relevant to the employee's current job or future career at the organization.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 1 Easy Topic: Major Provisions of Employee Benefit Plans

20.

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of health care benefits. TRUE

Among companies that do set goals, the most common objectives include controlling the cost of health care benefits and retaining employees. The first goal explains the growing use of wellness programs and consumer-directed health plans.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 2 Medium Topic: Cost Containment Strategies Regarding Employee Benefits

21.

Cafeteria-style plans increase benefits costs for employers. TRUE

Employee selection of benefits, in cafeteria-selection plans, will increase rather than decrease costs because employees will select the kinds of benefits they expect to need the most.

22.

According to the Americans with Disabilities Act (ADA), employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits. FALSE

The Age Discrimination in Employment Act (ADEA) requires employers to take care not to discriminate against workers over age 40 in providing pay or benefits. Under the Americans with Disabilities Act (ADA), employees with disabilities must have "equal access to whatever health insurance coverage the employer provides other employees."

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 2 Medium Topic: Equal Employment Opportunity

23.

According to the Financial Accounting Standards Board, employers fund retirement benefits on a pay-as-you-go basis. FALSE

According to the Financial Accounting Standards Board, employers must set aside the funds they expect to need for benefits to be paid after retirement, rather than funding those benefits on a pay-as-you-go basis.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 1 Easy Topic: Retirement and Pension Plans

24.

Employees and job applicants often have a poor idea of what benefits they have and what the market value of their benefits is. TRUE

In practice, it is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 1 Easy Topic: Communicating Benefits to Employees

25.

To increase the likelihood of employees understanding messages about benefits, employers must limit communications. FALSE

Employers have many options for communicating information about benefits. To increase the likelihood that employees will receive and understand the messages, employers can combine several media, such as brochures, question-and-answer meetings, intranet pages, memos, and e-mail.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 2 Medium Topic: Communicating Benefits to Employees

Multiple Choice Questions

26.

Which of the following benefits provided by employer is required by law in the United States?

A. paid vacation B. personal leave C. flextime D. Social Security contributions

E. retirement savings plan Social Security contributions, pensions, and retirement savings plans help employees prepare for their retirement, and insurance plans help to protect employees from unexpected costs such as hospital bills. This important role of benefits is one reason that benefits are subject to government regulation. Some benefits, such as Social Security contributions, are required by law.

27.

John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument?

D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state. Benefits packages are more complex than pay structures, so benefits are harder for employees to understand and appreciate. Even if employers spend large sums on benefits, if employees do not understand how to use them or why they are valuable, the cost of the benefits will be largely wasted.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-01 Discuss the importance of benefits as a part of employee compensation. Level of Difficulty: 3 Hard Topic: Overview of Employee Benefits

28.

Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument?

A. Some benefits have become so common that today's employees expect them.

B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans. Even though many kinds of benefits are not required by law, they have become so common that today's employees expect them. Hence, Steve needs to let George know that their company will lose its competitive edge if it does not provide retirement plans to all its employees.

29.

On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits.

A. 75 B. 30

C. 50 D. 15 E. 20 Like other forms of compensation, benefits impose significant costs. On average, out of every dollar spent on compensation, more than 30 cents goes to benefits.

30.

As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument?

A. Employees do not pay income taxes on most benefits they receive.

B. Benefits are harder for employees to understand than pay structures. C. Employees could get a better deal if they bought their own insurance policies. D. Higher cash compensation gives employees more purchasing power. E. Different employees look for different types of benefits. Tax laws can make benefits more favorable to employees than cash compensation. For example, employees do not pay income taxes on most benefits they receive, but they pay income taxes on cash compensation.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-01 Discuss the importance of benefits as a part of employee compensation. Level of Difficulty: 3 Hard Topic: Overview of Employee Benefits

31.

Which of the following is an advantage of providing benefits instead of cash compensation?

advantage. One advantage of providing benefits instead of cash compensation is that providing benefits allows employers to creatively assemble benefit packages to set them apart in the competition for talent. Also, laws require employers to provide certain benefits, such as contributions to Social Security and unemployment insurance.

32.

Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan?

A. unqualified retirement plan B. vested-benefit plan C. Social Security

D. defined-benefit plan E. work-sharing plan Ryan can get assistance from Social Security. Social Security, formally known as Old Age, Survivors, Disability, and Health Insurance (OASDHI), provides health insurance for disabled persons.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 3 Hard Topic: Employee Benefits Required by Law

33.

Which of the following is characteristic of benefits required by the Social Security Act?

A. Workers receive no benefits until they reach the full retirement age. B. Workers are compensated according to their past earnings and retirement age.

C. Workers receive increased benefits when they earn more than the exempt amount. D. The cost of the program is borne entirely by the employers, who pay a payroll tax. E. The program benefits persons who are financially dependent on current workers. Under the Social Security program, workers who meet eligibility requirements receive the retirement benefits according to their age and earnings history. If they elect to begin receiving benefits at full retirement age, they can receive full benefits, or if they elect to begin receiving benefits at age 62, they receive benefits at a permanently reduced level.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 2 Medium Topic: Employee Benefits Required by Law

34.

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true?

E. his exempt amount limits will be lifted Workers who meet eligibility requirements receive the retirement benefits according to their age and earnings history. If they elect to begin receiving benefits at full retirement age, they can receive full benefits, or if they elect to begin receiving benefits at age 62, they receive benefits at a permanently reduced level.

35.

Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument?

D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment. Most of the funding for unemployment insurance comes from federal and state taxes on employers. Employers who pay their state taxes currently pay a federal tax that after tax credits generally equals 0.6% of the first $7,000 of each employee's wages. The state tax rate varies from less than 1% to more than 18%, and the taxable wage base ranges from $7,000 to $44,000, so the amount paid depends a great deal on where the company is located. Also, some states charge new employers whatever rate is the average for their industry, so the amount of tax paid in those states also depends on the type of business.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 3 Hard Topic: Employee Benefits Required by Law

36.

Which of the following is a true of unemployment insurance?

D. Costs for unemployment insurance are standard across the country. E. It is a voluntary program based on number of employers in a specific state. No state imposes the same unemployment insurance tax rate on every employer in the state. The size of the unemployment insurance tax imposed on each employer depends on the employer's experience rating; unfavorable experience ratings lead to higher premiums.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 2 Medium Topic: Employee Benefits Required by Law

37.

In which of the following situations will workers become eligible for unemployment benefits?

A. when they have worked only for a few days B. when they are out of work because they are sick C. when they are discharged because of willful misconduct D. when they are actively seeking work

E. when they are out of work because of a labor dispute To receive benefits, workers must meet four conditions: They must meet requirements demonstrating they had been employed; they are available for work; they are actively seeking work; and they were not discharged for cause, did not quit voluntarily, and are not out of work because of a labor dispute.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-02 Summarize the types of employee benefits required by law. 14-56 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Employee Benefits Required by Law

38.

Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits?

A. Both of the programs are funded by the federal taxes on employees. B. Both of the programs' costs depend on the organization's experience ratings.

C. Both of the programs have the same funding costs across the states. D. Both of the programs replace the same percentage of an individual's previous earnings. E. Both of the programs provide the same amount of compensation to the employees. The size of the unemployment insurance tax imposed on each employer depends on the employer's experience rating. As with unemployment insurance, unfavorable experience ratings lead to higher premiums for workers' compensation.

39.

Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born.

A. 12 days B. 56 days C. 12 weeks

D. 30 weeks E. 11 months In the United States, unpaid leave is required by law for certain family needs. Specifically, the Family and Medical Leave Act (FMLA) of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave after childbirth or adoption.

40.

Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave?

A. They should be working for an organization with 50 or more employees within a 75-mile

radius. B. They should have worked at least 15 hours per week. C. They should have worked for the employer for more than 5 years. D. They should belong to the top 10 percent of highest paid executives. E. They should be working for an organization with at least 100 employees. The Family and Medical Leave Act (FMLA) of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill child, spouse, or parent, for an employee's own serious illness, or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty.

41.

Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do?

The major categories of paid leave are vacations, holidays, and sick leave. Employers also should establish policies for other situations that may require time off. Many organizations provide paid leave for jury duty, funerals of family members, and military duty.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-03 Describe the most common forms of paid leave. Level of Difficulty: 2 Medium Topic: Major Provisions of Employee Benefit Plans

42.

In the United States, what is the legal requirement for giving employees paid vacation?

At first blush, paid vacation, holidays, sick leave, and other paid leave may not seem to make economic sense. This may be the reason Western European countries require a minimum number of paid vacation days, with new employees receiving 25 or 30 days off in many countries. The United States, in contrast, has no such legal requirement. It is up to U.S. employers to decide whether paid leave has a payoff in recruiting and retaining employees.

43.

Contrary to Western European countries, the United States has no legal requirements regarding employee _______.

A. paid vacation time

B. Social Security benefits C. unemployment insurance D. pension plans E. 401k contributions The United States, in contrast to Western European countries, has no legal requirement regarding employees' paid vacation time.

44.

Sick leave programs

A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness.

D. are mandatory forms of unpaid leave. E. are forms of floating holidays. Sick leave programs pay employees for days not worked due to illness. Sick leaves are optional benefits provided by employers.

45.

In the U.S., the amount of sick leave given to employees is often based on _____.

A. length of service

B. position within the company C. age D. educational background E. prior job experience Sick leave programs pay employees for days not worked because of illness. The amount of sick leave is often based on length of service, so that it accumulates over time—for example, one day added to sick leave for each month of service.

46.

Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?

The most flexible approach to time off is to grant each employee a bank of paid time off, in which the employer pools personal days, sick days, and vacation days for employees to use as they choose. Paid time off avoids awkwardness for employees who don't feel well or have urgent personal matters but have used up their time off for such needs. With these advantages in mind, one-quarter to one-half of employers have reported offering PTO benefits.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-03 Describe the most common forms of paid leave. Level of Difficulty: 3 Hard Topic: Major Provisions of Employee Benefit Plans

47.

Kelsey, the engineering manager at Tek Solutions, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Tek Solutions' policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Kelsey?

Employers should establish policies for leaves without pay—for example, leaves of absence to pursue nonwork goals or to meet family needs. Unpaid leave is an employee benefit because the employee usually retains seniority and benefits during the leave.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-03 Describe the most common forms of paid leave. Level of Difficulty: 2 Medium Topic: Major Provisions of Employee Benefit Plans

48.

Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument?

A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than those of individual policies.

C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan. Rates for group insurance are typically lower than for individual policies. As a result, Kelly would save money by choosing a group insurance policy over an individual insurance policy.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-04 Identify the kinds of insurance benefits offered by employers. Level of Difficulty: 3 Hard Topic: Insurance Plans

49.

Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?

A. managed care

B. health maintenance organization C. employee wellness D. flexible spending account E. consumer-driven health plan With managed care, patients may be required to obtain approval before hospital admissions, and the insurer may require alternatives to hospital stays—for example, outpatient surgery or home health care.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-04 Identify the kinds of insurance benefits offered by employers. Level of Difficulty: 2 Medium Topic: Insurance Plans

50.

Rita, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs?

A. a managed care plan B. a health maintenance organization C. a preferred provider organization

D. an employee wellness program E. a flexible spending account A preferred provider organization (PPO) is a health care plan that contracts with health care professionals to provide services at a reduced fee. Unlike a health maintenance organization (HMO), which requires patients to receive their medical care from the HMO's health care professionals, the PPO often does not require employees to use providers in the network. The PPO will also pay a larger share of the cost of services from PPO providers. If Rita chooses a PPO, she will be able to choose the health care provider of her choice, even if it may cost her more money to do so.

51.

Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees?

A. flexible spending account B. preferred provider organization

C. health maintenance organization D. consumer-driven health plan E. managed care plan A preferred provider organization (PPO) is a health care plan that contracts with health care professionals to provide services at a reduced fee.

52.

Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference?

C. The money in the flexible spending accounts must meet IRS requirements. D. At the end of each year, money remaining in a flexible spending account reverts to the employer. E. Contributions to a flexible spending account may not exceed $5,000 per year. The major advantage of flexible spending accounts is that the money in the account is not taxed, so employees will have more take-home pay.

53.

Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using?

A. managed care B. health maintenance organization C. preferred provider organization D. flexible health plan E. consumer-driven health plan

Consumer-driven health plans (CDHPs) are intended to provide health coverage in a way that gets employees involved as consumers making decisions to lower costs. CDHP typically brings together three elements: insurance with a high deductible, a medical savings account in which the employer contributes to employee-controlled accounts for paying expenses below the deductible, and health education aimed at helping employees improve their health and thus lower their need for health care.

54.

Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Ron has introduced a(n) _____.

A. employee wellness program

B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program An employee wellness program (EWP) is a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks. Typically an EWP aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity, by encouraging preventive measures such as exercise and good nutrition.

55.

Which of the following is true of short-term disability insurance?

E. It is only provided to those individuals who work part time. Short-term disability insurance pays a portion of a disabled employee's salary as benefits to the employee for six months or less.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-04 Identify the kinds of insurance benefits offered by employers. Level of Difficulty: 2 Medium Topic: Insurance Plans

56.

Which of the following is true about disability insurance?

D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled. Disability payments are a percentage of the employee's salary—typically 50% to 70%.

57.

During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement?

affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage. Payments under short-term disability plans may be higher, but the policy sets a maximum amount that may be paid each month. Because its limits make it more affordable, short-term disability coverage is offered by more employers.

58.

Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan?

A. the state where the person was employed during the retirement year B. number of dependents C. employees' years of service, age, and earnings level

D. average earning during the last 20 years of employment E. number of unused leaves at the end of the retirement year Usually the amount of defined benefit is calculated for each employee based on the employee's years of service, age, and earnings level.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 2 Medium Topic: Retirement and Pension Plans

59.

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

The Employee Retirement Income Security Act (ERISA) is a federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-05 Define the types of retirement plans offered by employers. 14-75 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Retirement and Pension Plans

60.

Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation?

The Pension Benefit Guarantee Corporation is the federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties. To fund the PBGC, employers must make annual contributions at a flat rate per participant in a defined-benefit plan.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 2 Medium Topic: Retirement and Pension Plans

61.

Which of the following is an example of a defined-contribution pension plan?

A. consumer-driven pension plan B. money purchase plan

C. cost-sharing plan D. flexible spending account plan E. unfunded PBGC plan Many kinds of defined-contribution plans are available, including money purchase plan; profitsharing and employee stock ownership plans; and section 401(k) plans. In a money purchase plan, the employer specifies a level of annual contribution (for example, 10% of salary). The contributions are invested, and when the employee retires, he or she is entitled to receive the amount of the contributions plus the investment earnings.

62.

Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea?

Incentive pay may take the form of profit sharing and employee stock ownership plans. These payments may be set up so that the money goes into retirement plans. By defining its contributions in terms of stock or a share of profits, the organization has more flexibility to contribute less dollar value in lean years and more in good years.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 3 Hard Topic: Retirement and Pension Plans

63.

Under a 401(k) plan, the _____ is responsible for choosing specific investments.

A. employee

B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer The defined-contribution plans, including the 401(k) plan, free employers from the risks that investments will not perform as well as expected. They put the responsibility for wise investing squarely on the shoulders of each employee.

64.

Which of the following is true of a cash balance plan?

A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury

bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans. The money in a cash balance plan earns interest according to a predetermined rate, such as the rate paid on U.S. Treasury bills.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-05 Define the types of retirement plans offered by employers. 14-79 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: Retirement and Pension Plans

65.

Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans?

A. organizations with many experienced employees

B. organizations with a few skilled employees C. organizations with many young employees D. organizations with many retired employees E. organizations with highly skilled, young employees For an organization with many experienced employees, switching from a defined-benefit plan can produce great savings in pension benefits.

66.

Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees?

A. all the employees are under the age of 30 B. the nature of work demands college graduates C. the firm employs experienced, older people

D. the firm employs young and creative minds E. the firm mainly employs freelancers A defined-benefit plan guarantees a specified level of retirement income, and is thus most generous to older employees with many years of service. In contrast cash balance plans are most generous to young employees who will have many years ahead in which to earn interest.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 3 Hard Topic: Retirement and Pension Plans

67.

What are vesting rights?

regardless of whether they stay with the employer E. the ability of younger workers to move their retirement savings to another account after leaving a specific employer ERISA guarantees employees that when they become participants in a pension plan and work a specified number of years they earn a right to a pension upon retirement. These rights are called vesting rights. Employees whose contributions are vested have met the requirements (enrolling and length of service) to receive a pension at retirement age, regardless of whether they remained with the employer until that time.

68.

A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

A. top-heavy

B. multiemployer C. special draw rights D. deferred E. defined-contribution Employers may vest employees more quickly if they wish. Two less-common situations have different vesting requirements. One is a "top-heavy" pension plan, meaning pension benefits for key employees (such as highly paid top managers) exceed a government-specified share of total pension benefits.

69.

FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave?

Federal law requires 12 weeks of unpaid leave. Companies may choose to offer more generous leave policies, and four states have requirements for paid family leave. Tech companies, which compete in a tight labor market, are among the leaders in offering paid maternity and paternity leave.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 3 Hard Topic: Major Provisions of Employee Benefit Plans

70.

Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company?

A. The child care provided by the company is at the lowest level of involvement.

B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan. The lowest level of involvement is for the organization to supply and help employees collect information about the cost and quality of available child care.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 3 Hard Topic: Major Provisions of Employee Benefit Plans

71.

Which of the following is true of child care?

C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan. Child care benefits may take several forms, requiring different levels of organizational involvement. At the highest level of involvement, the employer provides child care at or near the work site. Staffing a child care facility is costly and involves important liability concerns.

72.

Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented?

A. 529 savings plan

B. 401k savings plan C. 207 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan As workers' children grow up, their needs shift from maternity leave and child care to college tuition. Some organizations have supported this concern by sponsoring tax-favored 529 savings plans. These plans, named after the section of the Internal Revenue Code that regulates them, lets parents and other family members defer taxes on the earnings of their deposits into the 529 account.

73.

Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include?

Responsibilities such as providing assistance to elderly relatives, paying for professional caregivers, and locating services can be expensive, time consuming, and exhausting, often distracting employees from their work roles. In response, many employers have added elder care benefits. These programs often started by offering employees information and referrals. More recent enhancements of elder care benefits include referrals to decision support from experts in geriatric care, insurance, and the law, as well as flexible hours and paid time off.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 3 Hard Topic: Various Types of Flexible Benefits

74.

Which of the following is a function of elder care benefits offered by organizations?

A. direct financial assistance B. tax exemptions on medical bills of the dependent elders C. setting up elderly care facilities close to the workplace D. information, referrals, and support

E. providing vouchers and discounts to help employees access the existing elderly care facilities Elder care benefit benefits typically emphasize information, referrals, and support, rather than direct financial assistance.

75.

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

A. tuition reimbursement programs

B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills, many organizations offer tuition reimbursement programs.

Topic: Major Provisions of Employee Benefit Plans

76.

James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so?

A. tuition reimbursement program

B. employee wellness program C. worker's compensation program D. short-term vesting program E. mature education program To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills, many organizations offer tuition reimbursement programs. A typical program covers tuition and related expenses for courses that are relevant to the employee's current job or future career at the organization.

77.

Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

Especially for demanding, high-stress jobs, organizations may look for benefits that help employees put in the necessary long hours and alleviate stress. Recreational activities provide for social interaction as well as physical activity.

78.

According to your text, a logical place to begin selecting employee benefits is to establish _____ for the benefits package.

A. a basic hierarchy B. limits C. costs D. goals E. objectives

A logical place to begin selecting employee benefits is to establish objectives for the benefits package. This helps an organization select the most effective benefits and monitor whether the benefits are doing what they should.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 1 Easy Topic: Overview of Employee Benefits

79.

Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement?

With regard to value, medical insurance is a high-value benefit because employees usually realize that surgery or a major illness can be financially devastating.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 3 Hard Topic: Overview of Employee Benefits

80.

Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?

Employers should consider that the value employees place on various benefits is likely to differ from one employee to another. At a broad level, basic demographic factors such as age and sex can influence the kinds of benefits employees want.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 3 Hard Topic: Various Types of Flexible Benefits

81.

Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits?

A. women of childbearing age B. disabled workers C. older people

D. young people E. unmarried people Basic demographic factors such as age and sex can influence the kinds of benefits employees want. An older workforce is more likely to be concerned about (and use) medical coverage, life insurance, and pensions.

82.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

A. preferred provider plans. B. cafeteria-style plans.

C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans. Cafeteria-style plans offer employees a set of alternatives from which they can choose the types and amounts of benefits they want.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 14-94 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 1 Easy Topic: Various Types of Flexible Benefits

83.

Which of the following is an advantage of cafeteria-style plans?

A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided.

C. These types of plans have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax. Cafeteria-style plans have a number of advantages. The selection process can make employees more aware of the value of the benefits, particularly when the plan assigns each employee a sum of money to allocate to benefits. Also, the individual choice in a cafeteria plan enables each employee to match his or her needs to the company's benefits, increasing the plan's actual value to the employee.

84.

Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so?

A. He will save time by using software packages to offer benefits packages. B. He will avoid the cost of providing employees with benefits they don't value.

C. Having a non-standardized plan will make Ravi's company seem cutting-edge. D. Employees of the company, including Ravi, will be given more vacation days. E. Costs will be easy to estimate since all benefits options will be taken into consideration. In a cafeteria-style plan, employees would not select benefits they don't want, leading to the company avoiding the cost of providing employees with benefits they don't value.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 3 Hard Topic: Various Types of Flexible Benefits

85.

Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage?

D. discourage employees from choosing lower-cost options E. encourage employees to choose benefits they need the most A drawback of cafeteria-style plans is that they have a higher administrative cost, especially in the design and start-up stages. Jim's company can avoid some of the higher cost by using software packages and standardized plans that have been developed for employers wishing to offer cafeteria-style benefits.

86.

How do cafeteria-style plans increase costs for employers?

E. Employers bear the cost of providing employees with benefits they do not value. A drawback of cafeteria-style plans is that they have a higher administrative cost, especially in the design and start-up stages. Another possible drawback is that employee selection of benefits will increase rather than decrease costs because employees will select the kinds of benefits they expect to need the most.

87.

Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?

Organizations can control certain costs, such as workers' compensation, by improving their experience ratings.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 3 Hard Topic: Cost Containment Strategies Regarding Employee Benefits

88.

Which of the following actions help organizations reduce the cost of health care benefits offered to employees?

Concern over health care costs has prompted many employers to shift from traditional health insurance to PPOs and CDHPs.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 2 Medium Topic: Cost Containment Strategies Regarding Employee Benefits

89.

Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

A. using more independent contractors rather than hiring additional employees

B. limiting the coverage on life insurance based upon an employee's age C. using more full-time rather than part-time employees D. recruiting new employees instead of demanding overtime from existing employees E. substituting HMO and PPO plans with traditional health insurance plans Organizations looking for ways to control staffing costs may look for ways to structure the workforce so as to minimize the expense of benefits. They may require overtime rather than adding new employees, hire part-time rather than full-time workers, and use independent contractors rather than hire employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 2 Medium Topic: Cost Containment Strategies Regarding Employee Benefits

90.

_____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

A. The Internal Revenue Service

B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics The Internal Revenue Service strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

91.

Which of the following is an advantage of a qualified plan in retirement benefits?

A. immediate tax deductions for the funds employees contribute to the plan

B. taxable earnings on the money in the retirement fund C. tax-free withdrawals for highly compensated employees D. exemption of contribution from employees E. a retirement plan that provides benefits exclusively to its owners and top managers In the case of retirement plans, the advantages include the ability for employees to immediately take a tax deduction for the funds they contribute to the plans, no immediate tax on employees for the amount the employer contributes, and tax-free earnings on the money in the retirement fund.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 2 Medium Topic: Retirement and Pension Plans

92.

Which of the following must be true for a pension plan to be deemed as a qualified plan?

A. It must not discriminate in favor of an organization's highly compensated employees.

B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer. To obtain status as a qualified plan, a benefit plan must meet certain requirements. In the case of pensions, these involve vesting and nondiscrimination rules. The nondiscrimination rules provide tax benefits to plans that do not discriminate in favor of the organization's highly compensated employees.

93.

In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief?

A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's

highly compensated employees. B. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will triple the costs. E. Pension plans are determined exclusively by state and federal laws. Nondiscrimination rules provide tax benefits to plans that do not discriminate in favor of the organization's highly compensated employees.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 3 Hard Topic: Retirement and Pension Plans

94.

Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor?

Legal treatment of men and women includes equal access to benefits, so the organization may not use the employee's gender as the basis for providing more limited benefits. Family and medical leave, one of the benefits required by law, permits up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 3 Hard Topic: Equal Employment Opportunity

95.

Which of the following is legally required by an organization while offering early-retirement incentives?

