Human Resource Management 16th Edition Test Bank by QuentinAxel

Human Resource Management, 16e (Dessler) Chapter 1 Introduction to Human Resource Management 1) The basic functions of the management process include all of the following EXCEPT ________. A) planning B) organizing C) outsourcing D) leading Answer: C Explanation: The five basic functions of the management process include planning, organizing, staffing, leading, and controlling. Outsourcing jobs may be an aspect of human resources, but it is not one of the primary management functions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 2) Which one of the following is the person responsible for accomplishing an organization's goals by managing the efforts of the organization's people? A) manager B) entrepreneur C) generalist D) marketer Answer: A Explanation: The manager is the person responsible for accomplishing an organization's goals by planning, organizing, staffing, leading, and controlling the efforts of the organization's people. An entrepreneur may manage people or may hire a manager to do so instead, but entrepreneurs are defined as individuals who start their own businesses. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

3) Which one of the following includes five basic functions–planning, organizing, staffing, leading, and controlling? A) a job analysis B) strategic management C) the management process D) adaptability screening Answer: C Explanation: The management process includes five basic functions–planning, organizing, staffing, leading, and controlling. Strategic management refers to the process of identifying and executing the organization's mission by matching its capabilities with the demands of its environment. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 4) Which function of the management process requires a manager to establish goals and standards and to develop rules and procedures? A) planning B) organizing C) staffing D) leading Answer: A Explanation: Planning, organizing, staffing, leading, and controlling are the five main functions of management. The planning function involves establishing goals and standards, developing rules and procedures, and forecasting. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

5) Claire spends most of her time at work establishing goals for her staff of fifty employees and developing procedures for various tasks. In which function of the management process does Claire spend most of her time? A) leading B) controlling C) organizing D) planning Answer: D Explanation: The planning function of the management process requires managers to establish goals and standards, develop rules and procedures, and develop plans and forecast. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 6) Consuela, a manager, delegates the authority for a project to Lee, her subordinate. Consuela is most likely involved in which function of the management process? A) staffing B) organizing C) motivating D) leading Answer: B Explanation: The organizing function of the management process includes delegating authority to subordinates and establishing channels of communication. The organizing function also includes establishing departments and coordinating the work of subordinates. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

7) When managers use metrics to assess performance and then develop strategies for corrective action, they are performing the ________ function of the management process. A) planning B) leading C) controlling D) organizing Answer: C Explanation: The controlling function of the management process requires managers to set standards such as sales quotas, quality, standards, or production levels. Managers then compare actual performance with the standards, which often involves the use of metrics. Corrective action is then taken when necessary. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 8) Which function of the management process includes selecting employees, setting performance standards, and compensating employees? A) organizing B) planning C) motivating D) staffing Answer: D Explanation: The staffing function of the management process determines what type of people you should hire, recruiting prospective employees, selecting employees, training and developing employees, setting performance standards, evaluating performance, counseling employees, compensating employees. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

9) Luca, a manager at a commercial real estate firm, has established a monthly sales quota for his sales team. Which basic function of management best describes Luca's actions? A) planning B) organizing C) controlling D) staffing Answer: C Explanation: The controlling function involves setting standards such as sales quotas, quality standards or production levels; checking to see how actual performance compares with these standards; taking corrective action, as needed. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 10) ________ is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. A) Labor relations B) Human resource management C) Behavioral management D) Organizational health and safety management Answer: B Explanation: Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. HRM falls under the staffing function of the management process. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 11) In the management process, which one of the following is an activity associated with the leading function? A) motivating subordinates B) setting performance standards C) training new employees D) developing procedures Answer: A Explanation: The leading function of the management process requires a manager to get others to get the job done; maintaining morale, and motivating subordinates. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 5 Copyright © 2020 Pearson Education, Inc.

12) Personnel activities associated with human resource management most likely include all of the following EXCEPT ________. A) orienting and training new employees B) appraising employee performance C) building employee commitment D) developing customer relationships Answer: D Explanation: Human resource management involves numerous personnel-related activities, and HR managers are less likely to interact with customers. Managing compensation, orienting new employees, appraising employee performance, and developing employee commitment are typical aspects of the HR manager's job. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 13) No one wants to make mistakes, least of all managers. Which one of the following is NOT a personnel mistake? A) waste time with useless interviews B) hire the wrong person C) have your people not doing their best D) experience low turnover Answer: D Explanation: Personnel mistakes a manager does not want to make while managing are hiring the wrong person for the job; experience high turnover; have your people not doing their best; waste time with useless interviews; have your company taken to court because of your discriminatory actions; have your company cited under federal occupational safety laws for unsafe practices; have some employees think their salaries are unfair relative to others in the organization; allow a lack of training to undermine your department's effectiveness; commit any unfair labor practices. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

14) What percentage of people in the United States work for small firms? A) Less than 10% B) Approximately 25% C) More than 50% D) More than 80% Answer: C Explanation: More than half the people working in the United States work for small firms. Small businesses as a group also account for most of the 600,000 or so new businesses created every year. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 15) ________ is the right to make decisions, to direct the work of others, and to give orders. A) Leadership B) Authority C) Management D) Responsibility Answer: B Explanation: The right to make decisions, to direct the work of others, and to give orders is known as authority. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 16) Which one of the following best defines line authority? A) management over a small staff in a public firm B) management with flexible decision-making powers C) a manager's right to advise other managers or employees D) a manager's right to issue orders to other managers or employees Answer: D Explanation: Line authority is a manager's right to issue orders to other managers or employees, which creates a superior-subordinate relationship. Staff authority refers to a manager's right to advise other managers or employees, which creates an advisory relationship. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

17) In most organizations, human resource managers are categorized as ________, who assist and advise ________ in areas like recruiting, hiring, and compensation. A) staff managers; line managers B) line managers; middle managers C) line managers; staff managers D) functional managers; staff managers Answer: A Explanation: Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. However, line managers still have human resource duties. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 18) Gerjuan is authorized to direct the work of subordinates and is responsible for accomplishing the organization's tasks. Gerjuan is most likely a ________. A) training specialist B) staff manager C) line manager D) recruiter Answer: C Explanation: A line manager is authorized to direct the work of subordinates and is responsible for accomplishing the organization's tasks. Unlike line managers, staff managers lack the authority to issue orders down the chain of command. Recruiters and training specialists are specialties within the HR department, and HR managers are usually staff managers rather than line managers. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

19) Which one of the following is NOT considered one of the line supervisor's responsibilities for effective human resources management under the general headings outlined by a major company discussed in the textbook? A) protecting employees' health and physical condition B) changing employees' attitudes regarding work C) developing the abilities of each person D) interpreting the company policies and procedures Answer: B Explanation: The direct handling of people has always been part of every line manager's duties, from the president down to first-line supervisors. One major company outlines its line supervisor's responsibilities for effective human resource management under these general headings: placing the right person in the right job; starting new employees in the organization (orientation); training employees for jobs that are new to them; improving the job performance of each person; gaining cooperation, and developing smooth working relationships; interpreting the company's policies and procedures; controlling labor costs; developing the abilities of each person; creating and maintaining department morale; protecting employees' health and physical condition. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 20) A line manager's human resource responsibilities most likely include all of the following EXCEPT ________. A) maintaining department morale B) controlling labor costs C) protecting employees' health D) marketing new products and services Answer: D Explanation: Human resource management most often involves creating and maintaining department morale, controlling labor costs, and protecting employees' health and physical condition. Handling personnel is an integral part of every line manager's duties, but marketing new products is not a personnel issue and would be handled by the marketing department. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

21) Which one of the following refers to the authority a manager has to advise other managers or employees? A) staff authority B) line authority C) functional authority D) corporate authority Answer: C Explanation: Staff authority refers to a manager's right to advise other managers or employees, which creates an advisory relationship. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 22) Which one of the following is most likely a line function of the human resource manager? A) ensuring that line managers are implementing HR policies B) advising top managers about how to implement EEO laws C) representing the interests of employees to senior management D) directing the activities of subordinates in the HR department Answer: D Explanation: Directing members of the HR staff is a line function. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 23) One of the ________ functions of a human resource manager includes directing the activities of his or her subordinates in the HR department. A) coordinative B) corporate C) staff D) line Answer: D Explanation: Line functions and staff functions are the distinct functions of HR managers. Examples of line functions include a human resource manager directing the activities of the people in his or her own department. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

24) Yuki works at a position in his organization where he maintains contacts within the local community and travels to search for qualified job applicants. Yuki's position is best described as ________. A) recruiter B) manager C) labor relations specialist D) job analyst Answer: A Explanation: The recruiter maintains contacts within the community and perhaps travels extensively to search for qualified job applicants. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 25) ________ functions involve assisting and advising line managers. A) Staff B) Advocacy C) Line D) Coordinative Answer: A Explanation: Staff functions involve assisting and advising line managers. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 26) All of the following are major areas in which an HR manager assists and advises line managers EXCEPT ________. A) recruiting B) hiring C) customer relations D) compensation Answer: C Explanation: Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

27) Human resource managers generally exert ________ within the human resources department and ________ outside the human resources department. A) line authority; staff authority B) staff authority; line authority C) functional authority; line authority D) staff authority; implied authority Answer: A Explanation: HR managers usually have line authority in the HR department, which means they have the right to direct the activities of the people in their own department. However, outside of the HR department, HR managers are likely to exert implied authority because line managers realize that the HR manager has top management's ear in areas like testing and affirmative action. Staff (assist and advise) function refers to a manager's authority to advise managers or employees outside of his or her department. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 28) The HR staff member who has the job of advising management on all aspects of unionmanagement aspects is the ________. A) recruiter B) line manager C) compensation manager D) labor relations specialist Answer: D Explanation: The labor relations specialist advises management on all aspects of unionmanagement relations. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

29) All of the following are examples of human resource specialties EXCEPT ________. A) job analyst B) financial advisor C) compensation manager D) labor relations specialist Answer: B Explanation: HR management specialties include recruiter, EEO coordinator, job analyst, compensation manager, training specialist, and labor relations specialist. HR managers are less likely to serve as financial advisors. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 30) Wilmer works in the HR department and is in charge of developing the plans for how people are paid and how the employee benefits program is run. Wilmer is most likely holding the position of ________. A) training specialist B) recruiter C) compensation manager D) job analyst Answer: C Explanation: The compensation manager develops compensation plans and handles the employee benefits program. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 31) Which one of the following human resource management specialties calls for collecting data to write job descriptions? A) job analyst B) job training specialist C) compensation manager D) EEO coordinator Answer: A Explanation: As a job analyst, a human resource manager collects and examines information about jobs to prepare job descriptions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

32) Which one of the following focuses on using centralized call centers and outside vendors as a way to provide specialized support in day-to-day HR activities? A) embedded HR units B) corporate HR groups C) HR centers of expertise D) shared HR groups Answer: D Explanation: Transactional (or shared) HR groups focus on using centralized call centers and outsourcing arrangements with vendors, such as benefits advisors, to provide specialized support in day-to-day transactional HR activities to a firm's employees. Activities may include changing benefits plans and providing updated appraisal forms. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 33) An HR generalist at Wilson Manufacturing has been assigned to the sales department to provide HR management assistance as needed. Which of the following best describes the structure of the HR services provided at Wilson Manufacturing? A) shared HR teams B) embedded HR teams C) centers of expertise D) corporate HR teams Answer: B Explanation: In the embedded HR teams structure, an HR generalist is assigned directly to a department within an organization to provide localized human resource management assistance as needed. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

34) Tanesha Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice president of human resources. Jackson Pharmaceuticals has a history of problems within its HR department including difficulties recruiting and retaining qualified employees, EEO violations, inadequate employee training programs, and confusion regarding health benefit enrollment and coverage. With years of experience transforming HR departments in other firms, Whitman believes she can correct the problems at Jackson Pharmaceuticals. Which one of the following best supports Whitman's idea to develop a shared services arrangement to handle benefits administration? A) An embedded HR unit would assist top management with big picture issues as well as benefits administration. B) Extensive training has been provided to line managers so that they fully understand the different insurance options available to employees. C) Outside vendors specializing in all aspects of benefits administration would provide improved support to the firm's employees. D) Lower insurance premiums would eliminate the need for outsourcing services and improve employee health coverage. Answer: C Explanation: The shared services (or transactional) HR teams focus on using centralized call centers and outsourcing arrangements with vendors (such as benefits advisors) to provide specialized support in day-to-day transactional HR activities (such as changing benefits plans and providing updated appraisal forms) to the company's employees. By outsourcing benefits administration, Jackson would allow HR managers to focus on other issues and enable benefits specialists to handle benefits enrollment and coverage issues. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

35) Roberto Sanchez has recently been hired by Slate Pharmaceuticals as the senior vice president of human resources. Slate Pharmaceuticals has a history of a variety of significant problems within its HR department such as EEO violations, inadequate employee training programs, and employee confusion regarding health benefit enrollment and coverage. With 20 years of experience transforming HR departments in other firms, Sanchez believes he can correct the major problems at Slate Pharmaceuticals. Which one of the following best supports the argument that Sanchez should create embedded HR units and assign relationship managers to each department within the company? A) Employees frequently complain about the inconsistent assistance they receive from the HR department due to its large size. B) The global nature of the firm makes it difficult for the HR department to effectively communicate corporate messages to employees scattered around the world. C) Centralized call centers would enable the HR department to provide specialized support on daily transactional activities. D) Line managers want to implement additional screening and evaluations to improve the quality of their subordinates. Answer: A Explanation: The embedded HR teams assign HR generalists (also known as "relationship managers" or "HR business partners") directly to departments like sales and production, to provide the localized human resource management assistance the departments need. If employees are unable to receive the HR assistance they need on a regular basis, then it would be appropriate for the firm to assign HR generalists to each department as a direct line to the HR department. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 36) Which one of the following areas is NOT a major area where human resource managers assist and advise line managers? A) recruiting B) hiring C) compensation D) performance management Answer: D Explanation: Human resource managers assist and advise line managers in areas like recruiting, hiring, and compensation. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

37) Which organization of the human resource function involves dedicated HR members that assist top management in issues such as developing the personnel aspects of the company's longterm strategic plan? A) embedded HR teams B) corporate HR teams C) centers of expertise D) shared services Answer: B Explanation: Corporate HR teams assist top management in top-level issues such as developing the personnel aspects of the company's long-term strategic plan. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 38) The vice president of marketing tells a marketing manager to prepare a presentation by the end of the week. The vice president is most likely exercising which one of the following? A) staff authority B) procedural authority C) line authority D) functional authority Answer: C Explanation: Line authority traditionally gives managers the right to issue orders to other managers or employees. Line authority therefore creates a superior (order giver)—subordinate (order receiver) relationship. Staff authority gives a manager the right to advise other managers or employees. It creates an advisory relationship. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 39) Which HR specialty involves preparing job descriptions? A) compensation manager B) EEO coordinator C) job analyst D) recruiter Answer: C Explanation: Job analysts collect and examine information about jobs to prepare job descriptions. Compensation managers develop compensation plans and handle the employee benefits program. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 17 Copyright © 2020 Pearson Education, Inc.

40) Which one of the following would most likely provide assistance to executives about longterm strategic plans? A) centers of expertise B) embedded HR teams C) corporate HR teams D) professional employee organizations Answer: C Explanation: The corporate HR teams focus on assisting top management in "top level" big picture issues such as developing and explaining the personnel aspects of the company's longterm strategic plan. The centers of expertise are like specialized HR consulting firms within the company–for instance, they provide specialized advice in areas such as organizational change. The embedded HR assigns HR generalists directly to departments like sales and production. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 41) Setting standards such as sales quotas, quality standards, or production levels is part of the leading function of human resource management. Answer: FALSE Explanation: Setting standards such as sales quotas, quality standards, or production levels is part of the controlling rather than the leading function of human resource management. Leading involves maintaining morale and motivating workers. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 42) The planning function of management includes establishing goals and standards and developing forecasts. Answer: TRUE Explanation: The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting. Planning, organizing, staffing, leading, and controlling are the five functions of the management process. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

43) Communicating is one of the five basic functions of the management process. Answer: FALSE Explanation: Planning, organizing, staffing, leading, and controlling are the five functions of the management process. Although communicating with employees is part of every step, it is not one of the five basic functions. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 44) Hiring the wrong person for the job, committing unfair labor practices, and having your people not doing their best are personnel mistakes that hinder firms from achieving positive results. Answer: TRUE Explanation: Common HRM mistakes include hiring the wrong people, having your people not doing their best and committing unfair labor practices. The primary goal of HRM is to help the firm achieve its goals, and such HRM mistakes hinder that process. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 45) Autonomy is the right to make decisions, direct the work of others, and give orders. Answer: FALSE Explanation: Authority rather than autonomy is the right to make decisions, direct the work of others, and give orders. In management, authority is distinguished between line authority and staff authority. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 46) Staff managers are authorized to issue orders to subordinates and are directly in charge of accomplishing the organization's basic goals. Answer: FALSE Explanation: Line managers, not staff managers, are authorized to issue orders down the chain of command. Staff managers have the authority to advise other managers or employees. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

47) Human resource managers are generally staff managers. Answer: TRUE Explanation: Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. However, line managers still have human resource duties. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 48) Staff managers have staff authority which enables them to issue orders down the chain of command unlike line managers. Answer: FALSE Explanation: Line managers can issue orders down the chain of command, while staff managers are only able to advise other managers and employees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 49) In small organizations, line managers frequently handle all personnel duties without the assistance of a human resource staff. Answer: TRUE Explanation: In small firms, line managers may carry out personnel tasks unassisted. However, large firms of over 100 employees require human resource specialists. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 50) Human resource managers assist line managers with recruiting, hiring, and compensation. Answer: TRUE Explanation: Assisting and advising line managers is the heart of the human resource manager's job. HR assists in recruiting, hiring, and compensation. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

51) Staff authority gives a manager the right to advise other managers or employees. Answer: TRUE Explanation: Staff authority gives a manager the right to advise other managers or employees. It creates an advisory relationship. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 52) The role of labor relations specialists includes investigating EEO grievances and collecting data about jobs for the purpose of writing job descriptions. Answer: FALSE Explanation: Labor relations specialists advise management on all aspects of union— management relations. EEO coordinators investigate EEO grievances, and job analysts collect data for job descriptions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 53) Shared service HR teams focus on assisting top management in big picture issues such as developing a firm's long-term strategic plan. Answer: FALSE Explanation: Corporate HR teams focus on assisting top management in big picture issues such as developing a firm's long-term strategic plan. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 54) Centralized HR units whose employees serve all the companies' departments by providing advice are called shared service. Answer: TRUE Explanation: Shared service is centralized HR units whose employees are shared by all the companies' departments to obtain advice on matters such as discipline problems. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

55) Centers of expertise are specialized HR that act like consulting firms within the company on particular topics. Answer: TRUE Explanation: Centers of expertise are basically specialized HR consulting firms within the company. For example, a center might provide specialized advice in an area like organizational change to all the company's various units. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 56) A key concept of the textbook is that human resource management is the sole responsibility of human resource managers, so line managers and staff managers rely heavily on HR specialists to hire the best employees. Answer: FALSE Explanation: Human resource management is the responsibility of every manager–not just those in human resources. Throughout every page in the textbook, you'll therefore find an emphasis on practical material that you as a manager will need to perform your day-to-day management responsibilities. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 57) A key concept of the textbook is that effective human resource management practices add measurable value to an organization. Answer: TRUE Explanation: Employers need human resource management practices that add value, and these practices are an essential part of HR's function. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

58) What are the five basic functions of the management process? Explain some of the specific activities involved in each function. Which function is most closely associated with human resource management? Answer: The five basic functions are planning, organizing, staffing, leading, and controlling. Planning activities include establishing goals and standards, developing rules and procedures, and developing plans and forecasting. Organizing activities include giving specific task assignments to subordinates, establishing departments, delegating authority to subordinates, and establishing channels of authority and communication. Staffing activities include determining what type of people should be hired, recruiting prospective employees, and setting performance standards. Leading activities include maintaining morale and motivating subordinates. Controlling activities include setting standards such as sales quotas and quality standards and taking corrective action as needed. Staffing is the function most readily related to human resource management. However, HR managers actually perform all five functions. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 59) Why is human resource management important to all managers? What is the role of line managers in human resource management? Answer: HR management is important to all managers because managers can do everything else right–lay brilliant plans, draw clear organization charts, set up world-class assembly lines, and use sophisticated accounting controls–but still fail, by hiring the wrong people or by not motivating subordinates. On the other hand, many managers–presidents, generals, governors, supervisors–have been successful even with inadequate plans, organizations, or controls because they had the knack of hiring the right people for the right jobs and motivating, appraising, and developing them. The direct handling of people is an integral part of every line manager's duties. More specifically, line managers must place the right person in the right job, orient and train new employees, improve the job performance of each person, gain cooperation and develop smooth working relationships, interpret the company's policies and procedures, control labor costs, and protect employees' health and physical condition. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

60) Explain the difference between line authority and staff authority. What type of authority do human resource managers usually have? Answer: Authority is the right to make decisions, to direct the work of others, and to give orders. Line managers are authorized to direct the work of subordinates and are directly in charge of accomplishing the organization's basic goals. Staff managers are authorized to assist and advise line managers in accomplishing these basic goals. Human resource managers are usually staff managers because they are responsible for assisting and advising line managers in areas like recruiting, hiring, and compensation. However, human resource managers do have line authority within their own department. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 61) What are the two distinct functions carried out by human resource managers? Describe each function in a brief essay. Answer: The functions are a line function and a staff (assist and advise) function. HR managers exert line authority within the HR department because they direct the activities of the people in that department. In the staff (assist and advise) function, HR managers assist in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. They also administer benefit programs and help line managers comply with EEO, occupational health and safety laws and play an important role in handling grievances and labor relations. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process. 62) Describe how shared service HR arrangements and embedded HR arrangements differ. Answer: Many organizations plan to use technology to institute more "shared services" (or "transactional") arrangements. These establish centralized HR units whose employees are shared by all the companies' departments to obtain advice on matters such as discipline problems. The shared services HR teams offer their services through intranets or centralized call centers; they aim to provide managers and employees with specialized support in day-to-day HR activities (such as discipline problems). Embedded HR teams have HR generalists (also known as "relationship managers" or "HR business partners") assigned to functional departments like sales and production. They provide the selection and other assistance the departments need. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 1.1 Explain what human resource management is and how it relates to the management process.

63) Between 2012 and 2022 what ethnic group is projected to decrease as a percentage of the workforce? A) black B) Hispanic C) Asian D) white Answer: D Explanation: The percentage of the workforce that is white is expected to fall from 79.8% in 2012 to 77.7% in 2022. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 64) ________ refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. A) Expansion B) Globalization C) Export growth D) Diversification Answer: B Explanation: Globalization is the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Firms usually expand globally to expand sales, cut labor costs, or form partnerships with foreign firms. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 65) All of the following are the most common reasons that firms decide to globalize EXCEPT ________. A) lower costs B) supervising quality control methods C) make employees more productive D) to do things better Answer: B Explanation: Globalization compels employers to be more efficient. More globalization means more competition, and more competition means more pressure to be "world class"–to lower cost, to make employees more productive, and to do things better and less expensively. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 25 Copyright © 2020 Pearson Education, Inc.

66) Which one of the following was NOT a change in the economic and political philosophies that drove the globalization boom causing U.S. imports and exports to rise from $47 billion in 1960, to $562 billion in 1980, to about $5.1 trillion recently? A) government dropped cross-border taxes or tariffs B) economic free trades areas were formed C) steps were taken to encourage free flow of trade among countries D) instability in the world labor market Answer: D Explanation: Globalization brings both benefits and threats to consumers. It means lower prices and higher quality on practically everything from computers to cars, but also the prospect of working harder, and perhaps having less secure jobs. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 67) Which one of the following is NOT one of the five main types of digital technologies driving the transfer of functionality from HR professionals to automation? A) Email B) Social media C) Mobile applications D) Cloud computing Answer: A Explanation: While email is an important tool at work it is not one of the primary types of digital technology that is transferring functionality to automation. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 68) What term refers to the knowledge, skills, and abilities of a firm's workers? A) human resources B) human capital C) intangible assets D) contingent personnel Answer: B Explanation: Human capital is the knowledge, skills, and abilities of a firm's workers. In the modern workforce, employment is shifting from manual workers to knowledge workers. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

69) Which one of the following describes one of the most significant demographic trends facing the U.S. workforce? A) increased number of aging workers B) decreased number of contingent workers C) increased number of blue-collar workers D) decreased number of bilingual workers Answer: A Explanation: One of the most significant demographic trends facing the U.S. workforce is the increasing number of aging workers, who are those over age 55. There are not enough younger workers to replace the projected number of baby boom era older-worker retirees. As a result, many retirees are returning to the workforce. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 70) Over the next few years, employers may face a severe labor shortage because ________. A) there are fewer people entering the workforce than there are retiring baby boomers B) one-third of single mothers are not employed in the U.S. labor force C) there are too many nontraditional workers holding multiple jobs D) older employees are more family-centric than younger employees Answer: A Explanation: Employers are faced with a possible labor shortage because baby boomers account for a large percentage of the workforce. As these workers reach retirement age, younger workers will need to fill the open positions, except there are fewer younger workers available. The family-centric nature and poor work values of younger workers are problematic for employers, but neither one is the cause of a labor shortage. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

71) What is the term for workforces like those at the company Uber, where freelancers and independent contractors work when they can, on what they want to work on, and when the company needs them? A) tele-commuters B) human capital C) job-analysts D) on-demand workers Answer: D Explanation: On-demand workers are freelancers and independent contractors who work when they can on what they want to work on, when the company needs them. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 72) Which one of the following best describes an on-demand worker? A) workers with regular hours but without benefits B) workers such as firefighters who respond to calls for service C) a person who fills in for another, such as a substitute teacher D) part-time fast food workers who can be sent home when business is slow Answer: C Explanation: On-demand workers are freelancers and independent contractors who work when they can, on what they want to work on, when they're needed. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 73) The recent trend where in some occupations (such as high-tech) unemployment rates are low, while in others unemployment rates are still very high and recruiters in many companies can't find candidates, while in others there's a wealth of candidates is called ________. A) talent analytics B) globalization C) the unbalanced labor force D) human capital Answer: C Explanation: The unbalanced labor force is shown in that in some occupations, unemployment rates are low, while in others, unemployment rates are still very high. In some industries, recruiters in many companies can't find candidates, while in others there's a wealth of candidates. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 28 Copyright © 2020 Pearson Education, Inc.

74) Which one of the following best exemplifies recent trends in technology that are affecting human resource management? A) Listing open positions on Monster.com, Careerbuilder.com, and similar websites. B) The use of gaming features to enhance training and performance appraisal C) Allowing workers to telecommute D) Providing employees with laptops or tablets so they can work offsite Answer: B Explanation: Websites such as Knack, Gild, and True Office enable employers to inject gaming features into training performance appraisals, and recruiting. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 75) Which term refers to exporting jobs to lower-cost locations abroad? A) freelancing B) offshoring C) rightsizing D) warehousing Answer: B Explanation: Many organizations are moving jobs offshore, exporting jobs to lower-cost locations abroad. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 76) Tools such as Twitter, Facebook, and LinkedIn that can be used to recruit new employees are known as ________. A) data analytics B) social media C) mobile applications D) cloud computing Answer: B Explanation: Employers increasingly use social media tools such as Twitter, Facebook, and LinkedIn (rather than, say, as many employment agencies) to recruit new employees. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

77) ________ involves using statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems. A) Data analytics B) Social media C) Cloud computing D) Gaming Answer: A Explanation: Data analytics is using statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 78) In the next few years, almost all the new jobs added in the United States will be in goodsproducing industries. Answer: FALSE Explanation: In the US the next few years, almost all the new jobs added will be in services, not in goods-producing industries. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 79) According to the Bureau of Labor Statistics, between now and 2022 the number of workers classified as "white, non-Hispanic" will decrease, and the number of workers classified as Asian will increase. Answer: TRUE Explanation: The number of workers classified as "white, non-Hispanic" is expected to decrease by 2022. The workforce will see an increase in the number of Asian, Hispanic, and AfricanAmerican workers according to the Bureau of Labor Statistics. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

80) As baby boomers retire from the workforce, there will be more people entering the labor pool than leaving it. Answer: FALSE Explanation: Many human resource professionals call "the aging workforce" the biggest demographic trend affecting employers. The basic problem is that there aren't enough younger workers to replace the projected number of baby boom era older-worker retirees. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 81) On-demand workers are freelancers and independent contractors who work when they can, on what they want to work on, and when the company needs them. Answer: TRUE Explanation: On-demand workers, like those at Uber, are freelancers and independent contractors who work when they can on what they want to work on, when the company needs them. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 82) Cloud computing basically means using statistical techniques, algorithms, and problemsolving to identify relationships among data for the purpose of solving particular problems. Answer: FALSE Explanation: Data analytics means using statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

83) In what way has technology changed human resources management? Discuss at least three technologies that have had an impact. Answer: Five main types of digital technologies are driving this transfer of functionality from HR professionals to automation. Employers increasingly use social media tools such as Twitter, Facebook, and LinkedIn (rather than, say, as many employment agencies) to recruit new employees. Employers use new mobile applications, for instance, to monitor employee location and to provide digital photos at the facility clock-in location to identify workers. The feedback, fun, and objectives inherent in gaming support many new training applications, and Web sites such as Knack, Gild, and True Office enable employers to inject gaming features into training, performance appraisal, and recruiting. Cloud computing and more intuitive user interfaces enable employers to monitor and report on things like a team's goal attainment and to provide real-time evaluative feedback. Finally, data analytics basically means using statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems (such as what are the ideal candidate's traits, or how can I tell in advance which of my best employees is likely to quit?) When applied to human resource management, data analytics is called talent analytics. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 84) On-demand workers are a developing part of the workforce. In a brief essay, explain what on-demand workers are and how they impact organizations. Answer: Today, in more and more companies like Uber, Elance, and Airbnb, employees aren't employees at all. They are what are called on-demand workers, or freelancers and independent contractors who work when they can on what they want to work on when the company needs them. So, for example, Airbnb can run, in essence, a vast lodging company with only a fraction of the "regular" employees Hilton Worldwide or another hotel chain would need, as the lodgings are managed by the homeowners themselves. Other sites tapping on-demand workers include Amazon's Mechanical Turk, Elance-oDesk, TaskRabbit, and Handybook (which lets users tap Handy's thousands of freelance cleaners and furniture assemblers when they need jobs done). These short-term professionals can be viewed as "mobile, independent bundles of skills." Employers' increasing reliance on such Uber-like "extended workforces" has implications for HR. Companies that rely on freelancers, consultants, and other such nontraditional employees will need to create personnel policies on matters like compensation for these "nonemployees" and become more expert as talent brokers in matching specific workers with specific tasks that need to be done. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management.

85) How has increasing globalization affected business? Answer: Globalization has impacted how and where companies do business. Free trade areas– agreements that reduce tariffs and barriers among trading partners–encourage international trade. The North American Free Trade Agreement (NAFTA) and the European Union (EU) are examples. Globalization has boomed for the past 50 or so years. For example, the total sum of U.S. imports and exports rose from $47 billion in 1960, to $562 billion in 1980, to about $5.1 trillion recently. Changing economic and political philosophies drove this boom. Governments dropped cross-border taxes or tariffs, formed economic free trade areas, and took other steps to encourage the free flow of trade among countries. The fundamental economic rationale was that by doing so, all countries would gain, and indeed, economies around the world did grow quickly until recently. At the same time, globalization vastly increased international competition. More globalization meant more competition, and more competition meant more pressure to be "world class"–to lower costs, to make employees more productive, and to do things better and less expensively. As multinational companies jockey for position, many transfer operations abroad, not just to seek cheaper labor but to tap into new markets. For example, Toyota has thousands of sales employees based in America, while GE has over 10,000 employees in France. The search for greater efficiencies prompts some employers to offshore (export jobs to lower-cost locations abroad, as when Dell offshored some call-center jobs to India). Some employers offshore even highly skilled jobs such as lawyer. Managing the "people" aspects of globalization is a big task for any company that expands abroad–and for its HR managers. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 86) ________ involves formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. A) Employee engagement B) Data analytics C) Strategic human resource management D) Sustainability Answer: C Explanation: Strategic human resource management involves formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today.

87) About what percentage of all job openings are now posted online? A) 15% B) 35% C) 50% D) 70% Answer: D Explanation: Approximately 70% of all job openings are now posted online. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 88) Which one of the following is an aspect of "distributed" HR? A) more centralized HRM decisions B) HRM tasks redistributed to the company's employees and line managers C) more paperwork D) HR professional embedded in all departments Answer: B Explanation: Distributed HR involves more and more human resource management tasks being redistributed from a central HR department to the company's employees and line managers, thanks to digital technologies like mobile phones and social media. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 89) According to the textbook, approximately what percentage of job seekers used Glassdoor during their job search to learn about a company they might apply for? A) 11% B) 32% C) 48% D) 70% Answer: C Explanation: According to one report, 48% of job seekers surveyed said they've used Glassdoor during their job search, including checking before applying for employment at a company. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today.

90) Strategic human resource management refers to ________. A) formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve strategic aims B) planning the balance of internal strengths and weaknesses with external opportunities and threats to maintain competitive advantage C) emphasizing the knowledge, education, training, skills, and expertise of a firm's workers D) extending a firm's sales, ownership, and manufacturing to new markets Answer: A Explanation: Strategic human resource management involves formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve strategic aims. Strategic human resource plans enable a company to hire the employees who will exhibit the behaviors the company needs to accomplish its goals. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 91) ________ refers to ensuring that the human resources management function is delivering its services efficiently. A) Strategic planning B) Strategic human resource management C) HR department lever D) Human resource scorecard approach Answer: C Explanation: Today's human resources manager is in a powerful position to improve the firm's performance and profitability and uses three main levers to do so. One is the HR department lever which ensures that the human resource management function is delivering its services efficiently. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today.

92) Evidence-based human resource management relies on all of the following types of evidence EXCEPT ________. A) scientific rigor B) existing data C) research studies D) qualitative opinions Answer: D Explanation: Qualitative information or opinions are not characteristic of evidence-based HR management because neither can be measured. Evidence-based human resource management is based on the use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 93) Which term refers to the HR manager putting into place the policies and practices that produce the employee competencies and skills the company needs to achieve its strategic goals? A) HR department lever B) strategic results lever C) practices D) employee cost lever Answer: B Explanation: Today's human resources manager is in a powerful position to improve the firm's performance and profitability and uses three main levers to do so. One is the strategic results lever which puts in place the policies and practices that produce the employee competencies and skills the company needs to achieve its strategic goals. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today.

94) ________ refers to being psychologically involved in, connected to, and committed to getting one's jobs done. A) Ethics B) Sustainability C) Human capital D) Employee engagement Answer: D Explanation: Employee engagement refers to being psychologically involved in, connected to, and committed to getting one's jobs done. Engaged employees "experience a high level of connectivity with their work tasks," and therefore work hard to accomplish their task-related goal. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 95) Which one of the following refers to the standards someone uses to decide what his or her conduct should be? A) ethics B) strategies C) preferences D) competencies Answer: A Explanation: Ethics is the standards used by individuals to determine how to behave or act. In human resources, ethics relates to the decisions made by HR managers regarding workplace safety, security of employee records, employee theft, affirmative action, comparable work, and employee privacy rights. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 96) Distributed HR is the idea that more and more human resource management tasks are now being redistributed from a central HR department to the company's employees and line managers. Answer: TRUE Explanation: Distributed HR involves human resource management tasks being redistributed from a central HR department to the company's employees and line managers, facilitated by digital technologies like mobile phones and social media. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 37 Copyright © 2020 Pearson Education, Inc.

97) Strategic human resource management refers to performing basic day-to-day duties that satisfy the needs and demands of both the employees and the employer. Answer: FALSE Explanation: Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 98) The HR department lever has HR managers put in place the policies and practices that produce the employee competencies and skills the company needs to achieve its goals. Answer: FALSE Explanation: The strategic results lever has HR managers put in place the policies and practices that produce the employee competencies and skills the company needs to achieve its strategic goals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 99) According to research, less than one-third of all workers in the U.S. are mentally and emotionally invested in their work. Answer: TRUE Explanation: In one survey, about 30% were engaged, 50% were not engaged, and 20% were actively disengaged (anti-management). Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 100) The evidence used in evidence-based human resource management may come from actual measurements, existing data, or critically evaluated research studies. Answer: TRUE Explanation: Evidence is the core of evidence-based human resource management. Data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies are used to support human resource management proposals, decisions, practices, and conclusions. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 38 Copyright © 2020 Pearson Education, Inc.

101) Ethics are the standards someone uses to decide what his or her conduct should be. Answer: TRUE Explanation: Ethics refers to the standards someone uses to decide what his or her conduct should be. Ethical issues related to HR management include workplace safety and employee privacy rights. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 102) What is evidence-based human resource management? How does evidence-based human resource management benefit firms? Answer: Evidence-based human resource management involves using data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions. Put simply, evidence-based human resource management is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on. Managers should use evidence-based human resource management because unless managers take a healthy, skeptical, evidence-based approach to human resources, they may jump to the wrong managerial conclusions. Life is filled with intuitive-sounding insights, so managers should always be asking questions like, "What is the evidence for this claim?" and "Did this action really cause this result?" Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 1.3 Briefly describe six important components or pillars of human management today. 103) Which one of these organization provides professional certification for human resource managers? A) Association of Certified HR Managers B) Society for Human Resource Management C) Academy of Human Resource Executives D) Association of Business Administration Answer: B Explanation: The Society for Human Resource Management (SHRM) provides professional certification to HR managers. SHRM exams test the professional's knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, and health and safety. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies.

104) Which one of the following is NOT an HR certification? A) HRCI's Professional in Human Resources (PHR) B) HRCI's Senior Professional in Human Resources (SPHR) C) SHRM Junior Professional D) SHRM Certified Professional Answer: C Explanation: The HRCI awards several credentials, including Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR). SHRM offers SHRM Certified Professionals and SHRM Senior Certified Professionals. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies. 105) Which SHRM HR manager competency involves the ability to provide guidance to organizational stakeholders? A) consultation B) ethical practice C) business acumen D) critical evaluation Answer: A Explanation: The SHRM HR manager competency of consultation involves the ability to provide guidance to organizational stakeholders. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies. 106) Michael has the ability to understand and apply information with which to contribute to his organization's overall strategic plan. This is the SHRM HR competency of ________. A) communication B) critical evaluation C) business acumen D) leadership & navigation Answer: C Explanation: The SHRM HR manager competency of business acumen is the ability to understand and apply information with which to contribute to the organization's strategic plan. Difficulty: Easy Objective: 4 AACSB: Application of Knowledge Learning Outcome: 1.4 List at least four important human resource manager competencies.

107) Which SHRM HR manager competency involves the ability to effectively exchange information with stakeholders? A) relationship management B) communication C) ethical practice D) controlling Answer: B Explanation: Communication is the competency that relates to the ability to effectively exchange information with stakeholders. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies. 108) The SHRM human resource manager competencies include ethical practice, business acumen, and relationship management. Answer: TRUE Explanation: The SHRM human resource manager competencies are leadership & navigation, ethical practice, business acumen, consultation, critical evaluation, global & cultural effectiveness and communication. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies. 109) Human resource managers who complete HRCI professional certification exams can earn PHR and SPHR certificates. Answer: TRUE Explanation: HRCI certification includes Professional in Human Resources (PHR), and Senior Professional in Human Resources (SPHR) among others. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 1.4 List at least four important human resource manager competencies. 110) What is human resource management? What competencies are necessary for HR managers to succeed in today's business environment? Explain your answer in a brief essay. Answer: Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness. The SHRM Human Resource Manager competencies are leadership & navigation, ethical practice, business acumen, consultation, critical evaluation, global & cultural effectiveness and communication. HR managers need to show how their actions are "adding value" for the organization as a whole. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 1.4 List at least four important human resource manager competencies. 41 Copyright © 2020 Pearson Education, Inc.

Human Resource Management, 16e (Dessler) Chapter 2 Equal Opportunity and the Law 1) Which amendment to the U.S. Constitution states that "no person shall be deprived of life, liberty, or property, without due process of the law"? A) First Amendment B) Fifth Amendment C) Tenth Amendment D) Thirteenth Amendment Answer: B Explanation: The Fifth Amendment to the U.S. Constitution (ratified in 1791) states that "no person shall be deprived of life, liberty, or property, without due process of the law." The Thirteenth Amendment (1865) outlawed slavery, and courts have held that it bars racial discrimination. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 2) The ________ Amendment to the U.S. Constitution outlawed slavery, and courts have held that it bars racial discrimination. A) Fifth B) Tenth C) Thirteenth D) Fourteenth Answer: C Explanation: The Thirteenth Amendment (1865) outlawed slavery, and courts have held that it bars racial discrimination. The Fifth Amendment to the U.S. Constitution (ratified in 1791) states that "no person shall be deprived of life, liberty, or property, without due process of the law." Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

3) The 13th Amendment to the U.S. Constitution addresses the subject of ________. A) due process B) slavery C) private property D) trial by jury Answer: B Explanation: The 13th Amendment to the U.S. Constitution abolished slavery, and courts have held that it bars racial discrimination. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 4) The ________ gives all persons the same right to make and enforce contracts and to benefit from the laws of the land. A) Fifth Amendment B) Civil Rights Act of 1866 C) Title VII of the 1964 Civil Rights Act D) Thirteenth Amendment Answer: B Explanation: The Civil Rights Act of 1866 gives all persons the same right to make and enforce contracts and to benefit from U.S. laws. The Fifth Amendment to the U.S. Constitution (ratified in 1791) states that "no person shall be deprived of life, liberty, or property, without due process of the law." The Thirteenth Amendment (1865) outlawed slavery, and courts have held that it bars racial discrimination. Title VII of the 1964 Civil Rights Act states that employers cannot discriminate based on race, color, religion, sex, or national origin. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

5) Title VII of the 1964 Civil Rights Act explicitly prohibits employers from discrimination based on all of the following characteristics EXCEPT ________. A) race B) religion C) color D) sexual orientation Answer: D Explanation: Sexual orientation is not directly addressed under Title VII of the 1964 Civil Rights Act. It states that an employer cannot discriminate based on race, color, religion, sex, or national origin. Title VII bars discrimination on the part of most employers both public and private with 15 or more employees. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 6) According to Title VII of the 1964 Civil Rights Act, which one of the following employers would be legally allowed to refuse employment to an individual based on race, religion, or sex? A) a state agency with 65 employees B) a medical office with 25 employees C) a local restaurant with 10 employees D) a department store with 100 employees Answer: C Explanation: Title VII bars discrimination on the part of most employers, including all public and private employers of 15 or more persons. It also covers all private and public educational institutions, the federal government, and state and local governments. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

7) Which legislation was responsible for the creation of the Equal Employment Opportunity Commission? A) Equal Pay Act of 1963 B) Civil Rights Act of 1866 C) Executive Orders 11246 and 11375 D) Title VII of the 1964 Civil Rights Act Answer: D Explanation: Title VII established the Equal Employment Opportunity Commission (EEOC) to administer and enforce the Civil Rights law at work. The commission itself consists of five members appointed by the president with the advice and consent of the Senate. Executive Orders 11246 and 11375 established the Office of Federal Contract Compliance Programs. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 8) The EEOC was initially established to investigate complaints about ________. A) job discrimination B) unfair business practices C) sexual harassment in schools D) structural accommodations for disabled people Answer: A Explanation: Title VII established the Equal Employment Opportunity Commission (EEOC) to administer and enforce the Civil Rights law at work. The EEOC receives and investigates job discrimination complaints from aggrieved individuals. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 9) How many members serve on the Equal Employment Opportunity Commission? A) 3 B) 5 C) 9 D) 10 Answer: B Explanation: The Equal Employment Opportunity Commission (EEOC) consists of five members appointed by the president with the advice and consent of the Senate. Each member serves a five-year term. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 4 Copyright © 2020 Pearson Education, Inc.

10) Which one of the following appoints the members of the EEOC? A) U.S. Congress B) U.S. Supreme Court C) U.S. President D) U.S. voters Answer: C Explanation: The EEOC consists of five members appointed by the president with the advice and consent of the Senate. Each member serves a five-year term. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 11) Which one of the following requires equal pay for equal work regardless of sex? A) Title VII of the 1964 Civil Rights Act B) Equal Pay Act of 1963 C) Pay Discrimination in Employment Act of 1967 D) Civil Rights Act of 1991 Answer: B Explanation: Under the Equal Pay Act of 1963 (amended in 1972), it is unlawful to discriminate in pay on the basis of sex when jobs involve equal work; require equivalent skills, effort, and responsibility; and are performed under similar working conditions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 12) When companies utilize ________, they take steps to eliminate the present effects of past discrimination. A) affirmative action B) executive orders C) rehabilitation D) due process Answer: A Explanation: Affirmative action refers to steps that are taken by companies for the purpose of eliminating the present effects of past discrimination. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

13) Which one of the following is responsible for implementing Johnson administration Executive Orders 11246 and 11375? A) Equal Employment Opportunity Commission B) Pension Benefits Guarantee Corporation C) Occupational Safety and Health Administration D) Office of Federal Contract Compliance Programs Answer: D Explanation: The Johnson administration (1963-1969) issued Executive Orders 11246 and 11375 which didn't just ban discrimination but also required that government contractors with contracts of over $50,000 and 50 or more employees take affirmative action to ensure employment opportunity for those who may have suffered past discrimination. These orders established the Office of Federal Contract Compliance Programs (OFCCP) to implement the orders and ensure compliance. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 14) Which one of the following factors is NOT an acceptable basis for different pay for equal work under the Equal Pay Act of 1963? A) gender B) seniority C) production quality D) production quantity Answer: A Explanation: Under the Equal Pay Act of 1963 (amended in 1972), it is unlawful to discriminate in pay on the basis of sex when jobs involve equal work; require equivalent skills, effort, and responsibility; and are performed under similar working conditions. Pay differences derived from seniority systems, merit systems, and systems that measure earnings by production quantity or quality or from any factor other than sex do not violate the act. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

15) Paul is a 49-year-old American of Anglo-Saxon descent. What legislation is most likely intended to protect Paul from discrimination? A) Executive Order 11375 B) Equal Pay Act of 1963 C) Executive Order 11246 D) Age Discrimination in Employment Act of 1967 Answer: D Explanation: The Age Discrimination in Employment Act of 1967 (ADEA) made it unlawful to discriminate against employees or applicants who are between 40 and 65 years of age. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 16) According to the Age Discrimination in Employment Act of 1967, it is unlawful to ________. A) sue an employer for age-based pay B) require employees to retire at age 65 C) allow juries to determine age discrimination D) institute a minimum age for employees Answer: B Explanation: The Age Discrimination in Employment Act of 1967 (ADEA) made it unlawful to discriminate against employees or applicants who are between 40 and 65 years of age. Subsequent amendments eliminated the age cap, effectively ending most mandatory retirement at age 65. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 17) The ________ requires certain federal contractors to take affirmative action for disabled persons. A) Equal Pay Act B) Vocational Rehabilitation Act C) Age Discrimination in Employment Act D) Civil Rights Act Answer: B Explanation: The Vocational Rehabilitation Act of 1973 requires employers with federal contracts of more than $2,500 to take affirmative action in employing disabled persons. It does not require hiring unqualified people. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 7 Copyright © 2020 Pearson Education, Inc.

18) Which one of the following refers to highly recommended procedures issued by federal agencies regarding employee selection and record keeping? A) job specifications B) employment metrics C) process charts D) uniform guidelines Answer: D Explanation: Uniform guidelines are issued by federal agencies charged with ensuring compliance with equal employment federal legislation explaining recommended employer procedures for complying with the law. They set forth "highly recommended" procedures regarding things like employee selection and record keeping. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 19) Which one of the following does NOT participate in the issuance of uniform guidelines? A) Department of Labor B) Better Business Bureau C) Department of Justice D) Civil Service Commission Answer: B Explanation: The EEOC, Civil Service Commission, Department of Labor, and Department of Justice together issue uniform guidelines. These set forth "highly recommended" procedures regarding things like employee selection and record keeping. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

20) Uniform guidelines from the EEOC are recommended for employers to use in matters regarding all of the following EXCEPT ________. A) employee selection B) record keeping C) sexual harassment D) psychological testing Answer: D Explanation: The EEOC, Civil Service Commission, Department of Labor, and Department of Justice together issue uniform guidelines. These set forth "highly recommended" procedures regarding things like employee selection and record keeping. The American Psychological Association has its own non-legally binding Standards for Educational and Psychological Testing. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 21) Which Supreme Court case was used to define unfair discrimination in conjunction with EEO laws? A) Brown v. Board of Education B) Griggs v. Duke Power Company C) West Coast Hotel Co. v. Parrish D) Abington School District v. Schempp Answer: B Explanation: Griggs v. Duke Power Company was a landmark Supreme Court case used to define unfair discrimination as put forth in EEO laws such as Title VII. The Court ruled that employment practices must be job related and that discrimination does not have to be overt to be illegal. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

22) In Griggs v. Duke Power Company, Griggs sued the power company because it required coal handlers to be high school graduates. The Supreme Court ruled in favor of Griggs because ________. A) high school diplomas were not related to success as a coal handler B) Duke Power Company intentionally discriminated based on race C) no business necessity existed for Duke Power Company D) Title VII forbids job testing Answer: A Explanation: The Court ruled in favor of Griggs because having a high school diploma was not relevant to the job of coal handler. The Court held that an employment practice must be job related if it has an unequal impact on members of a protected class. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 23) If a person is in a protected class, he or she is protected by which one of the following? A) Department of Labor guidelines B) Sarbanes-Oxley Act C) Title VII of the Civil Rights Act D) Consumer Protection Act Answer: C Explanation: The term protected class refers to persons such as minorities and women who are protected by equal opportunity laws, including Title VII. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

24) All of the following are principles established by Griggs v. Duke Power Company EXCEPT ________. A) burden of proof is on the employer B) performance standards should be unambiguous C) business necessity is a defense for an existing program D) discrimination does not have to be overt to be illegal Answer: B Explanation: The Court ruled in Griggs v. Duke Power Company that the burden of proof is on the employer to show that a hiring practice such as testing is job related. The Court also ruled that business necessity is the defense for any existing program that has adverse impact and that discrimination does not have to be overt to be illegal. The case did not address performance standards. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 25) Under the principles established by Griggs v. Duke Power Company, ________ can be used as a defense for any existing program that has adverse impact. A) occupational qualification B) business necessity C) affirmative action D) burden of proof Answer: B Explanation: Business necessity is the defense for any existing program that has adverse impact according to Griggs. The court did not define business necessity. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

26) Which court case provided details regarding how employers could validate the relationship between screening tools and job performance? A) Oncale v. Sundowner Offshore Services Inc. B) Albemarle Paper Company v. Moody C) Griggs v. Duke Power Company D) Burlington Industries v. Ellerth Answer: B Explanation: In the Albemarle case, the Court provided more details on how employers could prove that tests or other screening tools relate to job performance. For example, the Court said that if an employer wants to test candidates for a job, then the employer should first clearly document and understand the job's duties and responsibilities. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 27) Sanders Sporting Goods, an international sporting goods chain, is being sued for sexual harassment by Jill, who is a former Sanders employee. The plaintiff asserts that she was the victim of numerous unwanted sexual advances from a male co-worker, John. Jill claims that Sanders' management condoned a hostile work environment and that the company is liable for the actions of John. All of the following are most likely relevant questions to address in this court case EXCEPT ________. A) Does Sanders have a record of employees who claim disparate treatment in the workplace? B) Did Sanders take reasonable care to prevent sexual harassment in the workplace? C) Does Sanders have a policy statement regarding sexual harassment? D) Did Jill take advantage of any corrective opportunities provided by the employer? Answer: A Explanation: Disparate treatment relates to intentional discrimination, which is not directly important in this case. Firms decrease their liability in sexual harassment cases if they show that they have taken reasonable care to prevent sexual harassment through various actions, such as issuing a policy statement. Whether the co-worker is a U.S. citizen and Sanders is a U.S. entity are important in determining whether EEO laws are applicable. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

28) The 13th Amendment to the U.S. Constitution states, "no person shall be deprived of life, liberty, or property, without due process of the law." Answer: FALSE Explanation: The 13th Amendment outlawed slavery. The Fifth Amendment states that "no person shall be deprived of life, liberty, or property, without due process of the law." Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 29) The 14th Amendment to the U.S. Constitution led to the establishment of the EEOC. Answer: FALSE Explanation: Title VII of the 1964 Civil Rights Act established the Equal Employment Opportunity Commission to administer and enforce the Civil Rights law at work. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 30) Title VII of the 1964 Civil Rights Act bars discrimination on the part of most employers, including all public employers or private employers of 15 or more persons. Answer: TRUE Explanation: Title VII bars discrimination on the part of most employers, including all public or private employers of 15 or more persons, all private and public educational institutions, the federal government, and state and local governments. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 31) The EEOC receives and investigates job discrimination complaints from aggrieved individuals. Answer: TRUE Explanation: The Equal Employment Opportunity Commission receives and investigates job discrimination complaints from aggrieved individuals. When the EEOC finds reasonable cause that the charges are justified, it attempts (through conciliation) to reach an agreement. If this fails, it can go to court. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

32) Only an aggrieved individual can file job discrimination charges against a business. Answer: FALSE Explanation: The EEOC may file discrimination charges on behalf of aggrieved individuals, or the individuals may file on behalf of themselves. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 33) The Age Discrimination in Employment Act of 1967 makes it unlawful to discriminate against employees of federal, state, and local agencies who are between 40 and 65 years of age; however, the law does not apply to private businesses. Answer: FALSE Explanation: The Age Discrimination in Employment Act of 1967 (ADEA) made it unlawful to discriminate against employees or applicants who are between 40 and 65 years of age. ADEA applies to all employers, not just government agencies. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 34) The Supreme Court has held that an employee who is over 40 may sue for discrimination if he or she is replaced by a "significantly younger" employee, even if the replacement is also over 40. Answer: TRUE Explanation: You can't get around the ADEA by replacing employees over 40 years of age with those who are also over 40. In O'Connor v. Consolidated Coin Caterers Corp., the U.S. Supreme Court held that an employee who is over 40 years of age might sue for discrimination if a "significantly younger" employee replaces him or her, even if the replacement is also over 40. The Court didn't specify what "significantly younger" meant, but O'Connor had been replaced by someone 16 years younger. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

35) If a business offers its employees disability coverage, then pregnancy and childbirth must be treated like any other disability and included in the plan as a covered condition. Answer: TRUE Explanation: The Pregnancy Discrimination Act of 1978 prohibits using pregnancy, childbirth, or related medical conditions to discriminate in hiring, promotion, suspension, or discharge, or in any term or condition of employment. Furthermore, under the act, if an employer offers its employees disability coverage, then it must treat pregnancy and childbirth like any other disability and include it in the plan as a covered condition. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 36) Title VII forbids all testing of job applicants because testing systematically discriminates against certain protected classes. Answer: FALSE Explanation: The Supreme Court ruled that an employment practice, such as testing, must be job related if it has an unequal impact on members of a protected class. Title VII does not forbid testing or screening job applicants but it requires that the test/screen is relevant to performing the job. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

37) What is the significance of Title VII? What has been the effect of Title VII on the modern workforce and diversity management? Answer: Title VII bars discrimination on the part of most employers, including all public or private employers of 15 or more persons. It also covers all private and public educational institutions, the federal government, and state and local governments. It bars public and private employment agencies from failing or refusing to refer for employment any individual because of race, color, religion, sex, or national origin. Title VII also established the Equal Employment Opportunity Commission (EEOC) to administer and enforce the Civil Rights law at work. The changes brought about by Title VII as well as demographic changes and globalization have altered the modern workforce. White males no longer dominate the labor force, and women and minorities represent the lion's share of labor force growth over the near future. Furthermore, globalization requires employers to hire minority members with the appropriate cultural and language competencies to deal with customers abroad. Managing diversity means maximizing diversity's potential benefits (greater cultural awareness, and broader language competencies, for instance) while minimizing the potential barriers (such as prejudices and bias) that can undermine the company's performance. Legally, compulsory actions can reduce some blatant diversity barriers; taking a diverse workforce and blending it into a close-knit and productive one requires more. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws. 38) What were the three crucial guidelines affecting equal employment legislation that Chief Justice Burger identified in his written opinion on Griggs v. Duke Power Company? Answer: First, discrimination by the employer need not be overt. The employer does not have to be shown to have intentionally discriminated against the employee or applicant. The plaintiff need only show that discrimination did take place. Second, an employment practice must be job related if it has an unequal impact on members of a protected class. Third, the burden of proof is on the employer to show that the hiring practice is job related. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 2.1 List the basic features of Title VII of the 1964 Civil Rights Act and at least five other early equal employment laws.

39) Under the Civil Rights Act of 1991, once a plaintiff shows disparate impact, who has the burden of proving that the challenged practice is job related? A) employee B) employer C) judge D) EEOC Answer: B Explanation: According to the Civil Rights Act of 1991, once an aggrieved applicant or employee demonstrates that an employment practice (such as "must lift 100 pounds") has a disparate (or "adverse") impact on a particular group, then the burden of proof shifts to the employer, who must show that the challenged practice is job related. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 40) According to the Civil Rights Act of 1991, an employee who claims intentional discrimination can sue for all of the following EXCEPT ________. A) back pay B) job reinstatement C) compensatory damages D) substantive consolidation Answer: D Explanation: According to the Civil Rights Act of 1991, an employee who claims intentional discrimination can sue for back pay, attorneys' fees, court costs, job reinstatement, punitive damages, and compensatory damages. Substantive consolidation is a legal term referring to debt consolidation. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

41) Race, color, religion, sex, or national origin is a motivating factor in a particular termination case, but the employee would have been terminated for failure to perform anyway. Which one of the following most likely exists in this situation? A) mixed motive B) disparate impact C) liability defense D) burden of proof Answer: A Explanation: An unlawful employment practice is established when the complaining party demonstrates that race, color, religion, sex, or national origin was a motivating factor for any employment practice, even though other factors also motivated the practice. Some employers in so-called "mixed motive" cases had taken the position that even though their actions were discriminatory, other factors like the employee's dubious behavior made the job action acceptable. Under CRA 1991, an employer cannot avoid liability by proving it would have taken the same action–such as terminating someone–even without the discriminatory motive. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 42) Which one of the following requires employers to make reasonable accommodations for disabled employees? A) Civil Rights Act of 1991 B) Americans with Disabilities Act of 1990 C) Equal Pay Act D) Disability Discrimination in Employment Act of 1967 Answer: B Explanation: The Americans with Disabilities Act (ADA) of 1990 prohibits employment discrimination against qualified disabled individuals. It also says employers must make "reasonable accommodations" for physical or mental limitations unless doing so imposes an "undue hardship" on the business. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

43) According to the Americans with Disabilities Act, which one of the following would NOT be considered a disability? A) cosmetic disfigurement B) anatomical loss C) pyromania D) physiological disorder Answer: C Explanation: The ADA specifies conditions that it does not regard as disabilities, including homosexuality, compulsive gambling, pyromania, and certain disorders resulting from the current illegal use of drugs. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 44) Which type of disability accounts for the greatest number of ADA claims? A) drug-related B) mental C) vision D) hearing Answer: B Explanation: Mental disabilities account for the greatest number of ADA claims. Under EEOC ADA guidelines, "mental impairment" includes "any mental or psychological disorder, such as . . . emotional or mental illness." Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 45) Under ADA, those who can carry out the essential functions of the job are known as which one of the following? A) protected class B) career anchors C) staff authorities D) qualified individuals Answer: D Explanation: The ADA prohibits discrimination against qualified individuals–those who, with (or without) a reasonable accommodation, can carry out the essential functions of the job. The individual must have the requisite skills, educational background, and experience to do the job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 19 Copyright © 2020 Pearson Education, Inc.