A. setting an age at which retirement benefits stop growing B. asking female employees to pay more to defined-benefit plans C. ensuring there is no coercion used to force employees to retire

D. asking employees to sign compulsory waiver under ERISA E. providing employees no more than 48 hours to make an early retirement decision Early-retirement incentive programs need to meet certain standards. The programs may not coerce employees to retire, they must provide accurate information about the options available, and they must give employees enough time to make a decision.

96.

Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

A. Inform employees that they may consult with a lawyer before signing.

B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement. When employers offer early retirement, they often ask employees to sign waivers saying they will not pursue claims under the Age Discrimination in Employment Act (ADEA). The Older Workers Benefit Protection Act of 1990 set guidelines for using these waivers. The employer must inform employees that they may consult a lawyer before signing.

AACSB: Analytical Thinking

97.

Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges?

A. an employer who switches to a risk-based policy after hiring a disabled employee

B. an employer who sets guidelines for using waivers C. an employer who discriminates against workers over age 40 in providing pay or benefits D. an employer who has risk-based insurance and then hires an employee with a disability E. an employer who does not have risk-based insurance From the standpoint of avoiding legal challenges, an employer who has risk-based insurance and then hires an employee with a disability is in a stronger position than an employer who switches to a risk-based policy after hiring a disabled employee.

98.

An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?

D. The organization gave Rick access to the same health insurance that is provided to the other employees. E. The organization does not have a risk-based insurance. From the standpoint of avoiding legal challenges, an employer who has risk-based insurance and then hires an employee with a disability is in a stronger position than an employer who switches to a risk-based policy after hiring a disabled employee.

99.

Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

retirement. Under Financial Accounting Standards Board standards, employers must set aside the funds they expect to need for benefits to be paid after retirement, rather than funding those benefits on a pay-as-you-go basis.

100.

Organizations must communicate benefits information to employees so that they will

AACSB: Technology

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 1 Easy Topic: Communicating Benefits to Employees

101.

Which of the following is true of employee benefits?

A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees have a hard time understanding the cost and value of their benefits.

C. It is up to employees to determine the cost and value of their benefits. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits. In practice, it is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits.

102.

Which of the following actions related to benefits can best give employers an advantage in the labor market?

A. teaching employees about the value of their benefits

B. limiting benefits to a few simple options C. explaining complex benefits with sophisticated language D. keeping messages about benefits basic and uncreative E. simplifying messages about benefits by delivering them through one medium In practice, it is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits. The edge in the labor market goes to employers that help them understand. To increase the likelihood that employees will receive and understand the messages, employers can spread messages through multiple channels, online and offline.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 3 Hard Topic: Communicating Benefits to Employees

103.

Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation?

It is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits. The edge in the labor market goes to employers that help them understand. Besides simply delivering information about benefits' value, some companies also offer tools that help employees select and use benefits. An example is software that uses data about an employee's demographics and health status to recommend the health insurance option that best fits the employee's needs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 2 Medium Topic: Communicating Benefits to Employees

104.

Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees?

Employers have many options for communication information about benefits. To increase the likelihood that employees will receive and understand the messages, employers can combine several media, such as brochures, question-and-answer meetings, intranet pages, memos, and e-mail.

105.

Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion?

company. Employers have many options for communicating information about benefits. To increase the likelihood that employees will receive and understand the messages, employers can combine several media. An investment of creativity in communications to employees can reap great results in the form of committed, satisfied employees.

Essay Questions

106.

What is the importance of benefits as a part of employee compensation?

Benefits contribute to attracting, retaining, and motivating employees. The variety of possible benefits also helps employers tailor their compensation to the kinds of employees they need. Different employees look for different types of benefits. Employers need to examine their benefits package regularly to see whether they meet the needs of today. At the same time, benefits packages are more complex than pay structures, so benefits are harder for employees to understand and appreciate. Even if employers spend large sums on benefits, if employees do not understand how to use them or why they are valuable, the cost of the benefits will be largely wasted. Employers need to communicate effectively so that the benefits succeed in motivating employees.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-01 Discuss the importance of benefits as a part of employee compensation. Level of Difficulty: 2 Medium Topic: Overview of Employee Benefits

107.

What are the objectives of the unemployment insurance program established by the Social Security Act of 1935? How is this program funded?

The unemployment insurance program was established under the Social Security Act of 1935. This program has four objectives related to minimizing the hardships of unemployment. 1) It provides payments to offset lost income during involuntary unemployment. 2) It helps unemployed workers find new jobs. 3) The payment of unemployment insurance taxes gives employers an incentive to stabilize employment. 4) It provides workers with income during short-term layoffs in order to preserve investments in worker skills. This is because workers can afford to wait to return to their employer, rather than start over with another organization. Most of the funding for unemployment insurance comes from federal and state taxes on employers. Some states charge new employers whatever rate is the average for their industry, so the amount of tax paid in those states also depends on the type of business. No state imposes the same tax rate on every employer in the state. The size of the unemployment insurance tax imposed on each employer depends on the employer's experience rating—the number of employees the company laid off in the past and the cost of providing them with unemployment benefits. Employers with a history of laying-off a large share of their workforces pay higher taxes than those with few layoffs. In some states, an employer with very few layoffs may pay no state tax.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-02 Summarize the types of employee benefits required by law. Level of Difficulty: 2 Medium Topic: Employee Benefits Required by Law

108.

Discuss the Family and Medical Leave Act (FMLA) of 1993, including its eligibility requirements, scope of coverage, and effectiveness.

The Family and Medical Leave Act (FMLA) of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill child, spouse, or parent; for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty. In addition, if a family member (child, spouse, parent, or next of kin) is injured while serving on active military duty, the employee may take up to 26 weeks of unpaid leave under FMLA. Employers must guarantee these employees the same or a comparable job when they return to work. The law does not cover employees who have less than one year of service, work fewer than 25 hours per week, or are among the organization's 10 percent highest paid. The 12 weeks of unpaid leave amount to a smaller benefit than is typical of Japan and most countries in Western Europe. Japan and West European nations typically require paid family leave. Experience with the FLMA suggests that a majority of those opting for this benefit fail to take the full 12 weeks. One reason for not taking the full 12 weeks is that not everyone can afford three months without pay, especially when responsible for the expenses that accompany childbirth, adoption, or serious illness.

109.

What are sick leave programs? What are the pros and cons of allowing employees to accumulate sick leave year after year?

Sick leave programs pay employees for days not worked because of illness. Typically the amount of sick leave is often based on length of service, so that it accumulates over time. Employers must decide how many sick days to grant and whether to let them continue accumulating year after year. If sick days accumulate without limit, employees can "save" them in case of extended illnesses or possible disability. If an employee becomes disabled, the employee can use up the accumulated sick days, receiving full pay rather than smaller payments from disability insurance. Some employers let sick days accumulate for only a year, and unused sick days "disappear" at year-end. This may provide an unintended incentive to use up sick days. Some healthy employees may call in sick near the end of the year so that they can obtain the benefit of the paid leave before it disappears. Employers may counter this tendency by paying employees for some or all of their unused sick days at year-end or when the employees retire or resign.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-03 Describe the most common forms of paid leave. Level of Difficulty: 2 Medium Topic: Major Provisions of Employee Benefit Plans

110.

What are HMOs and PPOs? How do they differ from each other and from traditional health care providers?

Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) are alternatives to the traditional fee-for-service health care delivery systems. An HMO s a health care plan that requires patients to receive their medical care from the HMO's health care professionals, many of whom are paid a flat salary, and provides all services on a prepaid basis. In other words, the premiums paid for the HMO cover all the patient's visits and procedures, without an additional payment from the patient. By paying physicians a salary, rather than a fee for each service, the HMO hopes to remove any incentive to provide more services than the patients really need. HMO coverage tends to cost less than traditional health insurance. The downside is that employees sometimes complain cost-control incentives work so well that they are denied access to services they actually need. PPOs are health care plans that contract with health care professionals at a reduced fee. They differ from HMOs in that they do not provide benefits on a prepaid basis. Often, the PPO does not require employees to use providers in the network, but it pays a larger share of the cost of services from PPO providers. For example, the employee might pay 10 percent of the cost of a test by an in-network provider and 20 percent if the employee goes out of the PPO network. PPOs are the most widely used health plan among U.S. employers.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-04 Identify the kinds of insurance benefits offered by employers. Level of Difficulty: 2 Medium Topic: Insurance Plans

111.

How are cash balance plans different from defined-benefit and defined-contribution plans?

A defined-benefit plan guarantees a specified level of retirement income based on the employee's years of service, age, and earnings level. A defined-contribution plan does not promise a specific benefit level for employees upon retirement. Rather, an individual account is set up for each employee with a guaranteed size of contribution. An increasingly popular way to combine the advantages of defined-benefit plans and defined-contribution plans is to use a cash balance plan. This type of retirement plan consists of individual accounts, as in a 401(k) plan. But in contrast to a 401(k), all the contributions come from the employer. Usually, the employer contributes a percentage of the employee's salary, say, 4 or 5 percent. The money in the cash balance plan earns interest according to a predetermined rate, such as the rate paid on U.S. Treasury bills. This arrangement helps employers plan their contributions and helps employees predict their retirement benefits. If employees change jobs, they generally can roll over the balance into an individual retirement account. Defined-benefit plans are most generous to older employees with many years of service, while cash balance plans are most generous to young employees who will have many years ahead in which to earn interest. For an organization with many experienced employees, switching from a definedbenefit plan can produce great savings in pension benefits. In that case, the older workers are the greatest losers, unless the organization adjusts the program to retain their benefits.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-05 Define the types of retirement plans offered by employers. Level of Difficulty: 2 Medium Topic: Retirement and Pension Plans

112.

What are family-friendly benefits? Explain the common types of family-friendly benefits.

As employers have recognized the significance of employees' need to manage conflicts between their work and family roles, many have added "family-friendly" benefits to their employee benefits. These benefits include family leave policies and child care. The following types of benefits are typical: 1) Family leave—Family or parental leave grants employees time off to care for children and other dependents. The federal law requires 12 weeks of unpaid leave, and companies may choose to offer more generous leave policies. Most industrialized nations provide paid maternal leave and often paternal leave as well. Tech companies, which compete in a tight labor market, are among the leaders in offering paid maternity and paternity leave. 2) Child care—Child care benefits may take several forms, requiring different levels of organizational involvement. The lowest level of involvement is for the organization to supply and help employees collect information about the cost and quality of available child care. At the next level, organizations provide vouchers or discounts for employees to use at existing child care facilities. At the highest level of involvement, the employer provides child care at or near the work site. Staffing a child care facility is costly and involves important liability concerns. At the same time, the results of this type of benefit, in terms of reducing absenteeism and enhancing productivity, have been mixed. 3) College savings—As workers' children grow up, their needs shift from maternity leave and child care to college tuition. Some organizations have supported this concern by sponsoring tax-favored 529 savings plans. These plans, named after the section of the Internal Revenue Code that regulates them, let parents and other family members defer taxes on the earnings of their deposits into the 529 account. Some states also provide a (limited) tax deduction for these contributions. As an employee benefit, organizations can arrange with a broker to offer direct deposit of a portion of employees' paychecks into their accounts. Besides offering the convenience of direct deposit, employers can negotiate lower management fees. 4) Elder care—As the population of the nation's elderly grows, so do the demands on adult children to care for elderly parents, aunts, and uncles. When these people become ill or disabled, they rely on family or professional caregivers. In response, many employers have added elder care benefits. These programs often started by offering employees information and referrals; today these resources are often made available online. More recent enhancements of elder care benefits include referrals, decision support from experts, as well as flexible hours and paid time off. Even companies that cannot afford to offer counseling or

referral services can use intranets to provide links to helpful websites.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-06 Describe how organizations use other benefits to match employees' wants and needs. Level of Difficulty: 2 Medium Topic: Various Types of Flexible Benefits

113.

What are flexible benefit plans? What are their advantages and disadvantages?

Organizations can address differences in employees' needs and empower their employees by offering flexible benefits plans in place of a single package for all employees. These plans, often called cafeteria-style plans, offer employees a set of alternatives from which they can choose the types and amounts of benefits they want. The plans vary. Some impose minimum levels for certain benefits, such as health care coverage; some allow better employees to receive money in exchange for choosing a "light" package; and some let employees pay extra for the privilege of receiving more benefits. For example, some plans let employees give up vacation days for more pay or to purchase extra vacation days in exchange for a reduction in pay. Cafeteria-style plans have a number of advantages. The selection process can make employees more aware of the value of the benefits, particularly when the plan assigns each employee a sum of money to allocate to benefits. Also, the individual choice in a cafeteria plan enables each employee to match his/her needs to the company's benefits, increasing the plan's actual value to the employee. And because employees would not select benefits they do not want, the company avoids the cost of providing employees with benefits they do not value. Another way to control costs is to give employees incentives to choose lower-cost options. Cafeteria-style plans also have several disadvantages. One drawback is that they have a higher administrative cost, especially in the design and start-up stages. Another possible drawback is that employee selection of benefits will increase rather than decrease costs because employees will select the kinds of benefits they expect to need the most. For example, an employee expecting to need dental work is more likely to sign up for a dental plan. The heavy use of the dental coverage would then drive up the employer's premiums for that coverage. Costs can also be difficult to estimate when employees select their benefits.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-07 Explain how to choose the contents of an employee benefits package. Level of Difficulty: 2 Medium Topic: Various Types of Flexible Benefits

114.

Discuss the role of the Age Discrimination in Employment Act (ADEA) in employee benefits packages.

Two major issues have received attention under the Age Discrimination in Employment Act (ADEA) and amendments. First, employers must take care not to discriminate against workers over age 40 in providing pay or benefits. Also, early-retirement incentive programs need to meet certain standards. The programs may not coerce employees to retire, they must provide accurate information about the options available, and they must give employees enough time to make a decision. In effect, employees must really have a choice about whether they retire. When employers offer early retirement, they often ask employees to sign waivers saying they will not pursue claims under the ADEA. The Older Workers Benefit Protection Act of 1990 set guidelines for using these waivers. The waivers must be voluntary and understandable to the employee and employer, and they must spell out the employee's rights under the ADEA. Also, in exchange for signing the waiver, the employee must receive "compensation," that is, greater benefits than he or she would otherwise receive upon retirement. The employer must inform employees that they may consult a lawyer before signing, and employees must have time to make a decision about signing—21 days before signing plus 7 days afterward in which they can revoke the agreement.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-08 Summarize the regulations affecting how employers design and administer benefits programs. Level of Difficulty: 2 Medium Topic: Equal Employment Opportunity

115.

Why is it essential for organizations to communicate the nature and value of benefits to their employees?

Organizations must communicate benefits information to employees so that they will appreciate the value of their benefits. This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees. Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits such as health insurance and 401(k) plans. It follows that electronic technology such as the Internet and supporting databases can play a significant role in modern benefit systems. In practice, it is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits. The edge in the labor market toes to employers that help them understand.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 2 Medium Topic: Communicating Benefits to Employees

116.

Discuss several strategies the HR department might use to communicate the type and value of employee benefits.

Employers figure out how to use plan language, and they spread the messages through multiple channels, online and offline. Besides simply delivering messages about benefits' value, some companies also offer tools that help employees select and use benefits. Employers have many options for communicating information about benefits. To increase the likelihood that employees will receive and understand the messages, employers can combine several media, such as brochures, question-and-answer meetings, intranet pages, memos, and e-mail. Some other possible media include paycheck inserts, retirement or health coaching, training programs, and benefits fairs. An investment of creativity in communications to employees can reap great returns in the form of committed, satisfied employees.

AACSB: Analytical Thinking Blooms: Understand 14-124 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 14-09 Discuss the importance of effectively communicating the nature and value of benefits to employees. Level of Difficulty: 2 Medium Topic: Communicating Benefits to Employees

Chapter 15 Collective Bargaining and Labor Relations

True / False Questions

1. A craft union's bargaining power depends greatly on the control it can exercise over the supply of its workers. True

False

2. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is by far the largest labor union in the U.S. True

False

3. A union steward is a person hired by an organization's management to monitor union activity and report violations, if any. True

False

4. Competition for scarce human resources can lead employers to offer much of what employees traditionally sought through union membership. True

False

5. On average, unionized workers receive higher pay than their nonunionized counterparts. True

False

6. Unlike union membership for workers in businesses, union membership among government workers has remained strong. True

False

7. Most studies have found that union workers are more productive than nonunion workers. True

False

8. In their labor relations, managers prefer to increase wages and benefits and to give maximum control to workers over work rules and schedules. True

False

9. Under a checkoff provision, a person must be a union member before being hired. True

False

10. Joining a union, whether recognized by the employer or not, is an activity protected under the National Labor Relations Act (NLRA). True

False

11. Originally, the National Labor Relations Act (NLRA) did not contain a list of any unfair labor practices by unions. True

False

12. Right-to-work laws grant both the employee and employer the right to terminate the employment relationship at any time with or without cause or notice. True

False

13. Enforcement of the National Labor Relations Act rests with the Federal Mediation and Conciliation Service. True

False

14. If at least 30 percent of an organization's employees sign an authorization card, the union may request that the employer voluntarily recognize the union. True

False

15. When a union and employer negotiate a contract, they cannot bar outside parties from holding an election for more than three years. True

False

16. In a company that wants to prevent a union from organizing its workers, the human resource department should encourage supervisors to promise employees that they will receive an extra day off if they don't support the unionization effort. True

False

17. Associate union membership is linked to an employee's workplace. True

False

18. Preparation, in collective bargaining, includes establishing objectives for the contract, reviewing the old contract, and gathering data. True

False

19. During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced. True

False

20. Mediation is the most formal and least used method of conflict resolution. True

False

21. The frequency for bargaining over a new contract is only about every three years. True

False

22. Contract administration includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement. True

False

23. Courts generally avoid reviewing arbitrators' decisions and focus only on whether the grievance involved an issue that is subject to arbitration under the contract. True

False

24. Under the National Labor Relations Act, the union has a duty of fair representation, meaning that the union must provide equal representation to all members of the bargaining unit, whether or not they actually belong to the union. True

False

25. Cooperation between labor and management may feature employee involvement in decision making and self-managing employer teams. True

False

Multiple Choice Questions

26. When employees in an organization have reason to believe that the management is overlooking their needs and interests, they are likely to respond by collectively forming _____.

A. partnerships B. bureaus C. trade associations D. labor unions E. Interest groups 27. Organizations that are formed in order to represent their members' interests while dealing with employers are known as

A. employee guilds. B. sororities. C. lobbies. D. member clubs. E. labor unions. 28. Max, a new supervisor at Freson Inc., is being trained on skills that managers and union leaders require to encourage employee-management cooperation. He is learning the different ways of dealing with employee-management conflicts and how to resolve situations in ways that benefit both parties. In the context of labor management, Max is receiving training on _____.

A. checkoff provisions B. right-to-work laws C. maintenance of membership D. labor relations E. corporate campaigns

29. A labor union in which all of the members have a particular skill or occupation is known as a(n) _____ union.

A. common B. industrial C. craft D. regional E. employer's 30. Alonso, the union steward at Selzar Inc., is attempting to persuade members of management to make certain revisions to the company's policies on job security and work rules on behalf of the union. The union believes that company management has neglected these aspects of the company's administration system for too long. Which of the following levels of decisions is Alonso most likely concerned with in this scenario?

A. forming labor relations strategies B. administering agreements C. negotiating contracts D. terminating contracts E. forming dissociation strategies 31. The United Association of Plumbers and Pipefitters is a labor union that seeks to unite plumbers and pipefitters from around the country. The members of this union exhibit the same set of skills and are proficient in relatively similar tasks. Such an association is most likely an example of a(n) _____.

A. craft union B. industrial union C. local union D. business union E. vertical union

32. Which of the following is true of a craft union?

A. It represents many different occupations. B. Membership in the union is the result of working for a particular employer in the industry. C. Changing employers is not very common. D. It is often responsible for training members through apprenticeships. E. It consists of members who are linked by their work in a particular industry. 33. Identify the statement that characterizes an industrial union.

A. All the members are in the same occupation. B. Union leaders try to limit the number of members in order to maintain high wages. C. Members are linked by their work in a particular industry. D. Members change employers more frequently than in other types of unions. E. It is often responsible for training its members through apprenticeships. 34. Britt, a heavy equipment operator, Sara, an operating engineer, and Nick, a construction mechanic, hail from different parts of the United States. Though they have different occupations, they are all members of the same union. In the context of types of union, Britt, Sara, and Nick most likely belong to a(n) _____ union.

A. international B. industrial C. stewards D. checkoff E. craft

35. A difference between an industrial union and a craft union is that only an industrial union

A. contains members who have a particular skill or occupation. B. is often responsible for training its members through apprenticeships. C. organizes as many employees in as wide a range of skills as possible. D. represents a particular occupation. E. comprises members who change employers more often. 36. Most national unions in the United States are linked with the _____, an association that pursues to improve the shared interests of its member unions at the national level.

A. National Labor Relations Act (NLRA) B. Society of Modern Trade Workers and the Trade Federation of the States (SMTW-TFS) C. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) D. Chamber of Commerce (CoC) E. National Association of Manufacturers (NAM) 37. The employees of Fanzi Textiles Inc. are concerned about company management overlooking their interests. They decide to form a union to voice their concerns and speak up for their rights. They elect Ronny to represent them during negotiations. Ronny's new role requires him to ensure that the terms of the labor contract are enforced and that the interests of the union are met. In this context, Ronny most likely holds the position of _____.

A. business representative B. chief executive officer C. stakeholder D. union trustee E. union steward

38. Identify the right statement regarding the effects of unions on company performance.

A. As a result of the type of pay system favored by unions, employees are more inclined to compete than cooperate. B. Most studies show that union workers are less productive than nonunion workers. C. On average, union members receive higher wages and more generous benefits than nonunion workers. D. The introduction of a union invariably results in the employer paying lesser attention to employee ideas. E. Evidence shows that unions have a large positive effect on profits. 39. Kristen, a production manager at KartWheel Designs Inc., believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which of the following statements is likely to strengthen Kristen's belief?

A. Workers in unionized organizations tend to exhibit lower levels of productivity than workers in nonunion organizations. B. Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits. C. Studies reveal that unions do not have any positive effects on performance measures, such as productivity, profits, and stock performance. D. Unions tend to have a positive impact on the self-esteem of their members. E. The formation of labor unions is likely to lead to conflicts between social and labor union goals. 40. Which of the following is a factor that has been associated with the decline in union membership?

A. high regulation in such areas as workplace safety and equal employment opportunity B. low competition between companies for scarce human resources C. high job growth in the manufacturing sector of the economy D. low costs of unionized labor E. low prospects for growth in the service industry

41. Identify the correct statement about the trends in international union membership.

A. In Western Europe, it is common to have union coverage rates of 80 to 90 percent. B. Coverage rates within the United States are much higher than in most other countries. C. U.S. employees tend to have a larger, more formal role in organizational decision making than in Western European countries. D. Worker representatives on boards of directors are much more common in the United States than in Western European countries. E. The union membership rate in the U.S. is second only to that of Denmark. 42. Employees of Neronsen Inc. have been working to organize a union. The company's managers wish to maintain nonunion operations, because they believe the union's demands for more generous employee benefits would hurt profits. What evidence could the employees point to in support of the idea that unions are good for business?

A. Unions can reduce turnover by giving employees a way to resolve problems. B. Whether unions make employees more productive remains open to question. C. Unions raise wage and benefits costs. D. Evidence has found an association between union coverage and lower profits. E. Unions decrease productivity because of the work rules they insist on. 43. With reference to the impact of unions on company performance, it can be said that companies wishing to become more competitive must

A. continually monitor their labor relations strategy. B. prohibit unions. C. actively encourage unions. D. deny collective bargaining rights to their employees. E. pay workers well above market rates.

44. Broxton, a production manager at Silkenz Inc., is against the idea of forming a union. He believes that unionization may negatively affect the company's profit margins. Which statement best supports Broxton's viewpoint?

A. Union workers tend to exhibit lower levels of productivity than nonunion workers. B. Unions are designed to cater to the interests of management rather than to those of employees. C. Unionization tends to reduce the overall costs of labor and operations. D. Forming an employee union will reduce the risk of work stoppages. E. Unionization is associated with higher costs in wages and benefits. 45. Leroy joins the human resource department at ZenFuels Inc., where the production workers are represented by a union. Which of the following goals would Leroy most likely be expected to work toward in supporting any negotiations with the union?

A. discouraging employees from forming a union B. making managers and workers into adversaries C. keeping operations flexible and retaining some control over schedules D. raising the value of workers' compensation package E. ensuring a regular flow of new members into the union 46. Joe and his colleagues are members of the union at Pinnacle Inc. While negotiating the terms of the labor contract, they request their employer to deduct union dues from their paychecks. This type of contractual arrangement between the two parties is known as a(n) _____.

A. agency shop B. checkoff provision C. maintenance provision D. trade-off provision E. union shop

47. Name the type of union security arrangement that is illegal under the provisions of the National Labor Relations Act.