46) An employer that uses a screen-reading program to meet the needs of a blind employee is most likely ________. A) making a reasonable accommodation B) fulfilling job analysis requirements C) identifying essential job functions D) complying with Title VII rules Answer: A Explanation: If an employee can't perform the job as currently structured, the employer must make a "reasonable accommodation" unless doing so would present an "undue hardship." Reasonable accommodation might include modifying work schedules, or acquiring equipment or other devices (such as screen-reading programs) to assist the person. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 47) Which one of the following best explains why employers win the majority of ADA cases? A) Employers make the necessary reasonable accommodations for employees. B) Employees fail to prove that their disabilities affect daily living activities. C) Conservative judges are sympathetic towards most small-business owners. D) Employee attorneys fail to draw connections between Title VII and ADA. Answer: B Explanation: Employers traditionally prevailed in almost all–96%–federal circuit court ADA decisions. The U.S. Supreme Court has ruled that a disability must be central to the employee's daily living (not just job). Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

48) Which one of the following will be the most likely result of the ADA Amendments Act of 2008? A) Employees will find it easier to prove that their disabilities are limiting. B) The number of major life activities considered disabilities will be narrowed. C) Employers will be required to make fewer accommodations for workers with disabilities. D) Employers will be required to hire a specific percentage of disabled workers to be in compliance. Answer: A Explanation: The new ADAA's basic effect will be to make it much easier for employees to show that their disabilities are influencing one of their "major life activities," such as reading and thinking. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 49) In which one of the following situations does sexual harassment NOT violate Title VII? A) if the conduct substantially interferes with a person's work performance B) if the conduct creates an intimidating work environment C) if the conduct is completely consensual D) if the conduct creates an offensive work environment Answer: C Explanation: Under Title VII, sexual harassment generally refers to harassment on the basis of sex when such conduct has the purpose or effect of substantially interfering with a person's work performance or creating an intimidating, hostile, or offensive work environment. Consensual sexual interactions may not violate Title VII. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

50) The ________ provides that a person who commits a crime of violence motivated by gender that deprives another of rights shall be liable to the party injured. A) Civil Rights Act of 1991 B) Federal Violence Against Women Act of 1994 C) Pregnancy Discrimination Act D) Vocational Rehabilitation Act of 1973 Answer: B Explanation: The Federal Violence Against Women Act of 1994 provides that a person who commits a crime of violence motivated by gender and thus deprives another of rights shall be liable to the party injured. The law offers an additional path that women can use to seek relief for violent sexual harassment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 51) Which one of the following is NOT a form of sexual harassment according to EEOC guidelines? A) unwelcome sexual advances that create an intimidating work environment B) verbal conduct of a sexual nature that unreasonably interferes with work performance C) physical conduct of a sexual nature that creates an offensive work environment D) mutually consensual physical conduct of a sexual nature between co-workers Answer: D Explanation: EEOC guidelines define sexual harassment as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates an intimidating, hostile, or offensive work environment or interferes with work performance. Requests for sexual favors that are used as the basis for employment decisions are also considered sexual harassment. Consensual sex between co-workers is not considered sexual harassment. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

52) All of the following are ways for an employee to prove sexual harassment EXCEPT by proving that ________. A) the verbal remarks of a co-worker were sexually flirtatious B) the rejection of a supervisor's sexual advances led to a demotion C) a hostile work environment was created by a co-worker's sexual conversation D) a hostile work environment was created by a nonemployee's sexual advances Answer: A Explanation: The U.S. Supreme Court held that sexual harassment law doesn't cover ordinary "intersexual flirtation." Someone can prove sexual harassment if rejecting a supervisor's sexual advances led to a demotion, firing, or altered work assignment. Sexual harassment can also be proven if a hostile work environment is created by the sexual conduct of supervisors, co-workers, or nonemployees. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 53) Judy was up for a promotion at Simpson Consulting when her supervisor, Will, encouraged her to develop a sexual relationship with him. He suggested that her promotion would be a sure thing if they were involved. When Judy declined his advances, Will fired her. Which one of the following would Judy most likely be able to prove in court if she decided to sue Simpson Consulting? A) hostile environment created by supervisors B) hostile environment created by co-workers C) disparate treatment D) quid pro quo Answer: D Explanation: Quid pro quo (something for something) is the most direct way to prove that rejecting a supervisor's advances adversely affected what the EEOC calls a "tangible employment action" such as hiring, firing, promotion, demotion, and/or work assignment. Quid pro quo would be the best option for Judy if she sues the firm for Will's actions. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

54) Gus is always making sexual jokes at work. Many employees find the jokes funny, but Shelley, Gus's executive assistant, is uncomfortable with the jokes. Eventually, she decides to quit her job rather than endure the jokes any longer. What form of sexual harassment has Shelley experienced? A) quid pro quo B) hostile environment created by supervisors C) hostile environment created by co-workers D) hostile environment created by nonemployees Answer: B Explanation: As Shelley's supervisor, Gus created a hostile environment according to the EEOC. A claimant does not need to show that the harassment had tangible consequences such as demotion. It is sufficient in many cases to prove that a supervisor's sexual harassment substantially affected an employee's emotional and psychological abilities. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 55) All of the following are ways that an employer can minimize liability in sexual harassment claims EXCEPT ________. A) having an informal policy for dealing with sexual harassment B) taking all complaints about harassment seriously C) establishing a management response system that includes an immediate reaction and investigation D) training supervisors and managers to increase their awareness of the issues Answer: A Explanation: Establishing a clear sexual harassment policy that clarifies how to report complaints and investigating charges quickly are major ways that employers can show that they took reasonable care to prevent and correct sexual harassment, which will minimize liability. An informal policy does not do so. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

56) Sanders Sporting Goods, an international sporting goods chain, is being sued for sexual harassment by a former Sanders employee. The plaintiff asserts that she was the victim of numerous unwanted sexual advances from a co-worker. The employee claims that Sanders' management condoned a hostile work environment and that the company is liable for the actions of the employee. Which one of the following, if true, would best support the plaintiff's argument that Sanders is liable for sexual harassment? A) Sanders re-published its sexual harassment policy twice within the last year. B) The HR department at Sanders has records of the plaintiff's initial complaints. C) Sanders lacks a management response system for handling sexual harassment complaints. D) Sanders recently lost a court case filed by former employees who claimed disparate treatment. Answer: C Explanation: Employers can minimize their liability in sexual harassment claims by showing that they have a response system set up for handling sexual harassment complaints, so Sanders may be liable if it lacks a system. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 57) Connor Concrete, a construction firm chain, is being sued for sexual harassment by a former employee. The plaintiff asserts that she was the victim of numerous unwanted sexual advances from a male co-worker. The woman claims that Connor Concrete's management condoned a hostile work environment and that the company is liable for the actions of the male employee. Which one of the following, if true, would most likely undermine the plaintiff's claim that Sanders is liable for the male employee's conduct? A) The male employee physically threatened the plaintiff on three occasions. B) The male employee made sexual advances towards the plaintiff on a daily basis. C) The male employee was required by HR to participate in a sexual harassment awareness course. D) The male employee's conduct significantly interfered with the plaintiff's ability to perform her job. Answer: C Explanation: If the male employee was required to take a sexual harassment course, then that action shows Sanders was making a reasonable attempt to stop the behavior. A hostile environment most likely existed if the male employee made threats and daily sexual advances that interfered with the plaintiff's job performance. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

58) One of Juanita's male co-workers has been making sexually suggestive comments to Juanita about her clothing and her appearance, which makes Juanita feel uncomfortable at work. What is the first step Juanita should take to address the problem? A) filing a complaint with the local EEOC office B) filing a verbal complaint with the harasser's boss C) writing a letter to the accused D) consulting an attorney Answer: B Explanation: The first step Juanita should take is filing a verbal complaint with the harasser and the harasser's boss. After that, writing a letter to the accused and filing a report with the HR director are appropriate actions. Filing a complaint with the EEOC and consulting an attorney are the final steps to take if previous efforts have not improved the situation. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 59) The last step a worker should usually take when s/he is sexually harassed is ________. A) file a verbal contemporaneous complaint with the harasser's manager B) file written reports regarding the unwelcome conduct with the human resource director C) file a verbal contemporaneous complaint with the harasser D) file a claim with the EEOC Answer: D Explanation: Courts generally look to whether the harassed employee used the employer's reporting procedures to file a complaint promptly. After the process with the employer is exhausted and remedy is still needed then the workers should file with the EEOC. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 60) The Civil Rights Act of 1991 makes it more difficult for plaintiffs to sue for monetary damages in cases of disparate treatment. Answer: FALSE Explanation: CRA 1991 makes it easier to sue for monetary damages in cases of disparate treatment or intentional discrimination. CRA 1991 provides that an employee who is claiming intentional discrimination can ask for both compensatory damages and punitive damages. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

61) The Americans with Disabilities Act of 1990 does not list specific disabilities but provides impairment guidelines instead. Answer: TRUE Explanation: The ADA does not list specific disabilities. Instead, EEOC guidelines say someone is disabled when he or she has a physical or mental impairment that "substantially limits" one or more major life activities. Impairments include any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of several body systems, or any mental or psychological disorder. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 62) Being disabled qualifies an individual for a job. Answer: FALSE Explanation: Just being disabled doesn't qualify someone for a job. Qualified individuals are those who with (or without) a reasonable accommodation can carry out the essential functions of the job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 63) Mental disabilities, such as depression and anxiety disorders, account for the greatest number of claims brought under the ADA. Answer: TRUE Explanation: Mental disabilities account for the greatest number of ADA claims. Under EEOC ADA guidelines, "mental impairment" includes "any mental or psychological disorder, such as . . . emotional or mental illness." Examples include major depression, anxiety disorders, and personality disorders. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

64) According to the ADA, firms must employ all disabled individuals who apply for positions and provide them with job training when necessary. Answer: FALSE Explanation: Employers are not required to employ all disabled job applicants. The ADA prohibits discrimination against qualified individuals–those who, with (or without) a reasonable accommodation, can carry out the essential functions of the job. The individual must have the requisite skills, educational background, and experience to do the job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 65) According to GINA, health insurers and employers are prohibited from discriminating based on people's genetic information. Answer: TRUE Explanation: The Genetic Information Nondiscrimination Act (GINA) prohibits discrimination by health insurers and employers based on people's genetic information. Specifically, it prohibits the use of genetic information in employment, prohibits the intentional acquisition of genetic information about applicants and employees, and imposes strict confidentiality requirements. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 66) To prove sexual harassment, it is necessary to show that the harassment had tangible consequences such as demotion or termination. Answer: FALSE Explanation: In Burlington Industries v. Ellerth, the employee accused her supervisor of quid pro quo harassment. She said her boss propositioned and threatened her with demotion if she did not respond. He did not carry out the threats, and she was promoted. Therefore, in quid pro quo cases it is not necessary for the employee to suffer a tangible job action (such as a demotion) to win the case. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

67) Research indicates that more women than men find socio-sexual behaviors at work to be flattering rather than offensive. Answer: FALSE Explanation: A study found that 58% of employees reported experiencing potentially harassment-type behaviors at work. Overall, 25% found the behavior flattering or benign. Women tend to view a broader range of socio-sexual behaviors (touching, for instance) as harassing. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 68) Describe how the ADA Amendments Act of 2008 affects both employers and employees. Answer: The era in which employers prevail in most ADA claims probably ended January 1, 2009. On that day, the ADA Amendments Act of 2008 (ADAAA) became effective. The EEOC had been interpreting the ADA's "substantially limits" phrase very narrowly. The 2008 ADAAA's basic effect is to make it much easier for employees to show that their disabilities are limiting. For example, the new act makes it easier for an employee to show that his or her disability is influencing one of the employee's "major life activities." It does this by adding examples like reading, concentrating, thinking, sleeping, and communicating to the list of ADA major life activities. As another example, under the new act, an employee will be considered disabled even if he or she has been able to control his or her impairments through medical or "learned behavioral" modifications. The bottom line is that employers will henceforth have to redouble their efforts to make sure they're complying with the ADA and providing reasonable accommodations to employees. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

69) What are the three primary ways that an individual can prove sexual harassment? Name and describe each one. Answer: The three main ways an employee can prove sexual harassment are quid pro quo, hostile environment created by supervisors, or hostile environment created by co-workers or nonemployees. Quid pro quo means that submission to sexual conduct is made a term or condition of employment or advancement. For example, a manager could say that a subordinate will only get a promotion if the subordinate does a sexual act with the manager. Even when no direct threats or promises are made in exchange for sexual advances, if an offensive work environment is created, sexual harassment has occurred. Such an offensive work environment is called a hostile environment. This hostile environment can be created by co-workers and their behaviors and actions. It can also be created by the behaviors and actions of a supervisor. A hostile environment is seen to exist when the discriminatory conduct is frequent and repeated over time or severe in nature and it unreasonably interferes with an employee's work performance. EEOC guidelines state that an employer is liable for the sexually harassing acts of its nonsupervisory employees if the employer knew or should have known of the harassing conduct. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 70) What are the two primary arguments available to employers when defending against sexual harassment liability? What two defenses are available to employers fighting discriminatory practice allegations? Answer: An employer must show that it exercised reasonable care to prevent and correct promptly any sexually harassing behavior. Reasonable care can be shown through strong sexual harassment policies, training managers and employees regarding their responsibilities for complying with these policies, instituting reporting processes, investigating charges promptly, and taking corrective action promptly. Second, the employer can demonstrate that the plaintiff "unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer." The employee's failing to use formal organizational reporting systems satisfies the second component. When defending against discriminatory practice allegations, an employer can claim that the employment practice is a bona fide occupational qualification for performing the job. The other option is showing that the practice is a business necessity, which requires showing that there is an overriding business purpose for the discriminatory practice and that the practice is therefore acceptable. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work.

71) What steps can an employee take to address the problem of sexual harassment in the workplace? Answer: Employees can take the following 5 steps: 1) Verbal protest, 2) Write a letter to the accused, 3) File verbal and written report, 4) File claim at local EEOC, and 5) Consult an attorney. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 2.2 List the basic features of at least five post-1990 employment laws and explain with examples how to avoid accusations of sexual harassment at work. 72) ________ exists when an employer treats an individual differently because that individual is a member of a particular race, religion, gender, or ethnic group. A) Disparate impact B) Disparate treatment C) Adverse impact D) Prima facie Answer: B Explanation: Disparate treatment means intentional discrimination and "exists where an employer treats an individual differently because that individual is a member of a particular race, religion, gender, or ethnic group." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 73) Which one of the following refers to the overall effect of employer practices that result in significantly higher percentages of members of protected groups being rejected for employment, placement, or promotion? A) disparate treatment B) disparate effect C) adverse impact D) prima facie Answer: C Explanation: Adverse impact is the overall effect of employer practices that result in significantly higher percentages of members of protected groups being rejected for employment, placement, or promotion. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

74) All of the following are ways that an employee or job applicant can show adverse impact EXCEPT ________. A) comparing disparate rejection rates B) holding a fact-finding conference C) utilizing population comparisons D) using the standard deviation rule Answer: B Explanation: The EEOC investigates charges of discrimination and frequently holds fact-finding conferences, so this would not be an option for employees or job applicants. Comparing disparate rejection rates, making population comparisons, and using the standard deviation rule are methods available to employees and applicants trying to show that an employer's procedures have an adverse effect on a protected group. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 75) Which one of the following is used by lawyers in disparate impact cases to show intentional disparate treatment? A) disparate rejection rates B) restricted policy approach C) population comparisons D) McDonnell-Douglas test Answer: D Explanation: Lawyers in disparate impact cases use disparate rejection rates, restricted policy approaches, and population comparisons to test whether an employer's policies or actions have the effect of unintentionally screening out disproportionate numbers of women or minorities. Lawyers use the McDonnell-Douglas test for showing (intentional) disparate treatment, rather than (unintentional) disparate impact. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

76) The formula used by federal agencies to determine disparate rejection rates is based on a selection rate for any racial, ethnic, or sex group less than ________ percent of the rate for the group with the highest rate. A) 40 B) 60 C) 80 D) 100 Answer: C Explanation: Federal agencies use a "4/5ths rule" to assess disparate rejection rates: "A selection rate for any racial, ethnic, or sex group which is less than four-fifths or 80% of the rate for the group with the highest rate will generally be regarded as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded as evidence of adverse impact." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 77) Which one of the following tests for adverse impact involves demonstrating that the employer's policy either intentionally or unintentionally excludes members of a protected group? A) McDonnell-Douglas test B) BFOQ approach C) systemic method D) restricted policy Answer: D Explanation: The restricted policy approach means demonstrating that the employer's policy intentionally or unintentionally excluded members of a protected group. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

78) Which one of the following involves comparing the percentage of the minority/protected group and white workers in an organization with the percentage of the corresponding group in the labor market? A) personnel population comparison approach B) restricted policy comparison method C) population comparisons approach D) McDonnell-Douglas test Answer: C Explanation: This approach compares (1) the percentage of minority/protected group and white workers in the organization with (2) the percentage of the corresponding group in the labor market. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 79) Which law allows an employer to claim that an employment practice is a bona fide occupational qualification for performing the job? A) Title VII of the 1964 Civil Rights Act B) Vocational Rehabilitation Act of 1973 C) Genetic Information Nondiscrimination Act of 2008 D) 1972 Equal Opportunity Act Answer: A Explanation: An employer can claim that the employment practice is a bona fide occupational qualification (BFOQ) for performing the job according to Title VII. Title VII provides that "it should not be an unlawful employment practice for an employer to hire an employee . . . on the basis of religion, sex, or national origin in those certain instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise." Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

80) Employers primarily use bona fide occupational qualification (BFOQ) as a defense against charges of discrimination based on ________. A) religion B) age C) gender D) nationality Answer: B Explanation: Employers use BFOQ mostly as a defense against charges of intentional discrimination based on age. However, Title VII provides that "it should not be an unlawful employment practice for an employer to hire an employee . . . on the basis of religion, sex, or national origin in those certain instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise." Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 81) In Which one of the following jobs would gender most likely be appropriate to use as a BFOQ? A) fire fighter in a metropolitan fire department B) prison guard at a federal penitentiary C) teacher at a private, all-girls school D) actor in a toothpaste commercial Answer: D Explanation: Gender may be a BFOQ for positions like actor, model, and restroom attendant requiring physical characteristics possessed by one sex. However, for most jobs today, it's difficult to claim that gender is a BFOQ. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

82) Pictures and Promotions Modeling Studio seeks to hire male models for an upcoming fashion show featuring men's wear. The studio is using ________ as a justification for not considering women for the jobs. A) BARS B) ADEA C) EEOC D) BFOQ Answer: D Explanation: An employer can claim that the employment practice is a bona fide occupational qualification (BFOQ) for performing the job. In this case, a specific gender is necessary for the job. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 83) Which defense requires showing that there is an overriding company-related purpose for a discriminatory practice and that the practice is therefore acceptable? A) prima facie B) business necessity C) adverse impact D) mixed motive Answer: B Explanation: "Business necessity" is a defense created by the courts that requires showing that there is an overriding business purpose for the discriminatory practice and that the practice is therefore acceptable. It's not easy to prove business necessity because the Supreme Court made it clear that business necessity does not encompass such matters as avoiding an employer inconvenience, annoyance, or expense. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

84) The application requirements for Western Airlines pilot positions require candidates to have logged at least 200 hours piloting an aircraft within the previous 36 months. In addition, applicants must have 2,500 hours of experience in the air with at least 1,000 hours as the commanding pilot of a commercial airplane. A four-year college degree is also required. Jeff Sanchez, who is Hispanic, applied for a position as a pilot and was rejected because he has a degree from a 2-year college and only 2,000 hours of flight experience. Jeff is suing Western Airlines for discriminatory hiring practices. Which one of the following, if true, best supports Western Airlines' defense? A) At Western Airlines, turnover is high among minority employees working as pilots and flight attendants. B) Recent experiences with college recruiting have led Western Airlines to increase the percentage of its minority pilots. C) The total number of hours spent flying a commercial airline is a valid predictor of performance for most Western Airlines pilots. D) Western Airlines bases its selection tests and hiring practices on industry guidelines for commercial pilots. Answer: C Explanation: Western Airlines' best defense involves proving that its selection tests or other employment practices are valid predictors of performance on the job. Where the employer can establish such validity, the courts have generally supported using the test or other employment practice as a business necessity. In this example, the number of flight hours is a predictor of job performance. Turnover, recruiting, and industry guidelines are less important factors. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

85) The application requirements for Western Airlines pilot positions require candidates to have logged at least 200 hours piloting an aircraft within the previous 36 months. In addition, applicants must have 2,500 hours of experience in the air with at least 1,000 hours as the commanding pilot of a commercial airplane. A four-year college degree is also required. Wallace Roberts, who is African-American, applied for a position as a pilot and was rejected because he has a degree from a 2-year college and only 2,000 hours of flight experience. Jeff is suing Western Airlines for discriminatory hiring practices. Which one of the following statements is most likely relevant to this court case against Western Airlines? A) Most pilots at Western Airlines belong to labor unions and are involved in collective bargaining arrangements detrimental to the industry. B) The job requirements for pilots at Western Airlines are a business necessity due to the human risks associated with hiring unqualified applicants. C) The Age Discrimination in Employment Act prevents firms, such as Western Airlines, from discriminating when age is a BFOQ. D) As a global firm, Western Airlines can easily establish a prima facie case of discrimination based on race. Answer: B Explanation: Commercial pilots put passengers at risk if they are unqualified, so it is a business necessity for Western Airlines to have what may be discriminatory hiring practices. In this example, the job requires a high degree of skill, and the economic and human risks of hiring an unqualified applicant are great. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 86) All of the following recruitment practices are potentially discriminatory EXCEPT ________. A) spreading information about job openings through word-of-mouth among a firm's predominantly Hispanic workforce B) providing misleading information to Asian and Indian job applicants C) posting help wanted ads that specify young, male applicants D) posting job advertisements only in local newspapers Answer: D Explanation: Ads that specify age or gender may be problematic, but only posting ads in local newspapers is acceptable. Using word-of-mouth to relay information about job openings is only problematic if the workforce is mostly made up of members of a particular group. Providing misleading or false information to certain applicants is also potentially discriminatory. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 38 Copyright © 2020 Pearson Education, Inc.

87) Which one of the following is most likely an example of a discriminatory selection standard? A) measuring a software designer applicant's knowledge about a computer language B) requiring a high school teacher applicant to have a four-year college degree C) requiring engineer applicants to meet specific height standards D) asking prison guard applicants to reveal their arrest records Answer: C Explanation: It would most likely be unlawful to require engineers to meet certain height standards because height is not related to the job. If a job requires security clearance, such as a prison guard, then it is not discriminatory to ask about an applicant's arrest record. Educational requirements, physical characteristics, and knowledge are acceptable selection standards when they specifically relate to the job. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 88) Under the Civil Rights Act of 1991, disparate impact claims require proof of discriminatory intent. Answer: FALSE Explanation: Disparate impact means that an employer engages in an employment practice or policy that has a greater adverse impact (effect) on the members of a protected group under Title VII than on other employees, regardless of intent. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 89) The McDonnell-Douglas test is a procedure used by federal agencies to assess disparate impact. Answer: FALSE Explanation: Lawyers use the McDonnell-Douglas test for showing disparate treatment instead of disparate impact. The 4/5ths rule is used by federal agencies to assess disparate rejection rates. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

90) The restricted policy approach involves demonstrating that an employer's hiring practices either intentionally or unintentionally exclude members of a protected group. Answer: TRUE Explanation: The restricted policy approach means demonstrating that the employer's policy intentionally or unintentionally excluded members of a protected group. Here the problem is usually obvious–such as policies against hiring bartenders less than six feet tall. Evidence of restricted policies such as these is enough to prove adverse impact and to expose an employer to litigation. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 91) Shippers Express is accused of adverse impact on a protected group. Eighty percent of all male applicants are hired, but only 50% of female applicants are hired. Using the formula for disparate rejection rates, adverse impact cannot be shown. Answer: FALSE Explanation: A selection rate for any racial, ethnic, or sex group which is less than four-fifths or 80% of the rate for the group with the highest rate will generally be regarded as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded as evidence of adverse impact. In this example, Shippers Express hires 80% of male applicants, but only 50% of female applicants. Four-fifths of 80% would be 64%. Since 50% is less than 64%, adverse impact exists. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 92) Utilization analysis compares the percentage of minority employees at a firm with the number of similarly trained minorities available in the relevant labor market. Answer: TRUE Explanation: The process of comparing the percentage of minority employees in a job (or jobs) at the company with the number of similarly trained minority employees available in the relevant labor market is utilization analysis. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

93) Employers most frequently use a bona fide occupation qualification as a defense against charges of intentional discrimination based on gender compared to other protected class types. Answer: FALSE Explanation: In most cases, employers use BFOQ as a defense against charges of intentional discrimination based on age. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 94) The Age Discrimination in Employment Act prohibits the use of age as a BFOQ for any type of employment. Answer: FALSE Explanation: The Age Discrimination in Employment Act (ADE Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 95) Under no circumstances may religion be used as a bona fide occupational qualification (BFOQ). Answer: FALSE Explanation: Religion may be a BFOQ in religious organizations or societies that require employees to share their particular religion. For example, religion may be a BFOQ when hiring persons to teach in a religious school. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

96) Compare and contrast disparate treatment and disparate impact. Answer: Disparate treatment means intentional discrimination. It exists where an employer treats an individual differently because that individual is a member of a particular race, religion, gender, or ethnic group. Disparate impact means that an employer engages in an employment practice or policy that has a greater impact on the members of a protected group under Title VII than on other employees, regardless of intent. Disparate treatment requires finding intent to discriminate while disparate impact claims do not require proof of discriminatory intent. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 97) What are the methods an applicant or employee can use to show that an employer's procedures (such as a selection test) have an adverse impact on a protected group? Answer: In practice, an applicant or employee can use one of these methods to show that one of an employer's procedures has an adverse impact on a protected group: 1) disparate rejection rate, which is a method that compares the rejection rates for a minority group and another group (usually the remaining nonminority applicants). Federal agencies use a 4/5ths rule to assess disparate rejection rates. 2) The standard deviation rule, which is a statistical measure of variability that helps to describe the difference between the numbers of minority candidates who were expected to be hired and who were actually hired and should be less than two standard deviations. 3) Restricted policy is a method that demonstrates that the employer's policy intentionally or unintentionally excluded members of a protected group. 4) Population comparisons method, which compares the percentage of minority/protected group and white workers in the organization with the percentage of the corresponding group in the labor market. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

98) How can managers help firms avoid claims of discrimination? What laws are especially important for managers to understand in order to avoid triggering discrimination claims? Answer: The human resource manager certainly plays a big role in helping the company avoid discriminatory practices like these, but at the end of the day, the first-line supervisor usually triggers the problem. Managers need to understand the questions that can and cannot be asked when interviewing applicants, and know what constitutes sexual harassment, and how equal employment opportunity law affects all human resources decisions, including those relating to appraisal, compensation, promotions, disciplinary procedures, and employee dismissals. First, managers should understand the Equal Pay Act of 1963, which states it is unlawful to discriminate in pay on the basis of sex when jobs involve equal work; require equivalent skills, effort, and responsibility; and are performed under similar working conditions. Managers should also understand the Age Discrimination in Employment Act of 1967 (ADEA), which made it unlawful to discriminate against employees or applicants who are between 40 and 65 years of age. Younger managers may have to especially guard against ageist prejudices and assuming that younger workers are better qualified than older workers. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory practice allegations, and list specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 99) What is the most common next step in the EEOC enforcement process after a person files an employment discrimination claim? A) The EEOC either accepts or refers the charge. B) The two parties are required to participate in mediation. C) A commission investigates the claim in an open meeting. D) The employer and EEOC bring a civil suit in a federal district court. Answer: A Explanation: After a person files an employment discrimination claim, the EEOC's common practice is to accept a charge or orally refer it to a state or local agency. An investigation, voluntary mediation, and litigation may occur after the charge is accepted. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 2.4 List the steps in the EEOC enforcement process.

100) Which one of the following refers to an informal meeting held early in an EEOC enforcement investigation that attempts to define issues and determine if settlement is possible? A) voluntary mediation B) fact-finding conference C) collective bargaining D) mandatory arbitration Answer: B Explanation: Early in the investigation, the EEOC holds an initial fact-finding conference. The EEOC calls these "informal meetings" for defining issues and determining whether there's a basis for negotiation. However, the EEOC's real focus here is often on settlement. Its investigators use the conferences to find weak spots in each party's position, which are used to push for a settlement. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 2.4 List the steps in the EEOC enforcement process. 101) The EEOC describes ________ as an informal process in which a neutral third party assists the opposing parties to reach a voluntary, negotiated resolution of a charge of discrimination. A) a fact-finding conference B) voluntary mediation C) mandatory arbitration D) alternative dispute resolution Answer: B Explanation: The EEOC refers about 10% of its charges to a voluntary mediation mechanism. This is "an informal process in which a neutral third party assists the opposing parties to reach a voluntary, negotiated resolution of a charge of discrimination." Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 2.4 List the steps in the EEOC enforcement process. 102) The first step of the EEOC enforcement process is to serve notice. Answer: FALSE Explanation: The first step of the EEOC enforcement process is when someone files a charge with the EEOC. Serve notice is the third step. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 2.4 List the steps in the EEOC enforcement process.