A. union shop B. agency shop C. closed shop D. open shop E. checkoff provision 48. Barbara, a job applicant at Solace Corp., finds that the job she is applying for requires her to be a union member before being hired. She also learns that this arrangement is illegal under the National Labor Relations Act. In the context of the security provisions related to union membership, this Solace Corp. has a(n) _____ arrangement.

A. open shop B. closed shop C. checkoff provision D. union shop E. agency shop 49. Neal joins Filestene Inc. as an executive designer. The HR manager informs him that he will have to join the labor union within a period of 30 days from his start date. In the context of the security provisions related to union membership, Neal's HR manager is referring to a(n) _____ arrangement.

A. closed shop B. maintenance of membership provision C. agency shop D. checkoff provision E. union shop

50. Employees at Harlan Industries have formed a union and are negotiating a union security arrangement. Which option would be most favorable to the union and also legal?

A. A closed shop, because any employee hired must be a union member B. An agency shop, because it requires employees to join the union for the length of the contract C. A union shop, because it requires all employees to join the union within 30 days of their start date with the company D. Maintenance of membership rules, because they require that union members remain at the company E. Free riders, because these let employees benefit from union activities without joining the union 51. Which of the following is a union security arrangement that requires a person to pay union dues, but is not required to join the union?

A. agency shop B. union shop C. closed shop D. maintenance of membership E. checkoff provision 52. David is a non-union employee at Orion Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. Which of the following does this scenario best exemplify?

A. an agency shop agreement B. a checkoff provision C. a union shop agreement D. a trade-off provision E. a closed shop agreement

53. Miranda is an employee covered by a union security arrangement that does not mandate she become a union member but requires that she pays union dues. In this scenario, which type of union security arrangement is described?

A. maintenance shop B. union shop C. agency shop D. closed shop E. provision shop 54. Brandon is a new employee at Relagen Inc. He wants to work for the company, but he has no desire to join the union or even consider the possibility of becoming a member in the future. Which of the following security provisions of union membership is most suitable for Brandon?

A. A closed shop provision because it gives an employee the right to participate in decision making without becoming a member B. A maintenance of membership provision because it allows employees to join the union as passive members C. A union shop provision because it helps an employee use indirect influence to affect management-union contracts D. An agency shop provision because it requires employees to pay union dues but does not force them to become members E. A checkoff provision because it requires all the employees of an organization to join the union, regardless of their preferences 55. _____ rules require that employees who join the union remain members for a certain period of time but do not require a union membership.

A. Agency shop B. Union shop C. Closed shop D. Maintenance of membership E. Checkoff provision

56. The idea that unions benefit people in communities by holding employers accountable for the way they treat workers is an example of a(n) _____ goal.

A. management B. union C. industrial D. societal E. economical 57. The National Labor Relations Act is also known as the _____.

A. Taft-Hartley Act B. Wagner Act C. Landrum-Griffin Act D. Sarbanes-Oxley Act E. Hatch Act 58. Which of the following is a federal law passed in 1935 that supports collective bargaining and sets out the rights of employees to form unions?

A. The Landrum-Griffin Act B. The Civil Rights Act C. The Wagner Act D. The Taft-Hartley Act E. The Sarbanes-Oxley Act

59. Which of the following is covered by the National Labor Relations Act (NLRA)?

A. a worker employed as a supervisor B. a person working for a parent C. an independent contractor D. a worker employed by an employer subject to the Railway Labor Act E. a worker going out on strike to secure better working conditions 60. Who among the following is NOT covered by the National Labor Relations Act (NLRA)?

A. an individual employed as a supervisor B. an individual employed in the service sector C. an individual employed by a private-sector firm with less than 15 full-time employees D. an individual joining a union that is not recognized by his or her employer E. an individual refraining from activity on behalf of the union 61. Identify the unfair labor practice under Section 8(a) of the National Labor Relations Act (NLRA).

A. engaging in collective bargaining with a labor organization B. asking to meet with employees' representatives because the employees are on strike C. failing to pay unionized employees higher wages than nonunionized employees D. complementing performance-based pay plans in the company E. restraining employees in exercising their rights to join or assist a labor organization 62. Which of the following is an unfair labor practice by unions under the Taft-Hartley Act?

A. insisting on provisions that the employer may hire only workers who are union members B. nominating candidates to union office and conducting secret-ballot elections C. going out on strike to secure better working conditions D. refraining from activity on behalf of the union E. joining a union not recognized by the employer

63. Which of the following laws permits states to pass right-to-work laws?

A. the Taft-Hartley Act B. the Sarbanes-Oxley Act C. the Landrum-Griffin D. the Hatch Act E. the Maguire Act 64. Which of the following statements is true of right-to-work laws?

A. They are federal laws that protect employees' right to lifetime employment. B. They are state laws that make union shops, maintenance of membership, and agency shops illegal. C. They are laws that protect the right of unions to insist that the employer hire only union members. D. They are laws that allow terminating an existing contract and striking for a new one without notifying the employer. E. They are federal laws that ensure that all union members get pension benefits. 65. Identify the right of employees that is covered under the Taft-Hartley Act.

A. the right to nominate candidates for union office B. the right to participate in union meetings and secret-ballot elections C. the right to choose whether they join a union or other group D. the right to examine unions' financial records E. the right to physically block nonstriking employees from entering the workplace

66. Identify the law that regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections.

A. the Hatch Act B. the Taft-Hartley Act C. the Landrum-Griffin Act D. the Civil Service Reform Act E. the Maguire Act 67. Which of the following includes the right not nominate candidates for union office?

A. the Roosevelt Act B. the California 1975 Labor Relations Act C. the Landrum-Griffin Act D. the Taft-Hartley Act E. the Wagner Act 68. The National Labor Relations Board has two major functions: one is to prevent unfair labor practices, and the other one is to

A. conduct periodic onsite inspections of union and company financial records. B. conduct and certify representation elections. C. make rules and regulations for union-management relations. D. levy punitive charges on violators. E. monitor and regulate labor relations in small, local businesses.

69. The National Labor Relations Board certifies a union as the exclusive representative of a group of employees when

A. the management of an organization approves of a union. B. a union pays its dues to the board. C. at least 51% of the employees join the union within a certain time (30 days) after beginning employment. D. a majority of workers vote in favor of a union. E. the American Federation of Labor and Congress of Industrial Organizations votes in favor of a union. 70. The _____ has the authority for certifying or decertifying a union through an election.

A. American Federation of Labor and Congress of Industrial Organization (AFL-CIO) B. Small Business Association (SBA) C. National Labor Relations Board (NLRB) D. Federal Trade Commission (FTC) E. Selective Service System (SSS) 71. Identify the category of employees excluded by the National Labor Relations Board (NLRB) from participating in organizing activities.

A. employees in multiple facilities within a single employer B. employees covered by multiple employers C. employees with managerial duties D. employees who have been on strike for economic reasons for less than one year and who have been replaced by other employees E. employees who have a community of interest in their wages, hours, and working conditions

72. Which of the following is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices?

A. The deadline for filing a charge is twelve months after the alleged unfair practice. B. The NLRB has no authority to issue cease-and-desist orders to halt unfair labor. C. The board can order the employer to reinstate workers but cannot order them to pay back pay. D. The NLRB is not authorized to set aside the results of an election and must approach the courts for this purpose. E. If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals. 73. Jane and Martha work at Anden Inc. Jane claims that forming a union can help enhance workers' bargaining power with management. Martha, however, argues that it is quite challenging to form a union. Which of the following statements strengthens Martha's argument?

A. Unionized employees have low negotiating power with the management. B. A union needs to convince a majority of workers to have a common goal. C. Union workers generally have lower productivity than nonunion workers. D. A union's goals must always contradict the employer's goals. E. A union must only include members with highly conceptual skills who can easily deal with conflict resolution. 74. What is the minimum percent of employees in a bargaining unit who must sign authorization cards for the National Labor Relations Board to hold a union representation election?

A. 30 percent B. 51 percent C. 20 percent D. 10 percent E. 55 percent

75. During an organizing campaign, which of the following occurs when union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card?

A. The unions determine who is eligible to vote. B. The union is automatically recognized if at least 30 percent of employees agree. C. The National Labor Relations Board (NLRB) conducts a secret-ballot election if only 30 to 50 percent of employees signed cards. D. The National Labor Relations Board (NLRB) certifies the union as the exclusive representative of employees if the employer refuses to sign the card. E. The employees cannot participate in any of the proceedings. 76. House Factory Inc. and a union conducting an organizing campaign agree on the time and place of an election and a way to determine who can vote. Which type of election does this scenario best describe?

A. stipulation election B. decertification election C. union election D. agreement election E. consent election 77. Identify the guideline that should be followed by a supervisor to discourage unions.

A. promise employees that they will receive favorable terms or conditions of employment if they forgo union activity B. threaten employees with harsher terms and conditions of employment or employment loss if they engage in union activity C. limit direct contact with employees D. interrogate employees about pro-union or anti-union sentiments that they or others may have E. report any direct or indirect signs of union activity to a core management group

78. Connor, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Connor saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Connor's reasoning about the organizing effort?

A. For the organizing process to continue, at least 30% of the employees must sign an authorization card. B. In an election, workers may have a choice from among more than one union. C. In most organizing efforts, there is a hotly contested election campaign. D. Unions usually launch an organizing campaign by discussing issues with employees at home. E. Regulations forbid unions from using online databases to identify issues of interest to particular workers. 79. Which of the following terms refers to a substitute arrangement of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining?

A. card-check provision B. corporate union membership C. indirect union provision D. associate union membership E. relational union membership 80. One of the substitutes for traditional organizing is to conduct _____, which bring financial, political, or public pressure on employers during union organization and contract negotiation.

A. collective coercion B. corporate campaigns C. indirect provisions D. associate campaigns E. social campaigns

81. Which of the following best describes a card-check provision?

A. It is an arrangement that allows the employer, on behalf of the union, to automatically deduct union dues from the employees' paychecks. B. It is an agreement that if a certain percentage of employees sign an authorization card, the employer will recognize their union representation. C. It is an alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining. D. It is a formal and binding pledge by the employer not to oppose organizing efforts elsewhere in the company. E. It is a formal and binding pledge by at least 51 percent of employees to not unionize. 82. The hourly employees at BigHeart Health System have become dissatisfied with their union. They find that management communicates more openly and treats them with respect in resolving problems, so they don't see much value in paying dues to a union. What option do the employees have in this situation?

A. They may negotiate for a neutrality provision to neutralize the union's authority. B. They must accept the union, because they voted for representation in a lawful manner. C. They can request an immediate decertification election. D. They can call for a decertification election to take place when their contract term ends. E. They can request that their union representative terminate the union contract. 83. Representatives of management at Eternal Steel and of the union representing its workers are preparing to negotiate contract provisions related to job security. Which of the following topics are most likely to be included in this round of contract negotiations?

A. work rules, rest periods, and hours of work B. health insurance, pension plans, and bonuses C. application of rules to apprentices and employees who are veterans D. training programs, transfer arrangements, and relocation allowances E. grievance procedures, job classifications, and production standards

84. Collective bargaining differs from one situation to another in terms of _____.

A. bargaining provisions B. bargaining structure C. bargaining campaigns D. bargaining strategies E. bargaining techniques 85. In collective bargaining, the term _____ refers to the range of employees and employers covered by the contract.

A. arbitrated team B. bargaining structure C. union leverage D. differentiated group E. associate mediation 86. Which of the following depicts the most complex bargaining structure in collective bargaining?

A. a craft union representing one facility B. a teachers' union representing a large city's school district C. a craft union representing employees in two facilities of one company D. an industrial union representing all hourly employees of several companies E. a carpenters' union representing the employees of one construction firm

87. Timothy, a manager at Zillful Company, is concerned because negotiations with the union are breaking down, and the union is discussing a strike. What would be the major harm from management's perspective?

A. The company would have to hire replacement workers, and they might be more productive. B. When the company does not have enough workers, production output will fall. C. Employees will call off the strike if they do not receive pay from their employer. D. Employees are rarely serious when they threaten to go on strike. E. Employees will decide they are better off without union representation. 88. During contract negotiations, the union representing the teachers in District 46 is calling for a strike if the union's demands aren't met by the end of the week. A new school board member is worried about school shutting down and suggests directing the negotiators to accept the union's demands. A more experienced board member says the teachers also have reasons for not wanting to strike. Which of the following would be one of the most likely reasons for teachers not wanting to strike?

A. The school board member will picket the schools during the strike. B. The union will likely be able to make up for some pay during the strike. C. The janitors' union will refuse to cross the teachers' picket lines. D. The district will not pay the teachers while they are on strike. E. During a strike, the employer excludes workers from the workplace. 89. An employer's exclusion of workers from a workplace until they meet certain conditions is known as a _____.

A. strike B. lockout C. mediation D. picket line E. sabbatical

90. The _____ usually provides the neutral third party who is used for the common alternatives to strikes.

A. National Labor Relations Board B. Federal Mediation and Conciliation Service C. Federal Labor Relations Board D. Federal Arbitration and Consulting Service E. National Mediation and Arbitration Commission 91. Lola, a neutral third party, tries to resolve a conflict initiated by a manager and union representative at Thornton Inc. She does so by listening to what both parties have to say about the issue and facilitating the negotiations. In this scenario, Lola is exercising which of the following types of alternatives to work stoppages?

A. mediation B. final-offer arbitration C. fact-finder technique D. conventional arbitration E. rights arbitration 92. According to the provisions outlined in the contract between Kranfer Inc. and its labor union, Kranfer must pay its employees double for working overtime. However, due to financial constraints, the company is unable to meet these demands. The company and the union decide to negotiate the terms of the contract in a relatively informal manner. A non-authoritative third party is invited to listen to the views of both sides and to help resolve the conflict. In the context of the alternatives to work stoppages, the third party in this scenario is an example of a(n) _____.

A. arbitrator B. fact finder C. mediator D. rights enforcer E. stakeholder

93. The Transport Union in Atlanta, Georgia, enters into a contract with the Metropolitan Transportation Authority. The contract requires the government agency to pay a yearly bonus to union members. A year after signing the contract, the Metropolitan Transportation Authority refuses to pay the annual bonus, which triggers a conflict between the union and the agency. A third party intervenes to resolve the conflict between the two parties. The third party evaluates the arguments of both sides and proposes a solution. Both parties have the right to decline the proposal, but they decide to accept it. In the context of the alternatives to work stoppage, the third party in this scenario is an example of a(n) _____.

A. fact finder B. arbitrator C. stakeholder D. moderator E. rights enforcer 94. The Public Transport Union and the Chicago Transit Authority are in conflict with each other. When the conflict escalates, the Chicago City Council decides to intervene and settle the dispute. The Council, after listening to offers from both sides, puts forth a binding settlement, which both parties must accept. In the context of the alternatives to work stoppages, this is an example of _____.

A. arbitration B. fact finder negotiation C. mediation D. checkoff bargain E. grievance leverage

95. Bargaining over a new union contract typically occurs

A. only about every three years. B. year after year. C. only on the anniversary of the union's establishment. D. when the union wants more power over an organization. E. when a company feels a union is overstepping its boundaries. 96. The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agreement is known as a _____.

A. complaint protocol B. chain of command C. grievance procedure D. protest procedure E. corporate campaign 97. The employees' union and the management at Rexen Inc. enter into a contract, which requires Rexen to improve its facilities and to ensure the safety of its employees. However, a few months later, the employees observe that the conditions have remained the same and that management has not taken any steps to revamp its systems. As a result, the union files a case against Rexen for violating the terms of their contract. In order to resolve this issue, the union and Rexen will both have to participate in a process for resolving conflicts, known as _____.

A. lockout protocols B. right-to-work laws C. the unionship arrangement D. the grievance procedure E. the chain of command

98. A production worker believes that her supervisor is intentionally assigning her to work on machinery for which she does not have the proper training. She is worried about her safety and wonders if the supervisor is intentionally harassing her. The worker is represented by a union, so she starts the grievance process specified in the labor agreement. Assuming this is a typical grievance procedure, in which step, if any, will the employee likely act alone?

A. The final step; the employee and the supervisor would meet together with the union-appointed arbitrator. B. The first step; the employee can speak with her supervisor on her own before involving the union. C. The step in which a written grievance is submitted; this must be written and delivered by the employee only. D. None; the union handles all steps of the grievance procedure without involving the employee. E. The step of deciding to appeal an unresolved grievance; it is up to the employee to choose arbitration or no appeal. 99. During the grievance process, the union appeals a grievance to top line management and senior industrial relations staff. What step comes next?

A. The union steward and employee decide whether the contract was violated. B. The union decides whether to appeal the unresolved grievance to arbitration. C. The written grievance is submitted to the production superintendent, another line manager, or industrial relations representative. D. The decision resulting from the appeal is put into writing. E. The employee (and the union steward) discuss the problem with a supervisor.

100.A nursing assistant in a nursing home filed a grievance that he was unfairly passed over for a promotion. Discussions and appeals did not satisfy the employee, so the issue went to arbitration. The arbitrator decided that the nursing home must promote the employee, based on the terms of its contract, in spite of management's protests that the employee was too unreliable to handle the greater responsibility. The employee's supervisor urges Scott, the director of human resources, to file an appeal in the state courts. Scott says doing so would be a wasted expense. Which of the following statements best supports Scott's conclusion?

A. The company should have considered whether the grievance procedure is fair. B. The majority of grievances are settled during the early stages of the process. C. Courts generally do not have the authority to rule on employment matters. D. Courts generally avoid reviewing arbitrators' decisions in these matters. E. Courts generally rule against businesses in employment matters. 101.An electric utility operates in a state with right-to-work laws. About three-quarters of its line workers have elected to join the union that represents them. Joel, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. Joel wants to file a grievance according to the process in the labor agreement, but he is not a member of the union. What must the union do in this situation?

A. It must let Joel join the union so he can have representation in the process. B. It must allow Joel to use the process it negotiated, but it need not send representatives. C. It has no obligations in this process, because Joel chose not to be represented. D. It must give Joel representation equal to what a union member would receive. E. It must give Joel a copy of the labor agreement, but it need not be involved in the process.

102.Janet, a sales manager at Drexler Inc., claims that labor and management are rivals for most organizations. Carmella, the HR manager, says she is aware of exceptions. Which statement best supports Carmella's perspective?

A. After the 1980s, most unions and organizations have acted more like adversaries. B. Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams. C. Finding win-win solutions is almost impossible because unions and management have conflicting goals. D. Organizations often define jobs narrowly, which is a sign of cooperation. E. Creating a union necessarily forces employers to pay more wages, which results in loss of profits. 103.Veronica, a vice president of human resources at an auto company, wants to develop its programs for employee empowerment. However, she is concerned because unions are heavily involved in representing auto workers and might object to empowerment programs. Which of the following statements about the National Labor Relations Board would best address Veronica's concern?

A. The NLRB has issued statements indicating that it will not tolerate employee empowerment. B. In its rulings, the NLRB has allowed employee empowerment in certain very limited situations. C. The NLRB has issued rulings that say employee empowerment is allowed only in a nonunion environment. D. In its rulings, the NLRB has shown clear support for employee involvement in decision making. E. The NLRB makes it an unfair labor practice to form employee participation committees to make decisions.

104.The executives of BeeGood Honey are proud of the company's management practices, which they believe ensure fair treatment of employees better than union representation does. However, some complaints about working conditions have shown up in the suggestion box. The executives asked the HR manager, Leslie, to plan a system of employee-manager meetings to address issues such as these. As Leslie considers this request, what potential problem should she keep in mind?

A. Legal guidelines covering an employer-established system of representation are lengthy and precise. B. Workers tend to think representatives in an employer-established system cannot be counted on to stand up for them. C. It is statistically likely that most BeeGood workers are already represented by unions. D. It is possible that a management-established system of employee representation may violate the NLRA. E. Unions have never tried to organize BeeGood's workers, so they can easily make a case that the company organized workers illegally. 105.A chain of fried-fish restaurants hires part-time workers and pays minimum wage. Turnover is very high. Given that most employees do not stay at a restaurant long or work there full-time, organizing campaigns are very difficult. With these facts in mind, Gloria, the chain's vice president of human resources, believes unions will not have an impact on the company. What possible force in labor markets is Gloria overlooking?

A. self-managing employee teams, which could conduct an union organizing campaign B. management-established representation systems, which are endorsed by the NLRB C. the National Labor Relations Board, which could require the company to form a union D. worker centers, which could influence attitudes through publicity and community support E. arbitration panels, which could rule that fair labor conditions require a union

Essay Questions

106.Briefly describe the three levels of decisions involved in labor relations.

107.What is the difference between craft unions and industrial unions?

108.Explain the reasons for the decline in union membership in the United States.

109.Why do unions place a high level of importance on negotiating contract provisions with an employer? What are the different types of contract provisions?

110.Explain what right-to-work laws are. What is the viewpoint of unions regarding these laws?

111.Explain the major functions of the National Labor Relations Board.

112.Describe the union organizing process.

113.What is the basic process of negotiating a labor contract?

114.Discuss the different criteria that employers use to judge a grievance procedure.

115.How can labor-management relations be made more cooperative?

Chapter 15 Collective Bargaining and Labor Relations Answer Key

True / False Questions

A craft union's bargaining power depends greatly on the control it can exercise over the supply of its workers. TRUE

A labor union whose members all have a particular skill or occupation are known as craft unions. Craft unions are often responsible for training their members through apprenticeships and for supplying craft workers to employers. A craft union's bargaining power depends greatly on its control over the supply of its workers.

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is by far the largest labor union in the U.S. FALSE

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is not a labor union but an association that seeks to advance the shared interests of its member unions at the national level.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 1 Easy Topic: What is a Union? And Why Do Employees Join Unions? 15-37 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

A union steward is a person hired by an organization's management to monitor union activity and report violations, if any. FALSE

A union steward is an employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced.

Competition for scarce human resources can lead employers to offer much of what employees traditionally sought through union membership. TRUE

Competition for scarce human resources can lead employers to offer much of what employees traditionally sought through union membership.

On average, unionized workers receive higher pay than their nonunionized counterparts. TRUE

On average, unionized workers receive higher pay than their nonunionized counterparts.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15-38 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Remember Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 1 Easy Topic: What is a Union? And Why Do Employees Join Unions?

Unlike union membership for workers in businesses, union membership among government workers has remained strong. TRUE

Unlike union membership for workers in businesses, union membership among government workers has remained strong. Union membership in the public sector grew during the 1960s and 1970s and has remained steady ever since.

Most studies have found that union workers are more productive than nonunion workers. TRUE

Although there is evidence that unions have both positive and negative effects on productivity, most studies have found that union workers are more productive than nonunion workers.

In their labor relations, managers prefer to increase wages and benefits and to give maximum control to workers over work rules and schedules. FALSE

Managers continue to prefer to keep the organization's operations flexible, so they can adjust activities to meet competitive challenges and customer demands. Therefore, in their labor relations, managers prefer to limit increases in wages and benefits and to retain as much control as they can over work rules and schedules.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

Under a checkoff provision, a person must be a union member before being hired. FALSE

Under a checkoff provision, an employer, on behalf of the union, automatically deducts union dues from employees' paychecks.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 1 Easy Topic: Checkoff

10.

Joining a union, whether recognized by the employer or not, is an activity protected under the National Labor Relations Act (NLRA). TRUE

Joining a union, whether recognized by the employer or not, is an activity protected under the National Labor Relations Act (NLRA).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Labor Relations

11.

Originally, the National Labor Relations Act (NLRA) did not contain a list of any unfair labor practices by unions. TRUE

Originally, the NLRA did not list any unfair labor practices by unions. In later amendments to the NLRA—the Taft-Hartley Act of 1947 and the Landrum-Griffin Act of 1959—Congress established some restrictions on union practices deemed unfair to employers and union members.

12.

Right-to-work laws grant both the employee and employer the right to terminate the employment relationship at any time with or without cause or notice. FALSE

Right-to-work laws are state laws that make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts the employees' right to freedom of association.

13.

Enforcement of the National Labor Relations Act rests with the Federal Mediation and Conciliation Service. FALSE

Enforcement of the National Labor Relations Act (NLRA) rests with the National Labor Relations Board (NLRB). It is a federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices.

14.

If at least 30 percent of an organization's employees sign an authorization card, the union may request that the employer voluntarily recognize the union. FALSE

At the start of the organization process, union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card. For the organization process to continue, at least 30 percent of the employees must sign an authorization card. If over half the employees sign an authorization card, the union may request that the employer voluntarily recognize the union.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 1 Easy Topic: The Union Organizing Process

15.

When a union and employer negotiate a contract, they cannot bar outside parties from holding an election for more than three years. TRUE

After the union and employer have finished negotiating a contract, an election cannot be held for the time of the contract period or for three years, whichever comes first. The parties to the contract may agree not to hold an election for longer than three years, but an outside party (another union) cannot be barred for more than three years.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 2 Medium Topic: Certification, Recognition, and Contract Bars

16.

In a company that wants to prevent a union from organizing its workers, the human resource department should encourage supervisors to promise employees that they will receive an extra day off if they don't support the unionization effort. FALSE

It is critical that supervisors establish good relationships with employees even before there is any attempt at union organizing. Supervisors also must know what not to do if a union drive takes place. Promising employees favorable terms or conditions if they forgo union activity is among the actions to avoid.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 2 Medium Topic: The Union Organizing Process

17.

Associate union membership is linked to an employee's workplace. FALSE

Associate union membership is not linked to an employee's workplace and does not provide representation in collective bargaining. Rather, an associate member receives other services, such as discounts on health and life insurance or credit cards.

18.

Preparation, in collective bargaining, includes establishing objectives for the contract, reviewing the old contract, and gathering data. TRUE

The outcome of contract negotiations can have important consequences for labor costs, productivity, and the organization's ability to compete. Therefore, unions and management need to prepare carefully for collective bargaining. Preparation includes establishing objectives for the contract, reviewing the old contract, and gathering data.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 1 Easy Topic: Collective Bargaining

19.

During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced. TRUE

During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced.

20.

Mediation is the most formal and least used method of conflict resolution. FALSE

Mediation is a conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution. It is the least formal and most widely used of these procedures.

21.

The frequency for bargaining over a new contract is only about every three years. TRUE

Although the process of negotiating a labor agreement receives the most publicity, other union-management activities occur far more often. Bargaining over a new contract typically occurs only about every three years, but administering labor contracts goes on day after day, year after year.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 1 Easy Topic: Labor-Management Relations

22.

Contract administration includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement. TRUE

Contract administration includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement. Under a labor contract, the process for resolving these conflicts is called a grievance procedure. This procedure has a key influence on success in contract administration.

23.

Courts generally avoid reviewing arbitrators' decisions and focus only on whether the grievance involved an issue that is subject to arbitration under the contract. TRUE

If a grievance reaches arbitration, the arbitrator makes the final ruling in the matter. Based on a series of Supreme Court decisions, courts generally avoid reviewing arbitrators' decisions and focus only on whether the grievance involved an issue that is subject to arbitration under the contract.

24.

Under the National Labor Relations Act, the union has a duty of fair representation, meaning that the union must provide equal representation to all members of the bargaining unit, whether or not they actually belong to the union. TRUE

Under the National Labor Relations Act, the union has a duty of fair representation, which means the union must give equal representation to all members of the bargaining unit, whether or not they actually belong to the union.

25.

Cooperation between labor and management may feature employee involvement in decision making and self-managing employer teams. TRUE

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-07 Describe new approaches to labor-management relations. Level of Difficulty: 1 Easy Topic: Labor-Management Relations

Multiple Choice Questions

26.

When employees in an organization have reason to believe that the management is overlooking their needs and interests, they are likely to respond by collectively forming _____.

A. partnerships B. bureaus C. trade associations D. labor unions

E. Interest groups When employees in an organization have reason to believe that the management is overlooking their needs and interests, they are likely to respond by collectively forming labor unions.

27.

Organizations that are formed in order to represent their members' interests while dealing with employers are known as

A. employee guilds. B. sororities. C. lobbies. D. member clubs. E. labor unions.

Labor unions are organizations formed for the purpose of representing their members' interests and resolving conflicts with employers.

28.

Max, a new supervisor at Freson Inc., is being trained on skills that managers and union leaders require to encourage employee-management cooperation. He is learning the different ways of dealing with employee-management conflicts and how to resolve situations in ways that benefit both parties. In the context of labor management, Max is receiving training on _____.

A. checkoff provisions B. right-to-work laws C. maintenance of membership D. labor relations

E. corporate campaigns Labor relations emphasizes skills that managers and union leaders can use to foster effective labor-management cooperation, minimize costly forms of conflict, and seek win-win solutions to disagreements.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 3 Hard Topic: Labor-Management Relations

29.

A labor union in which all of the members have a particular skill or occupation is known as a(n) _____ union.

A. common B. industrial C. craft

D. regional E. employer's Labor unions may be either craft or industrial unions. The members of a craft union all have a particular skill or occupation. Examples include the International Brotherhood of Electrical Workers for electricians and the National Education Association for teachers.

30.

Alonso, the union steward at Selzar Inc., is attempting to persuade members of management to make certain revisions to the company's policies on job security and work rules on behalf of the union. The union believes that company management has neglected these aspects of the company's administration system for too long. Which of the following levels of decisions is Alonso most likely concerned with in this scenario?

A. forming labor relations strategies B. administering agreements C. negotiating contracts

D. terminating contracts E. forming dissociation strategies Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers' and the employer's situation for the term of the contract.

31.

The United Association of Plumbers and Pipefitters is a labor union that seeks to unite plumbers and pipefitters from around the country. The members of this union exhibit the same set of skills and are proficient in relatively similar tasks. Such an association is most likely an example of a(n) _____.

A. craft union

B. industrial union C. local union D. business union E. vertical union A craft union is a labor union whose members all have a particular skill or occupation. Examples include the United Association of Plumbers and Pipefitters, the International Brotherhood of Electrical Workers, and the National Education Association for teachers.

32.

Which of the following is true of a craft union?

E. It consists of members who are linked by their work in a particular industry. The members of a craft union all have a particular skill or occupation. Craft unions are often responsible for training their members through apprenticeships and for supplying craft workers to employers.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 2 Medium Topic: What is a Union? And Why Do Employees Join Unions?

33.

Identify the statement that characterizes an industrial union.

A. All the members are in the same occupation. B. Union leaders try to limit the number of members in order to maintain high wages. C. Members are linked by their work in a particular industry.

D. Members change employers more frequently than in other types of unions. E. It is often responsible for training its members through apprenticeships. Industrial unions consist of members who are linked by their work in a particular industry. Typically, an industrial union represents many different occupations.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 2 Medium Topic: What is a Union? And Why Do Employees Join Unions?

34.

Britt, a heavy equipment operator, Sara, an operating engineer, and Nick, a construction mechanic, hail from different parts of the United States. Though they have different occupations, they are all members of the same union. In the context of types of union, Britt, Sara, and Nick most likely belong to a(n) _____ union.

A. international B. industrial

C. stewards D. checkoff E. craft Industrial unions consist of members who are linked by their work in a particular industry. Typically, an industrial union represents many different occupations.

35.

A difference between an industrial union and a craft union is that only an industrial union

D. represents a particular occupation. E. comprises members who change employers more often. A difference between craft union and industrial union is that whereas a craft union may restrict the number of skilled craftsmen—say, carpenters—to maintain higher wages, industrial unions try to organize as many employees in as wide a range of skills as possible.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand 15-56 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 2 Medium Topic: What is a Union? And Why Do Employees Join Unions?

36.

Most national unions in the United States are linked with the _____, an association that pursues to improve the shared interests of its member unions at the national level.

D. Chamber of Commerce (CoC) E. National Association of Manufacturers (NAM) Most national unions in the United States are affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). The AFL-CIO is not a labor union but an association that seeks to advance the shared interests of its member unions at the national level.

37.

The employees of Fanzi Textiles Inc. are concerned about company management overlooking their interests. They decide to form a union to voice their concerns and speak up for their rights. They elect Ronny to represent them during negotiations. Ronny's new role requires him to ensure that the terms of the labor contract are enforced and that the interests of the union are met. In this context, Ronny most likely holds the position of _____.

A. business representative B. chief executive officer C. stakeholder D. union trustee E. union steward

A union steward is an employee elected by union members to represent them in ensuring that the terms of the contract are enforced. The union steward helps investigate complaints and represents employees to supervisors and other managers when employees file grievances alleging contract violations.

38.

Identify the right statement regarding the effects of unions on company performance.

nonunion workers. D. The introduction of a union invariably results in the employer paying lesser attention to employee ideas. E. Evidence shows that unions have a large positive effect on profits. On average, union members receive higher wages and more generous benefits than nonunion workers, and evidence shows that unions have a large negative effect on profits.

39.

Kristen, a production manager at KartWheel Designs Inc., believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which of the following statements is likely to strengthen Kristen's belief?

them more generous benefits. C. Studies reveal that unions do not have any positive effects on performance measures, such as productivity, profits, and stock performance. D. Unions tend to have a positive impact on the self-esteem of their members. E. The formation of labor unions is likely to lead to conflicts between social and labor union goals. On average, union members receive higher wages and more generous benefits than nonunion workers, and evidence shows that unions have a large negative effect on profits.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 3 Hard Topic: Labor-Management Relations

40.

Which of the following is a factor that has been associated with the decline in union membership?

A. high regulation in such areas as workplace safety and equal employment opportunity

B. low competition between companies for scarce human resources C. high job growth in the manufacturing sector of the economy D. low costs of unionized labor E. low prospects for growth in the service industry Stricter government regulations in areas like workplace safety and equal employment opportunity leaves fewer areas in which unions can show an advantage over what employers must already offer. This is one of the reasons for the decline of union membership in the U.S.

41.

Identify the correct statement about the trends in international union membership.

A. In Western Europe, it is common to have union coverage rates of 80 to 90 percent.

B. Coverage rates within the United States are much higher than in most other countries. C. U.S. employees tend to have a larger, more formal role in organizational decision making than in Western European countries. D. Worker representatives on boards of directors are much more common in the United States than in Western European countries. E. The union membership rate in the U.S. is second only to that of Denmark. The percentage of U.S. workers who belong to unions is lower than in many other countries. More dramatic is the difference in coverage—the percentage of employees whose terms and conditions of employment are governed by a union contract, whether or not the employees are technically union members. In Western Europe, it is common to have coverage rates of 80 to 90 percent, so the influence of labor unions far outstrips what membership levels would imply.

42.

Employees of Neronsen Inc. have been working to organize a union. The company's managers wish to maintain nonunion operations, because they believe the union's demands for more generous employee benefits would hurt profits. What evidence could the employees point to in support of the idea that unions are good for business?

A. Unions can reduce turnover by giving employees a way to resolve problems.

B. Whether unions make employees more productive remains open to question. C. Unions raise wage and benefits costs. D. Evidence has found an association between union coverage and lower profits. E. Unions decrease productivity because of the work rules they insist on. Unions can have positive effects on productivity. They can reduce turnover by giving employees a route for resolving problems.

43.

With reference to the impact of unions on company performance, it can be said that companies wishing to become more competitive must

A. continually monitor their labor relations strategy.

B. prohibit unions. C. actively encourage unions. D. deny collective bargaining rights to their employees. E. pay workers well above market rates. Even if unions do raise productivity, a company's profits and stock performance may still suffer if unions raise wage and benefits costs by more than the productivity gain. In summary, companies wishing to become more competitive must continually monitor their labor relations strategy.

44.

Broxton, a production manager at Silkenz Inc., is against the idea of forming a union. He believes that unionization may negatively affect the company's profit margins. Which statement best supports Broxton's viewpoint?

Management goals are to increase the organization's profits. Managers tend to prefer options that lower costs and raise output. When deciding whether to discourage employees from forming a union, a concern is that a union will create higher costs in wages and benefits, as well as raise the risk of work stoppages.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 3 Hard Topic: Labor-Management Relations

45.

Leroy joins the human resource department at ZenFuels Inc., where the production workers are represented by a union. Which of the following goals would Leroy most likely be expected to work toward in supporting any negotiations with the union?

A. discouraging employees from forming a union B. making managers and workers into adversaries C. keeping operations flexible and retaining some control over schedules

D. raising the value of workers' compensation package E. ensuring a regular flow of new members into the union When an employer has recognized a union, management's goals continue to emphasize restraining costs and improving output. Managers continue to prefer to keep the organization's operations flexible, so they can adjust activities to meet competitive challenges and customer demands. Therefore, in their labor relations managers prefer to limit increases in wages and benefits and to retain as much control as they can over work rules and schedules.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

46.

Joe and his colleagues are members of the union at Pinnacle Inc. While negotiating the terms of the labor contract, they request their employer to deduct union dues from their paychecks. This type of contractual arrangement between the two parties is known as a(n) _____.

A. agency shop B. checkoff provision

C. maintenance provision D. trade-off provision E. union shop Under a checkoff provision, the employer, on behalf of the union, automatically deducts union dues from employees' paychecks.

47.

Name the type of union security arrangement that is illegal under the provisions of the National Labor Relations Act.

A. union shop B. agency shop C. closed shop

D. open shop E. checkoff provision The strongest union security arrangement is a closed shop, under which a person must be a union member before being hired. Under the National Labor Relations Act, closed shops are illegal.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 15-67 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Labor Relations

48.

Barbara, a job applicant at Solace Corp., finds that the job she is applying for requires her to be a union member before being hired. She also learns that this arrangement is illegal under the National Labor Relations Act. In the context of the security provisions related to union membership, this Solace Corp. has a(n) _____ arrangement.

A. open shop B. closed shop

C. checkoff provision D. union shop E. agency shop The strongest union security arrangement is a closed shop, under which a person must be a union member before being hired. Under the National Labor Relations Act, closed shops are illegal.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 3 Hard Topic: The Union Organizing Process

49.

Neal joins Filestene Inc. as an executive designer. The HR manager informs him that he will have to join the labor union within a period of 30 days from his start date. In the context of the security provisions related to union membership, Neal's HR manager is referring to a(n) _____ arrangement.

A. closed shop B. maintenance of membership provision C. agency shop D. checkoff provision E. union shop

Union shop arrangement supports the goals of labor union. It is an arrangement that requires an employee to join the union within a certain time (30 days) after beginning employment.

50.

Employees at Harlan Industries have formed a union and are negotiating a union security arrangement. Which option would be most favorable to the union and also legal?

start date with the company D. Maintenance of membership rules, because they require that union members remain at the company E. Free riders, because these let employees benefit from union activities without joining the union A legal membership arrangement that supports the goals of labor unions is a union shop, an arrangement that requires an employee to join the union with a certain time (30 days) after beginning employment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 3 Hard Topic: The Union Organizing Process

51.

Which of the following is a union security arrangement that requires a person to pay union dues, but is not required to join the union?

A. agency shop

B. union shop C. closed shop D. maintenance of membership E. checkoff provision The agency shop is a union security arrangement that requires the payment of union dues but not union membership.

52.

David is a non-union employee at Orion Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. Which of the following does this scenario best exemplify?

A. an agency shop agreement

B. a checkoff provision C. a union shop agreement D. a trade-off provision E. a closed shop agreement An agency shop is a union security arrangement that requires the payment of union dues but not union membership.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. 15-71 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: The Union Organizing Process

53.

Miranda is an employee covered by a union security arrangement that does not mandate she become a union member but requires that she pays union dues. In this scenario, which type of union security arrangement is described?

A. maintenance shop B. union shop C. agency shop

D. closed shop E. provision shop The agency shop requires the payment of union dues but not union membership.

54.

Brandon is a new employee at Relagen Inc. He wants to work for the company, but he has no desire to join the union or even consider the possibility of becoming a member in the future. Which of the following security provisions of union membership is most suitable for Brandon?

force them to become members E. A checkoff provision because it requires all the employees of an organization to join the union, regardless of their preferences In this scenario, the agency shop provision works best for Brandon because it requires payment of union dues, but not union membership.

55.

_____ rules require that employees who join the union remain members for a certain period of time but do not require a union membership.

A. Agency shop B. Union shop C. Closed shop D. Maintenance of membership

E. Checkoff provision Maintenance of membership rules do not require union membership but do require that employees who join the union remain members for a certain period of time, such as the length of the contract.

56.

The idea that unions benefit people in communities by holding employers accountable for the way they treat workers is an example of a(n) _____ goal.

A. management B. union C. industrial D. societal

E. economical According to Senator Orrin Hatch, society's goal for unions is to ensure that workers have a voice in how they are treated by their employers.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. 15-74 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 3 Hard Topic: History of the American Labor Movement

57.

The National Labor Relations Act is also known as the _____.

A. Taft-Hartley Act B. Wagner Act

C. Landrum-Griffin Act D. Sarbanes-Oxley Act E. Hatch Act Perhaps the most dramatic example of labor laws' influence is the 1935 passage of the Wagner Act (also known as the National Labor Relations Act, or NLRA), which actively supported collective bargaining.

58.

Which of the following is a federal law passed in 1935 that supports collective bargaining and sets out the rights of employees to form unions?

A. The Landrum-Griffin Act B. The Civil Rights Act C. The Wagner Act

D. The Taft-Hartley Act E. The Sarbanes-Oxley Act Perhaps the most dramatic example of labor laws' influence is the 1935 passage of the Wagner Act (also known as the National Labor Relations Act, or NLRA), which actively supported collective bargaining.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Labor Relations

59.

Which of the following is covered by the National Labor Relations Act (NLRA)?

The following activities are among those protected under the NLRA: union organizing; joining a union, whether recognized by the employer or not; going out on strike to secure better working conditions; and refraining from activity on behalf of the union.

60.

Who among the following is NOT covered by the National Labor Relations Act (NLRA)?

A. an individual employed as a supervisor

B. an individual employed in the service sector C. an individual employed by a private-sector firm with less than 15 full-time employees D. an individual joining a union that is not recognized by his or her employer E. an individual refraining from activity on behalf of the union Most employees in the private sector are covered by the NLRA. However, workers employed as supervisors are among the types of employees not covered under the act.

61.

Identify the unfair labor practice under Section 8(a) of the National Labor Relations Act (NLRA).

In Section 8(a), the National Labor Relations Act (NLRA) prohibits certain activities by employers as unfair labor practices. In general, employers may not interfere with, restrain, or coerce employees in exercising their rights to join or assist a labor organization or to refrain from such activities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. 15-77 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Federal Laws Affecting Labor Relations

62.

Which of the following is an unfair labor practice by unions under the Taft-Hartley Act?

A. insisting on provisions that the employer may hire only workers who are union members

B. nominating candidates to union office and conducting secret-ballot elections C. going out on strike to secure better working conditions D. refraining from activity on behalf of the union E. joining a union not recognized by the employer Under the Taft-Hartley Act, unions may not restrain employers through certain actions. This covers contract negotiations and includes actions such as insisting on illegal provisions, provisions that the employer may hire only workers who are union members or "satisfactory" to the union, or working conditions to be determined by a group to which the employer does not belong.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. Level of Difficulty: 2 Medium Topic: Federal Laws Affecting Labor Relations

63.

Which of the following laws permits states to pass right-to-work laws?

A. the Taft-Hartley Act

B. the Sarbanes-Oxley Act C. the Landrum-Griffin D. the Hatch Act E. the Maguire Act The Taft-Hartley Act allows the states to pass so-called right-to-work laws, which make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts the employees' right to freedom of association.

64.

Which of the following statements is true of right-to-work laws?

A. They are federal laws that protect employees' right to lifetime employment. B. They are state laws that make union shops, maintenance of membership, and agency

shops illegal. C. They are laws that protect the right of unions to insist that the employer hire only union members. D. They are laws that allow terminating an existing contract and striking for a new one without notifying the employer. E. They are federal laws that ensure that all union members get pension benefits. The Taft-Hartley Act allows the states to pass so-called right-to-work laws, which make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts the employees' right to freedom of association.

65.

Identify the right of employees that is covered under the Taft-Hartley Act.

A. the right to nominate candidates for union office B. the right to participate in union meetings and secret-ballot elections C. the right to choose whether they join a union or other group

D. the right to examine unions' financial records E. the right to physically block nonstriking employees from entering the workplace The Taft-Hartley Act allows the states to pass so-called right-to-work laws, which make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts the employees' right to freedom of association. In other words, employees should be free to choose whether they join a union or other group.

66.

Identify the law that regulates unions' actions with reference to their members, including financial disclosure and the conduct of elections.

A. the Hatch Act B. the Taft-Hartley Act C. the Landrum-Griffin Act

D. the Civil Service Reform Act E. the Maguire Act The Landrum-Griffin Act regulates unions' actions with regard to their members, including financial disclosure and the conduct of elections. This law establishes and protects rights of union members. These include the right to nominate candidates for union office, participate in union meetings and secret-ballot elections, and examine unions' financial records.

67.

Which of the following includes the right not nominate candidates for union office?

A. the Roosevelt Act B. the California 1975 Labor Relations Act C. the Landrum-Griffin Act

D. the Taft-Hartley Act E. the Wagner Act The Landrum-Griffin Act regulates unions' actions with regard to their members, including financial disclosure and the conduct of elections. This law establishes and protects rights of union members. These include the right to nominate candidates for union office, participate in union meetings and secret-ballot elections, and examine unions' financial records.

AACSB: Analytical Thinking

68.

The National Labor Relations Board has two major functions: one is to prevent unfair labor practices, and the other one is to

A. conduct periodic onsite inspections of union and company financial records. B. conduct and certify representation elections.

C. make rules and regulations for union-management relations. D. levy punitive charges on violators. E. monitor and regulate labor relations in small, local businesses. The National Labor Relations Board has two major functions: to conduct and certify representation elections and to prevent unfair labor practices. It does not initiate either of these actions but responds to requests for action.

69.

The National Labor Relations Board certifies a union as the exclusive representative of a group of employees when

E. the American Federation of Labor and Congress of Industrial Organizations votes in favor of a union. When a majority of workers vote in favor of a union, the National Labor Relations Board certifies it as the exclusive representative of a group of employees.

70.

The _____ has the authority for certifying or decertifying a union through an election.

A. American Federation of Labor and Congress of Industrial Organization (AFL-CIO) B. Small Business Association (SBA) C. National Labor Relations Board (NLRB)

D. Federal Trade Commission (FTC) E. Selective Service System (SSS) The National Labor Relations Board has the authority for certifying or decertifying a union through an election.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. 15-84 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: Certification, Recognition, and Contract Bars

71.

Identify the category of employees excluded by the National Labor Relations Board (NLRB) from participating in organizing activities.

A. employees in multiple facilities within a single employer B. employees covered by multiple employers C. employees with managerial duties

D. employees who have been on strike for economic reasons for less than one year and who have been replaced by other employees E. employees who have a community of interest in their wages, hours, and working conditions Bargaining units may not include certain types of employees, such as agricultural laborers, independent contractors, supervisors, and managers. Beyond this, the NLRB attempts to group together employees who have a community of interest in their wages, hours, and working conditions.

72.

Which of the following is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices?

to petition the U.S. Court of Appeals. If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals. The court may enforce the order, recommend it to the NLRB for modification, change the order itself, or set it aside altogether. The deadline for filing a charge is six months after the alleged unfair practice.

73.

Jane and Martha work at Anden Inc. Jane claims that forming a union can help enhance workers' bargaining power with management. Martha, however, argues that it is quite challenging to form a union. Which of the following statements strengthens Martha's argument?

A. Unionized employees have low negotiating power with the management. B. A union needs to convince a majority of workers to have a common goal.

C. Union workers generally have lower productivity than nonunion workers. D. A union's goals must always contradict the employer's goals. E. A union must only include members with highly conceptual skills who can easily deal with conflict resolution. To meet its objectives, a union needs to convince a majority of workers that they should receive better pay or other employment conditions. For a union organizing process to work, at least 30% of an organization's employees must sign an authorization card.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 3 Hard Topic: The Union Organizing Process

74.

What is the minimum percent of employees in a bargaining unit who must sign authorization cards for the National Labor Relations Board to hold a union representation election?

A. 30 percent

B. 51 percent C. 20 percent D. 10 percent E. 55 percent At the start of an organizing process, union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card. For the organization process to continue, at least 30 percent of the employees must sign an authorization card.

75.

During an organizing campaign, which of the following occurs when union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card?

50 percent of employees signed cards. D. The National Labor Relations Board (NLRB) certifies the union as the exclusive representative of employees if the employer refuses to sign the card. E. The employees cannot participate in any of the proceedings. For the organization process to continue, at least 30 percent of the employees must sign an authorization card. If over half the employees sign an authorization card, the union may request that the employer voluntarily recognize the union. If the employer agrees, the NLRB certifies the union as the exclusive representative of employees. If the employer refuses, or if only 30 to 50 percent of employees signed cards, the NLRB conducts a secret-ballot election.

76.

House Factory Inc. and a union conducting an organizing campaign agree on the time and place of an election and a way to determine who can vote. Which type of election does this scenario best describe?

A. stipulation election B. decertification election C. union election D. agreement election E. consent election

For a consent election, the employer and the union seeking representation arrive at an agreement stating the time and place of the election, the choices included on the ballot, and a way to determine who is eligible to vote.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 3 Hard Topic: The Union Organizing Process

77.

Identify the guideline that should be followed by a supervisor to discourage unions.

In order to discourage unions, supervisors should report any direct or indirect signs of union activity to a core management group.

78.

Connor, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Connor saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Connor's reasoning about the organizing effort?

home. E. Regulations forbid unions from using online databases to identify issues of interest to particular workers. The traditional union organizing strategy has been for organizers to call or visit employees at home, when possible, to talk about issues like pay and job security. A recent loosening of regulations allows unions to move organizing efforts online—for example, to access database information about union members, nonmember employees, and issues of interest facing particular groups of workers. In this situation, Connor did not see union activity at work, because the contacts were being made away from the workplace.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 3 Hard Topic: The Union Organizing Process

79.