103) Alternative dispute resolution is a grievance procedure that provides for non-binding arbitration in employment discrimination claims. Answer: FALSE Explanation: Alternative dispute resolution or ADR programs are grievance procedures that provide binding arbitration in EEO lawsuits. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 2.4 List the steps in the EEOC enforcement process. 104) A workforce comprised of two or more groups of employees with various racial, gender, cultural, handicap, age, and religious backgrounds is best described as ________. A) competitive B) ethnocentric C) globalized D) diverse Answer: D Explanation: Diversity means being diverse or varied, and at work means having a workforce comprised of two or more groups of employees with various racial, ethnic, gender, cultural, national origin, handicap, age, and religious backgrounds. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program. 105) Which one of the following would LEAST likely foster diversity in the workplace? A) changing the culture through diversity training education programs B) appointing a small group of minorities to high-profile positions C) recruiting minority members to the board of directors D) using metrics to evaluate diversity programs Answer: B Explanation: Tokenism occurs when a company appoints a small group of women or minorities to high-profile positions, rather than more aggressively seeking full representation for that group. Diversity is fostered through education, minority participation on the board of directors, and regular assessment. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program.

106) In Bakke v. Regents of the University of California, which one of the following claims was made by Allen Bakke? A) sexual harassment B) racial discrimination C) reverse discrimination D) affirmative action Answer: C Explanation: The case serves as an example of reverse discrimination. In Bakke v. Regents of the University of California (1978), the University of California at Davis Medical School denied admission to white student Allen Bakke, allegedly because of the school's affirmative action quota system, which required that a specific number of openings go to minority applicants. In a 5-to-4 vote, the U.S. Supreme Court struck down the policy that made race the only factor in considering applications for a certain number of class openings and thus allowed Bakke's admission. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program. 107) Discrimination is an attitude that prejudges someone based on that person's trait. Answer: FALSE Explanation: Discrimination is not an attitude, rather it is taking specific actions toward or against a person based on the person's group. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program. 108) Jill and Lauren are the only women who are in the upper levels of management in a large multinational technology company. An organization appointing only a small group of women or minorities to high-profile positions like we see here is guilty of tokenism. Answer: TRUE Explanation: Tokenism means a company appoints a small group of women or minorities to high-profile positions, rather than more aggressively seeking full representation for that group. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program.

109) The tendency to view members of other social groups less favorably than one's own is called tokenism. Answer: FALSE Explanation: Ethnocentrism is the tendency to view members of other social groups less favorably than one's own. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program. 110) Managing diversity means maximizing diversity's potential benefits while minimizing the potential problems of diversity that can undermine a firm's performance. Answer: TRUE Explanation: Diversity management means maximizing diversity's potential benefits while minimizing potential barriers–such as prejudice–that can undermine a cooperation. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 2.5 Give examples of attitudes that undermine diversity efforts, and explain how you would create a diversity management program.

Human Resource Management, 16e (Dessler) Chapter 3 Human Resource Management Strategy and Performance 1) ________ defines the nature of the company's business in terms of how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position. A) Financial auditing B) Strategic planning C) Employee benchmarking D) Employee testing Answer: B Explanation: Strategic planning is the company's overall planning for how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 2) ________ involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan. A) The management planning process B) Financial auditing C) Employee testing D) Employee benchmarking Answer: A Explanation: The basic management planning process involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan. Planning is always goal-directed. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

3) What is the first step in the basic planning process? A) evaluating the possible alternatives B) implementing a course of action C) setting an objective D) comparing options Answer: C Explanation: The first step of management planning is to set an objective or a goal. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 4) Which one of the following is NOT part of the basic managerial planning process? A) evaluation of best options B) establishment of clear objectives C) implementation of the plan D) building corporate hierarchies Answer: D Explanation: The basic management planning process involves setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best and then choosing and implementing the plan. However, managerial planning is hindered by the hierarchy of a corporation, which requires that plans meet budgetary requirements and match the long-term goals of the firm. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 5) Which term indicates the course of action for getting from where you are to where you want to go? A) goal B) plan C) proposition D) assessment Answer: B Explanation: A plan shows the course of action for getting from where you are to where you want to go–in other words, to the goal. Planning is always "goal-directed." Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

6) What is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage? A) strategic plan B) situation analysis C) SWOT analysis D) tactical plan Answer: A Explanation: A strategic plan is a firm's plan for assessing internal strengths and weaknesses with external opportunities and threats. The essence of strategic planning involves asking, "Where are we now as a business and where do we want to be?" Managers then develop specific strategies for taking a firm where it wants to be. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 7) A course of action that a firm can pursue to achieve its strategic aims is known as a ________. A) vision B) goal C) strategy D) mission Answer: C Explanation: A strategy is a course of action taken by a firm to achieve strategic aims. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 8) Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its ________. A) environmental demands B) competitive standards C) natural resources D) hierarchical skills Answer: A Explanation: Strategic management is the process of identifying and executing the organization's strategic plan by matching the company's capabilities with the demands of its environment. Industry standards, resources, and corporate hierarchies are less relevant. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

9) All of the following are steps involved in the strategic management process EXCEPT ________. A) evaluating the firm's internal and external situation B) asking, "Where are we now as a business?" C) formulating a new business direction D) offshoring low-skill jobs Answer: D Explanation: While offshoring low-skill jobs may be a strategy for some firms to lower expenditures, it is not a specific step involved in the strategic management process. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 10) What is the first step in the strategic management process? A) formulating a strategy B) asking, "What business are we in now?" C) evaluating the strategic plan D) implementing an environmental scan Answer: B Explanation: The first step in the strategic planning process is asking, " What business are we in now?" Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 11) Which one of the following is a simple guide used to compile relevant information about a company's environment including economic, competitive, and political trends that may affect a firm? A) workforce requirement matrix B) environmental scan worksheet C) external resource system table D) potential globalization network Answer: B Explanation: Environmental scan worksheets are a guide for compiling information about the company's environment. This includes the economic, competitive, and political trends that may affect the company. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

12) John wants to perform external and internal audits as part of the strategic management process. What is a frequently used tool to organize relevant information on positive and negative aspects of the company and environment? A) BCG matrix B) QSPM matrix C) SWOT chart D) EPS/EBIT table Answer: C Explanation: The SWOT chart is a tool frequently used by managers who are responsible for performing external and internal audits. Managers use it to compile and organize the company strengths, weaknesses, opportunities, and threats. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 13) Which one of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"? A) mission statement B) strategic plan C) vision statement D) marketing plan Answer: C Explanation: A firm's vision statement is a general statement about the intended direction of the firm and what the business should look like in the future. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

14) The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved? A) evaluating the firm's internal and external strengths B) defining the business and its mission C) choosing specific strategies or courses of action D) evaluating the strategic plan Answer: C Explanation: The sales director is in the process of translating the firm's mission, which is to maintain a competitive advantage, choosing specific strategies or courses of action. This step is the fifth one in the strategic process, and it occurs after the manager makes a strategic choice. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 15) The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment. A) mission statement B) strategic plan C) code of ethics D) vision statement Answer: A Explanation: A mission statement addresses the question, "What business are we in?" Mission statements explain the scope of an organization's product or services, and they may also address issues of vertical integration, geographic coverage, and competitive advantage. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 16) Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning. Answer: FALSE Explanation: Under the hierarchy of goals approach to strategic planning, goals are set at the top of a company by the president or CEO. Goals then flow downward to the lowest-ranked managers and employees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

17) Steps in the basic management planning process include setting objectives, reviewing alternative courses of action, and evaluating which options are best. Answer: TRUE Explanation: The basic management planning process consists of five steps: setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best, and then choosing and implementing your plan planning process. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 18) Strategy is a course of action. Answer: TRUE Explanation: Strategy is a course of action the company can pursue to achieve its strategic aims. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 19) A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members. Answer: FALSE Explanation: A firm's mission statement answers the question, "What business are we in?" Managers use mission statements to pinpoint whether and how the firm will vertically integrate, as well as the firm's product scope, geographic coverage, and competitive advantage. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 20) A vision statement is broader and more future-oriented than a mission statement. Answer: TRUE Explanation: The vision statement is a general statement of the firm's intended direction and broadly indicates what the firm wants to become. Vision statements focus on the future while mission statements address what the business does. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

21) Strategic management focuses more on translating a mission into goals than on the functions of organizing, staffing, and controlling. Answer: TRUE Explanation: Strategic management is the process of identifying and executing the organization's strategic plan by matching the company's capabilities with the demands of its environment. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 22) Why is strategic planning important to managers? Explain the importance of setting hierarchical goals. Answer: Strategic planning is important to managers because in well-run companies the goals from the very top of the organization downward should form a more-or-less unbroken chain (or "hierarchy") of goals. These goals, in turn, should be guiding what everyone does. Management creates a hierarchy or chain of departmental goals, from the top down to the lowest-ranked managers, and even employees. Then, if everyone does his or her job–if each salesperson sells his or her quota, and the sales manager hires enough good salespeople, and the HR manager creates the right incentive plan, and the purchasing head buys enough raw materials–the company and the CEO should also accomplish the overall, company-wide strategic goals. You could therefore say with great certainty that without a clear plan at the top, no one in the company would have the foggiest notion of what to do. At best, you'd all be working at crosspurposes. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

23) What is strategic management? List and explain each step in the strategic management process. Answer: Strategic management is the process of identifying and executing the organization's mission, by matching the organization's capabilities with the demands of its environment. The steps are as follows: Step 1: What business are we in now?—Here the manager defines the company's current business and mission. Specifically, what products do we sell, where do we sell them, and how do our products or services differ from our competitors'? Step 2: The second step is to ask, "Are we in the right business given our strengths and weaknesses and the challenges that we face?" To answer this, managers "audit" or study both the firm's environment and the firm's internal strengths and weaknesses. Prudent managers periodically assess what's happening in their environments. You need to audit the firm's environment and strengths and weaknesses. You can use the environmental scanning worksheet or the SWOT chart. Step 3: Decide what our new business should be in terms of what we sell, where we will sell it, and how our products or services differ from competitors' products and services. This step is where vision statements and mission statements are developed. Step 4: Translate the desired new direction into strategic goals. At Ford, for example, what exactly did making "Quality Job One" mean for each department in terms of how they would boost quality? The answer was laid out in goals such as "no more than 1 initial defect per 10,000 cars." Step 5: The manager chooses strategies—courses of action—that will enable the company to achieve its strategic goals. For example, how should Ford pursue its goal of no more than 1 initial defect per 10,000 cars? Perhaps open two new high-tech plants and put in place new, rigorous employee selection, training, and performance-appraisal procedures. Step 6: Strategy execution, which means translating the strategies created into action. This means actually hiring (or firing) people, building (or closing) plants, and adding (or eliminating) products and product lines. Step 7: The manager evaluates the results of his or her planning and execution. Things don't always turn out as planned. All managers should periodically assess the progress of strategic decisions. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process.

24) Explain the difference between a firm's vision and its mission. How might these impact the actions of an organization? Answer: A company's vision is a general statement of the company's intended direction that shows in broad terms what a company wants to become. A vision statement is future-oriented while a mission statement is oriented in the present. Mission statements indicate what a company is doing right now while vision statements are what a company strives to become. The vision statement will impact how the organization plans for the future and what it focuses. The mission statement is the plan for what the organization is doing in the current time period and day to day. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 3.1 Give examples of each of the seven steps in the strategic management process. 25) A company's ________ strategy identifies the portfolio of businesses that comprise a firm and the ways in which these businesses relate to each other. A) functional B) business unit C) corporate-level D) competitive Answer: C Explanation: Managers use three types of strategies for the three different levels of a company. Corporate-level strategy identifies the portfolio of businesses that comprise a firm and how these businesses relate to each other. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 26) A diversification corporate strategy implies that a firm will ________. A) expand by adding new product lines B) reduce the company's size to increase market share C) save money by producing its own raw materials D) increase profits by offering one popular product Answer: A Explanation: A diversification corporate strategy suggests that a firm will expand by adding new product lines. For example, PepsiCo has diversified over the years by adding chips and Quaker Oats to its product offerings. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies.

27) Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is pursuing which one of the following strategies? A) consolidation B) geographic expansion C) diversification D) horizontal integration Answer: C Explanation: A diversification corporate strategy suggests that a firm will expand by adding new product lines. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 28) When Apple opened its own Apple stores, this was an example of ________. A) market penetration B) concentration C) vertical integration D) consolidation Answer: C Explanation: Vertical integration is a strategy that involves expansion through producing raw material or selling product directly. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 29) Winchester Rugs operates a Web site called www.buyrugsdirect.com, so Winchester Rugs is most likely using a strategy of ________. A) consolidation B) geographic expansion C) vertical integration D) concentration Answer: C Explanation: A vertical integration strategy means that a firm expands by producing its own raw materials or, in the case of Winchester Rugs, selling its products directly instead of using a retailer. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

30) Which one of the following activities most likely indicates that a firm is implementing a vertical integration strategy? A) selling unprofitable divisions B) producing raw materials C) aggressively selling a new product D) purchasing a competitor's firm Answer: B Explanation: Vertical integration strategies are methods used for expanding a firm that typically include either selling products directly or producing raw materials rather than relying on suppliers. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 31) The 2008 announcement by Starbucks that it would be closing approximately 600 of its stores suggests the firm was using a ________ strategy. A) consolidation B) diversification C) geographic expansion D) vertical integration Answer: A Explanation: Starbucks is trying to reduce its size by eliminating some of its stores, so the firm is using a strategy of consolidation. Diversification and geographic expansion would involve expanding Starbucks with new products or opening stores in new locations rather than closing stores. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

32) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million-dollar investments which will enable the business to expand its national presence. Which one of the following, if true, would best support the argument that Sweet Leaf Tea should implement a corporate-level strategy of concentration? A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee. B) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower. C) Market data suggests that customers really only want the tea itself, not related products. D) Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on regional grocery-store chains rather than big box national retailers. Answer: C Explanation: A corporate-level strategy of concentration means that Sweet Leaf would offer one product or product line, usually in one market. The customers' interest in only the tea suggests such a concentration is warranted. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

33) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million-dollar investments which will enable the business to expand its national presence. Which one of the following, if true, would most likely undermine the argument that Sweet Leaf Tea should implement a corporate-level strategy of vertical integration? A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages. B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor of tea. C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience stores. D) Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so that the company can keep prices low. Answer: A Explanation: A corporate-level strategy of vertical integration would require Sweet Leaf to expand by either producing its own raw materials or selling its products directly. If the company lacks the facilities and knowledge to produce raw materials or the price of sugar is guaranteed to remain stable for five years, then vertical integration is a bad idea. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

34) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million-dollar investments which will enable the business to expand its national presence. Which one of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation? A) New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the bottles. B) Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs. C) Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at competitive prices. D) Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers of all ages. Answer: B Explanation: Differentiation is a business-level strategy that occurs when a firm seeks to be unique in its industry along dimensions that are widely valued by buyers. Sweet Leaf has developed a customer base among individuals who only buy organic products and are willing to pay more for them, so it has differentiated itself from other beverage firms. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 35) A company's ________ strategy identifies how to build and strengthen the business's longterm competitive position in the marketplace. A) functional B) corporate-level C) horizontal D) competitive Answer: D Explanation: A business-level or competitive strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace. For example, the competitive strategy identifies how Pizza Hut will compete with Papa John's or how Walmart will compete with Target. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies.

36) Which one of the following refers to any factors that allow a company to differentiate its product or service from those of its competitors to increase market share? A) functional strategy B) competitive advantage C) distinctive competency D) related diversification Answer: B Explanation: A competitive advantage refers to the factors that allow a firm to differentiate its product or service from competitors to gain market share. Managers aim to achieve competitive advantages for each of their businesses through cost leadership, differentiation, and focus. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 37) A company's business-level strategy identifies the ________. A) ways to strengthen a firm's long-term competitive position in the marketplace B) tools for diversifying a business portfolio through the acquisition of MNEs C) means to becoming a low-cost leader within a highly competitive industry D) ways to carve out a market niche in order to compete for high-end customers Answer: A Explanation: A competitive or business-level strategy identifies how a firm will build and strengthen its competitive position in the marketplace, such as how Walmart will compete with Target. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 38) Companies like Ferrari are known as ________ because they carve out a market niche and compete by providing a product that customers can attain in no other way. A) cost leaders B) focusers C) visionaries D) market leaders Answer: B Explanation: Focusers is a term used to describe firms that carve out market niches and compete by providing unique products or services. Ferrari provides customers with a unique automobile that is not readily available anywhere else. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

39) Which one of the following strategies identifies the broad activities that each department will pursue in order to help a business attain its competitive goals? A) competitive B) business-level C) corporate-level D) functional Answer: D Explanation: Functional strategies identify what each department must do to help the business accomplish its strategic goals. Each department should operate within the framework of the company's overall strategic plan and mission. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 40) A firm's functional strategies identify the broad activities that each ________ will do in order to help the business accomplish its strategic goals. A) supplier B) department C) executive D) employee Answer: B Explanation: Functional strategies stem from a firm's competitive strategies, and they identify the activities that each department within a firm will pursue in order to help a business accomplish its competitive goals. Departments such as manufacturing, sales, and human resource management would be given directives that correspond with a firm's business-level strategy. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 41) John wants his shoe store to adopt the strategy of having the lowest prices on shoes in town. John is adopting which competitive strategy? A) focusers B) differentiation C) cost leadership D) providing input to top management about industry trends Answer: C Explanation: Cost leadership means becoming the low-cost leader in an industry. Walmart is an example. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

42) Every fast-food hamburger purveyor advertises that its product is better in some way that its competitors. This an example of a ________ competitive strategy. A) cost leadership B) niche C) differentiation D) focus Answer: C Explanation: With differentiation, the firm seeks to be unique in its industry along dimensions that are widely valued by buyers. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 43) During the development of corporate strategies, HR managers are able to provide ________. A) customer satisfaction rates B) estimates of capital equipment expenses C) analysis of individual employee productivity D) information about competitors' incentive plans Answer: D Explanation: Devising the company's overall strategic plan is top management's responsibility. However, few top executives formulate strategic plans without lower-level managers' input. No one knows more about the firm's competitive pressures, product and industry trends, and employee capabilities than do the company's department managers. For example, the human resource manager is in a good position to supply "competitive intelligence"—information on competitors. Details regarding competitors' incentive plans, employee opinion surveys about customer complaints, and information about pending legislation such as labor laws are examples. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 44) Stitched by Design, Inc., has decided to advertise on the Internet to market to prospective customers beyond her local neighborhood. In so doing, SbD is following a ________ corporate strategy. A) concentration B) diversification C) consolidation D) geographic expansion Answer: D Explanation: With geographic expansion, the company grows by entering new territorial markets, for instance, by taking the business abroad. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 18 Copyright © 2020 Pearson Education, Inc.

45) Lauren is identifying what each department in her company must do to help the business accomplish its strategic goals. These are known as ________ strategies. A) competitive advantage B) competitive C) functional D) vertical integration Answer: C Explanation: Functional strategies identify what each department must do to help the business accomplish its strategic goals. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 46) Consolidation keeps the company's strategy up to date by assessing progress toward strategic goals and taking corrective action as needed. Answer: FALSE Explanation: The corporate strategy of consolidation involves reducing the size of a company. Concentration, diversification, vertical integration, and geographic expansion are other commonly used corporate strategies. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 47) Managers engage in three levels of strategic planning. Answer: TRUE Explanation: Managers use three types of strategic planning. There is corporate-level strategic planning, business unit (or competitive) strategic planning, and functional (or departmental) strategic planning. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 48) Cost leadership, differentiation, and focus strategies are types of corporate-level strategies. Answer: FALSE Explanation: Cost leadership, differentiation, and focus are types of business-level rather than corporate-level strategies. These strategies, which are also known as competitive strategies, identify how a firm can build and strengthen its competitive position in the marketplace, such as how Pizza Hut will compete with Papa John's and how Walmart will compete with Target. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies.

49) A vertical integration strategy means that a firm will expand by adding new product lines. Answer: FALSE Explanation: A vertical integration strategy means the firm expands by producing its own raw materials or selling its products directly. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 3.2 List with examples the main types of strategies. 50) McDonald's addressed its lagging profitability by first closing stores operating below its guidelines. McDonald's used a consolidation strategy. Answer: TRUE Explanation: A strategy of consolidation involves reducing the company's size. When McDonald's closes stores that are not performing up to corporate standards, the firm is implementing a consolidation strategy. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies. 51) A business-level strategy is implemented by Pizza Hut, Domino's, Papa John's and Little Caesar's in their competition with each other for pizza customers. Answer: TRUE Explanation: Business-level or competitive strategies address how a firm will build or strengthen its long-term competitive position in the marketplace. Pizza Hut, Domino's, Papa John's and Little Caesar's are competitors in the pizza market, and each firm has a business-level strategy to indicate how to compete. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

52) Identify the three levels of strategic planning and describe the function of each level. What is the relationship between human resource strategy and a firm's strategic plans? Answer: The three levels are corporate-level, business/competitive-level, and functional-level strategies. Corporate-level strategy identifies the portfolio of businesses that comprise the company and the ways in which these businesses relate to each other. The business-level strategy is the next level. It identifies how to build and strengthen the business's long-term competitive position in the marketplace. The lowest level is the functional-level strategies. Functional strategies identify the basic course of action that each department will pursue in order to help the business attain its competitive goals. HR strategies are a type of functional strategy. Every company needs its human resource management policies and activities to make sense in terms of its broad strategic aims. Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. The basic idea behind strategic human resource management is simple: In formulating human resource management policies and activities, the manager's aim must be to produce the employee skills and behaviors that the company needs to achieve its strategic aims. Management formulates a strategic plan. That strategic plan implies certain workforce requirements. Given these workforce requirements, human resource management formulates HR strategies (policies and practices) to produce the desired workforce skills, competencies, and behaviors. Finally, the human resource manager identifies the measures he or she can use to gauge the extent to which its new policies and practices are actually producing the required employee skills and behaviors. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 3.2 List with examples the main types of strategies. 53) In a brief essay, describe the three types of competitive strategies that firms use to achieve competitive advantage. Support your answer with examples of organizations that currently use each of the strategies. Answer: The three forms of competitive strategies are cost leadership, differentiation, and focus. Cost leadership means offering the lowest prices and/or emphasizing low costs and efficiency as a source of competitive advantage. Walmart is an example of a company pursuing a cost leadership strategy. Differentiation means emphasizing a source of difference between a company and its competitors. The differential advantage becomes the source of competitive advantage. Target follows a differentiation strategy by stressing the sale of more upscale brands than Walmart. A focus strategy means that a company pursues a small niche in the market place. Ferrari follows this strategy by offering a product that customers can get no other way. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 3.2 List with examples the main types of strategies.

54) ________ is a strategic planning tool that shows how each department performance contributes to achieve the company's overall strategic goal. A) A strategic objective B) Visionary strategy C) Vertical strategy D) A strategy map Answer: D Explanation: A strategy map is a planning tool that summarizes how each department's performance contributes to achieving the company's overall strategic goals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 55) Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as ________. A) strategic human resource management B) human resource performance systems C) high-performance personnel management D) personnel management by objectives Answer: A Explanation: Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 56) The primary purpose of strategic human resource management is to ________. A) develop human resource policies that align with industry standards B) integrate a company's strategic plan with its human resource strategies C) create stringent appraisal systems that highlight employee weaknesses D) use offshoring to reduce human resource costs and to initiate globalization Answer: B Explanation: Strategic human resource management is intended to link a firm's strategic plan with its human resource strategies. When creating human resource management policies and activities, a manager needs to produce the employee competencies and behaviors that the company needs to achieve its strategic aims. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 22 Copyright © 2020 Pearson Education, Inc.

57) In order to generate the desired workforce skill, competencies, and behaviors that a firm needs to achieve its strategic goals, human resource management must first develop ________. A) strategic plans B) HR policies C) employee skills D) company norms Answer: A Explanation: Developing strategic plans and goals is the first step of strategic human resource management. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 58) John is a manager looking at HR scorecard data through a ________, which presents the manager with desktop graphs and charts, showing a computerized picture of how the company is doing on all the metrics from the HR scorecard process. A) digital dashboard B) strategy map C) HR audit D) mission plan Answer: A Explanation: A digital dashboard presents the manager with desktop graphs and charts, showing a computerized picture of how the company is doing on all the metrics from the HR scorecard process. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

59) Which one of the following is the final step in the strategic human resource management process? A) The manager asks, "What employee skills and behaviors will we need to achieve these plans and goals?" B) The manager formulates strategic plans and goals. C) The manager asks, "Specifically what recruitment, selection, training, and other HR policies and practices should we put in place so as to produce the required employee skills and behaviors?" D) The manager asks, "How much profit can we make on this?" Answer: C Explanation: The final step in the strategic human resource management process is when the manager asks, "Specifically what recruitment, selection, training, and other HR policies and practices should we put in place so as to produce the required employee skills and behaviors?" Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 60) Human resource strategies are the ________ used to support a firm's strategic goals. A) visions and objectives B) policies and practices C) missions and goals D) theories and tools Answer: B Explanation: Human resource strategies are the policies and practices developed to support the employee competencies and behaviors that a firm needs to accomplish its strategic aims. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

61) The ________ is a process for assigning financial and nonfinancial goals or metrics to the human resource management-related strategy-map chain of activities required for achieving the company's strategic aims. A) HR scorecard B) vision statement C) digital dashboard D) benchmarking process Answer: A Explanation: The HR scorecard process is a process for assigning financial and nonfinancial goals or metrics to the human resource management-related strategy-map chain of activities required for achieving the company's strategic aims. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 62) Which one of the following is a strategic planning tool that offers an overview of how each department's performance contributes to achieving the company's overall strategic goals? A) digital dashboard B) HR scorecard C) strategy map D) HR audit Answer: C Explanation: The strategy map summarizes how each department's performance contributes to achieving the company's overall strategic goals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

63) Which one of the following refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results? A) strategy map B) HR scorecard C) HR feedback scale D) digital dashboard Answer: B Explanation: The HR scorecard is a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 64) A ________ presents a manager with desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process. A) strategy map B) business plan C) scanning worksheet D) digital dashboard Answer: D Explanation: The digital dashboard is comprised of desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process. A digital dashboard on a computer usually displays real-time trends for strategy map activities which enable managers to take corrective action. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

65) The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR activities, employee behaviors resulting from the activities, and the strategically relevant organizational outcomes of those employee behaviors is called a(n) ________. A) evaluation system B) HR scorecard C) appraisal system D) evaluation benchmark Answer: B Explanation: Managers use HR scorecards to quantify the relationships between HR activities, resulting employee behaviors, and resulting firm-wide strategic outcomes and performance. HR scorecards quantify the strategy map. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 66) Which one of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals? A) functional planning system B) HR scorecard C) annual HR benchmarks D) high-performance work system Answer: B Explanation: HR scorecards are used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals. The HR scorecard process enables managers to assign financial and nonfinancial goals, monitor and assess performances, and quickly take corrective action. Benchmarking is used to make comparisons with comparable companies. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

67) Strategic human resource management means formulating and executing HR systems that produce the employee competencies and behaviors a firm needs to achieve its strategic aims. Answer: TRUE Explanation: Strategic human resource management refers to the policies and activities developed in order to produce the employee skills and behaviors needed for a firm to achieve its strategic aims. Management creates a strategic plan that implies certain workforce requirements and policies and practices to produce certain workforce skills. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 68) The specific human resource policies and practices used to support a firm's strategic goals are known as human resource strategies. Answer: TRUE Explanation: Human resource strategies are the policies and practices developed in order to produce personnel with the skills, competencies, and behaviors needed to achieve a firm's objectives. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 69) HR scorecards present managers with desktop graphs and charts of how a firm's HR strategies compare to those of other firms in the same industry. Answer: FALSE Explanation: A digital dashboard provides managers with desktop graphs and charts of where a company stands based on the metrics from the HR scorecard process. An HR scorecard is a process for assigning financial and nonfinancial goals or metrics to the HR management-related chain of activities required for achieving the firm's strategic aims and for monitoring results. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

70) Strategy maps help managers link the company's strategic plan with departmental activities. Answer: TRUE Explanation: The strategy map provides an overview of how each department's performance contributes to achieving the company's overall strategic goals. It helps the manager understand the role his or her department plays in helping to execute the company's strategic plan. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice. 71) In a brief essay, explain how the strategy map, the HR scorecard, and the digital dashboard are used in strategic human resource management. Answer: Managers use the strategy map, the HR scorecard, and the digital dashboard to help them translate the company's broad strategic goals into specific human resource management policies and activities. The strategy map shows the "big picture" of how each department's performance contributes to achieving the company's overall strategic goals. It helps the manager understand the role his or her department plays in helping to execute the company's strategic plan. Many employers quantify and computerize the map's activities, and the HR scorecard helps them to do so. The HR scorecard is not a scorecard. It refers to a process for assigning financial and nonfinancial goals or metrics to the human resource management—related chain of activities required for achieving the company's strategic aims and for monitoring results. The saying "a picture is worth a thousand words" explains the purpose of the digital dashboard. A digital dashboard presents the manager with desktop graphs and charts, and so a computerized picture of where the company stands on all those metrics from the HR scorecard process. A top manager's dashboard might display on the PC screen real-time trends for strategy map activities, which gives the manager time to take corrective action. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 3.3 Define strategic human resource management and give an example of strategic human resource management in practice.