Which of the following terms refers to a substitute arrangement of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining?

A. card-check provision B. corporate union membership C. indirect union provision D. associate union membership

E. relational union membership Organizers sometimes offer workers associate union membership, which is not linked to an employee's workplace and does not provide representation in collective bargaining. Rather, an associate member receives other services, such as discounts on health and life insurance or credit cards.

80.

One of the substitutes for traditional organizing is to conduct _____, which bring financial, political, or public pressure on employers during union organization and contract negotiation.

A. collective coercion B. corporate campaigns

C. indirect provisions D. associate campaigns E. social campaigns One of the alternatives to traditional organizing is to conduct corporate campaigns—bringing public, financial, or political pressure on employers during union organization and contract negotiation.

81.

Which of the following best describes a card-check provision?

employer will recognize their union representation. C. It is an alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining. D. It is a formal and binding pledge by the employer not to oppose organizing efforts elsewhere in the company. E. It is a formal and binding pledge by at least 51 percent of employees to not unionize. A card-check provision is an agreement that if a certain percentage—by law, at least a majority—of employees sign an authorization card, the employer will recognize their union representation. An impartial outside agency, such as the American Arbitration Association, counts the cards.

82.

The hourly employees at BigHeart Health System have become dissatisfied with their union. They find that management communicates more openly and treats them with respect in resolving problems, so they don't see much value in paying dues to a union. What option do the employees have in this situation?

E. They can request that their union representative terminate the union contract. The Taft-Hartley Act expanded union members' right to be represented by leaders of their own choosing to include the right to vote out an existing union. This action is called decertifying the union. An election to decertify a union may not take place when a contract is in effect.

83.

Representatives of management at Eternal Steel and of the union representing its workers are preparing to negotiate contract provisions related to job security. Which of the following topics are most likely to be included in this round of contract negotiations?

E. grievance procedures, job classifications, and production standards Typical provisions negotiated for job or income security include hiring and transfer arrangements; employment and income guarantees; supplemental unemployment benefit plans; regulation of overtime, shift work, etc.; reduction of hours to forestall layoffs; layoff procedures; seniority; recall; promotion practices; training and retraining, relocation allowances; and severance pay and layoff benefit plans.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 3 Hard Topic: Collective Bargaining

84.

Collective bargaining differs from one situation to another in terms of _____.

A. bargaining provisions B. bargaining structure

C. bargaining campaigns D. bargaining strategies E. bargaining techniques Collective bargaining differs from one situation to another in terms of bargaining structure— that is, the range of employees and employers covered by the contract.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 1 Easy Topic: Collective Bargaining

85.

In collective bargaining, the term _____ refers to the range of employees and employers covered by the contract.

A. arbitrated team B. bargaining structure

C. union leverage D. differentiated group E. associate mediation In collective bargaining, the term bargaining structure refers to the range of employees and employers covered by the contract.

86.

Which of the following depicts the most complex bargaining structure in collective bargaining?

E. a carpenters' union representing the employees of one construction firm Collective bargaining differs from one situation to another in terms of bargaining structure— that is, the range of employees and employers covered by the contract. As opposed to a craft union in a single facility, many more interests must be considered in collective bargaining for an industrial union with a bargaining structure that includes several employers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 3 Hard Topic: Collective Bargaining

87.

Timothy, a manager at Zillful Company, is concerned because negotiations with the union are breaking down, and the union is discussing a strike. What would be the major harm from management's perspective?

A. The company would have to hire replacement workers, and they might be more productive. B. When the company does not have enough workers, production output will fall.

C. Employees will call off the strike if they do not receive pay from their employer. D. Employees are rarely serious when they threaten to go on strike. E. Employees will decide they are better off without union representation. During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply 15-99 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 3 Hard Topic: Lockout and Strikes

88.

During contract negotiations, the union representing the teachers in District 46 is calling for a strike if the union's demands aren't met by the end of the week. A new school board member is worried about school shutting down and suggests directing the negotiators to accept the union's demands. A more experienced board member says the teachers also have reasons for not wanting to strike. Which of the following would be one of the most likely reasons for teachers not wanting to strike?

E. During a strike, the employer excludes workers from the workplace. A primary reason strikes are rare is that a strike is seldom in the best interests of either party. Not only do workers lose wages and employers lose production, but the negative experience of a strike can make future interactions more difficult.

89.

An employer's exclusion of workers from a workplace until they meet certain conditions is known as a _____.

A. strike B. lockout

C. mediation D. picket line E. sabbatical In a lockout, the employer excludes workers from the workplace until they meet certain conditions.

90.

The _____ usually provides the neutral third party who is used for the common alternatives to strikes.

A. National Labor Relations Board B. Federal Mediation and Conciliation Service

C. Federal Labor Relations Board D. Federal Arbitration and Consulting Service E. National Mediation and Arbitration Commission Because strikes are so costly and risky, unions and employers generally prefer other methods for resolving conflicts. Three common alternatives—mediation, use of a fact-finder, and arbitration—rely on a neutral third party, usually provided by the Federal Mediation and Conciliation Service (FMCS).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 15-101 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 1 Easy Topic: Collective Bargaining

91.

Lola, a neutral third party, tries to resolve a conflict initiated by a manager and union representative at Thornton Inc. She does so by listening to what both parties have to say about the issue and facilitating the negotiations. In this scenario, Lola is exercising which of the following types of alternatives to work stoppages?

A. mediation

B. final-offer arbitration C. fact-finder technique D. conventional arbitration E. rights arbitration Mediation is the least formal and most widely used of these procedures. A mediator hears the views of both sides and facilitates the negotiation process.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 3 Hard Topic: Mediation

92.

According to the provisions outlined in the contract between Kranfer Inc. and its labor union, Kranfer must pay its employees double for working overtime. However, due to financial constraints, the company is unable to meet these demands. The company and the union decide to negotiate the terms of the contract in a relatively informal manner. A nonauthoritative third party is invited to listen to the views of both sides and to help resolve the conflict. In the context of the alternatives to work stoppages, the third party in this scenario is an example of a(n) _____.

A. arbitrator B. fact finder C. mediator

D. rights enforcer E. stakeholder Mediation is the least formal and most widely used of these procedures. A mediator hears the views of both sides and facilitates the negotiation process. The mediator has no formal authority to dictate a resolution, so a strike remains a possibility.

93.

The Transport Union in Atlanta, Georgia, enters into a contract with the Metropolitan Transportation Authority. The contract requires the government agency to pay a yearly bonus to union members. A year after signing the contract, the Metropolitan Transportation Authority refuses to pay the annual bonus, which triggers a conflict between the union and the agency. A third party intervenes to resolve the conflict between the two parties. The third party evaluates the arguments of both sides and proposes a solution. Both parties have the right to decline the proposal, but they decide to accept it. In the context of the alternatives to work stoppage, the third party in this scenario is an example of a(n) _____.

A. fact finder

B. arbitrator C. stakeholder D. moderator E. rights enforcer A fact finder is a third party to collective bargaining who reports the reasons for a dispute, the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline.

94.

The Public Transport Union and the Chicago Transit Authority are in conflict with each other. When the conflict escalates, the Chicago City Council decides to intervene and settle the dispute. The Council, after listening to offers from both sides, puts forth a binding settlement, which both parties must accept. In the context of the alternatives to work stoppages, this is an example of _____.

A. arbitration

B. fact finder negotiation C. mediation D. checkoff bargain E. grievance leverage Arbitration is the most formal type of outside intervention to resolve a conflict between management and union. An arbitrator (the Chicago City Council in this scenario) or arbitration board determines a settlement that is binding, meaning the parties have to accept it. Arbitration in the writing of contracts or setting of contract terms has traditionally been reserved for special circumstances such as negotiations between unions and government agencies, where strikes may be illegal or especially costly.

95.

Bargaining over a new union contract typically occurs

A. only about every three years.

B. year after year. C. only on the anniversary of the union's establishment. D. when the union wants more power over an organization. E. when a company feels a union is overstepping its boundaries. Bargaining over a new contract typically occurs only about every three years.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 1 Easy Topic: Describe Grievance Procedures

96.

The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agreement is known as a _____.

A. complaint protocol B. chain of command C. grievance procedure

D. protest procedure E. corporate campaign A grievance procedure is a process for resolving union-management conflicts over interpretation or violation of a collective bargaining agreement.

97.

The employees' union and the management at Rexen Inc. enter into a contract, which requires Rexen to improve its facilities and to ensure the safety of its employees. However, a few months later, the employees observe that the conditions have remained the same and that management has not taken any steps to revamp its systems. As a result, the union files a case against Rexen for violating the terms of their contract. In order to resolve this issue, the union and Rexen will both have to participate in a process for resolving conflicts, known as _____.

A. lockout protocols B. right-to-work laws C. the unionship arrangement D. the grievance procedure

E. the chain of command Contract administration includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of agreement. Under a labor contract, the process for resolving these conflicts is called a grievance procedure.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 3 Hard Topic: Describe Grievance Procedures

98.

A production worker believes that her supervisor is intentionally assigning her to work on machinery for which she does not have the proper training. She is worried about her safety and wonders if the supervisor is intentionally harassing her. The worker is represented by a union, so she starts the grievance process specified in the labor agreement. Assuming this is a typical grievance procedure, in which step, if any, will the employee likely act alone?

A. The final step; the employee and the supervisor would meet together with the unionappointed arbitrator. B. The first step; the employee can speak with her supervisor on her own before involving the union. C. The step in which a written grievance is submitted; this must be written and delivered by the employee only. D. None; the union handles all steps of the grievance procedure without involving the

employee. E. The step of deciding to appeal an unresolved grievance; it is up to the employee to choose arbitration or no appeal. For grievances launched by an employee, a typical grievance procedure follows four steps. In the first step, the employee talks to his or her supervisor about the problem. If this conversation is unsatisfactory, the employee may involve the union steward in further discussion. If the problem was not resolved and does seem to be a contract violation, the union moves to step 2. Steps 2 through 4 are carried out by management and representatives of the union.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 3 Hard Topic: Describe Grievance Procedures

99.

During the grievance process, the union appeals a grievance to top line management and senior industrial relations staff. What step comes next?

E. The employee (and the union steward) discuss the problem with a supervisor. In step 3 of the grievance procedure, the union appeals the grievance to top line management and senior industrial relations staff. Additional local or international union officers may be involved at this point. The decision resulting from this appeal is then put into writing.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

100.

A nursing assistant in a nursing home filed a grievance that he was unfairly passed over for a promotion. Discussions and appeals did not satisfy the employee, so the issue went to arbitration. The arbitrator decided that the nursing home must promote the employee, based on the terms of its contract, in spite of management's protests that the employee was too unreliable to handle the greater responsibility. The employee's supervisor urges Scott, the director of human resources, to file an appeal in the state courts. Scott says doing so would be a wasted expense. Which of the following statements best supports Scott's conclusion?

E. Courts generally rule against businesses in employment matters. If a grievance reaches arbitration, the arbitrator makes the final ruling in the matter. Based on a series of Supreme Court decisions, courts generally avoid reviewing arbitrators' decision and focus only on whether the grievance involved an issue that is subject to arbitration under the contract.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 3 Hard Topic: Describe Grievance Procedures

101.

An electric utility operates in a state with right-to-work laws. About three-quarters of its line workers have elected to join the union that represents them. Joel, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. Joel wants to file a grievance according to the process in the labor agreement, but he is not a member of the union. What must the union do in this situation?

E. It must give Joel a copy of the labor agreement, but it need not be involved in the process. Under the National Labor Relations Act, the union has a duty of fair representation, which means the union must give equal representation to all members of the bargaining unit, whether or not they actually belong to the union.

102.

Janet, a sales manager at Drexler Inc., claims that labor and management are rivals for most organizations. Carmella, the HR manager, says she is aware of exceptions. Which statement best supports Carmella's perspective?

A. After the 1980s, most unions and organizations have acted more like adversaries. B. Examples of cooperation between labor and management include employee involvement

in decision making and self-managing teams. C. Finding win-win solutions is almost impossible because unions and management have conflicting goals. D. Organizations often define jobs narrowly, which is a sign of cooperation. E. Creating a union necessarily forces employers to pay more wages, which results in loss of profits. Since the 1980s, there has been greater acceptance of the view that greater cooperation between labor and management can increase commitment and motivation while making the workplace more flexible. Cooperation between labor and management may feature employee involvement in decision making, self-managing employee teams, labor-management problemsolving teams, broadly defined jobs, and sharing of financial gains and business information with employees.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-07 Describe new approaches to labor-management relations. Level of Difficulty: 3 Hard Topic: Labor-Management Relations

103.

Veronica, a vice president of human resources at an auto company, wants to develop its programs for employee empowerment. However, she is concerned because unions are heavily involved in representing auto workers and might object to empowerment programs. Which of the following statements about the National Labor Relations Board would best address Veronica's concern?

making. E. The NLRB makes it an unfair labor practice to form employee participation committees to make decisions. Although employers must be careful to meet legal requirements, the NLRB has clearly supported employee involvement in work teams and decision making.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 15-07 Describe new approaches to labor-management relations. Level of Difficulty: 3 Hard Topic: Federal Laws Affecting Labor Relations

104.

The executives of BeeGood Honey are proud of the company's management practices, which they believe ensure fair treatment of employees better than union representation does. However, some complaints about working conditions have shown up in the suggestion box. The executives asked the HR manager, Leslie, to plan a system of employee-manager meetings to address issues such as these. As Leslie considers this request, what potential problem should she keep in mind?

violate the NLRA. E. Unions have never tried to organize BeeGood's workers, so they can easily make a case that the company organized workers illegally. Employees want some form of representation, which often involves "substitutes" for unions. A recent survey of hundreds of U.S. workers found that 17% were covered by a collective bargaining agreement, and another 28% said they had some form of management-established system to represent them. Both groups of workers were equally likely to say the employee representatives could be "counted on to stand up for workers." It is important to note that these "substitutes" may violate the NLRA. However, they exist because the legal guidelines covering these systems are ambiguous.

105.

A chain of fried-fish restaurants hires part-time workers and pays minimum wage. Turnover is very high. Given that most employees do not stay at a restaurant long or work there full-time, organizing campaigns are very difficult. With these facts in mind, Gloria, the chain's vice president of human resources, believes unions will not have an impact on the company. What possible force in labor markets is Gloria overlooking?

E. arbitration panels, which could rule that fair labor conditions require a union Worker centers are nonprofit organizations offering their members services such as training, legal advice, lobbying, and worker advocacy. A few worker centers are affiliated with unions; most are not, so they are not constrained by some of the requirements on unions. Instead of negotiating contracts with management, worker centers pressure employers through publicity campaigns, and they lobby legislators to pass laws favorable to their members. They may lack the financial resources of a major union, but they can be a powerful force when they rally community support.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 15-07 Describe new approaches to labor-management relations. Level of Difficulty: 3 Hard Topic: Labor-Management Relations

Essay Questions

106.

Briefly describe the three levels of decisions involved in labor relations.

Labor relations involve three levels of decisions: 1. Labor relations strategy: For management, the decision involves whether the organization will work with unions or develop (or maintain) nonunion operations. This decision is influenced by outside forces such as public opinion and competition. For unions, the decision involves whether to fight changes in how unions relate to the organization or accept new kinds of labormanagement relationships. 2. Negotiating contracts: Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers' and the employer's situation for the term of the contract. 3. Administering contracts: These decisions involve day-to-day activities in which union members and the organization's managers may have disagreements. Issues include complaints of work rules being violated or workers being treated unfairly in particular situations. A formal grievance procedure is typically used to resolve these issues.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-01 Define unions and labor relations and their role in organizations. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

107.

What is the difference between craft unions and industrial unions?

The members of a craft union all have a particular skill or occupation. Craft unions are often responsible for training their members through apprenticeships and for supplying craft workers to employers. Craft workers may work for many employers over time, but have a constant link to the union. A craft union's bargaining power depends greatly on its control over the supply of its workers. Industrial unions consist of members who are linked by their work in a particular industry. Typically, an industrial union represents many different occupations. Membership in the union is the result of working for a particular employer in the industry. Changing employers is less common than it is among craft workers, and employees who change employers remain members of the same union only if they happen to move to other employers covered by that union. Another difference is that whereas a craft union may restrict the number of skilled craftsmen to maintain higher wages, industrial unions try to organize as many employees in as wide a range of skills as possible.

108.

Explain the reasons for the decline in union membership in the United States.

The decline in union membership has been attributed to several factors: 1. Change in the structure of the economy: Much recent job growth has occurred in the service sector of the economy, while union strength has traditionally been among urban blue-collar workers. Services industries such as finance, insurance, and real estate have lower union representation than manufacturing. Also, much business growth has been in the South, where workers are less likely to join unions. 2. Management efforts to control costs: On average, unionized workers receive higher pay than their nonunionized counterparts, and the pressure is greater because of international competition. In the past, union membership across an industry such as automobiles or steel resulted in similar wages and work requirements for all competitors. Today, U.S. producers must compete with companies that have entirely different pay scales and work rules, often placing the U.S. companies at a disadvantage. 3. Human resource practices: Competition for scarce human resources can lead employers to offer much of what employees traditionally sought through union membership. 4. Government regulation: Stricter regulation in such areas as workplace safety and equal employment opportunity leaves fewer areas in which unions can show an advantage over what employers must already offer.

109.

Why do unions place a high level of importance on negotiating contract provisions with an employer? What are the different types of contract provisions?

The survival and security of a union depend on its ability to ensure a regular flow of new members and member dues to support the services it provides. Therefore, unions typically place high priority on negotiating checkoff provisions and provisions relating to union membership or contribution with an employer. All these provisions are also ways to address unions' concern about "free riders"—employees who benefit from union activities without belonging to a union. By law, all members of a bargaining unit, whether union members or not, must be represented by the union. If the union must offer services to all bargaining unit members, but some of them are not dues-paying union members, the union may not have enough financial resources to operate successfully. Under a checkoff provision, the employer, on behalf of the union, automatically deducts union dues from employees' paychecks. Security provisions related to union membership are closed shop, union shop, agency shop, and maintenance of membership. The strongest union security arrangement is a closed shop, under which a person must be a union member before being hired. Under the National Labor Relations Act, closed shops are illegal. A legal membership arrangement that supports the goals of labor unions is the union shop, which is an arrangement that requires an employee to join the union within a certain time (30 days) after beginning employment. A similar alternative is the agency shop, which requires the payment of union dues but not union membership. Maintenance of membership rules do not require union membership, but do require that employees who join the union remain members for a certain period of time, such as the length of the contract.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-02 Identify the labor relations goals of management; labor unions; and society. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

110.

Explain what right-to-work laws are. What is the viewpoint of unions regarding these laws?

The Taft-Hartley Act allows the states to pass so-called right-to-work laws, which make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts the employees' right to freedom of association. In other words, employees should be free to choose whether they join a union or other group. Of course, unions have a different point of view. The union perspective is that unions provide services to all members of a bargaining unit (such as all of a company's workers), and all members who receive the benefits of a union should pay union dues.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-03 Summarize laws and regulations that affect labor relations. Level of Difficulty: 2 Medium Topic: Federal Laws Affecting Labor Relations

111.

Explain the major functions of the National Labor Relations Board.

The National Labor Relations Board (NLRB) has two major functions: to conduct and certify representation elections and to prevent unfair labor practices. It does not initiate either of these actions but responds to requests for action. The NLRB is responsible for ensuring that the organizing process follows certain steps. Depending on the response to organizing efforts, the NLRB conducts elections. When a majority of workers vote in favor of a union, the NLRB certifies it as the exclusive representative of a group of employees. The NLRB also conducts elections to decertify unions, following the same process as for representation elections. It is also responsible for determining the appropriate bargaining unit and the employees who are eligible to participate in organizing activities. Bargaining units may not include certain types of employees, such as agricultural laborers, independent contractors, supervisors, and managers. Beyond this, the NLRB attempts to group together employees who have a community of interest in their wages, hours, and working conditions. A unit may cover employees in one facility or multiple facilities within a single employer, or the unit may cover multiple employers. In general, employees on the payroll just before the ordering of an election are eligible to vote, although this rule is modified in some cases, for example, when employment in the industry is irregular. Most employees who are on strike and who have been replaced by other employees are eligible to vote in an election (such as a decertification election) that occurs within 12 months of the onset of the strike.

112.

Describe the union organizing process.

The organizing process begins when union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card. For the organization process to continue, at least 30 percent of the employees must sign an authorization card. If over half the employees sign an authorization card, the union may request that the employer voluntarily recognize the union. If the employer agrees, the National Labor Relations Board (NLRB) certifies the union as the exclusive representative of employees. If the employer refuses, or if only 30 to 50 percent of employees signed cards, the NLRB conducts a secret-ballot election. The arrangements are made in one of two ways: 1) For a consent election, the employer and the union seeking representation arrive at an agreement stating the time and place of the election, the choices included on the ballot, and a way to determine who is eligible to vote. 2) For a stipulation election, the parties cannot agree on all of these terms, so the NLRB dictates the time and place, ballot choices, and method of determining eligibility. On the ballot, workers vote for or against union representation, and they may also have a choice from among more than one union. If the union (or one of the unions on the ballot) wins a majority of votes, the NLRB certifies the union. If the ballot includes more than one union and neither gains a simple majority, the NLRB holds a runoff election. If the NLRB finds the election was not conducted fairly, it may set aside the results and call for a new election. After certification, there are limits on future elections.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-04 Describe the union organizing process. Level of Difficulty: 2 Medium Topic: The Union Organizing Process

113.

What is the basic process of negotiating a labor contract?

Unions and management prepare for the negotiations by establishing objectives, reviewing the existing contract (if any), gathering data, predicting the likely demands to be made, and establishing the costs of meeting the demands. This information guides decisions about how to negotiate. The negotiation itself goes through various stages, with the most people present in the earliest stages. The union and management present lists of proposals, or the union presents proposals, which management responds to. Each side evaluates the proposals to identify the importance of the issues to each side and the lengths to which they are likely to go in pursuing objectives. In the final stages of negotiations, pressure for an agreement increases. A neutral third party may act as a go-between or facilitator. In some cases, bargaining breaks down as the two sides find they cannot reach a mutually acceptable agreement. This may lead to work stoppages. Alternatives to resolve the problem and arrive at an agreement include mediation, a fact finder, and arbitration.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-05 Explain how management and unions negotiate contracts. Level of Difficulty: 2 Medium Topic: Collective Bargaining

114.

Discuss the different criteria that employers use to judge a grievance procedure.

Employers can judge a grievance procedure in terms of various criteria. One consideration is effectiveness: how well the procedure resolves day-to-day contract questions. A second basic consideration is efficiency: whether it resolves issues at a reasonable cost and without major delays. The company also should consider how well the grievance procedure adapts to changing circumstances. In the case of contracts covering multiple business units, the procedure should allow for resolving local contract issues, such as work rules at a particular facility. Companies also should consider whether the grievance procedure is fair—whether it treats employees equitably and gives them a voice in the process.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 15-06 Summarize the practice of contract administration. Level of Difficulty: 2 Medium Topic: Describe Grievance Procedures

115.

How can labor-management relations be made more cooperative?

Cooperation between labor and management may feature employee involvement in decision making, self-managing employee teams, labor-management problem-solving teams, broadly defined jobs, and sharing of financial gains and business information with employees. The search for a win-win solution requires that unions and their members understand the limits on what an employer can afford in a competitive marketplace. Without the union's support, efforts at employee empowerment are less likely to survive and less likely to be effective if they do survive. Unions have often resisted employee empowerment programs, precisely because the programs try to change workplace relations and the role that unions play. Union leaders have feared that such programs will weaken unions' role as independent representatives of employee interests. Although employers must be careful to meet legal requirements, the National Labor Relations Board (NLRB) has clearly supported employee involvement in work teams and decision making.