72) Which one of the following terms refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position? A) human resource audits B) human resource metrics C) management by objectives D) human resource scorecards Answer: B Explanation: A human resource metric is the quantitative measure of a human resource management yardstick such as employee turnover, qualified applicants per position, or hours of training per employee. Such metrics are used to assess a firm's HR performance and to compare one company's HR performance with another. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 73) The use of human resource metrics is essential for ________. A) management by objectives B) emergent employee behaviors C) corporate-level strategies D) evidence-based management Answer: D Explanation: Using concrete, quantifiable evidence that is available from human resource metrics is essential to evidence-based management. Evidence-based management involves the use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 74) ________ refers to the process of comparing and analyzing the practices of one firm with those of a high-performing company? A) Benchmarking B) Diversifying C) Strategizing D) Outsourcing Answer: A Explanation: Benchmarking refers to comparing and analyzing the practices of high-performing companies to your own in order to understand what they do that makes them better. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics.

75) An ________ refers to an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions? A) HR methodology B) HR benchmark C) HR checklist D) HR audit Answer: D Explanation: An HR audit is an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 76) All of the following are commonly addressed in an HR audit EXCEPT ________. A) exempt workers B) job descriptions C) accounting expenses D) workers' compensation benefits Answer: C Explanation: Although HR audits vary in scope and focus, most cover such issues as exempt and non-exempt workers, job descriptions, and benefits. Accounting expenses are less likely to be addressed in an HR audit. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 77) Which term refers to software applications used to analyze and draw conclusions from HR data? A) data mines B) talent analytics C) HR scorecards D) digital dashboards Answer: B Explanation: Employers increasingly use workforce analytics (or "talent analytics") software applications to analyze their human resources data and to draw conclusions from it. Data mining techniques are used in talent analytics software applications. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics.

78) Executives at Hartford Clothing, a retail department store chain, want to find out what products their customers buy, when they purchase products, and what days of the week are most popular for shopping. Executives want to discover customer patterns and make predictions about their customers' buying habits. What would be the most effective tool for Hartford? A) data mining system B) talent value model C) financial audit D) strategy map Answer: A Explanation: Data mining is "the set of activities used to find new, hidden, or unexpected patterns in data." Data mining systems use tools like statistical analysis and intelligent agents to sift through data looking for relationships. Department stores often use data mining to make predictions about their customers' shopping habits. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 3.4 Give at least five examples of HR metrics. 79) Which one of the following questions would LEAST likely be answered by the use of talent analytics software? A) Which departments need improvement? B) What hiring policies are standard in the industry? C) How many workers will the firm need in five years? D) Why do employees choose to leave the organization? Answer: B Explanation: Employers increasingly use workforce analytics (or "talent analytics") software applications to analyze their human resources data and discover patterns and to draw conclusions from it. Such software can help identify departmental needs, estimate future workforce requirements, and predict employee turnover. Industry-wide hiring policies are less likely to be addressed. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 3.4 Give at least five examples of HR metrics.

80) An HR manager conducting an HR audit on compensation would most likely search for ________. A) current job descriptions B) workforce health and safety training C) completed benefit enrollment forms D) compliance with state and federal laws Answer: D Explanation: When auditing for compensation compliance, a manager is most likely ensuring that the firm is meeting all state and federal laws regarding overtime and timecards. Job descriptions, health and safety, and benefits would most likely be addressed in other types of HR audits. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 3.4 Give at least five examples of HR metrics. 81) Like the scientific method, evidence-based HR management should have all of the following characteristics EXCEPT ________. A) use of data B) experimentation C) subjectivity D) prediction Answer: C Explanation: Evidence-based HR management should be objective rather than subjective to ensure validity. Like scientific experiments, evidence-based management requires objectivity, experimentation, quantification, explanation, prediction, and replication. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 82) What tool might be best used to assess recruitment effectiveness? A) computerized applicant tracking systems B) benchmarking C) data mines D) strategy map Answer: A Explanation: Many employers do track and analyze recruitment data with the help of computerized applicant tracking systems (ATS). Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics.

83) Human resource metrics are used to assess a firm's HR performance and to compare one firm's HR performance with that of another firm. Answer: TRUE Explanation: A human resource metric is the quantitative measure of some human resource management yardstick like employee turnover. Such metrics can be used to assess a firm's HR performance and to compare one firm's HR performance with that of another firm. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 84) Human resource audits and benchmarking are two critical tools used by managers who implement an evidence-based approach to human resource management. Answer: TRUE Explanation: Human resource audits and benchmarking are two critical tools for managers using an evidence-based approach. Evidence-based HR management uses data, facts, analytics, scientific rigor, critical evaluation, and case studies to support HR management proposals, decisions, practices, and conclusions. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 85) A strategic audit would most likely NOT be used by an HR manager to assess a firm's procedures and practices regarding employee benefits. Answer: FALSE Explanation: Human resources managers often collect data on matters such as employee turnover and safety via strategic audit. An HR audit is an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 86) HR audits typically review a firm's recruiting, testing, and training methods to ensure compliance with government and organization regulations. Answer: TRUE Explanation: The HR audit generally involves reviewing the functioning of most aspects of the company's human resource function (recruiting, testing, training, and so on), usually using a checklist, as well as ensuring that the employer is adhering to regulations, laws, and company policies. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 34 Copyright © 2020 Pearson Education, Inc.

87) A human capital investment analysis can identify which employees need what kinds of training. Answer: FALSE Explanation: A human capital investment analysis will answer questions such as "Which actions have the greatest impact on the business?" as relates to human resources management practices. For example, Cisco was able to improve employee retention by 20 percentage points by monitoring employee satisfaction levels. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 88) Benchmarking involves analyzing the demographic make-up of an organization over a specific period to determine the overall diversity of the firm. Answer: FALSE Explanation: Benchmarking means comparing the practices of high-performing companies to your own, in order to understand what they do that makes them better. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics. 89) A construction firm that wants to compare its own HR-related metric results with those of other construction firms can use a benchmarking service provided by SHRM. Answer: TRUE Explanation: SHRM provides a customized benchmarking service. This enables employers to compare their own HR-related metric results with those of other companies. SHRM's service provides benchmark figures for many industries. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 3.4 Give at least five examples of HR metrics. 90) Benchmarking indicates the extent to which a firm's HR practices are helping to accomplish long-term strategic goals. Answer: FALSE Explanation: Benchmarking may not show the extent to which a firm's HR practices are helping achieve its strategic goals. Strategy-based metrics specifically focus on measuring the activities that contribute to achieving a company's strategic aims. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 3.4 Give at least five examples of HR metrics.

91) What are human resource metrics? Why are human resource metrics important in highperformance work systems? Answer: A human resource metric is the quantitative measure of some human resource management yardstick such as employee turnover, hours of training per employee, or qualified applicants per position. You can use such metrics to assess your own company's HR performance, and to compare one company's performance with another's. Human resource metrics are critical in creating high-performance human resource policies and practices. This is because they enable managers to benchmark. Benchmarking means comparing and analyzing the practices of high-performing companies to your own in order to understand what they do that makes them better. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 3.4 Give at least five examples of HR metrics. 92) What are the HR uses of data analytics and big data? Answer: Data analytics means using statistical and mathematical analysis and algorithms to find relationships and make predictions. For example, when online bookstores use algorithms to predict which books you're most likely to buy based on things like what books you've already bought and similarities between you and other groups, they are using data analytics. Data mining is crucial for data analytics and is "the set of activities used to find new, hidden, or unexpected patterns in data." Data mining sifts through huge amounts of employee data to identify correlations that employers then use to improve their employee-selection and other practices. Thanks to data mining, the manager can discover patterns that he or she can then use to make predictions. Big data is basically data analytics on steroids, using very large data sets. The basic idea (of scientifically analyzing data to find relationships and make predictions) is the same. However, with "big data" the volume, velocity, and variety of data that are analyzed are much greater. In terms of volume, for example, Walmart now collects about 2.5 petabytes of data—2.5 million gigabytes—every hour from its customer transactions. Similarly, in terms of velocity, all these data are being created more or less instantaneously (as at Walmart); that means companies can use them to more quickly to adapt in real time (for instance, to who's buying what products, and therefore how to adjust online promotions). Finally, big data capitalizes on the huge variety of data now available. For instance, data come not just from Walmart's transactions but from customers' mobile phones, GPS, and social networks too. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 3.4 Give at least five examples of HR metrics.

93) Which one of the following terms refers to a set of human resource management policies and practices that promote organizational effectiveness? A) management by objectives system B) human resource metric C) high-performance work system D) strategic human resource map Answer: C Explanation: A high-performance work system is a set of human resource management policies and practices that promote organizational effectiveness. Such HPWSs differ from less productive systems and are often a distinguishing characteristic of high-performing firms. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 94) High-performance work organizations are most likely characterized by all of the following EXCEPT ________. A) using more selection tests B) empowered front-line workers C) extensive training D) commitment to high production rates Answer: D Explanation: High-performance work organizations are characterized by paying more, training more, using more sophisticated recruitment and hiring practices and using more self-managing work teams. Being committed to high production rates is not necessarily a characteristic of an HPWS. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

95) All of the following practices are most likely implemented by companies with highperformance work systems EXCEPT ________. A) hiring employees based on validated selection tests B) providing pay increases based on service years C) extensive training of the workforce D) utilizing self-managing work teams Answer: B Explanation: In comparison to low-performance companies, high-performance companies are more likely to use validated selection tests when hiring employees, fill jobs internally, and use self-managing work teams. Pay increases are more likely to be based on job performance rather than the number of years an employee has worked for a firm. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 96) Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses validated selection tests when considering external hires. This most likely suggests the company is developing a ________. A) high-performance work system B) scorecard management system C) benchmark and metric analysis D) management by objectives strategy Answer: A Explanation: A firm that attempts to fill upper-level positions internally and uses validated selection tests for external candidates is most likely implementing a high-performance work system. Metrics and benchmarks are frequently used to identify and create the policies and practices of HPWSs, but the manner in which jobs are filled does not necessarily indicate the use of metrics and benchmarks. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

97) MAX Computers manufactures affordable laptops, desktops, and tablets at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is high—most employees at MAX leave within two years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system. Which one of the following best supports the argument that MAX should move towards a highperformance work system? A) MAX competitors regularly use benchmarking to compare their employees to those in other firms. B) MAX customers purchase new computers every two years according to online customer surveys. C) Outsourcing clerical tasks would enable MAX to raise employee salaries and increase productivity. D) Using advanced recruitment and hiring practices will allow MAX to improve employee productivity. Answer: D Explanation: A high-performance work system is a set of HR management policies and practices that jointly produce superior employee performance. HPWSs typically pay more, train employees more, use more advanced recruitment and hiring practices, and use self-managing work teams. MAX would improve employee productivity and reduce turnovers if it effectively recruited and tested applicants to make sure they were the right people for the job. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

98) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is high—most employees at MAX leave within two years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system. Which one of the following questions is most relevant to MAX's decision to move toward a high-performance work system? A) How would the implementation of self-managing work teams affect employee morale and work standards at MAX? B) How will qualitative performance measures address the needs of MAX employees in regards to the firm's benefits plan? C) What roles should line managers, staff managers, and HR managers at MAX play in performance appraisals? D) What economic and demographic trends in the U.S. are related to the employee turnover rate at MAX? Answer: A Explanation: HPWSs typically pay more, train employees more, use more advanced recruitment and hiring practices, and use self-managing work teams. By answering the question about employee morale and work standards, it would become clear that MAX should move towards a HPWS and self-managing work teams. Economic trends, benefits plans, and managerial roles in performance appraisals are less relevant to a HPWS. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 99) Which one of the following is most likely a true statement about high-performance companies? A) Employees receive extensive training. B) Employee turnover is extremely high. C) Only executives are eligible for incentive pay. D) The majority of jobs are filled externally. Answer: A Explanation: In a comparison of low-performance and high-performance companies, HPWSs typically pay more, train employees more, use more advanced recruitment and hiring practices, and use self-managing work teams. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

100) The primary purpose of implementing high-performance practices such as recruiting, screening, and training is to ________. A) foster a strong organizational culture B) create management opportunities for new hires C) produce superior employee performance D) utilize benchmarks to compare personnel skills within an industry Answer: C Explanation: High-performance practices generally aspire to help workers to manage themselves. The primary purpose of recruiting, screening, training, and other human resource practices is to foster a trained, empowered, self-motivated, and flexible workforce. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 101) According to recent studies, high-performance work organizations recruit more job candidates, use more selection tests, and spend many more hours training employees. Answer: TRUE Explanation: Studies show that high-performance work systems' policies and practices do differ from less productive ones. High-performing companies recruit more job candidates, use more selection tests, and spend many more hours training employees Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 102) Human resource practices, such as hiring based on selection tests, pay raises based on work performance, and training provided to new and experienced employees, contribute to a company's ability to achieve high-performance levels. Answer: TRUE Explanation: HR practices of high-performance firms differ from those of low-performance firms. High-performance firms typically hire from within, use selection tests, tie pay raises to work performance, and provide all employees with training. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

103) Companies with empowered, highly trained, flexible workforces have a competitive advantage. Answer: TRUE Explanation: Firms that adhere to high-performance HR practices and have empowered, highly trained, and flexible workforces gain a competitive advantage. The concept of competitive advantage refers to the factors that allow a firm to differentiate its products or services from its competitors to gain market share, and HR can serve as a competitive advantage. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 104) High-performance companies are less likely than low-performance companies to invest in costly employee training programs. Answer: FALSE Explanation: High-performance firms are more likely to invest in employee training for both new and current employees. High-performance companies invest in their employees in order to develop a workforce that matches the needs of the company. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 105) A high-performance work system is a tool that quantifies the relationship between HR activities, employee behaviors, and firm performance. Answer: FALSE Explanation: An HR scorecard helps the manager quantify the relationships between (1) the HR activities (amount of testing, training, and so forth), (2) the resulting employee behaviors (customer service, for instance), and (3) the resulting firm-wide strategic outcomes and performance (such as customer satisfaction and profitability). A high-performance work system may involve the use of HR scorecards but not necessarily. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

106) What is a high-performance work system? What role does strategic human resource management play in high-performance work systems? Answer: A high-performance work system is a set of human resource management policies and practices that promote organizational effectiveness. A high-performance work system is what managers now expect from the HR system. It means that the HR system is designed to maximize the overall quality of human capital throughout the organization. Based on ongoing research, firms that use HPWS practices perform at a significantly higher level than those that do not. Strategic human resource management is significant to a high-performance work system. Strategic human resource management refers to formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims and to maximize its human resources. In formulating human resource management policies and activities, the manager's aim must be to produce the employee skills and behaviors that the company needs to achieve its strategic aims. For HPWSs, that most likely means implementing policies and practices regarding selection tests, training, merit increases, and incentive pay. Difficulty: Moderate Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems. 107) Discuss the four steps managers can take to foster employee engagement. Answer: Managers can foster employee engagement by making sure their employees: 1) Understand how their departments contribute to the company's success. This involves making sure department goals support strategic goals and that all department personnel work toward the achievement of those goals. 2) See how their efforts contribute to achieving the company goals. Sharing information about progress toward company goals creates this link. 3) Get a sense of accomplishment from working at the firm. Employees need to know they are part of the whole, not just a single step in a process. 4) Are highly involved–as when working in self-managing teams. Employees who have some autonomy and relative independence feel more in control and thus involved in their work. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance systems.

108) According to the text, approximately what percentage of the U.S. workforce feels engaged? A) 5-10% B) 21-30% C) 40-50% D) over 75% Answer: B Explanation: Depending on the study, only about 21-30% of employees nationally are engaged, with one Gallop poll finding 30% engaged. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 3.6 Explain how you would design a program to improve employee engagement. 109) Which one of the following is NOT one of the steps KIA UK used in their employee engagement HR strategy? A) set measurable objectives B) focused on bonus-based compensation C) held an extensive leadership development program D) improved internal communications Answer: B Explanation: Kia UK made a number of changes to its compensation and other policies but in fact eliminated bonuses and substituted fixed-rate percentage-based salary increases. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 3.6 Explain how you would design a program to improve employee engagement. 110) Research suggests a majority of workers in the United States are engaged at work. Answer: FALSE Explanation: Research suggests only about 21-30% of employees nationally are engaged. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 3.6 Explain how you would design a program to improve employee engagement.

Human Resource Management, 16e (Dessler) Chapter 4 Job Analysis and the Talent Management Process 1) Which term refers to the holistic, integrated and results- and goal-oriented process of planning, recruiting, selecting, developing, managing, and compensating employees? A) job analysis B) HR alignment C) strategic planning D) talent management Answer: D Explanation: Talent management is the holistic, integrated and results and goal-oriented process of planning, recruiting, selecting, developing, managing, and compensating employees Talent management means getting the right people (in terms of competencies) in the right jobs, at the right time, doing their jobs correctly. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 4.1 Define talent management and explain what talent management-oriented managers do. 2) Connor, a manager at a boat manufacturing firm, takes a talent management approach to his duties. Which one of the following would Connor most likely do? A) coordinate recruitment and compensation activities B) use different competencies for recruitment and development C) rely primarily on applicant testing results for hiring decisions D) manage employees based on their experience with the organization Answer: A Explanation: An effective talent management process should integrate the underlying talent management activities such as recruiting, developing, and compensating employees. The same competencies should be used for recruiting, training, and appraising. Firms should balance talent management tasks with testing and proactively manage workers by segmenting them into groups. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 4.1 Define talent management and explain what talent management-oriented managers do.

3) In an effective talent management system, an employee's performance appraisal would initiate training and development opportunities. Answer: TRUE Explanation: An effective talent management process should integrate the underlying talent management activities such as recruiting, developing, and compensating employees. For example, performance appraisals should trigger the required employee training. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 4.1 Define talent management and explain what talent management-oriented managers do. 4) Effective talent management focuses on developing employee competencies that align with strategic goals. Answer: TRUE Explanation: Make sure talent management decisions such as staffing, training, and pay are goal-directed. Managers should always be asking, "What recruiting, testing, or other actions should I take to produce the employee competencies we need to achieve our strategic goals?" Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 4.1 Define talent management and explain what talent management-oriented managers do. 5) Which one of the following terms refers to the procedure used to determine the duties associated with job positions and the characteristics of the people to hire for those positions? A) job description B) job specification C) job analysis D) job context Answer: C Explanation: Job analysis is the process of determining the duties of a specific job and the characteristics of the people who would be most appropriate for the job. A job analysis produces the necessary information to develop job descriptions and job specifications. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

6) The information resulting from a job analysis is used for writing ________. A) job descriptions B) corporate objectives C) personnel questionnaires D) training requirements Answer: A Explanation: A job description is a list of what a job entails, and it is derived from a job analysis. Job analysis is the procedure through which you determine the duties of job positions and the characteristics of the people that should be hired for the positions. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 7) All of the following types of information will most likely be collected by a human resources specialist through a job analysis EXCEPT ________. A) work activities B) human behaviors C) performance standards D) employee benefits options Answer: D Explanation: Work activities, human behaviors, performance standards, job context, and human requirements are the types of information typically collected through a job analysis. Information gathered through a job analysis is used to develop job descriptions and job specifications. Managers use job analysis for the purpose of recruitment, compensation, training, and performance appraisal but not for assessing employee benefits options. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 8) A manager uses the information in a job analysis for all of the following EXCEPT ________. A) assessing training requirements B) complying with FCC regulations C) determining appropriate compensation D) providing accurate performance appraisals Answer: B Explanation: Managers use information gathered from a job analysis for many activities including providing performance appraisals, recruiting, determining compensation, and assessing training requirements. Job analysis plays a major role in EEO (Equal Employment Opportunity Commission) compliance but not with FCC (Federal Communications Commission) regulations. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

9) Which one of the following most likely depends on a job's required skills, education level, safety hazards, and degree of responsibility? A) employee compensation B) organizational culture C) annual training requirements D) OSHA and EEO compliance Answer: A Explanation: Compensation in the form of salaries and bonuses greatly depends upon a job's required skills, education level, safety hazards, and level of responsibility. Managers use the job analysis to determine the relative worth of a specific job and the most appropriate compensation for an employee. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 10) In order for Hollis Construction to be in full compliance with the Americans with Disabilities Act, the manager needs a ________ for each position to validate all human resource activities. A) performance appraisal B) compensation schedule C) workflow system D) job analysis Answer: D Explanation: A job analysis is needed for each job at a firm to ensure compliance with the EEOC. According to the U.S. Federal Agencies' Uniform Guidelines on Employee Selection, a job analysis is needed to validate all major human resource activities. A firm that is in compliance with the Americans with Disabilities Act, for example, should know the essential job functions of each job which requires a job analysis. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

11) Allison, a manager at a large clothing retail store, needs to determine essential duties that have not been assigned to specific employees. Which one of the following would most likely provide Allison with this information? A) work activities B) job context C) job analysis D) performance standards Answer: C Explanation: Job analysis can help reveal duties that need to be assigned to a specific employee. Work activities, performance standards, and job context are the types of information that are provided through a job analysis. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 12) The ________ lists a job's specific duties as well as the skills and training needed to perform a particular job. A) organization chart B) job analysis C) work aid D) job description Answer: D Explanation: Job descriptions list the specific duties, skills, and training related to a particular job. Organization charts show the distribution of work within a company but not specific duties. A job description is created after a job analysis has been performed. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 13) Jennifer, a manager at an engineering firm, has been assigned the task of conducting a job analysis. What should be Jennifer's first step in the process? A) deciding how the gathered information will be used B) collecting data on job activities and working conditions C) selecting representative job positions to assess D) reviewing relevant background information Answer: A Explanation: The first step in performing a job analysis is deciding how the job analysis will be used because this determines the data that will be collected and how it will be collected. Collecting data, selecting which job positions to analyze, reviewing background information like organization charts and process charts, and writing job descriptions are additional steps in the job analysis process. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 5 Copyright © 2020 Pearson Education, Inc.

14) Which one of the following is a written statement that describes the activities, responsibilities, working conditions, and supervisory responsibilities of a job? A) job specification B) job analysis C) job description D) job context Answer: C Explanation: A job description is a written list of a job's duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities, and it is the result of a job analysis. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 15) Which one of the following refers to the human requirements needed for a job, such as education, skills, and personality? A) job specifications B) job analysis C) job placement D) job descriptions Answer: A Explanation: Job specifications are the human requirements needed for a particular job like education, skills, and personality. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 16) All of the following requirements are typically addressed in job specifications EXCEPT ________. A) desired personality traits B) required education levels C) necessary experience D) working conditions Answer: D Explanation: Working conditions, responsibilities, and job duties are addressed in a job description rather than the job specifications. Job specifications focus on the human requirements for a job, such as personality, education, skills, and experience. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

17) Which one of the following indicates the division of work within a firm and the lines of authority and communication? A) process chart B) employee matrix C) organization chart D) corporate overview Answer: C Explanation: Organization charts show the organization-wide division of work with titles of each position and interconnecting lines that show who reports to and communicates with whom. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 18) A(n) ________ shows the flow of inputs to and outputs from a job being analyzed. A) organization chart B) process chart C) job analysis D) job description Answer: B Explanation: A process chart is a work-flow chart that shows the flow of inputs to and outputs from a particular job. In the second step of performing a job analysis, background information such as process charts, organization charts, and job descriptions are reviewed. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 19) A workflow analyst would most likely focus on which one of the following? A) methods used by the firm to accomplish tasks B) behaviors needed to complete specific work C) a single, identifiable work process D) a quantifiable worker skill Answer: C Explanation: Workflow analysis is a detailed study of the flow of work from job to job in a work process. Usually, the analyst focuses on one identifiable work process, rather than on how the company gets all its work done. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

20) Which one of the following is an example of business process reengineering? A) using computerized systems to combine separate tasks B) creating a visual chart for work flow procedures C) assigning additional activities to new employees D) developing employee skills and behaviors Answer: A Explanation: Business process reengineering means redesigning business processes, usually by combining steps so that small multi-function process teams using information technology to do the jobs formerly done by a sequence of departments. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 21) During the job analysis process, it is important to ________ before collecting data about specific job duties and working conditions. A) test job questionnaires on a small group of workers B) confirm the job activity list with employees C) select a sample of similar jobs to analyze D) assemble the job specifications list Answer: C Explanation: The third step of the job analysis process involves selecting representative positions to analyze. If there are too many similar jobs in a firm, it is best to select a representative sample. After representative positions have been chosen, analysis of the job can occur, which may include interviewing employees or using questionnaires. Job specifications are not developed until the final step of the job analysis process. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 22) The fourth step in conducting a job analysis most likely involves collecting data about all of the following EXCEPT ________. A) required employee abilities B) typical working conditions C) employee turnover rates D) specific job activities Answer: C Explanation: The fourth step in analyzing a job requires collecting data about job activities, required employee behaviors, working conditions, and human traits and abilities needed to perform the job. Interviews, questionnaires, and observations are the most popular methods for gathering data. It is unlikely that data regarding employee turnover rates would be gathered during a job analysis. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 8 Copyright © 2020 Pearson Education, Inc.

23) While performing the fifth step of a job analysis, it is essential to confirm the validity of collected data with the ________. A) EEOC representative B) HR manager C) legal department D) worker Answer: D Explanation: According to the fifth step of a job analysis, collected data should be confirmed with the worker performing the job and his/her immediate supervisor. Although HR managers play a role in the job analysis process by observing workers, it is the worker and his/her immediate supervisor that provide direct knowledge of the duties involved in a specific job. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 24) During the job analysis process, the primary purpose of having workers review and modify data collected about their current positions is to ________. A) confirm that the information is correct and complete B) provide a legal benchmark for employer lawsuits C) encourage employees to seek additional job training D) validate the job specification list provided by HR Answer: A Explanation: Allowing employees to review and modify the information collected about their current positions provides the opportunity to confirm that the data is correct and complete, which may help gain employee acceptance of the job analysis data and conclusions. Job specifications and job descriptions are created after employees review the collected data. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 25) What is the final step in conducting a job analysis? A) writing a job description and job specifications B) validating all of the collected job data C) collecting data on specific job activities D) reviewing relevant background information Answer: A Explanation: The final step in the job analysis process involves developing a job description and job specifications, which are the two tangible products of a job analysis. This step occurs after job data has been collected and validated, and background information has been reviewed. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

26) Murray, Inc. emphasizes a desire for detail-oriented, motivated employees with strong social skills as indicated in the firm's job ________. A) specifications B) analysis C) reports D) descriptions Answer: A Explanation: Job specifications summarize the personal qualities, traits, skills, and background required for getting a job done. Murray, Inc. wants detail-oriented, motivated employees, which would be described in the firm's job specifications. Job descriptions address the activities and responsibilities of a job. Both job descriptions and job specifications are products of a job analysis. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 27) The primary drawback of performing a job analysis regards the ________. A) unverifiable data a job analysis typically provides B) certification required to conduct a job analysis C) amount of time a job analysis takes to complete D) redundant information gathered during a job analysis Answer: C Explanation: Conducting a job analysis can be time-consuming because it may take days to interview multiple employees and their managers, which is why an abbreviated version is often used by managers. The information gathered through a job analysis is typically verifiable and useful, and the main cost is time rather than money. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 28) Job ________ means assigning workers additional same-level activities. A) enrichment B) assignment C) enlargement D) rotation Answer: C Explanation: Job enlargement refers to assigning workers additional same-level activities. For example, a worker who previously only bolted the seat to the legs of a chair might attach the back as well. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

29) Which one of the following terms refers to systematically moving workers from one job to another? A) job rotation B) job enrichment C) job enlargement D) job adjustment Answer: A Explanation: Job rotation refers to systematically moving workers from one job to another. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 30) Which one of the following terms refers to redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition? A) job rotation B) job enrichment C) job reengineering D) job enlargement Answer: B Explanation: Job enrichment refers to redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition. Job enrichment is considered by some experts as the best way to motivate workers through worker empowerment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 31) Who argued that the best way to motivate workers is to build opportunities for challenge and achievement into their jobs via job enrichment? A) Adam Smith B) Frederick Taylor C) Frederick Herzberg D) Abraham Maslow Answer: C Explanation: Psychologist Frederick Herzberg argued that the best way to motivate workers is to build opportunities for challenge and achievement into their jobs via job enrichment. Job enrichment means redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

32) Jack is an employee at a Best Western Hotel. Some weeks he works with the catering group, and other weeks he assists the reservations clerk or the parking attendant. This is an example of ________. A) job enlargement B) job rotation C) job enrichment D) job specialization Answer: B Explanation: Job rotation refers to systematically moving workers from one job to another, so when Jack moves from department to department he is participating in job rotation. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 33) The rethinking and redesign of business processes to achieve dramatic improvements in performance is called ________. A) job redesign B) reengineering C) process engineering D) job enlargement Answer: B Explanation: Reengineering, or business process reengineering, refers to redesigning a business process so that small multidisciplinary self-managing teams complete a task together. This differs from the typical business process which is similar to a relay race where one person completes a step and then passes the task to another person. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 34) The information gathered during a job analysis is primarily used to ensure that firms are in compliance with the EEO, OSHA, and all state governments. Answer: FALSE Explanation: The primary use for information gathered in a job analysis is writing job descriptions and job specifications. Although job analysis is required for EEO compliance, job analysis is not required by the Occupational Safety and Health Administration or all state governments. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

35) Organization charts show the division of work throughout the organization, how a job relates to others, and where a job fits in the organization. Answer: TRUE Explanation: An organization chart shows the organization-wide distribution of work, with titles of each position and interconnecting lines that show who reports to and communicates with whom. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 36) A process chart provides relevant background information during the job analysis process by indicating job titles and lines of communication. Answer: FALSE Explanation: A process chart shows the flow of inputs to and outputs from a job being analyzed. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 37) After identifying a business process to redesign, the next step in business process reengineering is measuring the performance of the existing process. Answer: TRUE Explanation: Business process reengineering means redesigning business processes, usually by combining steps so that small multi-function process teams using information technology do the jobs formerly done by a sequence of departments. After choosing the business process to redesign, the analyst needs to assess the performance of the existing process for the purpose of identifying improvement possibilities. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 38) Conducting the job analysis is the sole responsibility of the HR specialist. Answer: FALSE Explanation: Job analysis should be a joint effort by a human resources specialist, the worker, and the worker's supervisor. The HR manager may observe the worker and then have the supervisor and worker fill out questionnaires. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

39) If a manager wants to know "should a job even exist," a workflow analysis should be performed. Answer: TRUE Explanation: A workflow analysis does answer questions like "should a job even exist," because it is a detailed study of the flow of work from job to job in a work process. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 40) Job enlargement refers to redesigning jobs in a way that increases responsibility and achievement. Answer: FALSE Explanation: Job enlargement refers to assigning workers additional same-level activities. For example, a worker who previously only bolted the seat to the legs of a chair might attach the back as well. Job enrichment refers to redesigning jobs to increase responsibility and achievement. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 41) In reengineered business processes, workers tend to become collectively responsible for overall results rather than individually responsible for just their own tasks. Answer: TRUE Explanation: Business process reengineering involves redesigning a business process so that small multidisciplinary, self-managing teams get a task done together, all at once. Such a system leads to workers becoming collectively responsible for overall results rather than merely focused on their individual tasks. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

42) How does job analysis support human resource management activities? Briefly describe one of the methods commonly used for gathering job analysis data. Answer: Job analysis provides information for recruitment and selection by laying out what the job entails and what human characteristics are required to perform these activities. This information helps management decide what sort of people to recruit and hire. Job analysis information is also crucial for estimating the value of each job and its appropriate compensation. A performance appraisal compares each employee's actual performance with his or her performance standards. Managers use job analysis to determine the job's specific activities and performance standards. Job analysis interviews are one of the most commonly used methods for gathering job analysis data. They range from completely unstructured interviews to highly structured ones containing hundreds of specific items to check off. Managers may conduct individual interviews with each employee, group interviews with groups of employees who have the same job, and/or supervisor interviews with one or more supervisors who know the job. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 43) What are the steps involved in the job analysis process? Briefly discuss the methods available for collecting job analysis information. Answer: There are six steps in doing a job analysis. Step 1: Decide How You Will Use the Information. Step 2: Review Relevant Background Information about the Job, Such as Organization Charts and Process Charts. Step 3: Select Representative Positions. Step 4: Actually Analyze the Job. Step 5: Verify the Job Analysis Information with the Worker Performing the Job and with His or Her Immediate Supervisor. Step 6: Develop a Job Description and Job Specification. There are various ways (interviews or questionnaires, for instance) to collect information on a job's duties, responsibilities, and activities. In practice, you could use any one of them, or combine several. The basic rule is to use those that best fit your purpose. Thus, an interview might be best for creating a list of job duties and job descriptions. The more quantitative position analysis questionnaire may be best for quantifying each job's relative worth for pay purposes. Interviews, questionnaires, observations, and diary/logs are the most popular methods for gathering job analysis data. They all provide realistic information about what job incumbents actually do. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important.

44) What are the differences between job enlargement, job rotation, and job enrichment? Answer: Job enlargement means assigning workers additional same-level activities. Thus, the worker who previously only bolted the seat to the legs might attach the back as well. Job rotation means systematically moving workers from one job to another. Psychologist Frederick Herzberg argued that the best way to motivate workers is through job enrichment. Job enrichment means redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition. It does this by empowering the worker–for instance, by giving the worker the skills and authority to inspect the work, instead of having supervisors do that. Herzberg said empowered employees would do their jobs well because they wanted to, and quality and productivity would rise. Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 4.2 Discuss the process of job analysis, including why it is important. 45) Which one of the following data collection techniques would be most useful when writing a job description for a software engineer? A) distributing position analysis questionnaires B) interviewing employees C) analyzing organization charts D) developing a job process chart Answer: B Explanation: Interviewing employees to determine what the job entails is an effective method of collecting data for writing a job description. Position analysis questionnaires are useful for compensation purposes rather than for writing job descriptions. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 46) Which one of the following guidelines is most likely recommended to managers conducting a job analysis? A) Use one tool for gathering information to maintain the validity of the final results. B) Rely on the human resource manager to complete questionnaires and verify data. C) Conduct group interviews without supervisors present to ensure accuracy. D) Ensure that the questions and the process are clarified to employees. Answer: D Explanation: Managers should make sure that the job analysis process and the questions asked to employees are clear. Several tools should be used to gather information rather than only one, and employees and supervisors typically complete questionnaires rather than HR managers. Supervisors should be included in group interviews. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 16 Copyright © 2020 Pearson Education, Inc.

47) Which method for collecting job analysis information is considered best for quantifying the relative worth of a job for compensation purposes? A) electronic log B) worker diary C) observation D) position analysis questionnaire Answer: D Explanation: The position analysis questionnaire's strength is in assigning jobs to job classes for pay purposes. With ratings for each job's decision-making, skilled activity, physical activity, vehicle/equipment operation, and information-processing characteristics, you can quantitatively compare jobs relative to one another and then classify jobs for pay purposes. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 48) Jerome, a manager at an electronics company, needs to gather job analysis information from a large number of employees who perform similar work. Which one of the following would be most appropriate for Jerome? A) observing all employees B) interviewing the HR manager C) holding a group interview with a supervisor D) conducting telephone surveys of all employees Answer: C Explanation: When a large number of employees perform similar or identical work, conducting a group interview is a fast way to gather information. In most cases, the workers' immediate supervisor attends the group session. It would be costly and time consuming to observe each worker. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

49) Which one of the following is the primary disadvantage of using interviews to collect job analysis data? A) Interviews are a complicated method for collecting information. B) Employees may exaggerate or minimize some information. C) Interviews provide only general information about a worker's duties. D) Interviews may require managers to reveal the job analysis function. Answer: B Explanation: The primary disadvantage of conducting employee interviews for the purpose of gathering job analysis data is the distortion of information. Employees may misunderstand the purpose of the interview and either purposely or mistakenly provide incorrect information. Interviews are considered a simple method for collecting detailed job information especially regarding uncommon but important employee activities. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 50) Interviews for the purpose of collecting job analysis data will most likely address all of the following topics EXCEPT ________. A) hazardous conditions B) primary work duties C) required education D) personal hobbies Answer: D Explanation: Typical questions for job analysis interviews address subjects such as the job's major duties, hazardous conditions, performance standards, and required experience and education. It is less likely that an interviewer would ask an employee questions not related specifically to the job, such as personal questions about the worker's hobbies and free time. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

51) Job analysts collecting information through observations and interviews benefit from the use of a(n) ________ to guide the process and ensure consistency. A) structured list B) electronic diary C) job description D) organization chart Answer: A Explanation: A structured list or checklist is useful for guiding an interview or performing a personal observation. Electronic diaries are completed by the worker and would not be used for observations or interviews. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 52) Which one of the following is the primary disadvantage of using questionnaires to gather job analysis information? A) Questionnaires are the most expensive method of collecting data. B) Supervisors are required to verify all collected questionnaire data. C) Questionnaires are too open-ended for statistical information. D) Developing and testing questionnaires is time-consuming. Answer: D Explanation: The primary drawback of questionnaires is the time required to develop questionnaires and test them to ensure that workers understand the questions. Questionnaires can be structured or open-ended, and many are a combination of the two. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

53) For which of the following jobs is direct observation NOT a recommended method for collecting job analysis data? A) assembly-line worker B) accounting clerk C) attorney D) nurse Answer: C Explanation: Direct observation is particularly useful when jobs consist mainly of observable physical activities, such as with nurses, accounting clerks, assembly-line workers, and salespersons. Observation is less appropriate when a job involves mostly mental activity such as with lawyers and design engineers. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 54) One of the problems with direct observation is ________, which is when workers alter their normal activities because they are being watched. A) flexibility B) falsification C) reactivity D) diversion Answer: C Explanation: Reactivity occurs when a worker changes what he or she normally does because observation is taking place for the purpose of job analysis. Knowing that they are being watched may cause some workers to alter their normal work behaviors either on purpose or accidentally. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

55) A ________ is the time it takes to complete a job. A) work cycle B) work week C) shift D) duty Answer: A Explanation: A work cycle is the time it takes to complete a job, which may be one minute for an assembly-line worker or weeks for an engineer. Managers collecting data for a job analysis may observe a worker on the job for a complete work cycle and take notes of the worker's activities. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 56) Which data collection method is most frequently used in conjunction with direct observation? A) interview B) questionnaire C) electronic log D) survey Answer: A Explanation: Managers frequently combine direct observation with personal interviews to gather job analysis information. Often, managers observe the worker for a complete work cycle to gather as much information as possible, and then they follow up with an interview to gain clarification. Another option is to observe and interview at the same time by asking the worker questions as he or she works. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

57) Which one of the following requires workers to make daily listings of the activities in which they engage as well as the amount of time each activity takes? A) flowchart B) agenda C) outline D) log Answer: D Explanation: A diary or a log requires workers to make daily listings of the activities in which they engage as well as the amount of time each activity takes. Diaries and logs can be useful in the job analysis process because they often produce a complete picture of the job, especially when used in conjunction with an interview. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 58) Joaquin records every activity in which he participates at work along with the time it takes him to complete each activity. Which of the following approaches to job analysis data collection is most likely being used at Joaquin's workplace? A) diaries B) interviews C) observations D) questionnaires Answer: A Explanation: Joaquin has been asked to keep a diary or a log of his work activities. With diaries and logs, an employee records every activity and the time spent on each in a log, which provides a complete picture of the job. Diaries and logs are often used in conjunction with interviews, observations, and questionnaires. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

59) Pocket dictating machines and pagers have replaced traditional diary/log methods in many firms. Which one of the following problems have the modern methods most likely eliminated? A) work time required to fill out forms and surveys B) employee forgetfulness regarding daily activities C) costs associated with copying and filing paperwork D) employee frustration towards bureaucratic requirements Answer: B Explanation: Some firms provide employees with pocket dictating machines and pagers to keep diaries and logs. At random times during the day, the employee is paged. The employee then dictates what he or she is doing. With this method, employers do not have to rely on workers to remember what they did hours earlier when they complete their logs at the end of the day, which was the main problem with paper/pencil diaries. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 60) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate the personal service the store's employees provide. After a very profitable year, Purrfect Pets is expanding by opening two more stores. Before hiring employees for the new stores, the manager is considering the idea of conducting a job analysis for each position. Which one of the following, if true, would best support the argument that the manager should conduct group interviews to gather job analysis information? A) Purrfect Pets is an excellent place to work because of the positive work environment. B) Most of the young employees of Purrfect Pets would feel awkward during a one-on-one interview. C) Employees at Purrfect Pets work well with their colleagues, and few staffing conflicts occur. D) Numerous employees at Purrfect Pets perform similar tasks during the work day. Answer: D Explanation: When a large number of employees perform similar or identical tasks, then a group interview is a quick and inexpensive way to gather job analysis information. The work environment or age of the employees are not important factors in deciding whether a group interview is appropriate. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

61) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate the personal service the store's employees provide. After a very profitable year, Purrfect Pets is expanding by opening two more stores. Before hiring employees for the new stores, the manager is considering the idea of conducting a job analysis for each position. Which one of the following, if true, would best support the argument that the manager should use a position analysis questionnaire to collect job analysis information? A) Compliance with EEO laws requires businesses to compile quantitative data. B) Management wants to develop a pay scale for all employees at Purrfect Pets. C) Purrfect Pets managers are unfamiliar with the typical routines of most employees. D) Managers believe that some Purrfect Pets employees are overlooking important daily tasks. Answer: B Explanation: The primary reason to use a position analysis questionnaire is to gather quantitative data that enables managers to compare jobs for pay purposes. Although a PAQ provides quantitative data, businesses are not required by EEO laws to use them. Interviews or observations would be more appropriate for uncovering overlooked tasks or becoming familiar with an employee's duties. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 62) Purrfect Pets is a local pet supply store with a following of loyal customers who appreciate the personal service the store's employees provide. After a very profitable year, Purrfect Pets is expanding by opening two more stores. Before hiring employees for the new stores, the manager is considering the idea of conducting a job analysis for each position. Which one of the following, if true, undermines the argument that the Purrfect Pets manager should observe workers in order to gather job analysis information? A) Purrfect Pets lacks the technology to perform quantitative job assessments. B) Part-time and seasonal workers fill most of the positions at Purrfect Pets. C) The tasks of most Purrfect Pets employees vary widely from day to day. D) During the morning, business at Purrfect Pets typically slows down. Answer: C Explanation: Observation is an inappropriate tool for collecting job analysis information if employees only occasionally participate in certain tasks. If the tasks vary on a daily basis, one day of observation would fail to gather the necessary information. An interview might be the best way to find out what an employee does in this situation. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

63) What is the primary benefit of using a position analysis questionnaire to gather data for a job analysis? A) providing the opportunity for employees to vent job frustrations B) sorting information for government statistics and records C) classifying jobs for the purpose of assigning salaries D) uncovering important yet infrequent job tasks Answer: C Explanation: The primary benefit of using a PAQ is classifying jobs based on scores in the five different categories. With this data, a manager can quantitatively compare jobs relative to one another and then assign pay for each job. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 64) A(n) ________ is used to collect quantifiable data concerning the duties and responsibilities of various jobs. A) electronic diary/log B) group interview C) position analysis questionnaire D) Internet-based survey Answer: C Explanation: A position analysis questionnaire is used to collect quantifiable data concerning the duties and responsibilities of various jobs. A PAQ contains 194 items that are based on five PAQ basic activities: having decision-making/communication/social responsibilities, performing skilled activities, being physically active, operating vehicles/equipment, and processing information. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

65) Experts at the ________ performed the earliest form of job analysis and published the Dictionary of Occupational Titles. A) EEOC B) DOL C) BLS D) DHS Answer: B Explanation: The Department of Labor performed the earliest work in job analysis which resulted in the Dictionary of Occupational Titles. The book contained detailed information on nearly every job in America based on ratings of data, people, and things. The DOL work eventually led to the development of position analysis questionnaires (PAQ). Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 66) What are the three main categories used in the Dictionary of Occupational Titles to rate, classify, and compare different jobs? A) reasoning, language, mathematics B) skills, communication, education C) data, people, things D) people, skills, reasoning Answer: C Explanation: Data, people, and things are the three worker function categories used in the Department of Labor procedure that was compiled into the Dictionary of Occupational Titles. The DOL method describes what a worker must do with respect to data, people, and things. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

67) The Department of Labor procedure uses a set of standard basic activities known as ________ to describe what a worker must do with respect to data, people, and things. A) worker functions B) employee duties C) job procedures D) job requirements Answer: A Explanation: With the DOL procedure, standard basic activities known as worker functions are used to describe what a worker must do in a specific job with respect to three main categories– data, people, and things. Each worker function is given an importance rating for coding purposes. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 68) What has been the most significant impact of modern technology on job analysis methods? A) Extensive use of the Internet by HR managers enables more people to telecommute from locations far from corporate headquarters. B) Corporate use of the Internet and intranet has enabled HR managers to distribute and collect job analysis surveys to employees in multiple geographic locations. C) Worker functions have changed as a result of modern technology, so the DOL procedure for data collection has been modified and categories have been altered. D) The ability to falsify information on Internet surveys has led to an increase in interviews and observations by HR managers to collect accurate job analysis information. Answer: B Explanation: The greatest impact of modern technology on job analysis methods has been the ability of HR managers to use the Internet and intranet to distribute and collect job analysis data to geographically dispersed employees. Face-to-face interviews and observations are difficult and time consuming, especially for a global firm, so questionnaires distributed online are more frequently used. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

69) The most important consideration when developing an online job analysis is to ________. A) make questions and the process as clear as possible B) provide monetary rewards for timely completion C) limit the number of questions to less than twenty D) ask open-ended questions to ensure honest responses Answer: A Explanation: Removing the ambiguity from both questions and the job analysis process will greatly improve the validity of online results. The purpose of collecting data online is to save time and money, so minimal intervention and guidance should be necessary. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 70) Informal interviews provide quantitative job analysis information, which is why they are frequently used by managers who need to determine the relative worth of a job for pay purposes. Answer: FALSE Explanation: Informal interviews with open ended questions provide qualitative rather than quantitative information for a job analysis. Position analysis questionnaires are best for quantifying a job's worth for pay purposes. The two methods are often used together to gather a well-rounded amount of information about a job. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 71) The immediate supervisor of a group of workers being interviewed for job analysis purposes is not allowed to attend the session due to concerns about workers failing to provide honest responses to questions. Answer: FALSE Explanation: As a rule, the immediate supervisor of a group of workers should attend an interview session for job analysis purposes. If the supervisor is unable to attend, then he or she must be interviewed separately so that the interviewer can gather that person's perspective on the job's duties and responsibilities. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

72) Studies suggest that employees are more likely to describe their job duties in the form of simple task statements instead of as ability statements during job analysis interviews. Answer: TRUE Explanation: In one study, researchers listed possible job duties either as simple task statements ("record phone messages and other routine information") or as ability statements ("ability to record phone messages and other information"). Respondents were more likely to report performing the ability-based versions of the statements. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 73) Questionnaires developed for the purpose of job analysis are always structured in the form of checklists so that the information can easily be entered into a database. Answer: FALSE Explanation: Questionnaires range from being highly structured to open-ended, and most fall between the two extremes. Most questionnaires include several open-ended questions as well as structured questions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 74) Observation as a job analysis data collection method is most appropriate for jobs that involve physical activities. Answer: TRUE Explanation: Observation is an appropriate method for collecting job analysis information when a job involves physical rather than mental activities. Jobs like assembly-line worker, mechanic, and accounting clerk can be directly observed by an HR manager. Lawyers and design engineers spend more time with mental activities, so it would be less appropriate to use observation in these types of positions. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

75) Some employers collecting job analysis information provide employees with pocket dictating machines and pagers to record activities at random times of the work day. Answer: TRUE Explanation: In the past, diary/logs required employees to write down their activities at the end of the day, which was problematic due to forgetfulness. However, pagers can now be used to remind employees to speak into their pocket dictating machines about the work activities in which they are currently involved. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 76) Quantitative approaches for collecting job analysis data are more appropriate than qualitative approaches when a manager seeks to compare jobs for pay purposes. Answer: TRUE Explanation: Quantitative ratings as generated by the position analysis questionnaire and the Department of Labor approach are the best tools to use when assessing the monetary value of a job. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 77) What time-saving options are available to a busy manager who needs to conduct a job analysis and write job descriptions? Explain your answer in a brief essay. Answer: Job analysis can be a time-consuming process. Managers can save time by holding group interviews with groups of employees who have the same job. Managers use group interviews when a large number of employees are performing similar or identical work, since this can be a quick and inexpensive way to gather information. Busy managers often turn to the Internet for help writing job descriptions because the process can save a great amount of time. Sites like O*NET and www.jobdescription.com provide managers with important characteristics of various occupations, as well as the experience, education, and knowledge needed to do each job well. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information.

78) What are the advantages and disadvantages of using interviews to collect job analysis data? Answer: Interviews are a relatively simple and quick way to collect data. Skilled interviewers can gather information that might otherwise go undiscovered. Some activities might occur only occasionally or be more informal in nature. Interviews can discover these types of activities. The interview also offers an opportunity to explain the need for a job analysis. The biggest drawback is the chance for information to be distorted either to outright falsification or honest misunderstanding. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 4.3 Explain and use at least three methods of collecting job analysis information. 79) Most job descriptions contain sections that cover all of the following EXCEPT ________. A) performance standards B) working conditions C) responsibilities D) required overtime Answer: D Explanation: Most job descriptions contain sections that cover job identification, job summary, responsibilities and duties, authority of incumbent, performance standards, working conditions, and job specifications. Although information regarding salary and/or pay scale may be included, it is less likely that the amount of overtime required in the position will be included. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 80) What type of information is contained in the job identification section of a job description? A) job title B) job summary C) major functions or activities D) standards of performance Answer: A Explanation: The job identification section of a job description includes the job title, FLSA status, and date the job description was approved. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

81) Which one of the following is identified by the FLSA status section of a job description? A) whether the employer is a non-profit organization B) whether a job is exempt or nonexempt C) whether the employer is a private or public firm D) whether a job requires a college degree Answer: B Explanation: The FLSA status section identifies a job as exempt or nonexempt. According to the Fair Labor Standards Act, certain positions, mostly administrative and professional, are exempt from the act's overtime and minimum wage provisions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 82) The ________ classifies all workers into one of 23 major groups of jobs that are subdivided into minor groups of jobs and detailed occupations. A) Department of Labor Procedure B) Position Analysis Questionnaire C) Standard Occupational Classification D) Dictionary of Occupational Titles Answer: C Explanation: The Standard Occupational Classification classifies all workers into one of 23 major groups of jobs that are subdivided into minor groups of jobs and detailed occupations. The SOC replaced the Dictionary of Occupational Titles, which was used for many years as a source for standard job descriptions. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

83) According to the ________, an individual must have the requisite skills, educational background, and experience to perform a job's essential functions. A) DOL B) ADA C) FCC D) SIC Answer: B Explanation: The Americans with Disabilities Act (ADA) was enacted by Congress to reduce or eliminate discrimination against disabled individuals. According to the ADA, an individual must have the requisite skills, educational background, and experience to perform a job's essential functions. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 84) An employer is required to make a "reasonable accommodation" for a disabled individual in which one of the following situations? A) if a disabled person has the necessary skills, education, and experience to perform the job but is prevented by the job's current structure B) when an employer fails to provide a job description for a position that a disabled person would most likely be able to perform C) if making changes would present the employer with an undue hardship D) each time that a disabled individual applies for a position Answer: A Explanation: Employers are required to make a "reasonable accommodation" when a disabled person has the necessary skills, education, and experience to perform the job but is prevented from doing so by the job's current structure. Employers are not required to make reasonable accommodations if doing so would present an undue hardship on the employer. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

85) According to the ADA, job duties that employees must be able to perform, with or without reasonable accommodation, are called ________. A) job requirements B) essential job functions C) work activities D) job specifications Answer: B Explanation: According to the Americans with Disabilities Act (ADA), essential job functions are the job duties that employees must be able to perform, with or without reasonable accommodation. Most ADA legal actions center on the concept of whether a job function is essential or not. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 86) Which one of the following Web sites was developed by the U.S. Department of Labor and serves as a source for managers who need to write job descriptions? A) bls.gov B) opm.gov C) usajobs.gov D) onetcenter.org Answer: D Explanation: O*NET is a Web tool that was developed by the U.S. Department of Labor to allow managers, workers, and job seekers to see the essential characteristics of various occupations. Managers use the site to develop job descriptions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

87) Janice, a department store manager, is in the process of writing job descriptions using O*NET. Janice has already reviewed the company's business plan, so what should be her next step? A) interview employees B) compose a list of job duties C) develop an organization chart D) observe employees performing their duties Answer: C Explanation: The first step in using O*NET is to review the firm's business plan, which is followed by developing an organization chart that addresses both the current and future structure of the firm. After having employees complete brief questionnaires, obtaining a list of duties from O*NET, and listing the human requirements for the job, a manager is ready to finalize the job description. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 88) The FLSA status section of a job description permits quick identification of a job as exempt or nonexempt from overtime and minimum wage provisions. Answer: TRUE Explanation: The FLSA status of a job description is usually included in the job identification section. According to the Fair Labor Standards Act, certain positions, primarily administrative and professional, are exempt from the act's overtime and minimum wage provisions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 89) The Americans with Disabilities Act (ADA) requires that organizations have job descriptions that list the essential functions of all jobs. Answer: FALSE Explanation: The ADA does not require job descriptions, but they are advisable in case a discrimination complaint ends up in court. Most ADA legal actions revolve around the questions, "What are the essential functions of the job?" Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

90) O*NET has become an increasingly popular Web tool for creating and distributing position analysis questionnaires to employees who are located throughout the world. Answer: FALSE Explanation: O*NET is a popular Web tool for writing job descriptions, not for creating and distributing PAQs to global employees. O*NET was developed by the U.S. Department of Labor, and it allows users to see the most important characteristics of various occupations. O*NET provides a streamlined approach for managers who need to write job descriptions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 91) How has modern technology, such as the Internet, changed job analysis methods? How has the Internet improved the ability of managers to write job descriptions? Answer: The human resource department can distribute standardized job analysis questionnaires to geographically disbursed employees via their company intranets, with instructions to complete the forms and return them by a particular date. Many employers turn to the Internet for assistance with writing job descriptions. O*Net, the U.S. Department of Labor's occupational information network, is an increasingly popular Web tool. It allows users (not just managers, but workers and job seekers) to see the most important characteristics of various occupations, as well as the experience, education, and knowledge required to do each job well. Jobdescription.com is another popular site used for developing job descriptions. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use.

92) How does the ADA affect hiring practices? How does an HR manager determine whether or not a job description complies with the ADA? Answer: Congress enacted the Americans with Disabilities Act (ADA) to reduce or eliminate serious problems of discrimination against disabled individuals. Under the ADA, the individual must have the requisite skills, educational background, and experience to perform the job's essential functions. A job function is essential when it is the reason the position exists or when the function is so specialized that the firm hired the person doing the job for his or her expertise or ability to perform that particular function. If the disabled individual can't perform the job as currently structured, the employer is required to make a "reasonable accommodation," unless doing so would present an "undue hardship." The ADA does not require job descriptions, but it's probably advisable to have them. Virtually all ADA legal actions will revolve around the question, "What are the essential functions of the job?" Without a job description that lists such functions, it will be hard to convince a court that the functions are essential to the job. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 4.4 Explain how you would write a job description, and what sources you would use. 93) Which of the following is the primary source of information an employer uses to write a job specification? A) job summary B) job description C) performance standards D) personnel replacement charts Answer: B Explanation: A job analysis is used to produce a job description, which is then used to write a job specification. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 4.5 Explain how to write a job specification.

94) When a sales job is being filled by an untrained individual, the job specifications list will most likely include ________ as a way to predict which candidate will perform the job well. A) age and gender B) past job performance C) relevant certification D) personality traits Answer: D Explanation: When filling jobs with untrained people that the employer intends to train, the employer will most likely specify qualities like physical traits, personality, interests, or sensory skills that imply some potential for performing or for being trained to do the job. Age and gender should not be elements of a job specification list. Certification and past job performance are less likely to predict the success of a person's job performance in an area for which they have never received training. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 4.5 Explain how to write a job specification. 95) According to research, each of the following work behaviors is considered important in all jobs EXCEPT ________. A) attendance B) experience C) schedule flexibility D) industriousness Answer: B Explanation: According to research, industriousness, thoroughness, schedule flexibility, and attendance are job-related behaviors that are important to all jobs. Experience is not a behavior, and in many entry-level jobs, experience is not necessary. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 4.5 Explain how to write a job specification. 96) The statistical analysis method for developing job specifications is more defensible than the judgmental approach because equal rights legislation forbids using traits that a firm cannot prove distinguish between high and low job performers. Answer: TRUE Explanation: Using a statistical analysis method for developing job specifications is more defensible than using educated guesses. Equal rights legislation forbids using traits that a firm cannot prove distinguish between high and low job performers. For example, hiring standards that discriminate based on sex, race, religion, national origin, or age may have to be shown to predict job performance. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 4.5 Explain how to write a job specification. 38 Copyright © 2020 Pearson Education, Inc.

97) A conventional job description provides managers with a more comprehensive picture of worker activities than a job requirement matrix, which fails to address how and why workers perform specific job activities. Answer: FALSE Explanation: The job requirement matrix provides a more comprehensive picture of what the worker does and how and why he or she does it than does a conventional job description. The list of required knowledge, skills, abilities, and other characteristics provides useful information for making staffing, training, and performance appraisal decisions. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 4.5 Explain how to write a job specification. 98) In a brief essay, compare and contrast job descriptions and job specifications. Answer: The primary function of a job analysis is to develop job specifications and job descriptions. A job description is a written statement of what the worker actually does, how he or she does it, and what the job's working conditions are. You use this information to write a job specification; this lists the knowledge, abilities, and skills required to perform the job satisfactorily. There is no standard format for writing a job description. However, most descriptions contain sections that cover: 1. Job identification 2. Job summary 3. Responsibilities and duties 4. Authority of incumbent 5. Standards of performance 6. Working conditions 7. Job specifications The job specification takes the job description and answers the question, "What human traits and experience are required to do this job effectively?" It shows what kind of person to recruit and for what qualities you should test that person. The job specification may be a section of the job description, or a separate document. Difficulty: Moderate Objective: 4, 5 AACSB: Written and Oral Communication Learning Outcome: 4.5 Explain how to write a job specification.