AACSB: Analytical Thinking Blooms: Understand 15-124 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 15-07 Describe new approaches to labor-management relations. Level of Difficulty: 2 Medium Topic: Labor-Management Relations

Chapter 16 Managing Human Resources Globally

True / False Questions

1. The trends and arrangements that encourage international trade decrease the demands on human resource management. True

False

2. A host country is a country, other than the parent country, in which an organization operates a facility. True

False

3. Expatriates are employees from a country other than the parent country or the host country. True

False

4. The usual way that a company begins to enter foreign markets is by exporting, or shipping, domestically produced items to other countries to be sold there. True

False

5. While international companies go overseas on a broader scale, multinational companies build one or a few facilities in another country. True

False

6. Cultural differences are a disadvantage to global organizations. True

False

7. The most important influence on international HRM is the culture of the country in which a facility is located. True

False

8. Power distance concerns the way the culture deals with unequal distribution of power. True

False

9. In countries with large power distances, people address one another with first names. True

False

10. High uncertainty avoidance refers to a strong cultural preference for structured situations. True

False

11. Educational opportunities remain constant from one country to another. True

False

12. Ample opportunities for educational development are provided in capitalist economic systems because education is free for students. True

False

13. A country's political system does not usually affect human resource management. True

False

14. Compared with other countries, the United States allows employers much latitude in reducing their workforce. True

False

15. Companies usually prefer hiring third-country nationals for filling positions in host-countries. True

False

16. Hiring employees from outside the host country is an option many companies take when the local labor market does not offer enough qualified people. True

False

17. According to research, employees who are extroverted, agreeable, and conscientious are most successful at completing overseas assignments. True

False

18. Even if employees persist and continue learning about their host country's culture, they rarely recover from culture shock. True

False

19. While training expatriates, trainers are expected to be authoritarian and controlling of session in cultures low in power distance. True

False

20. A culture with a long-term orientation will have trainees who are likely to accept development plans and assignments. True

False

21. The specific methods of performance management that work in one country may fail in another, while general principles of performance management may apply in most countries. True

False

22. European companies usually link stock options to specific performance goals, such as the increase in a company's share price compared with that of its competitors. True

False

23. U.S. organizations exert more centralized control over labor relations in the various countries where they operate when compared with European organizations. True

False

24. The balance sheet approach for determining expatriate compensation adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas. True

False

25. Cross-cultural training requires developing a greater awareness of one's own culture, too. True

False

Multiple Choice Questions

26. Which of the following agreements have been adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

A. CSN B. NAFTA C. PICTA D. APEC E. TAFTA 27. Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Peter works out of the London office, Keith operates out of the marketing unit in New York. Which of the following statements is true in this scenario?

A. Peter is a host-country national. B. Peter is a parent-country national. C. Peter and Keith are expatriates. D. Keith is a third-country national. E. Keith is a home-country national. 28. Gerard is an Australian citizen and works at the headquarters of an Australian company. This would make him a(n) _____.

A. host-country national B. expatriate C. governing-country national D. third-country national E. parent-country national

29. FileTech, a company headquartered in the United States, opens an overseas facility in Ireland. In this scenario, the Irish facility is located in a

A. host country. B. parent country. C. first country. D. third country. E. guest country. 30. Sergio, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Sergio is a

A. host-country national. B. parent-country national. C. first-country national. D. third-country national. E. guest-country national. 31. Thomas, a South African, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Thomas operates out of the firm's production facility in Cape Town, South Africa. Thomas is considered to be a(n)

A. parent-country national. B. third-country national. C. host-country national. D. repatriate. E. expatriate.

32. Which of the following refers to a country that is neither the parent country nor the host country of a company?

A. first country B. facilitating country C. governing country D. third country E. guest country 33. Which of the following terms would accurately describe an individual who was born in the United States and is currently working in Germany for a company headquartered in China?

A. parent-country national B. host-country national C. third-country national D. home-country national E. guest-country national 34. A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a

A. parent-country national. B. host-country national. C. third-country national. D. home-country national. E. first-country national.

35. A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the _____ country, and Pakistan is the _____ country.

A. parent; third B. expatriate; host C. host; guest D. third; first E. parent; host 36. James, an American who works for a U.S.-based company, has been sent to England for a work assignment. James would be known as a(n)

A. expatriate. B. repatriate. C. host-country national. D. third-country national. E. guest-country national. 37. John and Henry are U.S. citizens and work for the same law firm that is headquartered in New York. John, however, works from the firm's London office, while Henry works from the office in New York. Which of the following is a difference between the two employees?

A. John is an expatriate, whereas Henry is a parent-country national. B. John is a host-country national, whereas Henry is an expatriate. C. John is a third-country national, whereas Henry is a host-country national. D. John is a parent-country national, whereas Henry is a host-country national. E. John is repatriate, whereas Henry is a third-country national.

38. A company with _____ level participation is likely to have a single office, the headquarters, in the parent country.

A. international B. multinational C. global D. domestic E. transnational 39. Which of the following is the usual way in which companies first enter foreign markets?

A. importing B. offshoring C. exporting D. outsourcing E. relocating 40. Which of the following best defines an international organization?

A. an organization that builds facilities in a number of different countries in an effort to minimize distribution costs B. an organization that builds facilities in a number of different countries in an effort to minimize production costs C. an organization that sets up one or a few facilities in one or a few foreign countries D. an organization that exports goods to more than a few countries E. an organization that exports goods to a number of different countries

41. Which of the following best describes a multinational company?

A. an organization that builds facilities within the same country to facilitate large-scale exports to various countries B. an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs C. an organization that sets up one or a few facilities in one or a few foreign countries D. an organization that operates from one country and has customers from all over the globe E. a domestic organization that chooses to locate a facility using cultural differences as an advantage 42. Which of the following organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?

A. foreign subsidiaries B. international organizations C. multinational organizations D. global organizations E. domestic organizations 43. Dev and Emily are employees of a publishing house and work together on the same team. Dev believes that Emily hails from an individualistic culture, while Emily disagrees. Which of the following, if true, would strengthen Dev's argument?

A. Emily prioritizes helping her team members attain their career advancement goals. B. Emily focuses on self-development and puts her needs before those of the group. C. Emily places emphasis on achieving upward social mobility by fulfilling common goals. D. Emily prefers decision making through her team members' participation in management. E. Emily's traits are typical of those from cultures that expect protection from the community.

44. Jerome believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Jerome's thoughts reflect that of a person with

A. an individualistic nature. B. a collectivist nature. C. high power distance. D. low uncertainty avoidance. E. a short-term orientation. 45. Edward, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India were offended by this gesture. Which of the following differences in culture does this scenario reveal?

A. individualism/collectivism B. uncertainty avoidance C. power distance D. long-term/short-term orientation E. masculinity/femininity 46. Tanya works at a retail store in Los Angeles. She addresses her Indian manager, Priya, by her first name. Tanya's colleague advises against addressing Priya by her name, as she might find it disrespectful. The colleague is most likely right if Priya's cultural beliefs align with a

A. long-term orientation. B. collectivist nature. C. high power distance. D. low uncertainty avoidance. E. short-term orientation.

47. Sheena hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?

A. masculinity B. time orientation C. high uncertainty avoidance D. individualism E. power distance 48. Eric's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week, and to share those goals on the company intranet. This way, Eric and his coworkers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on

A. individualism. B. long-term orientation. C. femininity. D. uncertainty avoidance. E. power distance.

49. Joanne and Patrick are expatriates working for different companies in two different countries. Joanne's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Patrick's company is a little more relaxed, and they tend to take each day as it comes. Which of the following cultural differences contributes to this difference in the way these corporations operate?

A. Joanne's company is in a country high in feminine culture, whereas Patrick's company is in a country high in masculine culture. B. The culture of Joanne's company functions with a low power distance, whereas the culture of Patrick's functions with high power distance. C. Joanne's host country functions at an individualistic level, whereas Patrick's host country functions at a collectivist level. D. Joanne is in a company with a short-term orientation culture, whereas Patrick is in a company with a long-term orientation culture. E. Joanne's company's culture functions with a high uncertainty avoidance, whereas Patrick's company's culture functions with a low uncertainty avoidance. 50. Adrian and Ben are employees of a software development firm in San Francisco. Ben believes that Adrian exhibits behaviors that resemble those of individuals from masculine cultures. Which of the following, if true, would support Ben's beliefs?

A. Adrian places more emphasis on a harmonious working relationship between members in his team. B. Adrian places more emphasis on creating an atmosphere of competition among his team members. C. Adrian places more emphasis on undertaking initiatives aimed at mobilizing funds for the underprivileged. D. Adrian places more emphasis on undertaking initiatives aimed at preventing environmental degradation. E. Adrian places more emphasis on achieving social mobility through collectivist means.

51. Tiffany, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marking plans that will maximize financial returns and enjoys competing against other managers in the company. Tiffany is most likely to be an individual whose culture reflects

A. masculine traits. B. a short-term orientation. C. high power distance. D. low uncertainty avoidance. E. collectivist views. 52. Stephen works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involved planting trees and flowers on the office's grounds. Stephen's initiative most likely reflects one of individuals in a _____ culture.

A. collectivist B. short-term C. feminine D. high power distance E. low uncertainty avoidance 53. Which of the following statements is true about cultures with a long-term orientation?

A. They have a tendency to look down upon those who invest in savings. B. They prefer jobs that are relaxed, easy, and do not involve hard work. C. They focus primarily on cultural values that fulfill obligations in the present. D. They promote respect for those who are good at achieving immediate results. E. They focus primarily on cultural values that tend to pay off in the future.

54. Jenny, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Jenny's attitudes and behavior are consistent with a culture that

A. is highly individualistic. B. has high power distance. C. is low on uncertainty avoidance. D. is feminine. E. is long-term oriented. 55. _____ promote respect for past tradition and for fulfilling social obligations in the present.

A. Short-term orientations B. Masculine cultures C. Feminine cultures D. Individual orientations E. Capitalist orientations 56. Which of the following is a feature of a company with an individualistic culture?

A. It has flatter pay structures. B. It exhibits greater differences between the highest and lowest pay in the organization. C. It emphasizes on organizational rather than individual performance. D. It involves employees in collective decision making. E. It has compensation systems based on fixed pay according to seniority.

57. The _____ of a country's labor force affect how and the extent to which foreign companies want to operate there.

A. population B. HR practices C. education and skill levels D. cultural differences E. collectivism and potential for unionization 58. Which of the following is the best way for an internationally-expanding organization to gain expertise in a host country's legal requirements?

A. gather advice from a third-country national, since they are a neutral party B. hire one more host-country nationals C. increase the number of parent-country lawyers D. open a facility based on the parent-country's legal system and adjust operations as the need arises E. interview host-country nationals to learn how they would like facilities in their countries to be run 59. ExAlt Technologies forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Mississippi, Poland, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs?

A. calculating of the total number of floating holidays each employee will receive B. the probability that newly hired employees at each location will suffer culture shock C. whether the country in which the factory operates has an individualistic culture D. if the company can put a greater emphasis on protecting workers' jobs E. how these considerations weigh against financial and operational requirements

60. Several years ago, Seventh National Bank set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer facility is most likely in this situation?

A. The bank will switch to exporting these services to customers from its home office. B. The facility is moving to a higher-wage country. C. The bank does not intend to continue this service to customers. D. The bank is expecting the workers to handle each call faster. E. The facility is automating the process of answering routine questions. 61. Identify an advantage of having wide latitude in reducing a company workforce.

A. It gives employers the option of hiring for peak needs and laying off employees if needs decline. B. It helps in protecting workers' jobs. C. It helps employees adjust to a new culture. D. It allows workers to keep more of their earnings regardless of the taxes they pay. E. It gives employees the advantage of accumulating many years of work experience in an organization. 62. U.S.-based GlitterMe introduced a line of accessories that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice?

A. If the company replaces French workers in the future, they will have to develop new skills. B. HR planning addresses hiring but cannot prepare the company for a possible slowdown. C. French companies are developing computer systems to automate distribution facilities. D. French laws encourage layoffs when business slows, which is bad for morale. E. U.S. laws give employers wide latitude for workforce reductions, but French laws do not.

63. When Builder Bob Enterprises, a maker of construction equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Builder Bob's recruiting practices in China?

A. Any Chinese workers Builder Bob hires must be eligible to work in the United States. B. The United States ranks among the most challenging destinations for expatriate assignments. C. Sometimes third-party nationals have better technical and human relations skills. D. Chinese employees work harder and are better motivated than expatriate employees. E. Hiring locally is much less expensive than training and transporting expatriate employees. 64. Which of the following is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?

A. they are familiar with the parent-country's customs B. they can easily understand the values of the local workforce C. they cost more to train, showing the company invests in its workers D. the company will not be required to transport the employee's spouse E. these employees are far more open to taking on new job responsibilities 65. Sean, a consultant, was assigned an overseas project in China for a period of two years. After a period of seven months, Sean's manager decides to bring Sean back to his home country and replace him with someone else in China. Which of the following, if true, is most likely to have resulted in this decision?

A. Sean exhibited the ability to effectively communicate in Mandarin. B. Sean exhibited a sense of intolerance toward collectivist ideals. C. Sean exhibited high levels of extraversion that was required for the job. D. Sean exhibited high levels of cohesiveness. E. Sean exhibited lower levels of disillusionment than other employees.

66. Betty, an American, works for an automobile manufacturer in New Jersey. Her manager, Ruth, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Japan. Which of the following, if true, could have most likely led to Betty being chosen for the assignment?

A. Betty lacks tolerance to ambiguity and resists change B. Betty prefers to work in a less challenging work environment C. Betty works best with those from feminine cultures with low power distance D. Betty is insensitive to differences in cultures and norms E. Betty possesses the motivation to succeed and is achievement-oriented 67. Wowee Appliances is setting up production and distribution facilities in India to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees, but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?

A. These traits will replace the need for support from family members. B. These traits will help the manager be extroverted in the new environment. C. These traits are associated with a high degree of financial skills. D. These traits will prevent the manager from noticing cultural differences. E. These traits will help the manager persevere through culture shock. 68. When an expatriate sent on a foreign assignment begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, they are said to be experiencing _____.

A. validation B. adjustment C. recovery D. culture shock E. repatriation

69. Roger, an automobile engineer, was sent on a foreign assignment to Spain. Initially, Roger was fascinated by the culture and history of the town he lived in. Within a month, he began to feel disillusioned and discomforted by the differences in norms and values. Which of the following terms best describe this phase of Roger's experience?

A. recovery B. culture shock C. honeymoon D. validation E. adjustment 70. Christophe works for a German automobile company. He was sent to the United States for an assignment. Initially, he enjoyed the culture and practices of the country. As time progressed, however, Christophe found it difficult to adjust to the new culture and to abide by its norms and values. Christophe's experience can be defined as _____.

A. power distance B. time orientation C. repatriation D. validation E. culture shock 71. While training and developing a global workforce, which of the following is a challenge that an organization is most likely to face?

A. creating a comprehensive training program for employees from different cultures B. making employees aware of the training content and the method of evaluation C. linking training objectives to performance management D. making employees aware of the development plans E. deciding the duration of the training program

72. Beenes & Bacon Ltd., a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which of the following considerations is most affected by the international nature of the workforce?

A. the need to measure training outcomes B. the need to have training objectives C. management's interest in the topic D. the employees' motivation level E. cultural differences 73. Which of the following statements describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance?

A. trainers adopt an impromptu style of instruction B. trainers provide a formal instructional environment C. trainers are flexible and open to schedule and activity changes D. trainers allow trainees to determine the pace of the programs E. trainers emphasize trainees' relationships with one another 74. _____ refers to training employees on overseas work assignments to work through national and cultural boundaries.

A. Adventure learning B. Experiential learning C. Validation D. Cross-cultural preparation E. Repatriation

75. _____ refers to training employees and their family members to get them ready for an assignment in a foreign country.

A. Acculturation B. Uncertainty avoidance C. Cross-cultural preparation D. Community training E. Biculturalism 76. Ricardo has been selected to work at his firm's manufacturing plant in China. The training department divides the cross-cultural preparation into three phases. Which of the following is the training team likely to do during the departure phase of cross-cultural preparation?

A. They are likely to conduct training sessions that include language instructions. B. They are likely to arrange a mentoring program for the assignment overseas. C. They are likely to provide information about changes in the home-country workplace. D. They are likely to provide the company's newsletters and local newspapers. E. They are likely to provide a formal program for the actual assignment. 77. International assignments are especially beneficial to the organization if they are linked to the company's ____.

A. labor relations B. outsourcing programs C. training methods D. bonus plans E. development programs

78. According to your text, appropriate behavior in Ghana includes

A. touching foreheads as a sign of greeting. B. dramatic displays of loyalty only when it suits the individual. C. disobedience of government-suggested regulations and procedures. D. the length of eye contact. E. repaying obligations. 79. Which of the following statements best describes a difference of giving performance feedback outside the United States?

A. In contrast to U.S. practices, performance feedback outside the United States includes repayment of obligations. B. Performance feedback is expected in the United States, but is forbidden by many other countries' laws. C. U.S. workers are more interested than other workers in hearing about whether they are loyal. D. Employees in other countries seek out direct negative feedback more readily than U.S. employees do. E. Employees in other countries are less likely to be comfortable with direct statements about their performance. 80. Kendra, a human resource professional, works for a U.S. company that will be opening an office in Mexico City. She is preparing an outline for training the managers there in how to carryout performance management. Which of the following statements expresses a valid point to cover in the training?

A. If growth slows, the company may have to update its performance plans more often. B. If managers are concerned about bad karma, they do not have to give employees feedback. C. In delivering feedback, managers should meet cultural standards for bowing and eye contact. D. Managers should review employees' shortcomings before giving praise. E. Managers can expect that employees want to know what they are doing right.

81. In Brazil, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Brazil?

A. Market structures are consistent across countries. B. Brazil does not have good recruiting systems for identifying talented managers. C. Brazilian managers tend not to be loyal, so companies are constantly replacing them. D. Multinational companies have been leaving Brazil because of falling demand. E. The demand for managers with technical expertise has been outstripping the supply. 82. Identify a true statement about decisions related to the global compensation strategy.

A. They affect a company's costs and abilities to compete. B. They focus more on flexibility than on fairness to account for differences across cultures. C. They are made on the basis of the cost of living in the home country. D. They do not compare wages across countries. E. They are not determined by labor costs. 83. The founder of Rainbow Fine China wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Rainbow's ability to compete, what other HR factors, if any, should the company consider?

A. access to resources in each possible location B. differences in transportation costs from factories to customers C. no other factors, because costs determine competitiveness D. differences in workforces' education levels and languages E. differences in workforces' education, skill, and productivity

84. Identify a true statement about employee benefits.

A. In both the United States and Europe, the awarding of stock options is linked to specific performance goals. B. Pension plans are more widespread in the United States and Japan than in Western Europe. C. Unlike in the United States, compensation plans in other countries are less likely to include benefits. D. Paid vacation tends to be more generous in Western Europe than in the United States. E. Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade. 85. Weeble Brass, a maker of musical instruments based in Akron, Ohio, is preparing to open a branch office in Paris. Its benefits package in the United States includes the benefits most commonly offered in this country. What additional benefits are the French employees likely to expect?

A. two weeks of paid vacation and national health insurance B. unpaid family leave and paid vacation time C. health insurance and unpaid maternity leave D. pensions and flexible work schedules E. pensions and more paid vacation time 86. Identify a true statement about international labor relations.

A. In comparison with U.S. organizations, European organizations exert more centralized control over labor relations in the countries they operate. B. The day-to-day decisions about labor relations are usually handled by each foreign subsidiary in companies that operate across borders. C. Governments never get involved to protect workers who immigrate to other countries. D. Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union. E. Companies that operate across national boundaries mostly work only with unions in the home country.

87. Rachel, a Canadian citizen, has been working in the United States for two years. Rachel's manager, Kevin, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which of the following, if true, strengthens Kevin's belief?

A. Rachel can take criticism only from positions above hers. B. Rachel needs time to develop a positive self-image in a new place. C. Rachel has the ability to foster relationships with people in a host country. D. Rachel does not understand and value her own culture very well. E. Rachel is very assertive and resistant to change. 88. Lindsay, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. She knows she may not discriminate based on age or sex, but she also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can she best avoid discrimination while selecting a candidate who can thrive in the assignment?

A. by maintaining a positive view of the assignment so all candidates will be interested B. by inviting a frank, but private, conversation about family-related issues C. by interviewing only candidates without spouses or children D. by asking each candidate to describe his or her family situation E. by giving a complete, accurate preview of the assignment and the host country's culture 89. Which of the following employees is likely to be the most motivated to take on an overseas assignment?

A. Sayed, who may have medical conditions to deal with if he travels overseas B. Tina, who has a very realistic understanding of what working and living abroad require C. Ria, whose spouse doesn't want to shift to a new culture and learn a new language D. Elizabeth, who is ethnocentric and has stereotypical views about other cultures E. Rick, who requires extensive training to acquire the basic skills required for the assignment

90. Identify a true statement about the balance sheet approach used for expatriate compensation.

A. It includes planning for how the returning employee will contribute to the organization. B. It ensures managers receive extra pay for the inconvenience of locating overseas. C. It refers to the expatriate receiving information and recognizing changes while abroad. D. It withholds the amount of tax to be paid in the host country. E. It constantly changes in response to a host of economic forces. 91. Gloria, a human resource professional in the United States, is reviewing the plans to send a U.S.born production manager to Argentina to oversee the opening of a new factory. What does her employer most likely expect her to do about the potential for language barriers with this assignment?

A. Because the manager must be fluent in Spanish, she should assume there are no language barriers. B. Gloria should provide enough training to eliminate all language barriers during the assignment. C. Gloria should reassure the manager that English is the international language of business. D. Gloria should provide a trainer to teach Spanish to the manager. E. Gloria should select a manager who can learn Spanish and cope with language barriers. 92. Victor, a human resource professional, is preparing for Jeanne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Victor wants to measure Jeanne's success in establishing high productivity, so he uses the excellent productivity numbers Jeanne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?

A. by using communication technology to send frequent updates of the performance measures B. by raising the measure to motivate Jeanne to improve on her past accomplishments C. by lowering the measure to account for Jeanne's limited knowledge of French and Vietnamese D. by adjusting the measure to account for the facility being in a different time zone E. by adjusting the measure for local factors that could affect productivity

93. What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?

A. to ensure that the company does not get stuck with paying the higher costs of living in an overseas location B. to adjust the manager's pay downward so total compensation reflects the benefits of getting to travel C. to give the manager the same amount of pay as in the home country, but in the host country's currency D. to give the manager an amount of compensation that enables the company to balance the books E. to give the manager the same standard of living plus extra for the inconvenience of moving 94. Daniel, an American, is selected by his firm to undertake a temporary assignment in Russia. Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which of the following approaches have been used to determine Daniel's compensation?

A. third-country based approach B. flat-pay approach C. transactional approach D. balance sheet approach E. going-rate approach 95. The _____ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.

A. going-rate approach B. destination-based approach C. home-country-based approach D. flat-pay approach E. balance sheet approach

96. The four components of a total pay package are _____, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive.

A. salary allowance B. exchange rates C. health plans D. uprooting fees E. base salary 97. During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

A. expatriation B. cross-cultural preparation C. repatriation D. honeymoon E. validation 98. Alex, an employee of Teal Inc., an American company, was sent to Turkey for an assignment. HR specialists at Teal Inc. have been preparing Alex for his return to the United States after three years. Which of the following terms describes the process being undertaken by the HR team at Teal Inc.?

A. cross-cultural preparation B. time orientation C. repatriation D. uncertainty avoidance E. culture shock

99. Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment. After completing her project within the given span of six months, Kim approaches the HR department of her firm to arrange for her return. The HR department is likely to prepare for Kim's _____ as the first task.

A. expatriation B. validation C. repatriation D. culture shock E. overseas assignment 100.Communication and _____ are the activities used by companies in the process of helping employees repatriate.

A. validation B. equalization C. dissolution D. resolution E. exclusion 101.To help Pedro, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes have been happening at home. What type of repatriation support is this?

A. validation B. equalization C. communication D. resolution E. rationalization

102.Dan is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Dan's service can be best described as a form of _____.

A. expatriation B. validation C. accreditation D. cross-cultural preparation E. adjustment 103.Which of the following activities involves giving the expatriate recognition for the overseas service when the person returns home?

A. resolution B. dissolution C. rationalization D. communication E. validation 104.Dynamo Dynamics is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Ray, Dynamo's human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Ray that he include the manager's husband in the training. Should Ray follow the advice of his colleague?

A. No, train only the employee because the employee is the only one going on the assignment. B. No, train only the employee because including the spouse adds to costs but not benefits. C. Yes, the husband should be included because not doing so could be seen as sex discrimination. D. Yes, the husband should be included because doing so shows that the company values diversity. E. Yes, the husband should be included because the family's adjustment affects the success of an assignment.

105.Bryan, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Japan. Which of the following topics will be the most important in training to prepare him for the assignment?

A. the advantages of U.S. culture B. marketing skills C. details about the new product line D. what to expect from Japanese culture E. how to determine the purchasing power of his salary in Japan

Essay Questions

106.Identify the reasons behind the trend toward expansion into global markets.

107.Describe the terms parent country, parent-country national, host country, host-country national, third country, and third-country national, and provide examples for each.

108.How do international, multinational, and global organizations differ from each other? Briefly summarize the HR issues associated with each type of organization.

109.Describe the five dimensions of culture as identified by Hofstede.

110.Describe the impact that economic systems have on HRM in international markets.

111.Discuss how the differences among countries influence HR planning in organizations that operate internationally.

112.Identify the criteria used for selecting employees for foreign assignments. Which of them most strongly influence an employee's completion of a foreign assignment?

113.Discuss cross-cultural preparation and its training methods. In addition, describe the three phases of international assignments.

114.Briefly elaborate on the challenges that companies face when compensating employees from other countries.

115.Once a foreign assignment is completed, how can companies help expatriates return to their home countries?