99) A human resource manager needs to develop job specifications for a new position at her firm. She can either base the job specifications on statistical analysis or on common sense. Briefly describe each method and recommend which method the HR manager should use. Answer: Most job specifications come from the educated guesses of people like supervisors and human resource managers. The basic procedure here is to ask, "What does it take in terms of education, intelligence, training, and the like to do this job well?" There are several ways to get these "educated guesses." You could simply review the job's duties and deduce from those what human traits and skills the job requires. You can also choose them from the competencies listed in Web-based job descriptions. In any case, use common sense when compiling your list. Don't ignore the behaviors that may apply to almost any job but that might not normally surface through a job analysis. Industriousness is an example. Who wants an employee who doesn't work hard? The other option is to base job specifications on statistical analysis, which is more defensible but also more difficult. The aim here is to determine statistically the relationship between (1) some predictor (human trait, such as height, intelligence, or finger dexterity), and (2) some indicator or criterion of job effectiveness, such as performance as rated by the supervisor. The procedure has five steps: (1) analyze the job and decide how to measure job performance; (2) select personal traits like finger dexterity that you believe should predict successful performance; (3) test candidates for these traits; (4) measure these candidates' subsequent job performance; and (5) statistically analyze the relationship between the human trait (finger dexterity) and job performance. Your objective is to determine whether the former predicts the latter. This method is more defensible than the judgmental approach because equal rights legislation forbids using traits that you can't prove distinguish between high and low job performers. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 4.5 Explain how to write a job specification. 100) Which one of the following describes a job in terms of measurable and observable behaviors that an employee must exhibit to do the job well? A) competency-based job analysis B) Department of Labor procedure C) functional job analysis D) high-performance work matrix Answer: A Explanation: A competency-based job analysis refers to describing a job in terms of measurable, observable, behavioral competencies that an employee doing the job must exhibit to do the job well. This method contrasts with traditional job analysis that describes jobs in terms of job duties and responsibilities. Competency-based analysis is worker-focused. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis.

101) Which one of the following questions will most likely be addressed by a manager who is writing a job description based on a competency-based job analysis? A) What are the typical duties associated with this job? B) What are the working conditions and safety issues related to this job? C) What opportunities for advancement are available to an employee in this job? D) What should the employee be able to do in order to competently perform this job? Answer: D Explanation: The focus of a competency-based job analysis is the skills of the worker rather than the duties, equipment, or working conditions of the job. Traditional job-analysis is more jobfocused while competency-based analysis is more worker-focused. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 102) Which one of the following best supports the argument that jobs should be described in terms of competencies rather than duties? A) New employees in high-performance work systems receive extensive job skills training for their specific positions. B) Managers in global firms are empowered to implement job rotation, job enlargement, and job enrichment in order to maximize productivity. C) In high-performance work systems, employees serve as team members rotating among various jobs. D) Globalization and telecommuting require workers to be able to self-manage and perform duties without close supervision. Answer: C Explanation: Competency-based job descriptions are more appropriate than traditional job descriptions when high-performance work systems are the goal. In a HPWS, workers are encouraged to serve as team members and to rotate freely among jobs, so competencies should be the focus rather than a list of specific job duties which might hinder employee flexibility. Difficulty: Hard Objective: 6 AACSB: Application of Knowledge Learning Outcome: 4.6 Give examples of competency-based job analysis. 103) Many job analysts and employers assert that in today's work environment, job descriptions based on lists of job-specific duties inhibit the worker flexibility that companies need. Answer: TRUE Explanation: The specific duties associated with jobs in today's work environment change on a daily basis, so employers and job analysts think that compiling a list of job duties is counterproductive. As a result, more firms are creating job descriptions based on employee competencies rather than lists of specific job duties. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 41 Copyright © 2020 Pearson Education, Inc.

104) Competencies are observable and measurable behaviors, and organizations are required to define competencies based on quantifiable standards developed by the Department of Labor. Answer: FALSE Explanation: Although competencies are observable and measurable behaviors, organizations are not required to use any specific competencies. O*NET, the DOL Web site, lists various skills associated with different jobs, and the site is a source for competency-based job analysis. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 105) Competency-based job analysis is more worker-focused than traditional job analysis. Answer: TRUE Explanation: Competency-based analysis focuses on the behaviors of the worker, while traditional job analysis focuses on the duties of the job. With competency-based analysis, a firm asks, "What must these employees be competent to do in order to perform this multi-skilled job?" Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 106) Competency-based job analysis focuses on the knowledge, skills, and behavior of a worker rather than the tasks associated with a particular job. Answer: TRUE Explanation: Competency-based job analysis focuses on the knowledge, skills, and behaviors of workers rather than the duties of a specific job. Workers need to be flexible in modern work environments, so employers are focusing more on competencies and less on tasks. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 107) British Petroleum implemented a competency-based skills matrix for its employees. As a result, employee training, appraisals, and rewards relate to the skills and competencies a worker needs to accomplish the goals of the firm. Answer: TRUE Explanation: BP shifted from job-duty based job descriptions to a skills matrix based on competencies. The focus for BP is developing the skills employees need for their broader and more empowered responsibilities. Salary, training, and bonuses are based on worker competencies. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis.

108) ABC Widgets, Inc. wants to develop a high-performance work system, so its HR department should most likely develop traditional job descriptions rather than competency-based job descriptions. Answer: FALSE Explanation: With high-performance work systems, the goal is to encourage employees to work in a self-motivated manner, which is why competency-based job descriptions are more appropriate. Traditional job descriptions focus more on individual tasks than team playing, so ABC needs to develop competency-based job descriptions instead. Difficulty: Moderate Objective: 6 AACSB: Application of Knowledge Learning Outcome: 4.6 Give examples of competency-based job analysis. 109) Writing a competencies-based job description typically involves compiling a list of job duties. Answer: FALSE Explanation: A traditional job analysis involves compiling lists of job duties. However, a competency-based job analysis requires determining what an employee should be able to do. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 4.6 Give examples of competency-based job analysis. 110) What is a competency-based job analysis? Why should firms consider describing jobs in terms of competencies instead of duties? Answer: Job competencies are always observable and measurable behaviors. To determine what a job's required competencies are, you should ask, "In order to perform this job competently, what should the employee be able to do?" We can say that competency-based job analysis means describing the job in terms of measurable, observable, behavioral competencies (knowledge, skills, and/or behaviors) that an employee doing that job must exhibit to do the job well. Competency-based job descriptions are beneficial to firms that are striving to be highperformance work systems. Here the whole thrust is to encourage employees to work in a selfmotivated way. Employers do this by empowering employees, organizing the work around teams, encouraging team members to rotate freely among jobs, and pushing more responsibility for things like day-to-day supervision down to the workers. Difficulty: Moderate Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 4.6 Give examples of competency-based job analysis.

Human Resource Management, 16e (Dessler) Chapter 5 Personnel Planning and Recruiting 1) What is the first step in the recruitment and selection process? A) performing initial screening interviews B) building a pool of candidates C) performing candidate background checks D) deciding what positions to fill Answer: D Explanation: The first step of the recruitment and selection process is deciding what positions to fill through personnel planning and forecasting. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 2) Sometimes mathematical models are insufficient to predict future personnel requirements. In this case, ________ may be necessary. A) managerial judgment B) detailed spreadsheets C) better recruiting practices D) a Delphi method Answer: A Explanation: Few historical trends, ratios, or relationships will continue unchanged into the future. Judgment is thus needed to adjust the forecast. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 3) ________ is the process of deciding what positions the firm will have to fill and how to fill them. A) Recruitment B) Selection C) Job analysis D) Workforce planning Answer: D Explanation: Workforce (or employment or personnel) planning is the process of deciding what positions the firm will have to fill and how to fill them. The process embraces all future positions from maintenance workers to CEO, and flows from the firm's strategic plans. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 1 Copyright © 2020 Pearson Education, Inc.

4) Marcus, an HR manager for Samsung, must decide what positions the firm should fill in the next six months, which means Marcus is currently working on ________. A) screening job candidates B) personnel planning C) interviewing job candidates D) writing job descriptions Answer: B Explanation: Workforce (or employment or personnel) planning is the process of deciding what positions the firm will have to fill and how to fill them. The process embraces all future positions from maintenance workers to CEO, and flows from the firm's strategic plans. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 5) The process of deciding how to fill executive positions at a firm is known as ________. A) internal recruiting B) succession planning C) long-term forecasting D) advanced interviewing Answer: B Explanation: Succession planning refers to the process of deciding how to fill executive positions at a firm. The process is also known as workforce (or employment or personnel) planning, although most firms use the term succession planning when determining how to fill top management positions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 6) A firm's ________ should guide employment planning and determine the types of skills and competencies the firm needs. A) job analysis B) organization chart C) marketing planning D) strategic business planning Answer: D Explanation: Workforce planning shouldn't occur in a vacuum. Instead, workforce/employment planning is best understood as an outgrowth of the firm's strategic and business planning. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 2 Copyright © 2020 Pearson Education, Inc.

7) Succession planning requires making forecasts in three steps: ________, develop inside candidates, assess and choose those who will fill the key position. A) identify key needs B) job specifications C) global trends D) labor relations Answer: A Explanation: The succession planning process is ongoing. It entails three steps: identify key needs, develop inside candidates, and assess and choose those who will fill the key position. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 8) Which one of the following terms refers to studying a firm's past employment needs over a period of years to predict future needs? A) ratio analysis B) trend analysis C) graphical analysis D) computer analysis Answer: B Explanation: A trend analysis is the study of a firm's variation of past employment levels over a period of years to predict future needs. The purpose of a trend analysis is to identify trends that might continue into the future. A trend analysis can provide firms with an initial estimate of future staffing needs. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

9) A trend analysis is limited in its usefulness because it ________. A) overlooks the passage of time in regards to staffing B) addresses only the financial impact of employment changes C) assumes constant increases in worker productivity D) overlooks the potential for changes in skills needed Answer: D Explanation: Trend analysis provides an initial estimate of future staffing needs, but employment levels rarely depend only on the passage of time. Factors such as changes in needed skills, productivity, and voluntary withdrawals also affect staffing needs, which is why a trend analysis is limited in its usefulness. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 10) Which one of the following determines future staff needs by comparing some causal factor, such as the number of sales people, with the results, such as sales volume? A) ratio analysis B) forecasting ratio C) personnel ratio D) ratio matrix Answer: A Explanation: A ratio analysis is a forecasting technique for determining future staff needs by using ratios between, for example, sales volume and the number of employees required. For example, if a salesperson usually generates $500,000 in sales, and a firm hopes to produce an extra $3 million in sales, then six new salespeople would need to be hired. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

11) Newton Building Supplies hopes to generate an extra $4 million in sales next year. A salesperson traditionally generates $800,000 in sales each year. Using ratio analysis, how many new salespeople should Newton hire? A) 2 B) 5 C) 10 D) 20 Answer: B Explanation: Ratio analysis is used to make a forecast in this case based on the number of salespeople and sales volume. Four million in sales divided by the $800,000 generated by each salesperson indicates that 5 extra salespeople should be hired by Newton. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 12) When using either a trend analysis or a ratio analysis, it is assumed that ________ will remain the same. A) staffing levels B) currency rates C) productivity levels D) recruitment plans Answer: C Explanation: Both a trend analysis and a ratio analysis assume that productivity remains about the same. For example, when using a ratio analysis, an assumption is made that you cannot motivate a salesperson to produce more than he or she has sold in the past. With a trend analysis, historical productivity trends are used and are the basis for predicting the future. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 13) A ________ is a graphical method used to help identify how two variables are related. A) trend analysis B) ratio analysis C) scatter plot D) productivity chart Answer: C Explanation: A scatter plot graphically illustrates the relationship between two variables such as sales and your firm's staffing levels. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 5 Copyright © 2020 Pearson Education, Inc.

14) Pablo wants to figure out likely future employment needs for Slate Industries by examining past organizational employment needs of the company. This is an example of ________. A) a qualification inventory B) ratio analysis C) succession planning D) trend analysis Answer: D Explanation: A trend analysis is a study of a firm's past employment needs over a period of years to predict future employment needs. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 15) Which one of the following contains data regarding employees' education, career development, and special skills and is used by managers when selecting inside candidates for promotion? A) computerized forecasting tools B) skills inventories C) trend records D) scatter plots Answer: B Explanation: Qualifications or skills inventories are used by managers when determining which employees should be promoted or transferred. A skills inventory contains data on employees' performance records, educational background, and promotability. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

16) When managers need to determine which current employees are available for promotion or transfer, they will most likely use ________. A) scatter plots B) skills inventories C) estimated sales trends D) personnel forecasts Answer: B Explanation: Skills inventories are manual or computerized records listing employees' education, career and development interests, languages, and special skills. They are used in selecting inside candidates for promotion or transfer. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 17) Which one of the following refers to company records showing present performance and promotability of inside candidates for a firm's top positions? A) yield pyramids B) trend analysis charts C) succession planning tools D) personnel replacement charts Answer: D Explanation: Personnel replacement charts are company records showing present performance and promotability of inside candidates for a firm's top positions. Such charts show the present performance and promotability for each position's potential replacement. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 18) Skills inventories can be tracked and maintained by using all of the following EXCEPT a ________. A) ratio analysis matrix B) personnel replacement chart C) position replacement card D) skills inventory software Answer: A Explanation: Personnel replacement charts, position replacement cards, and skills inventory software are all tools for tracking and maintaining qualifications inventories. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 7 Copyright © 2020 Pearson Education, Inc.

19) Workforce planning often involves paying continuous attention to workforce planning issues which is called ________. A) personnel replacement chart B) predictive workforce monitoring C) personnel replacement charts D) yield pyramids Answer: B Explanation: Paying continuous attention to workforce planning issues is called predictive workforce monitoring. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 20) What mathematical process do employers use to forecast availability of internal job candidates that shows the probabilities that feeder positions in a chain will be filled? A) trend analysis B) access analysis C) Markov analysis D) workforce analysis Answer: C Explanation: Markov analysis is used to forecast availability of internal job candidates by showing the probabilities that employees in the chain of feeder positions for a key job will move from position to position and therefore be available to fill the key position. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

21) Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which one of the following, if true, best supports the argument that a scatter plot is the most appropriate tool for Maria to use in estimating future personnel needs? A) Productivity levels for Barnum employees typically vary from month to month. B) The size of the two new Barnum hotels will be similar to the chain's other hotels. C) Barnum requires HR to maintain qualifications inventories for all current employees. D) Personnel replacement charts serve as useful tools when filling Barnum's managerial positions. Answer: B Explanation: Scatter plots graphically show how two variables are related, such as hotel size and staffing levels. Maria should be able to estimate personnel needs if the new hotels are the same size as current ones. Productivity levels, qualifications inventories, and replacement charts are less important factors. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

22) Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which one of the following, if true, best supports the argument that Maria should implement a computerized skills inventory database? A) Barnum offers its employees the opportunities to participate in job rotation and job expansion experiences. B) Barnum's recruiting yield pyramid indicates that the firm should generate 1,000 leads in order to fill 100 positions. C) Barnum executives would like to transfer the firm's most qualified employees to the new hotels to fill supervisory positions. D) HR managers at Barnum frequently receive discrimination complaints that must be investigated by the EEOC. Answer: C Explanation: Computerized skills inventory databases provide firms with easy access to information about all employees. If Barnum wants to hire internally, then a database would provide the skills inventory needed to determine the most qualified candidates to staff the new hotels. Recruiting, job rotation, and discrimination claims are less relevant to implementing a computerized skills inventory database. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 23) The ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance is known as ________. A) employee mentoring B) succession planning C) work sampling D) employee recruiting Answer: B Explanation: Succession planning is the ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance. Succession planning is necessary when a firm is filling its top positions from internal candidates. The process involves identifying key needs, creating and assessing candidates, and selecting those who will fill the key positions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

24) What is the first step in succession planning? A) creating an applicant pool B) identifying and analyzing key position needs C) selecting who will fill key positions D) developing the strengths of current employees Answer: B Explanation: The first step in succession planning is identifying a firm's future key position needs and then formulating job descriptions and specifications for them. The key needs are based on the company's future plans. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 25) All of the following are methods used by firms to develop high-potential candidates for future positions EXCEPT ________. A) providing internal training B) implementing job rotation C) offering global assignments D) developing skills inventories Answer: D Explanation: Employers develop candidates through internal training, cross-functional experiences, job rotation, external training, and global/regional assignments. Skills inventories are records that list employees' qualifications. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 26) A Markov analysis is primarily used to ________. A) predict the long-term employment needs in an industry B) assess the productivity and tenure of a job applicant C) forecast the availability of internal job candidates D) analyze the effectiveness of recruitment sources Answer: C Explanation: Employers use a mathematical process known as Markov analysis to forecast availability of internal job candidates. Markov analysis involves creating a matrix that shows the probabilities that employees in the chain of feeder positions for a key job will move from position to position and therefore be available to fill the key position. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 11 Copyright © 2020 Pearson Education, Inc.

27) Smith Industries is thinking of having another company take care of its benefits management. This is called ________. A) outsourcing B) recruiting C) telecommuting D) screening Answer: A Explanation: Outsourcing means having outside vendors supply services (such as benefits management, market research, or manufacturing) that the company's own employees previously did in-house. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 28) Dixon Industries wants to engage in predictive workforce monitoring. As the HR manager at Dixon, you should most likely ________. A) continuously monitor workforce planning issues B) primarily use recruiters for top executive jobs C) frequently assess the online HR scorecard D) regularly implement the Markov analysis Answer: A Explanation: Workforce planning therefore often involves paying continuous attention to workforce planning issues. Managers call this predictive workforce monitoring. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 29) Employment planning should be an integral part of a firm's strategic and HR planning process. Answer: TRUE Explanation: Employment planning is the process of deciding what positions the firm will have to fill and how to fill them. Employment planning should flow from a firm's strategic plans. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

30) Personnel planning requires an estimation of personnel needs, the supply of inside candidates, and the likely supply of outside candidates. Answer: TRUE Explanation: Employment (or personnel) planning is the process of deciding what positions the firm will have to fill and how to fill them. Like all good plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 31) When it refers to filling jobs like that of a maintenance clerk, personnel planning is called succession planning. Answer: FALSE Explanation: Most firms call the process of deciding how to fill executive jobs succession planning. However, employment (or personnel) planning embraces all future positions, from maintenance clerk to CEO. Difficulty: Easy Objective: 1 AACSB: Application of Knowledge Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 32) When making personnel plans, a manager primarily needs to focus on the firm's personnel needs, the supply of inside candidates, and the estimated supply of outside candidates. Answer: TRUE Explanation: Like all plans, personnel plans require some forecasts or estimates, in this case, of three things: personnel needs, the supply of inside candidates, and the likely supply of outside candidates. The basic workforce planning process is to forecast the employer's demand for labor and supply of labor, identify supply-demand gaps, and develop action plans to fill the projected gaps. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

33) The assumption shared by both trend analysis and ratio analysis is that productivity remains about the same from year to year. Answer: TRUE Explanation: Both trend analysis and ratio analysis assume that productivity remains about the same–for instance, that you can't motivate each salesperson to produce much more than $500,000 in sales. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 34) A scatter plot is a graphical method used to help identify the relationship between two variables. Answer: TRUE Explanation: A scatter plot is a graphical method used to help identify the relationship between two variables. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 35) In a brief essay, explain what workforce planning is and how it fits with the organization's strategic planning. Answer: Workforce (or employment or personnel) planning is the process of deciding what positions the firm will have to fill, and how to fill them. It embraces all future positions, from maintenance clerk to CEO. Employment planning should flow from the firm's strategic plans. Thus, plans to enter new businesses or reduce costs all influence the types of positions you'll need to fill or eliminate. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

36) What tools are available for projecting personnel needs? Provide your answer in a brief essay. Answer: Trend tools used for projecting personnel needs include the trend analysis, the ratio analysis, and scatter plot. Trend analysis means studying variations in your firm's employment levels over the last few years. Trend analysis can provide an initial estimate of future staffing needs, but employment levels rarely depend just on the passage of time. Other factors (like changes in sales volume and productivity) also affect staffing needs. Another simple approach, ratio analysis, means making forecasts based on the historical ratio between (1) some causal factor (like sales volume) and (2) the number of employees required (such as number of salespeople). Also, a scatter plot shows graphically how two variables–such as sales and your firm's staffing levels–are related. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan. 37) What methods are used by both small and large firms to forecast the supply of inside candidates? Answer: Department managers or owners of smaller firms often use manual devices to track employee qualifications. Thus a qualification (or skill) inventory contains data on employees' performance records, educational background, and promotability. Thus personnel inventory and development records compile qualification information on each employee. Personnel replacement charts are another option, particularly for the firm's top positions. They show the present performance and promotability for each position's potential replacement. Larger firms obviously can't track the qualifications of hundreds or thousands of employees manually. Larger employers therefore computerize this information, using various packaged software systems. Increasingly, they also link skills inventories with their other human resources systems. So, for instance, an employee's skills inventory might automatically update each time he is trained or appraised. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 5.1 Define workforce planning, and explain how to develop a workforce plan.

38) Bob needs to find and attract applicants to his company's open positions, which is known as ________. A) trend analysis B) engagement C) staffing D) employee recruiting Answer: D Explanation: Employee recruiting means finding and/or attracting applicants for the employer's open positions. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 39) Finding or attracting applicants for an employer's open positions is known as ________. A) succession planning B) employee recruiting C) personnel planning D) job posting Answer: B Explanation: Employee recruiting is the process of finding or attracting applicants for an employer's open positions. Recruiting involves building up an applicant pool by posting jobs and succession planning, which is the process of internally filling executive jobs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 40) Recruiting is necessary to ________. A) determine whether to use inside or outside candidates B) forecast the short-term supply of outside candidates C) create positive word-of-mouth about a firm D) develop an applicant pool Answer: D Explanation: Developing an applicant pool is the primary reason to recruit. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective.

41) A ________ is used to calculate the number of applicants a firm must generate to hire the required number of new employees. A) trend analysis B) ratio analysis C) recruiting yield pyramid D) scatter plot Answer: C Explanation: A recruiting yield pyramid is used by employers to calculate the number of applicants a firm must generate in order to hire the required number of new employees. A recruiting yield pyramid is the historical arithmetic relationship between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 42) A recruiting yield pyramid is the historical arithmetic relationship between all of the following EXCEPT ________. A) internal and external candidates B) offers made and offers accepted C) recruitment leads and invitees D) interviews and offers made Answer: A Explanation: A recruiting yield pyramid is the historical arithmetic relationship between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. The ratio of internal and external candidates is not a factor in the recruiting yield pyramid which is used to determine the number of applicants a firm needs to generate in order to hire the required number of new employees. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 43) According to U.S. court ruling, it is always illegal to recruit applicants with gender-specific ads, but using word-of-mouth to spread information about job opportunities is legal in all situations. Answer: FALSE Explanation: Courts will often question word-of-mouth recruiting, because workers tend to nominate candidates of the same nationality, race, and religion. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 17 Copyright © 2020 Pearson Education, Inc.

44) The HR manager who recruits for a vacant job is typically the one who is responsible for supervising the performance of that position. Answer: FALSE Explanation: The human resource manager charged with recruiting for an open job is seldom very familiar with the job itself. The supervisor has to tell the HR person what the position really entails, and what key things to look or watch out for when recruiting. The supervisor is also responsible for supervising performance of the position. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 45) It is illegal for employers to conspire not to hire each other's employees. Answer: TRUE Explanation: It is illegal for employers to conspire not to hire each other's employees. Yet Apple and Google recently paid over $400 million to settle a claim alleging that they did just that. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 5.2 Explain the need for effective recruiting and how to make recruiting more effective. 46) Which one of the following is the primary disadvantage of using internal sources of candidates to fill vacant positions in a firm? A) lack of knowledge regarding a candidate's strengths B) potential to lose employees who aren't promoted C) questionable commitment of candidates to the firm D) significant training and orientation requirements Answer: B Explanation: The primary disadvantage of hiring from within is the potential of losing employees who are not promoted. Employees who apply for jobs and don't get them may become discontented. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates.

47) All of the following are characteristics of a job posting EXCEPT ________. A) listing the job's attributes B) providing the job's pay rate C) publicizing the open job to employees D) indicating the preferred number of applicants Answer: D Explanation: Posting a job means to publicize an open job to employees by posting it on company intranets or bulletin boards. Such postings list the jobs' attributes, such as qualifications, supervisor, work schedule, and pay rate. The preferred number of applicants is less likely to appear on a job posting. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates. 48) Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. Which one of the following, if true, most likely undermines Maria's decision to fill top positions with inside candidates? A) Barnum needs to head in a different direction with innovative ideas if it is to remain competitive with other hotel chains. B) Many current Barnum employees have indicated they are loyal to the firm by rejecting offers to work at competing hotels. C) Training new employees about the practices and procedures at Barnum is costly in regards to both time and money. D) The influence of local labor unions and EEO legislation is blamed for the high turnover rate among Barnum employees. Answer: A Explanation: Inbreeding is a potential drawback to hiring internally because when all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is required. This can be seen as inbreeding. If Barnum needs to go in a new direction then it should hire outsiders. Benefits of internal hiring include increased morale, commitment, and reduced training requirements. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates.

49) Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT: A) What are the key managerial positions that are available at the new hotels? B) What percentage of employers in the service industry use succession planning? C) What skills, education, and training have been provided to potential candidates? D) What is the designated procedure for assessing and selecting potential candidates? Answer: B Explanation: Although employers have formal succession planning programs, the question is not directly relevant to Maria's decision. Maria needs to consider what positions need to be filled, the experience of potential candidates, and the procedure for assessing candidates. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates. 50) Publicizing an open job to current employees through a firm's intranet or bulletin board is known as job posting. Answer: TRUE Explanation: The term "job posting" refers to publicizing an available position to a firm's current employees. A firm's intranet or bulletin board is most often the location of the posting. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates. 51) Firms can reduce potential problems associated with rehiring former employees by crediting them with the years of service they had accumulated before they left. Answer: TRUE Explanation: Rehiring former employees can lead to adverse reactions from both the employee and co-workers. Crediting the rehired employee with accumulated years of service can reduce problems. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 5.3 Discuss the main internal sources of candidates.