Chapter 16 Managing Human Resources Globally Answer Key

True / False Questions

The trends and arrangements that encourage international trade decrease the demands on human resource management. FALSE

The environment in which organizations operate is rapidly becoming a global one for various reasons. The trends and arrangements that encourage international trade also increase and change the demands on human resource management.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

A host country is a country, other than the parent country, in which an organization operates a facility. TRUE

A host country is a country, other than the parent country, in which an organization operates a facility. The parent country is the country in which the organization's headquarters is located.

Expatriates are employees from a country other than the parent country or the host country. FALSE

Third-country nationals are employees from a country other than the parent country or the host country. Employees assigned to work in another country are called expatriates.

The usual way that a company begins to enter foreign markets is by exporting, or shipping, domestically produced items to other countries to be sold there. TRUE

The usual way that a company begins to enter foreign markets is by exporting, or shipping domestically produced items to other countries to be sold there. Eventually, it may become economically desirable to set up operations in one or more foreign countries.

While international companies go overseas on a broader scale, multinational companies build one or a few facilities in another country. FALSE

While international companies build one or a few facilities in another country, multinational companies go overseas on a broader scale. They build facilities in a number of different countries as a way to keep production and distribution costs to a minimum.

Cultural differences are a disadvantage to global organizations. FALSE

A global organization locates each facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage. Rather than treating differences in other countries as a challenge to overcome, a global organization treats different cultures as equals.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

The most important influence on international HRM is the culture of the country in which a facility is located. TRUE

By far the most important influence on international HRM is the culture of the country in which a facility is located. In fact, culture often determines the other three international influences— political-legal systems, economic systems, and education.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

Power distance concerns the way the culture deals with unequal distribution of power. TRUE

Power distance concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. In countries with large power distances, the culture defines it as normal to maintain large differences in power.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

In countries with large power distances, people address one another with first names. FALSE

Power distance concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. In the high-power-distance countries of Mexico and Japan, people address one another with titles. At the other extreme, in the United States, in most situations people use one another's first names—behavior that would be disrespectful in other cultures.

10.

High uncertainty avoidance refers to a strong cultural preference for structured situations. TRUE

Uncertainty avoidance describes how cultures handle the fact that the future is unpredictable. High uncertainty avoidance refers to a strong cultural preference for structured situations. In countries with low uncertainty avoidance, people seem to take each day as it comes.

11.

Educational opportunities remain constant from one country to another. FALSE

Educational opportunities vary from one country to another. In general, spending on education is greater per pupil in high-income countries than in poorer countries.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

12.

Ample opportunities for educational development are provided in capitalist economic systems because education is free for students. FALSE

Socialist economic systems provide ample opportunities for educational development because the education system is free to students. At the same time, socialism may not provide economic rewards (higher pay) for increasing one's education. In capitalist systems, students bear more of the cost of their education, but employers reward those who invest in education.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

13.

A country's political system does not usually affect human resource management. FALSE

A country's political-legal system—its government, laws, and regulations—strongly impinges on human resource management. The country's laws often dictate the requirements for certain HRM practices, such as training, compensation, hiring, firing, and layoffs.

14.

Compared with other countries, the United States allows employers much latitude in reducing their workforce. TRUE

Compared with other countries, the United States allows employers wide latitude in reducing their workforce, giving U.S. employers the option of hiring for peak needs, then laying off employees if needs decline. Other governments place more emphasis on protecting workers' jobs. European countries, and France in particular, tend to be very strict in this regard.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-03 Discuss how differences among countries affect HR planning at organizations with international operations. Level of Difficulty: 2 Medium Topic: Staffing Issues for International Workers

15.

Companies usually prefer hiring third-country nationals for filling positions in host-countries. FALSE

To be effective, employees in a foreign location must understand that region's business and social culture. Organizations often meet this need by hiring host-country nationals to fill most of their foreign positions. One of the reasons for this is that training for and transporting families to foreign assignments is more expensive than hiring people in the foreign country. Also, employees may be reluctant to take a foreign assignment because of the difficulty of moving overseas.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 2 Medium Topic: Selecting Candidates for Global Assignments

16.

Hiring employees from outside the host country is an option many companies take when the local labor market does not offer enough qualified people. TRUE

In some situations, the local labor market simply does not offer enough qualified people. For example, employers whose jobs involve a high degree of physical labor report difficulty recruiting U.S.-born workers. These employers have for years turned to immigrant labor to fill the positions. In recent years in the United States, immigrant workers have been most common in jobs where the demand for labor is highest.

17.

According to research, employees who are extroverted, agreeable, and conscientious are most successful at completing overseas assignments. TRUE

Research has found successful completion of overseas assignments to be most likely among employees who are extroverted (outgoing), agreeable (cooperative and tolerant), and conscientious (dependable and achievement oriented).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 1 Easy Topic: Selecting Candidates for Global Assignments

18.

Even if employees persist and continue learning about their host country's culture, they rarely recover from culture shock. FALSE

After the honeymoon phase, an employees' mood experience culture shock. Eventually, if employees persist and continue learning about their host country's culture, they begin to recover from culture shock as they develop a greater understanding and a support network.

19.

While training expatriates, trainers are expected to be authoritarian and controlling of session in cultures low in power distance. FALSE

A culture high in power distance expects trainers to be experts. Trainers are expected to be authoritarian and controlling of session.

20.

A culture with a long-term orientation will have trainees who are likely to accept development plans and assignments. TRUE

The plan for the training program must consider international differences among trainees. In the context of the effects of culture on training design, a culture with a long-term orientation will have trainees who are likely to accept development plans and assignments.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 2 Medium Topic: International Training and Development

21.

The specific methods of performance management that work in one country may fail in another, while general principles of performance management may apply in most countries. TRUE

The general principles of performance management may apply in most countries, but the specific methods that work in one country may fail in another. Therefore, organizations have to consider legal requirements, local business practices, and national cultures when they establish performance management methods in other countries.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: Performance Appraisals in a Global Environment

22.

European companies usually link stock options to specific performance goals, such as the increase in a company's share price compared with that of its competitors. TRUE

The United States and Europe differ in the way they award stock options. European companies usually link the options to specific performance goals, such as the increase in a company's share price compared with that of its competitors.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 1 Easy Topic: Managing Global Compensation Systems

23.

U.S. organizations exert more centralized control over labor relations in the various countries where they operate when compared with European organizations. TRUE

At least in comparison with European organizations, U.S. organizations exert more centralized control over labor relations in the various countries where they operate. U.S. management therefore must recognize differences in how various countries understand and regulate labor relations.

24.

The balance sheet approach for determining expatriate compensation adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas. TRUE

25.

Cross-cultural training requires developing a greater awareness of one's own culture, too. TRUE

The general purpose of cross-cultural training is to create an appreciation of the host country's culture so expatriates can behave appropriately. Paradoxically, this requires developing a greater awareness of one's own culture, so that the expatriate manager can recognize differences and similarities between the cultures and, perhaps, home-culture biases.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-06 Explain how employers prepare managers for international assignments and for their return home. Level of Difficulty: 2 Medium Topic: International Training and Development

Multiple Choice Questions

26.

Which of the following agreements have been adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

A. CSN B. NAFTA

C. PICTA D. APEC E. TAFTA Global activities are simplified and encouraged by trade agreements among nations. Canada, Mexico, and the United States have encouraged trade among themselves with the North American Free Trade Agreement (NAFTA).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 16-48 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

27.

Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Peter works out of the London office, Keith operates out of the marketing unit in New York. Which of the following statements is true in this scenario?

A. Peter is a host-country national. B. Peter is a parent-country national.

C. Peter and Keith are expatriates. D. Keith is a third-country national. E. Keith is a home-country national. The parent country is the country in which the organization's headquarters is located An employee of a company who is a native of the parent country and also works in a facility located in the same country is referred to as a parent-country national. Peter, a British citizen, works out of London, where the company's headquarters is located. This makes him a parentcountry national.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

28.

Gerard is an Australian citizen and works at the headquarters of an Australian company. This would make him a(n) _____.

A. host-country national B. expatriate C. governing-country national D. third-country national E. parent-country national

The parent country of a company is the country in which the organization's headquarters is located. An employee of a company who is a native of the parent country and also works in a facility located in the same country is referred to as a parent-country national.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

29.

FileTech, a company headquartered in the United States, opens an overseas facility in Ireland. In this scenario, the Irish facility is located in a

A. host country.

B. parent country. C. first country. D. third country. E. guest country. A host country is a country (other than the parent country) in which an organization operates a facility.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. 16-50 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

30.

Sergio, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Sergio is a

A. host-country national.

B. parent-country national. C. first-country national. D. third-country national. E. guest-country national. A host country is a country (other than the parent country) in which an organization operates a facility. Employees who work in company facilities located in the host country and are citizens of the host country are referred to as host-country nationals.

31.

Thomas, a South African, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Thomas operates out of the firm's production facility in Cape Town, South Africa. Thomas is considered to be a(n)

A. parent-country national. B. third-country national. C. host-country national.

D. repatriate. E. expatriate. Since Thomas operates out of the firm's production facility in Cape Town, he is a host-country national. A host country is a country, other than the parent country, in which an organization operates a facility. Employees who work in company facilities located in the host country and are citizens of the host country are referred to as host-country nationals.

32.

Which of the following refers to a country that is neither the parent country nor the host country of a company?

A. first country B. facilitating country C. governing country D. third country

E. guest country A third country refers to a country that is neither the parent country nor the host country. The organization may or may not have a facility in the third country.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

33.

Which of the following terms would accurately describe an individual who was born in the United States and is currently working in Germany for a company headquartered in China?

A. parent-country national B. host-country national C. third-country national

D. home-country national E. guest-country national A third country refers to a country that is neither the parent country nor the host country. A third-country national is an employee who works at a host country but is neither from the parent country nor from the host country.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

34.

A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a

A. parent-country national. B. host-country national. C. third-country national.

D. home-country national. E. first-country national. A third country refers to a country that is neither the parent country nor the host country. A third-country national is an employee who works at a host country but is neither from the parent country nor from the host country.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

35.

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the _____ country, and Pakistan is the _____ country.

A. parent; third

B. expatriate; host C. host; guest D. third; first E. parent; host The parent country is the country in which the organization's headquarters is located. A host country is a country (other than the parent country) in which an organization operates a facility. A third country refers to a country that is neither the parent country nor the host country. The organization may or may not have a facility in the third country.

36.

James, an American who works for a U.S.-based company, has been sent to England for a work assignment. James would be known as a(n)

A. expatriate.

B. repatriate. C. host-country national. D. third-country national. E. guest-country national. In general, employees assigned to work in another country are called expatriates.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply 16-55 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

37.

John and Henry are U.S. citizens and work for the same law firm that is headquartered in New York. John, however, works from the firm's London office, while Henry works from the office in New York. Which of the following is a difference between the two employees?

A. John is an expatriate, whereas Henry is a parent-country national.

B. John is a host-country national, whereas Henry is an expatriate. C. John is a third-country national, whereas Henry is a host-country national. D. John is a parent-country national, whereas Henry is a host-country national. E. John is repatriate, whereas Henry is a third-country national. The parent country is the country in which the organization's headquarters is located. An employee of a company who is a native of the parent country and also works in a facility located in the same country is referred to as a parent-country national. Employees from the parent country assigned to work in another country are called expatriates.

38.

A company with _____ level participation is likely to have a single office, the headquarters, in the parent country.

A. international B. multinational C. global D. domestic

E. transnational A company with domestic level participation is likely to have a single office, the headquarters, in the parent country.

39.

Which of the following is the usual way in which companies first enter foreign markets?

A. importing B. offshoring C. exporting

D. outsourcing E. relocating As organizations grow, they often begin to meet demand from customers in other countries. The usual way that a company begins to enter foreign markets is by exporting, or shipping domestically produced items to other countries to be sold there.

Topic: HR Challenges in International Business

40.

Which of the following best defines an international organization?

D. an organization that exports goods to more than a few countries E. an organization that exports goods to a number of different countries An organization that sets up one or a few facilities in one or a few foreign countries is referred to as an international organization.

41.

Which of the following best describes a multinational company?

minimize production and distribution costs C. an organization that sets up one or a few facilities in one or a few foreign countries D. an organization that operates from one country and has customers from all over the globe E. a domestic organization that chooses to locate a facility using cultural differences as an advantage A multinational company refers to an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.

42.

Which of the following organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?

A. foreign subsidiaries B. international organizations C. multinational organizations D. global organizations

E. domestic organizations At the highest level of involvement in the global marketplace are global organizations. A global organization locates each facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage.

43.

Dev and Emily are employees of a publishing house and work together on the same team. Dev believes that Emily hails from an individualistic culture, while Emily disagrees. Which of the following, if true, would strengthen Dev's argument?

A. Emily prioritizes helping her team members attain their career advancement goals. B. Emily focuses on self-development and puts her needs before those of the group.

C. Emily places emphasis on achieving upward social mobility by fulfilling common goals. D. Emily prefers decision making through her team members' participation in management. E. Emily's traits are typical of those from cultures that expect protection from the community. Since Emily focuses on self-development and puts her needs before those of the group, she reflects the values that are similar to those from an individualistic background. In cultures that are high in individualism, people tend to think and act as individuals rather than as members of a group.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

44.

Jerome believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Jerome's thoughts reflect that of a person with

A. an individualistic nature. B. a collectivist nature.

C. high power distance. D. low uncertainty avoidance. E. a short-term orientation. In cultures that are high in collectivism, people think of themselves mainly as group members. They are expected to devote themselves to the interests of the community, and the community is expected to protect them when they are in trouble.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 3 Hard Topic: HR Challenges in International Business

45.

Edward, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India were offended by this gesture. Which of the following differences in culture does this scenario reveal?

A. individualism/collectivism B. uncertainty avoidance C. power distance

D. long-term/short-term orientation E. masculinity/femininity Power distance concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. In countries with large power distances, the culture defines it as normal to maintain large differences in power. In countries with small power distances, people try to eliminate inequalities. In the United States, in most situations, people use one another's first names—behavior that would be disrespectful in other cultures.

46.

Tanya works at a retail store in Los Angeles. She addresses her Indian manager, Priya, by her first name. Tanya's colleague advises against addressing Priya by her name, as she might find it disrespectful. The colleague is most likely right if Priya's cultural beliefs align with a

A. long-term orientation. B. collectivist nature. C. high power distance.

D. low uncertainty avoidance. E. short-term orientation. One way to see differences in power distance is in the way people talk to one another. In the high-power-distance countries, people address one another with titles. At the other extreme, in low-power distance countries, in most situations people use one another's first names— behavior that would be disrespectful in other cultures.

47.

Sheena hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?

A. masculinity B. time orientation C. high uncertainty avoidance

D. individualism E. power distance High uncertainty avoidance refers to a strong cultural preference for structured situations. In countries with high uncertainty avoidance, people tend to rely heavily on religion, law, and technology to give them a degree of security and clear rules about how to behave.

48.

Eric's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week, and to share those goals on the company intranet. This way, Eric and his coworkers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on

A. individualism. B. long-term orientation. C. femininity. D. uncertainty avoidance.

E. power distance. High uncertainty avoidance includes a strong cultural preference for structured situations.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 3 Hard Topic: International HRM Policies and Procedures

49.

Joanne and Patrick are expatriates working for different companies in two different countries. Joanne's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Patrick's company is a little more relaxed, and they tend to take each day as it comes. Which of the following cultural differences contributes to this difference in the way these corporations operate?

company's culture functions with a low uncertainty avoidance. Hofstede's cultural dimension of uncertainty avoidance describes how cultures handle the fact that the future is unpredictable. High uncertainty avoidance refers to a strong cultural preference for structured situations. In countries such as Greece and Portugal, people tend to rely heavily on religion, law, and technology to give them a degree of security and clear rules about how to behave. In countries with low uncertainty avoidance, including Singapore and Jamaica, people seem to take each day as it comes.

50.

Adrian and Ben are employees of a software development firm in San Francisco. Ben believes that Adrian exhibits behaviors that resemble those of individuals from masculine cultures. Which of the following, if true, would support Ben's beliefs?

A. Adrian places more emphasis on a harmonious working relationship between members in his team. B. Adrian places more emphasis on creating an atmosphere of competition among his team

members. C. Adrian places more emphasis on undertaking initiatives aimed at mobilizing funds for the underprivileged. D. Adrian places more emphasis on undertaking initiatives aimed at preventing environmental degradation. E. Adrian places more emphasis on achieving social mobility through collectivist means. A "masculine" culture is a culture that values achievement, money making, assertiveness, and competition.

51.

Tiffany, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marking plans that will maximize financial returns and enjoys competing against other managers in the company. Tiffany is most likely to be an individual whose culture reflects

A. masculine traits.

B. a short-term orientation. C. high power distance. D. low uncertainty avoidance. E. collectivist views. Tiffany exhibits qualities that are similar to that of people from countries that are high in masculinity. A "masculine" culture is a culture that values achievement, money making, assertiveness, and competition.

52.

Stephen works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involved planting trees and flowers on the office's grounds. Stephen's initiative most likely reflects one of individuals in a _____ culture.

A. collectivist B. short-term C. feminine

D. high power distance E. low uncertainty avoidance A "feminine" culture is one that places a high value on relationships, service, care for the weak, and preserving the environment.

53.

Which of the following statements is true about cultures with a long-term orientation?

Long-term orientation suggests the focus of cultural values is on the future. Cultures with a long-term orientation value saving and persistence, which tend to pay off in the future.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. 16-70 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

54.

Jenny, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Jenny's attitudes and behavior are consistent with a culture that

A. is highly individualistic. B. has high power distance. C. is low on uncertainty avoidance. D. is feminine. E. is long-term oriented.

Cultures with a long-term orientation value saving and persistence, which tend to pay off in the future.

55.

_____ promote respect for past tradition and for fulfilling social obligations in the present.

A. Short-term orientations

B. Masculine cultures C. Feminine cultures D. Individual orientations E. Capitalist orientations The cultural values in a short-term orientation focuses on the future the past and present. Short-term orientations promote respect for past tradition and for fulfilling social obligations in the present.

Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 1 Easy Topic: HR Challenges in International Business

56.

Which of the following is a feature of a company with an individualistic culture?

A. It has flatter pay structures. B. It exhibits greater differences between the highest and lowest pay in the organization.

C. It emphasizes on organizational rather than individual performance. D. It involves employees in collective decision making. E. It has compensation systems based on fixed pay according to seniority. Compensation tied to individual performance may be seen as fairer and more motivating by members of an individualist culture. A culture favoring individualism will be more accepting of great differences in pay between the organization's highest- and lowest-paid employees. Collectivist cultures tend to have much flatter pay structures.

57.

The _____ of a country's labor force affect how and the extent to which foreign companies want to operate there.

A. population B. HR practices C. education and skill levels

D. cultural differences E. collectivism and potential for unionization Companies with foreign operations locate in countries where they can find suitable employees. The education and skill levels of a country's labor force affect how and the extent to which companies want to operate there.

58.

Which of the following is the best way for an internationally-expanding organization to gain expertise in a host country's legal requirements?

A. gather advice from a third-country national, since they are a neutral party B. hire one more host-country nationals

C. increase the number of parent-country lawyers D. open a facility based on the parent-country's legal system and adjust operations as the need arises E. interview host-country nationals to learn how they would like facilities in their countries to be run An organization that expands internationally must gain expertise in the host country's legal requirements and ways of dealing with its legal system, often leading organizations to hire one or more host-country nationals to help in the process.

59.

ExAlt Technologies forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Mississippi, Poland, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs?

Decisions about where to locate include HR considerations such as the cost and availability of qualified workers. In addition, HR specialists must work with other members of the organization to weigh these considerations against financial and operational requirements.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-03 Discuss how differences among countries affect HR planning at organizations with international operations. Level of Difficulty: 3 Hard Topic: The Use of HR Initiatives in the Global Marketplace

60.

Several years ago, Seventh National Bank set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer facility is most likely in this situation?

Increasingly, advances in technology are making automation a viable low-cost option for getting work done. A case in point is work handled in call centers.

61.

Identify an advantage of having wide latitude in reducing a company workforce.

A. It gives employers the option of hiring for peak needs and laying off employees if needs

decline. B. It helps in protecting workers' jobs. C. It helps employees adjust to a new culture. D. It allows workers to keep more of their earnings regardless of the taxes they pay. E. It gives employees the advantage of accumulating many years of work experience in an organization. Compared with other countries, the United States allows employers wide latitude in reducing their workforce, giving U.S. employers the option of hiring for peak needs, then laying off employees if needs decline.

62.

U.S.-based GlitterMe introduced a line of accessories that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice?

63.

When Builder Bob Enterprises, a maker of construction equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Builder Bob's recruiting practices in China?

Organizations often hire host-country nationals to fill most of their foreign positions. A key reason is that a host-country national can more easily understand the values and customs of the local workforce than someone from another part of the world can. Also, training for and transporting families to foreign assignments is more expensive than hiring people in the foreign country.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Evaluate Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 3 Hard Topic: Selecting Candidates for Global Assignments

64.

Which of the following is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?

A. they are familiar with the parent-country's customs B. they can easily understand the values of the local workforce

C. they cost more to train, showing the company invests in its workers D. the company will not be required to transport the employee's spouse E. these employees are far more open to taking on new job responsibilities Organizations often meet the need of understanding a region's business and social culture by hiring host-country nationals to fill most of their foreign positions. A key reason is that a hostcountry national can more easily understand the values and customs of the local workforce than someone from another part of the world can. Also, training for and transporting families to foreign assignments is more expensive than hiring people in the foreign country. Sometimes the move requires the employee's spouse to quit a job, and some countries will not allow the employee's spouse to seek work, even if jobs might be available.

65.

Sean, a consultant, was assigned an overseas project in China for a period of two years. After a period of seven months, Sean's manager decides to bring Sean back to his home country and replace him with someone else in China. Which of the following, if true, is most likely to have resulted in this decision?

A. Sean exhibited the ability to effectively communicate in Mandarin. B. Sean exhibited a sense of intolerance toward collectivist ideals.

C. Sean exhibited high levels of extraversion that was required for the job. D. Sean exhibited high levels of cohesiveness. E. Sean exhibited lower levels of disillusionment than other employees. Flexibility, tolerance of ambiguity, and sensitivity to cultural differences are important traits necessary to be successful in an overseas assignment.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 3 Hard Topic: Selecting Candidates for Global Assignments

66.

Betty, an American, works for an automobile manufacturer in New Jersey. Her manager, Ruth, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Japan. Which of the following, if true, could have most likely led to Betty being chosen for the assignment?

Election of employees for foreign assignments should reflect criteria that have been associated with success in working overseas. This includes motivation to succeed and enjoyment of challenges.

67.

Wowee Appliances is setting up production and distribution facilities in India to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees, but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?

Qualities of flexibility, motivation, agreeableness, and conscientiousness are important because of the challenges involved in entering another culture. After a "honeymoon" period, the employee's mood declines. Eventually, if employees persist and continue learning about their host country's culture, they begin to recover from culture shock.

68.

When an expatriate sent on a foreign assignment begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, they are said to be experiencing _____.

A. validation B. adjustment C. recovery D. culture shock

E. repatriation After the initial period, an employee's mood declines as he or she notices more unpleasant differences and experiences feelings of isolation, criticism, stereotyping, and even hostility. As the mood reaches bottom, the employee is experiencing culture shock.

69.

Roger, an automobile engineer, was sent on a foreign assignment to Spain. Initially, Roger was fascinated by the culture and history of the town he lived in. Within a month, he began to feel disillusioned and discomforted by the differences in norms and values. Which of the following terms best describe this phase of Roger's experience?

A. recovery B. culture shock

C. honeymoon D. validation E. adjustment After the initial phase of honeymoon, the employee's mood declines as he or she notices more unpleasant differences and experiences feelings of isolation, criticism, stereotyping, and even hostility. As the mood reaches bottom, the employee experiences culture shock.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 3 Hard Topic: Training, Appraising, and Compensating International Workers

70.

Christophe works for a German automobile company. He was sent to the United States for an assignment. Initially, he enjoyed the culture and practices of the country. As time progressed, however, Christophe found it difficult to adjust to the new culture and to abide by its norms and values. Christophe's experience can be defined as _____.

A. power distance B. time orientation C. repatriation D. validation E. culture shock

For a month or so after arriving, the foreign worker enjoys a "honeymoon" of fascination and euphoria as the employee enjoys the novelty of the new culture and compares its interesting similarities to or differences from the employee's own culture. As the mood reaches bottom, the employee experiences culture shock: the disillusionment and discomfort that occur during the process of adjusting to a new culture and its norms, values, and perspectives.

71.

While training and developing a global workforce, which of the following is a challenge that an organization is most likely to face?

A. creating a comprehensive training program for employees from different cultures

B. making employees aware of the training content and the method of evaluation C. linking training objectives to performance management D. making employees aware of the development plans E. deciding the duration of the training program In an organization whose employees come from more than one country, some special challenges arise with regard to training and development. One of the challenges is that the training and development programs should be effective for all participating employees, regardless of their country of origin.

72.

Beenes & Bacon Ltd., a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which of the following considerations is most affected by the international nature of the workforce?

A. the need to measure training outcomes B. the need to have training objectives C. management's interest in the topic D. the employees' motivation level E. cultural differences

Some training techniques, strategies, and media will be more effective than others, depending on the learners' language and culture. Cultural differences may influence whether the learners will consider it appropriate to ask questions and whether they expect the trainer to spend time becoming acquainted with employees or to get down to business immediately.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 3 Hard Topic: International Training and Development

73.

Which of the following statements describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance?

A. trainers adopt an impromptu style of instruction B. trainers provide a formal instructional environment

C. trainers are flexible and open to schedule and activity changes D. trainers allow trainees to determine the pace of the programs E. trainers emphasize trainees' relationships with one another A culture high in uncertainty avoidance expects formal instructional environments. There is less tolerance for an impromptu style.

AACSB: Diversity

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 2 Medium Topic: International Training and Development

74.

_____ refers to training employees on overseas work assignments to work through national and cultural boundaries.

A. Adventure learning B. Experiential learning C. Validation D. Cross-cultural preparation

E. Repatriation When an organization selects an employee for a position in a foreign country, it must prepare the employee for the foreign assignment. This kind of training is called cross-cultural preparation. It preparing employees to work across national and cultural boundaries, and it often includes family members who will accompany the employee on the assignment.

75.

_____ refers to training employees and their family members to get them ready for an assignment in a foreign country.

A. Acculturation B. Uncertainty avoidance C. Cross-cultural preparation

D. Community training E. Biculturalism When an organization selects an employee for a position in a foreign country, it must prepare the employee for the foreign assignment. This kind of training is called cross-cultural preparation, preparing employees to work across national and cultural boundaries, and it often includes family members who will accompany the employee on the assignment.

76.

Ricardo has been selected to work at his firm's manufacturing plant in China. The training department divides the cross-cultural preparation into three phases. Which of the following is the training team likely to do during the departure phase of cross-cultural preparation?

A. They are likely to conduct training sessions that include language instructions.

B. They are likely to arrange a mentoring program for the assignment overseas. C. They are likely to provide information about changes in the home-country workplace. D. They are likely to provide the company's newsletters and local newspapers. E. They are likely to provide a formal program for the actual assignment. In the preparation for departure phase, the training team is likely to conduct training sessions that include language instruction and an orientation to the foreign country's culture.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 3 Hard Topic: Training, Appraising, and Compensating International Workers

77.

International assignments are especially beneficial to the organization if they are linked to the company's ____.

A. labor relations B. outsourcing programs C. training methods D. bonus plans E. development programs

At global organizations, international assignments are a part of many career paths. The organization benefits most if it applies the principles of employee development in deciding which employees should be offered jobs in other countries. Career development helps expatriate and inpatriate employees make the transitions to and from their assignments and helps the organization apply the knowledge the employees obtain from these assignments.

78.

According to your text, appropriate behavior in Ghana includes

In Ghana and many other African nations, appropriate measures would include behaviors that reflect loyalty and repaying of obligations as well as behaviors related to following regulations and procedures.

79.

Which of the following statements best describes a difference of giving performance feedback outside the United States?

their performance. Feedback is another area in which differences can occur. Employees around the world appreciate positive feedback, but U.S. employees are much more used to direct feedback than are employees in other countries.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: Performance Appraisals in a Global Environment

80.

Kendra, a human resource professional, works for a U.S. company that will be opening an office in Mexico City. She is preparing an outline for training the managers there in how to carryout performance management. Which of the following statements expresses a valid point to cover in the training?

Feedback is another area in which differences can occur. Employees around the world appreciate positive feedback, but U.S. employees are much more used to direct feedback than are employees in other countries. In Mexico managers are expected to provide positive feedback before focusing the discussion on behaviors the employee needs to improve.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: Performance Appraisals in a Global Environment

81.

In Brazil, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Brazil?

Market pay structures can differ substantially across countries in terms of both pay level and the relative worth of jobs. One reason for big pay differences in some countries is a shortage of talent in local labor markets. In Brazil, for example, companies have trouble finding enough managers with technical expertise, because big construction projects and oil drilling are driving heavy demand for those positions. In addition, the Brazilian economy has drawn many multinationals to locate facilities in Brazil, further increasing the demand for managers there. Finally, Brazilian managers tend to be loyal employees, so recruiters need to offer especially tempting compensation packages to lure them away.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 3 Hard Topic: Managing Global Compensation Systems

82.

Identify a true statement about decisions related to the global compensation strategy.

A. They affect a company's costs and abilities to compete.

B. They focus more on flexibility than on fairness to account for differences across cultures. C. They are made on the basis of the cost of living in the home country. D. They do not compare wages across countries. E. They are not determined by labor costs. Global compensation strategy is important as a way to show employees that the pay structure is designed to be fair and related to the value that employees bring to the organization. These decisions affect a company's costs and ability to compete.

83.

The founder of Rainbow Fine China wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Rainbow's ability to compete, what other HR factors, if any, should the company consider?

The average hourly labor costs in industrialized countries such as the United States, Germany, and Japan are far higher than these costs in newly industrialized countries. As a result, we often hear that U.S. labor costs are too high to allow U.S. companies to compete effectively unless the companies shift operations to low-cost foreign subsidiaries. That conclusion oversimplifies the situation for many companies. Merely comparing wages ignores differences in education, skills, and productivity.

84.

Identify a true statement about employee benefits.

E. Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade. As in the United States, compensation packages in other countries include benefits. Paid vacation tends to be more generous in Western Europe than in the United States. Pension plans are more widespread in parts of Western Europe than in the United States and Japan.

85.

Weeble Brass, a maker of musical instruments based in Akron, Ohio, is preparing to open a branch office in Paris. Its benefits package in the United States includes the benefits most commonly offered in this country. What additional benefits are the French employees likely to expect?

Decisions about benefits must take into account the laws of each country involved, as well as employees' expectations and values in those countries. Pension plans are more widespread in parts of Western Europe than in the United States and Japan. Over 90% of workers in Switzerland have pension plans, as do all workers in France. Paid vacation tends to be more generous in Western Europe than in the United States.

86.

Identify a true statement about international labor relations.

subsidiary in companies that operate across borders. C. Governments never get involved to protect workers who immigrate to other countries. D. Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union. E. Companies that operate across national boundaries mostly work only with unions in the home country. Companies that operate across national boundaries often need to work with unions in more than one country. The day-to-day decisions about labor relations are usually handled by each foreign subsidiary. The reason is that labor relations on an international scale involve differences in laws, attitudes, and economic systems, as well as differences in negotiation styles. At least in comparison with European organizations, U.S. organizations exert more centralized control over labor relations in the various countries where they operate.

87.

Rachel, a Canadian citizen, has been working in the United States for two years. Rachel's manager, Kevin, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which of the following, if true, strengthens Kevin's belief?

D. Rachel does not understand and value her own culture very well. E. Rachel is very assertive and resistant to change. A successful expatriate manager should possess adaption skills. These include the ability to maintain a positive self-image and feeling of well-being; the ability to foster relationships with the host-country nationals; and the ability to perceive and evaluate the host country's environment accurately.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 3 Hard Topic: Selecting Candidates for Global Assignments

88.

Lindsay, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. She knows she may not discriminate based on age or sex, but she also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can she best avoid discrimination while selecting a candidate who can thrive in the assignment?

The interviewer should be certain to give candidates a clear and complete preview of the assignment and the host-country culture. This helps the candidate evaluate the assignment and consider it in terms of his or her family situation, so the employer does not violate the employee's privacy.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 3 Hard Topic: Ethical and Legal Issues Related to International Business

89.

Which of the following employees is likely to be the most motivated to take on an overseas assignment?

A. Sayed, who may have medical conditions to deal with if he travels overseas B. Tina, who has a very realistic understanding of what working and living abroad require

C. Ria, whose spouse doesn't want to shift to a new culture and learn a new language D. Elizabeth, who is ethnocentric and has stereotypical views about other cultures E. Rick, who requires extensive training to acquire the basic skills required for the assignment An employee who has the motivation to work on an overseas assignment has a realistic understanding of what working and living abroad require.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 3 Hard Topic: Training, Appraising, and Compensating International Workers

90.

Identify a true statement about the balance sheet approach used for expatriate compensation.

A. It includes planning for how the returning employee will contribute to the organization. B. It ensures managers receive extra pay for the inconvenience of locating overseas.

C. It refers to the expatriate receiving information and recognizing changes while abroad. D. It withholds the amount of tax to be paid in the host country. E. It constantly changes in response to a host of economic forces. One of the greatest challenges of managing expatriates is determining the compensation package. Most organizations use a balance sheet approach to determine the total amount of the package. This approach adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation 16-103 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Blooms: Understand Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: Training, Appraising, and Compensating International Workers

91.

Gloria, a human resource professional in the United States, is reviewing the plans to send a U.S.-born production manager to Argentina to oversee the opening of a new factory. What does her employer most likely expect her to do about the potential for language barriers with this assignment?

Communication in another country often requires a determined attempt to learn a new language. Some employers try to select managers who speak the language of the host country, and a few provide language training. Most companies assume that employees in the host country will be able to speak the host country's language. Even if this is true, host country nationals are not likely to be fluent in the home country's language, so language barriers remain.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

92.

Victor, a human resource professional, is preparing for Jeanne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Victor wants to measure Jeanne's success in establishing high productivity, so he uses the excellent productivity numbers Jeanne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?

Before employees leave for an overseas assignment, HR should work with managers to develop criteria measuring the success of the assignment. Measures such as productivity should take into account any local factors that could make expected performance different in the host country than in the company's home country.

93.

What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?

Most organizations use a balance sheet approach to determine the total amount of an expatriate's compensation package. This approach adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas.

94.

Daniel, an American, is selected by his firm to undertake a temporary assignment in Russia. Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which of the following approaches have been used to determine Daniel's compensation?

A. third-country based approach B. flat-pay approach C. transactional approach D. balance sheet approach

E. going-rate approach Most organizations use a balance sheet approach to determine the total amount of the package. This approach adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas.

95.

The _____ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.

A. going-rate approach B. destination-based approach C. home-country-based approach D. flat-pay approach E. balance sheet approach

The balance sheet approach begins by determining the purchasing power of compensation for the same type of job in the manager's own country—that is, how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings.

96.

The four components of a total pay package are _____, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive.

A. salary allowance B. exchange rates C. health plans D. uprooting fees E. base salary

After setting the total pay, the organization divides this amount into the four components of a total pay package: base salary, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 1 Easy Topic: Training, Appraising, and Compensating International Workers

97.

During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

A. expatriation B. cross-cultural preparation C. repatriation

D. honeymoon E. validation The process of preparing expatriates to return home from a foreign assignment is called repatriation. Reentry is not as simple as it might sound. Culture shock takes place in reverse.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 16-109 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 1 Easy Topic: Training, Appraising, and Compensating International Workers

98.

Alex, an employee of Teal Inc., an American company, was sent to Turkey for an assignment. HR specialists at Teal Inc. have been preparing Alex for his return to the United States after three years. Which of the following terms describes the process being undertaken by the HR team at Teal Inc.?

A. cross-cultural preparation B. time orientation C. repatriation

D. uncertainty avoidance E. culture shock As the expatriate's assignment nears its end, the human resource department faces a final challenge: helping the expatriate make the transition back to his or her home country. The process of preparing expatriates to return home from a foreign assignment is called repatriation.

99.

Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment. After completing her project within the given span of six months, Kim approaches the HR department of her firm to arrange for her return. The HR department is likely to prepare for Kim's _____ as the first task.

A. expatriation B. validation C. repatriation

D. culture shock E. overseas assignment The process of preparing expatriates to return home from a foreign assignment is called repatriation.

100.

Communication and _____ are the activities used by companies in the process of helping employees repatriate.

A. validation

B. equalization C. dissolution D. resolution E. exclusion Companies are increasingly making efforts to help expatriates through transition. Two activities help the process along: communication and validation. Communication refers to the expatriate receiving information and recognizing changes while abroad. Validation means giving the expatriate recognition for the overseas service when this person returns home. Validation should also include planning for how the returning employee will contribute to the organization.

101.

To help Pedro, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes have been happening at home. What type of repatriation support is this?

A. validation B. equalization C. communication

D. resolution E. rationalization Companies are increasingly making efforts to help expatriates through the transition back to their home country. Two activities help the process along: communication and validation. Communication refers to the expatriate receiving information and recognizing changes while abroad.

102.

Dan is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Dan's service can be best described as a form of _____.

A. expatriation B. validation

C. accreditation D. cross-cultural preparation E. adjustment Validation means giving an expatriate recognition for the overseas service when they return home.

103.

Which of the following activities involves giving the expatriate recognition for the overseas service when the person returns home?

A. resolution B. dissolution C. rationalization D. communication E. validation

Validation means giving an expatriate recognition for the overseas service when they return home. Validation should also include planning for how the returning employee will contribute to the organization.

104.

Dynamo Dynamics is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Ray, Dynamo's human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Ray that he include the manager's husband in the training. Should Ray follow the advice of his colleague?

of an assignment. Once the organization has selected a manager for an overseas assignment, it is necessary to prepare that person through training and development. Because expatriate success depends so much on the entire family's adjustment, the employee's spouse should be included in the preparation activities.

105.

Bryan, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Japan. Which of the following topics will be the most important in training to prepare him for the assignment?

A. the advantages of U.S. culture B. marketing skills C. details about the new product line D. what to expect from Japanese culture

E. how to determine the purchasing power of his salary in Japan Employees selected for expatriate assignments already have job-related skills, so preparation for expatriate assignments often focuses on cross-cultural training—that is, training in what to expect from the host country's culture. The general purpose of cross-cultural training is to create an appreciation of the host country's culture so expatriates can behave appropriately.

AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Learning Objective: 16-06 Explain how employers prepare managers for international assignments and for their return home. Level of Difficulty: 3 Hard Topic: Training, Appraising, and Compensating International Workers

Essay Questions

106.

Identify the reasons behind the trend toward expansion into global markets.

Foreign countries can provide a business with new markets in which there are millions or billions of new customers. In addition, companies set up operations overseas because they can operate with lower labor costs. Finally, thanks to advances in telecommunications and information technology, companies can more easily spread work around the globe, wherever they find the right mix of labor costs and abilities. Teams with members in different time zones can keep projects moving around the clock, or projects can be assigned according to regions with particular areas of expertise. Together, this mix of advantages can cause the location of business activities to flow from one country to another. Additionally, global activities are simplified and encouraged by trade agreements among nations. For example, most countries in Western Europe belong to the European Union and share a common currency, the euro. Canada, Mexico, and the United States have encouraged trade among themselves with the North American Free Trade Agreement (NAFTA). The World Trade Organization (WTO) resolves trade disputes among more than 100 participating nations.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource management. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

107.

Describe the terms parent country, parent-country national, host country, host-country national, third country, and third-country national, and provide examples for each.

When organizations operate globally, their employees are very likely to be citizens of more than one country. Employees may come from the employer's parent country, a host country, or a third country. The parent country is the country in which the organization's headquarters is located. An individual born in the parent country and working in the same country is known as a parent-country national. For example, the United States is the parent country of General Motors, because GM's headquarters is in Michigan. A GM employee who was born in the United States and works at GM's headquarters or one of its U.S. factories is therefore a parent-country national. A host country is a country (other than the parent country) in which an organization operates a facility. A host-country national is one who is a native of the host country and also works in that country. Great Britain is a host country of General Motors because GM has operations there. Any British workers hired to work at GM's British facility would be host-country nationals, that is, employees who are citizens of the host country. A third country refers to a country that is neither the parent country nor the host country. The organization may or may not have a facility in the third country. A third country national is one who is a native of the third country and works in the host country. In the example of GM's operations in Great Britain, the company could hire an Australian manager to work there. The Australian manager would be a third-country national because the manager is neither from the parent country (the United States) nor from the host country (Great Britain).

108.

How do international, multinational, and global organizations differ from each other? Briefly summarize the HR issues associated with each type of organization.

An organization that sets up one or a few facilities in one or a few foreign countries is known as an international organization. The decision to participate in international activities raises several HR issues, including the basic question of whether a particular location provides an environment where the organization can successfully acquire and manage human resources. While international companies build one or a few facilities in another country, multinational companies go overseas on a broader scale. They build facilities in a number of different countries as a way to keep production and distribution costs to a minimum. In general, when organizations become multinationals, they move production facilities from relatively high-cost locations to lower-cost locations. The HRM challenges faced by a multinational company are similar to, but larger than, those of an international organization because more countries are involved. More than ever, the organization needs to hire managers who can function in a variety of settings, give them necessary training, and provide flexible compensation systems that take into account the different pay rates, tax systems, and costs of living from one country to another. At the highest level of involvement in the global marketplace are global organizations. These flexible organizations compete by offering top products tailored to segments of the market while keeping costs as low as possible. A global organization locates each facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage. Rather than treating differences in other countries as a challenge to overcome, a global organization treats different cultures as equals. It may have multiple headquarters spread across the globe, so decisions are more decentralized. This type of organization needs HRM practices that encourage flexibility and are based on an in-depth knowledge of differences among countries. Global organizations must be able to recruit, develop, retain, and use managers who can get results across national boundaries. A global organization needs a transnational HRM system that features decision making from a global perspective, managers from many countries, and ideas contributed by people from a variety of cultures. Decisions that are the outcome of a transnational HRM system balance uniformity (for fairness) with flexibility (to account for cultural and legal differences). This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country's culture dominating.

109.

Describe the five dimensions of culture as identified by Hofstede.

The five dimensions of culture that Geert Hofstede identified in his classic study of culture are: 1. Individualism/collectivism: This describes the strength of the relation between an individual and other individuals in the society. In cultures that are high in individualism, people tend to think and act as individuals rather than as members of a group. People in these countries are expected to stand on their own two feet, rather than be protected by the group. In cultures that are high in collectivism, people think of themselves mainly as group members. They are expected to devote themselves to the interests of the community, and the community is expected to protect them when they are in trouble. 2. Power distance: This concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. In countries with large power distances, the culture defines it as normal to maintain large differences in power. In countries with small power distances, people try to eliminate inequalities. 3. Uncertainty avoidance: This describes how cultures handle the fact that the future is unpredictable. High uncertainty avoidance refers to a strong cultural preference for structured situations. In countries with low uncertainty avoidance, people seem to take each day as it comes. 4. Masculinity/femininity: This is the emphasis a culture places on practices or qualities that have traditionally been considered masculine or feminine. A masculine culture is a culture that values achievement, money making, assertiveness, and competition. A feminine culture is one that places a high value on relationships, service, care for the weak, and preserving the environment. 5. Long-term/short-term orientation: This suggests whether the focus of cultural values is on the future (long term) or the past and present (short term). Cultures with a long-term orientation value saving and persistence, which tend to pay off in the future. Short-term orientations promote respect for past tradition and for fulfilling social obligations in the present.

AACSB: Diversity Blooms: Understand Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

110.

Describe the impact that economic systems have on HRM in international markets.

A country's economic system, whether capitalist or socialist, as well as the government's involvement in the economy through taxes or compensation, price controls, and other activities, influences human resource management practices in a number of ways. As with all aspects of a region's or country's life, the economic system and culture are likely to be closely tied, providing many of the incentives or disincentives for developing the value of the labor force. Socialist economic systems provide ample opportunities for educational development because the education system is free to students. At the same time, socialism may not provide economic rewards (higher pay) for increasing one's education. In capitalist systems, students bear more of the cost of their education, but employers reward those who invest in education. The health of an economic system affects human resource management. In developed countries with great wealth, labor costs are relatively high. Such differences show up in compensation systems and in recruiting and selection decisions. In general, socialist systems take a higher percentage of each worker's income as the worker's income increases. Capitalist systems tend to let workers keep more of their earnings. This impacts the take-home pay of employees in different countries who are paid the same salaries. Such differences make pay structures more complicated when they cross national boundaries, and they can affect recruiting of candidates from more than one country.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets. Level of Difficulty: 2 Medium Topic: HR Challenges in International Business

111.

Discuss how the differences among countries influence HR planning in organizations that operate internationally.

Human resource planning is involved in decisions about participating as an exporter or as an international, multinational, or global company. Even purely domestic companies may draw talent from the international labor market. As organizations consider decisions about their level of international activity, HR professionals should provide information about the relevant human resource issues, such as local market pay rates and labor laws. When organizations decide to operate internationally or globally, human resource planning involves decisions about where and how many employees are needed for each international facility. Decisions about where to locate include HR considerations such as the cost and availability of qualified workers. In addition, HR specialists must work with other members of the organization to weigh these considerations against financial and operational requirements. Other location decisions involve outsourcing, which may or may not involve contracting specific functions to workers outside the United States in lower-wage countries. Human resource planning includes decisions to hire and lay off workers to prepare for the organization's expected needs. Compared with other countries, the United States allows employers wide latitude in reducing their workforce, giving U.S. employers the option of hiring for peak needs, then laying off employees if needs decline. Other governments place more emphasis on protecting workers' jobs. European countries, France in particular, tend to be very strict in this regard.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 16-03 Discuss how differences among countries affect HR planning at organizations with international operations. Level of Difficulty: 2 Medium Topic: Staffing Issues for International Workers

112.

Identify the criteria used for selecting employees for foreign assignments. Which of them most strongly influence an employee's completion of a foreign assignment?

Selection of employees for foreign assignments should reflect criteria that have been associated with success in working overseas: 1. Competency in the employee's area of expertise. 2. Ability to communicate verbally and nonverbally in the foreign country. 3. Flexibility, tolerance of ambiguity, and sensitivity to cultural differences. 4. Motivation to succeed and enjoyment of challenges. 5. Willingness to learn about the foreign country's culture, language, and customs. 6. Support from family members. In research conducted a number of years ago, the factor most strongly influencing whether an employee completed a foreign assignment was the comfort of the employee's spouse and family. Personality may also be important. Research has found successful completion of overseas assignments to be most likely among employees who are extroverted (outgoing), agreeable (cooperative and tolerant), and conscientious (dependable and achievement oriented).

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market. Level of Difficulty: 2 Medium Topic: Selecting Candidates for Global Assignments

113.

Discuss cross-cultural preparation and its training methods. In addition, describe the three phases of international assignments.

Cross-cultural preparation involves training employees and their family members for an assignment in a foreign country. Methods for providing cross-cultural preparation training ranges from lectures for employees and their families to visits to culturally diverse communities. Employees and their families may also spend time visiting a local family from the country where they will be working. The training is necessary for all three phases of an international assignment: 1. Preparation for departure—language instruction and an orientation to the foreign country's culture. 2. The assignment itself—some combination of a formal program and mentoring relationship to provide ongoing further information about the foreign country's culture. 3. Preparation for the return home—providing information about the employee's community and home-country workplace (from company newsletters, local newspapers, and so on).

114.

Briefly elaborate on the challenges that companies face when compensating employees from other countries.

Market pay structures can differ substantially across countries in terms of both pay level and the relative worth of jobs. One reason for such differences is a shortage of talent in local labor markets. Differences such as these create a dilemma for global companies: Should pay levels and differences reflect what workers are used to in their own countries? Or should they reflect the earnings of colleagues in the country of the facility, or earnings at the company headquarters? If the standard is that of the higher rates in the home country, the employees in the host country will likely see the expatriate's pay as unfair. If the standard is that of the lower pay in the host country, the company will likely find it impossible to persuade an expatriate to take an assignment in the host country. Dilemmas such as these make a global compensation strategy important as a way to show employees that the pay structure is designed to be fair and related to the value that employees bring to the organization. These decisions affect a company's costs and ability to compete. However, that conclusion oversimplifies the situation for many companies. Merely comparing wages ignores differences in education, skills, quality, and productivity.

AACSB: Analytical Thinking Blooms: Understand Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees from other countries. Level of Difficulty: 2 Medium Topic: Managing Global Compensation Systems

115.

Once a foreign assignment is completed, how can companies help expatriates return to their home countries?

The process of preparing expatriates to return home from a foreign assignment is called repatriation. Reentry is not as simple as it might sound. Culture shock takes place in reverse. Companies are increasingly making efforts to help expatriates through the transition of returning to the home country after completing a foreign assignment. Two activities help the process along: communication and validation. Communication refers to the expatriate receiving information and recognizing changes while abroad. The more the organization keeps in contact with the expatriate, the more effective and satisfied the person will be upon return. The expatriate plays a role in this process as well. Expatriates should work at maintaining important contacts in the company and industry. Communication related to career development before and during the overseas assignment also should help the employee return to a position that is challenging and interesting. Validation means giving the expatriate recognition for the overseas service when this person returns home. Validation should also include planning for how the returning employee will contribute to the organization. Expatriates who receive praise and recognition from colleagues and top managers for their overseas service and future contribution have fewer troubles with reentry than those whose contributions are disregarded. Validation should also include planning for how the returning employee will contribute to the organization. What skills will this person bring back? What position will he or she fill?