52) What are the pros and cons associated with using internal sources of job candidates? What are the pros and cons of using Internet recruiting to locate external sources of job candidates? Answer: Filling open positions with inside candidates has several advantages. First, there is really no substitute for knowing a candidate's strengths and weaknesses, as you should after working with them for some time. Current employees may also be more committed to the company. Morale may rise if employees see promotions as rewards for loyalty and competency. And inside candidates should require less orientation and (perhaps) training than outsiders. However, hiring from within can also backfire. Employees who apply for jobs and don't get them may become discontented; telling them why you rejected them and what remedial actions they might take is crucial. When all managers come up through the ranks, they may have a tendency to maintain the status quo when a new direction is required. Internet recruiting is a cost-effective way to publicize openings; it generates more responses quicker and for a longer time at less cost than just about any other method. Internet recruiting has two big potential problems– discrimination and overload. First, fewer older people use the Internet, so online application gathering may inadvertently exclude disproportionate numbers of older applicants (and certain minorities). Second, employers end up deluged with resumes from job seekers. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 5.3 Discuss the main internal sources of candidates. 53) Which one of the following is NOT a tool used by firms to recruit outside candidates? A) newspaper advertising B) intranet job postings C) employment agencies D) online job boards Answer: B Explanation: The term job posting refers to publicizing an open job to employees through a firm's intranet or on bulletin boards. Outside candidates are recruited through advertisements, employment agencies, executive recruiters, and online job boards, such as Monster.com and CareerBuilder.com. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

54) What is the primary purpose of an applicant tracking system? A) sorting resumes based on an applicant's years of work experience B) generating advertisements for attracting and gathering applicants C) assisting employers in attracting, screening, and managing applicants D) assisting recruiters with locating internal applicants for key positions Answer: C Explanation: The purpose of an applicant tracking system is to help employers attract, gather, screen, compile, and manage outside applicants. Such an online system is needed because Webbased ads tend to generate a large number of applicants. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 55) Which one of the following factors plays the greatest role in determining the best medium for a job advertisement? A) skills needed for the job B) job compensation and salary C) time allowed to fill the position D) graphics used in the advertisement Answer: A Explanation: The best medium for a job depends on the position and the skills needed for the job. For example, a local newspaper is probably best if an employer needs clerical workers or blue-collar help. For specialized employees, advertisement in trade and professional journals may be more appropriate. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

56) When constructing a job advertisement, all of the following are aspects of the AIDA guide EXCEPT ________. A) attracting attention to the ad B) implying long-term benefits C) prompting applicant action D) developing interest in the job Answer: B Explanation: Experienced advertisers use AIDA when constructing ads, which stands for attention, interest, desire, and action. An ad should attract attention, develop interest in the job, create desire for the job, and prompt readers to take action. Although benefits and salary may be mentioned in ads, implying long-term benefits is not an element of the AIDA guide. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 57) The ________ run by the U.S. Department of Labor enables public employment agency counselors to advise applicants about local and national job openings. A) U.S. Career Center B) National Job Bank C) National Employment Agency D) Equal Employment Opportunity Commission Answer: B Explanation: The National Job Bank maintains a nationwide computerized job bank that enables public employment agency counselors to advise applicants about local and national job openings. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

58) Counselors in state-run employment agencies conduct all of the following activities EXCEPT ________. A) reviewing employer job requirements B) filing employer tax reports C) visiting employer work sites D) writing job descriptions Answer: B Explanation: Although state-run employment agencies offer tax credit information to employers, they do not file tax reports. State employment agencies assist employers by helping them fill jobs and write job descriptions. Counselors also review job requirements and visit employer work sites. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 59) Which one of the following is typically responsible for paying the fees charged by a private employment agency when an applicant is placed in a job? A) employers B) employees C) state employment commissions D) independent recruiters Answer: A Explanation: In most situations, employers pay the fees charged by private employment agencies. Private employment agencies are important sources for clerical, white-collar, and managerial personnel, and their fees are set by state law. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

60) An employer will most likely use a private employment agency in order to ________. A) receive assistance writing job ads B) adhere to federal hiring practices C) fill a specific job opening quickly D) spend more time recruiting applicants Answer: C Explanation: One of the main reasons an employer uses a private employment agency is to fill a specific job opening quickly. Other reasons include spending less time recruiting and reaching currently employed individuals who might feel more comfortable dealing with an agency than a competing firm. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 61) Which one of the following is the primary disadvantage for employers who use private employment agencies to fill positions? A) White-collar applicants are difficult to attract. B) Applicant screening may not be thorough. C) Applicant processing time is too lengthy. D) Application procedures are complicated. Answer: B Explanation: The primary drawback to using a private employment agency is the fact that agencies may not screen applicants very well. Successful applicants may be blocked, while inappropriate applicants may be sent to interview with hiring supervisors. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

62) Newton Manufacturing is using a private employment agency to recruit individuals for management positions. As the HR manager at Newton, you need to ensure that applicants are screened properly, so you should ________. A) provide the agency with an accurate job description B) post jobs on the firm's intranet and bulletin boards C) develop applicant screening software for internal hires D) send HR experts to monitor the agency's recruiting activities Answer: A Explanation: Employers can avoid improper applicant screening at private employment agencies by providing the agency with an accurate job description. Employers should also make sure that tests, applications, and interviews are part of the agency's selection process. The agency should be screened, but it would be costly and time consuming to have HR managers monitor the agency's activities. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 63) Kate works as a nurse on temporary assignment for hospitals throughout the region on an asneeded basis. Kate is most likely ________. A) working as a contingent worker B) participating in a job rotation C) using job enlargement D) benchmarking jobs Answer: A Explanation: Temporary workers are known as contingent workers, so a nurse who floats from one assignment to another on a temporary basis is a contingent worker. Job rotation occurs when an employer systematically moves a worker from one job to another to broaden the worker's experience. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

64) Which one of the following best explains why firms are using temporary workers more frequently? A) low cost when hired through agencies B) workers' desires for flexible schedules C) high cost of workers' compensation insurance D) weak economic confidence among employers Answer: D Explanation: Several things contribute to the trend toward using more temporary employees including continuing weak economic confidence among employers. Temps cost employers more than permanent workers because temp agencies receive a fee. Employers want a flexible workforce that can be reduced during economic slowdowns. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 65) All of the following are common concerns that have been expressed to researchers by temporary employees EXCEPT ________. A) being in compliance with equal employment laws B) feeling insecure about their employment situation C) worrying about the lack of insurance benefits D) being treated impersonally by employers Answer: A Explanation: When working with temporary agencies, managers need to ensure that they have a document from the agency stating that filling temp orders is not discriminating. However, this is not a concern felt among temporary workers. Temp workers have shown to be primarily concerned about their lack of insurance benefits and the way they are treated by managers and permanent staff. Temp workers often feel insecure about their employment situation because most of them want full-time positions. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

66) Jessica Garza is a manager at a large retail store. Currently, Jessica has four temporary workers under her supervision that a local staffing agency has provided. In which of the following tasks related to the temporary workers should Jessica become directly involved? A) negotiating the pay rate B) setting the time-off policies C) answering task-related questions D) providing online training and development Answer: C Explanation: For legal purposes, companies should treat temporary employees as if the temp agency is the worker's employer. Managers should let the temp agency handle matters such as pay, time-off, and training. Managers should control the temporary worker's activities and answer work-related questions. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 67) Which one of the following terms refers to the use of nontraditional recruitment sources? A) negligent hiring B) personnel planning C) human resource management D) alternative staffing Answer: D Explanation: Alternative staffing refers to the use of nontraditional recruitment sources. Alternative staffing examples include in-house temporary employees, contract technical employees, outsourcing, and offshoring. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

68) ________ are special employment agencies retained by employers to seek out top management talent for their clients. A) State-run employment agencies B) Private employment agencies C) Temporary agencies D) Executive recruiters Answer: D Explanation: Executive recruiters, or headhunters, are special employment agencies retained by employers to seek out top management talent for their clients. State-run employment agencies, private employment agencies, and temporary agencies are less likely to be used by firms seeking top executives. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 69) Which one of the following has improved the ability of executive recruiters to find potential candidates? A) mobility premiums B) Internet databases C) corporate intranets D) broad banding Answer: B Explanation: Internet-based databases have dramatically sped up searches for potential candidates and enabled executive recruiters to fill positions more quickly. The primary challenge for headhunters has been finding qualified candidates, and technology has improved the searching ability of recruiters. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

70) Which one of the following is a service that provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms? A) top-executive searches B) contingent-based searches C) on-demand recruiting services D) just-in-time recruiting services Answer: C Explanation: On-demand recruiting services (ODRS) provide short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. These recruiters are paid by the hour or project instead of a percentage fee. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 71) What is the typical compensation structure for on-demand recruiting services? A) hourly rate B) commission C) percentage fee D) signing bonus Answer: A Explanation: On-demand recruiting services (ODRS) provide short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms. These recruiters are paid by the hour or project instead of a percentage fee or a commission. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

72) Pamlico River Productions is seeking a top-level manager to oversee its finance division. Qualified candidates can be difficult to find, so the business would most likely benefit from using a(n) ________ to recruit potential candidates. A) executive recruiter B) temporary agency C) Internet-based job site D) alternate staffing recruiter Answer: A Explanation: Executive recruiters or headhunters are special employment agencies retained by employers seeking top executives. Temporary staffing would be less beneficial to a firm seeking a top executive. Although Internet sites are popular sources for finding employees, headhunters are more appropriate for filling top positions in a firm. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 73) A small software firm is seeking several permanent employees with experience in the semiconductor industry and advanced degrees in computer science. The firm is a small one and cannot afford to pay a traditional recruiting firm a fee of 30% per each hire's salary. Instead, this firm should consider using a(n) ________. A) contingency-based recruiter B) temporary staffing agency C) outsourcing staffing service D) on-demand recruiting service Answer: D Explanation: An on-demand recruiting service would be the best solution for a small firm that cannot pay high fees to recruit employees. ODRS provide short-term specialized recruiting assistance to support specific projects without the expense of traditional search firms. An ODRS charges by time or project. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

74) Approximately what percentage of new college graduates are hired to fill externally filled jobs that require a college degree? A) 7% B) 83% C) 16% D) 40% Answer: D Explanation: One study several years ago concluded, for instance, that new college graduates filled about 40% of all externally filled jobs requiring a college degree. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 75) Which one of the following is a primary goal of college recruiters? A) building relationships with college career centers B) cutting future recruiting costs for the firm C) developing a pool of temporary workers D) attracting good candidates Answer: D Explanation: The two main goals of college recruiters are attracting good candidates and determining if candidates are worthy of further consideration. It is helpful if firms develop ties with college career centers to gain feedback on their recruiting programs, but the main goal of college recruiters is to find employees. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 76) In regards to on-campus recruiting, which one of the following is most likely to help sell the employer to the interviewee? A) recruiter's professional attire B) sincerity of the recruiter C) emphasis on the job location D) well-written job descriptions Answer: B Explanation: A recruiter who has a sincere and informal attitude, shows respect for the applicant, and sends a prompt follow-up letter is more likely to sell the firm to the interviewee than a recruiter who acts superior and is unprepared. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 32 Copyright © 2020 Pearson Education, Inc.

77) Which one of the following would be the best option for a business that needs to attract local applicants for hourly jobs? A) employee referral campaigns B) on-demand recruiting services C) college recruiting D) walk-ins Answer: D Explanation: Walk-ins, which are direct applications made at an office, are a major source of hourly workers. Companies that post "Help Wanted" signs are able to cost-effectively attract many local applicants. Employee referral campaigns do not necessarily attract local applicants, and they typically cost $400-$900 per hire, which makes them an unlikely method for hiring hourly workers. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 78) What is an advantage of using employee referral campaigns? A) Local, hourly workers can be recruited quickly. B) Applicants have received realistic job previews. C) Rewards and incentives are eliminated. D) Applicants have community ties. Answer: B Explanation: Current employees will usually provide accurate information about the job applicants they are referring, so the new employees have a more realistic picture of what the firm is like. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 79) Temporary workers are considered a type of ________ staff. A) alternative B) part-time C) consultant D) freelance Answer: A Explanation: Temporary employees are examples of alternate staffing–basically, the use of nontraditional recruitment sources. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 33 Copyright © 2020 Pearson Education, Inc.

80) Which Web site is increasingly serving as a recruitment source for passive job candidates? A) Career Builder B) You Tube C) LinkedIn D) Monster Answer: C Explanation: In moving away from major job boards such as careerbuilder.com, recruiters are seeking passive candidates (people not actively looking for jobs) by using social networking sites such as LinkedIn to find potential candidates. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 81) ________ often have trouble getting placed in jobs. A) Older workers B) Single parents C) Military personnel D) College graduates Answer: C Explanation: Returning and discharged U.S. military personnel provide an excellent source of trained and disciplines recruits. Yet all too often they have trouble getting placed. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 82) The dot-jobs domain is primarily used by HR managers for succession planning purposes. Answer: FALSE Explanation: The new dot-jobs domain gives job seekers rather than HR managers a one-click conduit for finding jobs at the employers who register at www.goto.jobs. For example, applicants seeking a job at Disneyland can go to www.Disneyland.jobs, which takes them to Disney's Disneyland recruiting Web site. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

83) In most cases, job applicants view concise job advertisements on the Web as more attractive and credible than lengthy ads with too many details about a job. Answer: FALSE Explanation: In general, more information is better than less. Job applicants view ads with more specific job information as more attractive and more credible. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 84) Every state has a public, state-run employment service agency. Answer: TRUE Explanation: All states have public, state-run employment agencies supported by the U.S. Department of Labor. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 85) The U.S. Department of Labor maintains a nationwide computerized job bank called the National Job Bank. Answer: TRUE Explanation: The U.S. Department of Labor supports these agencies, in part through grants, and in part through other assistance such as a nationwide computerized job bank. The National Job Bank enables agency counselors to advise applicants about available jobs not just in their local area, but in other states as well. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 86) Due to EEO laws, firms are only allowed to use contingency workers for clerical or maintenance positions; managerial staff must consist of full-time employees of the firm. Answer: FALSE Explanation: The contingent workforce isn't limited to clerical or maintenance staff. It includes thousands of engineering, science, or management support occupations, such as, temporary chief financial officers, human resource managers, and CEOs. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

87) Many firms use temporary hiring as a way to give prospective employees a trial run before hiring them as full-time workers. Answer: TRUE Explanation: Temp-to-hire is a way for firms to give workers a trial run before offering them full-time positions. Temp-to-hire also gives the prospective employee the trial run opportunity to appraise if they want to work for that company full-time. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 88) In most cases, it is more cost effective for firms to hire contingent workers through a temp agency than to hire comparable permanent employees. Answer: FALSE Explanation: Temps generally cost employers more than comparable permanent workers (per hour or per week), since the agency gets a fee. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 89) According to most employment laws, employees of temporary staffing firms that are working in an employer's workplace are considered workers of both the temporary agency and the employer. Answer: TRUE Explanation: Except in a few circumstances, employment laws consider temporary workers the employees of both the staffing agency and the employer. For this reason, employers need to understand the legal status of contract employees. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

90) An in-house temporary employee is a highly skilled worker, such as an engineer or software designer, who is supplied for long-term projects under contract from an outside technical services firm. Answer: FALSE Explanation: An in-house temporary employee is a person employed directly by a company on a short-term basis. A contract technical employee is a highly skilled worker, such as an engineer or software designer, who is supplied for a long-term project under contract from an outside technical services firm. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 91) Offshoring means having outside vendors supply services that a firm's own employees previously did in-house, while outsourcing means having overseas outside vendors provide services once performed in-house. Answer: FALSE Explanation: Outsourcing means having outside vendors supply services that a firm's own employees previously did in-house. Offshoring is a more narrow term that means having overseas outside vendors provide services once performed by a company's own employees inhouse. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 92) Retained executive recruiters are paid whether or not they eventually fill the client's vacant position. Answer: TRUE Explanation: Retained headhunters are paid regardless of whether the employer hires the executive through the search firm's efforts or not. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

93) The fees associated with both retained and contingent executive recruiters are typically 30% or more of the hired executive's first year salary. Answer: FALSE Explanation: Whether retained or contingent, fees for executive headhunters are beginning to around 15% and 25% of the executive's first-year pay. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 94) In a brief essay, discuss how an HR manager should use the guide AIDA to write a help wanted advertisement. Answer: Experienced advertisers use the guide AIDA (attention, interest, desire, action) to construct ads. An HR manager must attract attention to the ad with phrases and words that grab the attention of readers. Next, a manager needs to develop interest in the job. You can create interest with lines such as, "Are you looking to make an impact?" or use other aspects of the job, such as its location. Create desire by spotlighting words such as travel or challenge. As an example, having a graduate school nearby may appeal to engineers and professional people. Finally, the ad should prompt action with a statement like "Call today." In general, more information is better than less. Job applicants view ads with more specific job information as more attractive and more credible. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 95) Why do employers turn to private employment agencies for assistance in recruiting? Provide at least four reasons for the use of such employment agencies. Answer: There are many reasons for using a private employment agency. The firm does not have to have internal human resource specialists for recruiting and screening. The firm may need the position filled very quickly. There is a perceived need to recruit more minority and female applicants. When the best candidates are employed elsewhere, it is more comfortable to have an agency approach the candidates. Use of an agency reduces recruiting time. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

96) What policies and procedures are critical for companies that use temporary agencies for contingent workers? Answer: Companies should get a sample copy of the agency's invoice to ensure that the invoice fits the company needs. Time sheets should be used because they provide a verification of hours worked and an agreement to pay the agency's fees. The company should find out what policies guide the hiring of an agency temp as a permanent employee. The company should also find out how the agency recruits employees and what kind of benefits it pays. The company should specify its dress code at each location to the agency. The company should insist on getting a document from the agency stating that it is not discriminating when filling temp orders. Finally, make sure that the agency has the proper information regarding what is required to adequately fill each job position. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 97) What are the differences between the two types of executive recruiters? How do firms benefit from using executive recruiters? Answer: Executive recruiters may be contingent or retained. Retained recruiters are paid whether or not the employer eventually hires the executive through the efforts of the search firm. These recruiters tend to focus on executive positions paying $150,000 or more. Contingencybased recruiters tend to handle junior to middle level management job searches in the $50,000$150,000 range. Recruiters bring a lot to the table. They have many contacts and are especially adept at finding qualified employed candidates who aren't actively looking to change jobs. They can keep your firm's name confidential until late into the search process. The recruiter can save top management's time by finding and screening an applicant pool. The recruiter's fee might actually turn out to be small when you compare it to the executive time saved. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad.

98) Why is effective recruiting a challenge for many employers? What methods can employers use to effectively recruit a more diverse workforce? Answer: Effective recruiting is difficult for many employers because some recruiting methods are superior to others, depending on the type of job for which you are recruiting. Second, the success you have recruiting depends greatly on non-recruitment issues and policies. For example, paying 10% more than most firms in your locale should, other things being equal, help you build a bigger applicant pool faster. Third, employment law prescribes what you can and cannot do when recruiting. For example, managers can't rely on word-of-mouth dissemination of information about job opportunities when the workforce is substantially all white or all members of some other class, such as Hispanic. In order for businesses to effectively recruit a more diverse workforce, they should take the goal of recruiting more minorities seriously, and pursue that goal energetically. In practice, this requires a three-part effort: Understand the recruitment barriers that prevent minorities from applying, formulate the required recruitment plans for attracting and retaining minorities and women, and institute the specific day-to-day programs into recruitment programs. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 5.5 Discuss the main outside sources of candidates, and create an employment ad. 99) Which one of the following motivates most employees over 65 to work? A) overtime payments B) schedule flexibility C) supportive work environments D) additional sick days Answer: B Explanation: Schedule flexibility is the primary motivation for employees over age 65. Older employees want flexible and often abbreviated work schedules, and many only want to work part time. Overtime, sick days, and supportive work environments are less important factors than flexibility. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce.

100) Smith Industries has set a goal of recruiting minority applicants. Which one of the following methods is LEAST likely to be successful for Smith Industries? A) offering flexible work schedules B) providing flexible benefits plans C) utilizing executive recruiters D) collaborating with professional organizations Answer: C Explanation: Firms that provide flexible work schedules and benefits plans are more likely to attract minority workers, especially women. Collaborating with professional organizations, such as the National Society of Hispanic MBAs will also improve the chances of hiring minorities. Executive recruiters are the least likely method for attracting minorities. Difficulty: Hard Objective: 6 AACSB: Application of Knowledge Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 101) Older workers usually have higher absenteeism rates compared to younger workers due to illness. Answer: FALSE Explanation: A survey by AARP and SHRM concluded that older workers tend to have lower absenteeism rates, more reliability, and better work habits than younger workers. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 102) A question on an employment application form that requests the dates of attendance and graduation from various schools may be illegal as it could reflect an applicant's age. Answer: TRUE Explanation: It is illegal to ask an applicant's age. According to EEO law a question on an employment application form that requests the dates of attendance and graduation from various schools may be illegal as it could reflect an applicant's age. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 103) According to EEO law, it is legal to ask job applicants if they have ever received workers' compensation. Answer: FALSE Explanation: It is generally illegal under EEO law to ask applicants if they have received workers' compensation. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 41 Copyright © 2020 Pearson Education, Inc.

104) To prevent the appearance of discriminatory hiring practices, firms are advised to avoid asking job applicants on an application form whether they own or rent a house. Answer: TRUE Explanation: Asking whether an applicant owns, rents, or leases a house may also be discriminatory. It can adversely affect minority groups and is difficult to justify on business necessity. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 105) Video résumés eliminate the possibility of applicants claiming discrimination in a firm's hiring practices. Answer: FALSE Explanation: More candidates are submitting video résumés, a practice replete with benefits and threats. The danger is that a video résumé makes it more likely that rejected candidates may claim discrimination. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 106) In a brief essay, discuss how EEO laws affect both recruiting and the information requested on job application forms. Answer: Firms that use the Internet for recruiting purposes must show that they are in compliance with EEO laws. Since fewer older people use the Internet, online application gathering may inadvertently exclude disproportionate numbers of older applicants and certain minorities. To prove they've complied with EEO laws, employers should keep track of each applicant's race, sex, and ethnic group. The EEO says that, to be an "applicant," he or she must meet three conditions: he or she must express interest in employment; the employer must have taken steps to fill a specific job; and the individual must have followed the employer's standard application procedure. Firms must adhere to EEO laws in regards to the information they request on job application forms. For example, firms should remember that questions about an applicant's education should avoid asking about the dates of attendance and graduation from various schools because the information may reflect the applicant's age. The courts have usually held that employers violate Title VII by disqualifying applicants from employment because of an arrest, so forms should not ask about an applicant's arrest record. Some forms ask the applicant to list memberships in clubs, organizations, or societies. Employers should include instructions not to include organizations that would reveal race, religion, physical handicaps, marital status, or ancestry. It is usually illegal to require the listing of an applicant's physical handicaps or past illnesses unless the application blank specifically asks only for those that "may interfere with your job performance." Difficulty: Hard Objective: 6, 7 AACSB: Written and Oral Communication Learning Outcome: 5.6 Explain how to recruit a more diverse workforce. 42 Copyright © 2020 Pearson Education, Inc.

107) Which one of the following is information that should NOT be requested on application forms? A) experience B) technical skills C) marital status D) training Answer: C Explanation: According to EEO law, application forms should not request information about an applicant's marital status. Asking about an applicant's work history, experience, training, and skills is considered acceptable. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 5.7 Discuss practical guidelines for obtaining application information. 108) Which one of the following is most likely a true statement about mandatory alternative dispute resolution agreements? A) Most federal courts have found the documents unenforceable. B) Judicial appeals and reconsideration are available if legal errors occur. C) Employees absorb most of the costs associated with the arbitration process. D) Job applicants are typically more interested in firms that require arbitration. Answer: B Explanation: Mandatory alternative dispute resolution agreements are required to provide for reconsideration and judicial appeal if legal errors occur. Most courts agree that the documents are enforceable if they meet certain requirements. Employers pay most costs of the process, and job applicants are usually less attracted to employers that require mandatory employment arbitration. Difficulty: Hard Objective: 7 AACSB: Analytical Thinking Learning Outcome: 5.7 Discuss practical guidelines for obtaining application information. 109) Firms can predict job performance and employee tenure by analyzing job application information, such as travel experience and education level. Answer: TRUE Explanation: Employers can use analyses of application information ("bio data") to predict employee tenure and performance. In one study, the researchers found that applicants who had longer tenure with previous employers were less likely to quit, and also had higher performance within six months after hire. Examples of bio data items might include "quit a job without giving notice," "graduated from college," and "traveled considerably growing up." Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 5.7 Discuss practical guidelines for obtaining application information.

110) When firms prove that they will use the information on job application forms as a predictor of job performance, they are allowed under EEO laws to request information regarding an applicant's age and marital status. Answer: FALSE Explanation: EEO laws prevent firms from requesting information about an applicant's age or marital status in all cases. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 5.7 Discuss practical guidelines for obtaining application information.

Human Resource Management, 16e (Dessler) Chapter 6 Employee Testing and Selection 1) Which one of the following terms refers to hiring workers who have criminal backgrounds without proper safeguards? A) employment malpractice B) negligent hiring C) improper hiring D) invalid screening Answer: B Explanation: Negligent hiring means hiring employees with criminal records or other problems who then use access to customers' homes (or similar opportunities) to commit crimes. Employers can be sued for negligent hiring. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 6.1 Answer the question: Why is it important to test and select employees? 2) A reliable employment test will most likely yield ________. A) consistent scores when a person takes two alternate forms of the test B) improved scores when a person takes the same test more than once in a single day C) high scores when a person takes two alternate forms of the test on different occasions D) similar scores when two different people are administered the test at different times Answer: A Explanation: Reliability is a test's first requirement and refers to its consistency: A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

3) If a person scores a 70 on an intelligence test on one day and scores 110 when retested on another day, you would most likely conclude that this test is ________. A) valid B) invalid C) reliable D) unreliable Answer: D Explanation: Reliability is a test's first requirement and refers to its consistency: A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions. If a person scores 70 on an intelligence test on a Monday and 110 when retested on Tuesday, you probably wouldn't have much faith in the test. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 6.2 Explain what is meant by reliability and validity. 4) If a person scores a 78 on a test on one day and scores a 79 when retested on another day, you would most likely conclude that this test is ________. A) valid B) invalid C) reliable D) unreliable Answer: C Explanation: A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions. Scores of 78 and 79 on the same test suggest that the test is reliable because it is measuring with consistency. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 6.2 Explain what is meant by reliability and validity. 5) Which one of the following terms refers to the consistency of scores obtained by the same person when retested with alternate forms of the same test? A) equivalency B) reliability C) expectancy D) validity Answer: B Explanation: Reliability is a test's first requirement and refers to its consistency: A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 2 Copyright © 2020 Pearson Education, Inc.

6) Which one of the following best describes how to use a test-retest reliability estimate to assess reliability? A) administer a test with content based on what a person actually needs to know to effectively perform the job in question B) administer the same test to different people at two different points in time and compare their test scores at time 2 with the scores at time 1 C) administer different tests to a group of people and compare the range of collected test scores D) administer the same test to the same people at two different points in time and compare their test scores at time 2 with their scores at time 1 Answer: D Explanation: There are several ways to estimate consistency or reliability. You could administer the same test to the same people at two different points in time, comparing their test scores at time two with their scores at time one; this would be a retest estimate. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 7) Which one of the following measures reliability by administering two different yet comparable tests and then comparing the two test scores? A) retest estimate B) equivalent form estimate C) internal comparison estimate D) criterion validity measurement Answer: B Explanation: An equivalent or alternate form estimate involves administering a test and then administering what experts believe to be an equivalent test later. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

8) ________ is used as an estimate of reliability and involves administering a test with x number of items designed to assess a topic and then statistically analyzing the degree to which responses to the items vary together. A) Retest estimate B) Equivalent form estimate C) Content validity estimate D) Internal comparison estimate Answer: D Explanation: A test's internal consistency is another reliability measure. For example, a psychologist includes 10 items on a test of vocational interests, believing that they all measure, in various ways, the test taker's interest in working outdoors. You administer the test and then statistically analyze the degree to which responses to these 10 items vary together. This would provide a measure of the internal reliability of the test and is known as an internal comparison estimate. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 9) All of the following are used for estimating reliability of a test EXCEPT ________. A) test-retest estimate B) internal comparison estimate C) equivalent form estimate D) content validity measurement Answer: D Explanation: Validity indicates whether a test is measuring what it is supposed to be measuring, while reliability indicates whether a test is measuring something consistently. Internal comparison estimates are used to measure the internal consistency of a test. Test-retest estimates and equivalent form estimates also measure reliability. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

10) When repetitive questions appear on a questionnaire, which one of the following is most likely being measured? A) test validity B) retest estimate C) internal consistency D) criterion validity Answer: C Explanation: A test's internal consistency is measured by making internal comparison estimates. Internal consistency explains why apparently repetitive questions are found on some test questionnaires. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 11) The unreliability of a test is best explained by all of the following EXCEPT ________. A) poor sampling of question material B) lack of equivalence between tests C) inconsistent testing conditions D) failure to predict job performance Answer: D Explanation: Many things could cause a test to be unreliable. For example, the questions may do a poor job of sampling the material or there might be errors due to changes in the testing conditions. A lack of equivalence between tests would also explain a test's unreliability. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 12) Which one of the following terms refers to the accuracy with which a test fulfills the function for which it was designed? A) reliability B) validity C) expectancy D) consistency Answer: B Explanation: Test validity answers the question "Does this test measure what it's supposed to measure?" Validity refers to the correctness of the inferences that we can make based on the test and the accuracy with which a test or interview fulfills the function it was designed to fill. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

13) Demonstrating the content validity of a test can be best accomplished by showing that ________. A) tasks performed on the test are general enough to apply to any type of job B) higher test scores are statistically equivalent to proven, long-term job success C) the test is representative of important aspects of performance on the job D) scores on the test are both internally and externally reliable Answer: C Explanation: Demonstrating content validity can be accomplished by showing that the tasks the person performs on the test are really a comprehensive and random sample of the tasks performed on the job. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 14) The first step in the test validation process is ________. A) creating a test battery B) administering tests C) analyzing the job D) cross-validating Answer: C Explanation: The first step in validating a test is to analyze the job and write job descriptions and job specifications. The point is to specify the human traits and skills you believe are required for adequate job performance. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 15) Which one of the following is a graph that shows the relationship between test scores and job performance for a group of people? A) performance standard B) digital dashboard C) competency model D) expectancy chart Answer: D Explanation: If there is a correlation between test and job performance, you can develop an expectancy chart during the process of validating an employment test. An expectancy chart presents the relationship between test scores and job performance graphically. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

16) What is the primary disadvantage of using concurrent validation? A) Current employees may not be representative of new applicants. B) New applicants are recent college graduates with limited experience. C) Limited correlation exists between high test scores and job performance. D) Test batteries have not been administered by professional industrial psychologists. Answer: A Explanation: With concurrent validation, the test scores of current employees are compared with their current job performance. The disadvantage is that current employees may not be representative of new applicants because current employees have already had on-the-job training. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 17) ________ validation is considered the most dependable method of validating an employment test. A) Applicable B) Predictive C) Concurrent D) Statistical Answer: B Explanation: Predictive validation is a more dependable way to validate a test than concurrent validation, which is the other method. With predictive validation, a test is administered to applicants before hiring. Applicants are hired using only existing selection techniques, not the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores. You can then determine whether you could have used their performance on the new test to predict their subsequent job performance. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 18) The process of cross-validating a test involves all of the following EXCEPT ________. A) using a new sample of employees B) administering additional tests C) evaluating the relationship between scores and performance D) developing and analyzing a scatter plot of scores versus performance Answer: D Explanation: Cross-validating involves administering additional tests to a new sample of employees. This final step also requires an assessment of predictive validation and an evaluation of the relationship between scores and job performance. An expectancy chart might be developed but not a scatter plot. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 7 Copyright © 2020 Pearson Education, Inc.

19) According to the American Psychological Association, all of the following are rights of test takers EXCEPT the right to expect ________. A) informed consent regarding the use of test results B) scores to be interpreted by qualified individuals C) tests to be the only selection tools for a job D) fairness of the test for all who take it Answer: C Explanation: Tests should be used as supplements and not be the only selection tool. Under the American Psychological Association's (APA) standard for educational and psychological tests, test takers have the right to the confidentiality of test results, the right to informed consent regarding use of these results, the right to expect that only people qualified to interpret the scores will have access to them, and the right to expect the test is fair to all. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 20) According to a survey, most employers who administer tests to applicants are measuring ________. A) job skills B) psychological behaviors C) interpersonal behaviors D) ethical opinions Answer: A Explanation: About 41% of companies that the American Management Association surveyed tested applicants for basic skills (defined as the ability to read instructions, write reports, and do arithmetic adequate to perform common workplace tasks). About 67% of the respondents required employees to take job skills tests, and 29% required some form of psychological measurement. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

21) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests. Which one of the following best supports the argument that Golden Creamery should use a certified psychologist to develop preemployment tests? A) Golden Creamery needs to comply with all federal and state laws. B) Golden Creamery competitors use psychologists for test development. C) Golden Creamery strives to create a conscientious organizational culture. D) Golden Creamery needs to ensure that tests are legally and ethically appropriate. Answer: D Explanation: Using a psychologist to develop and validate tests will help Golden Creamery remain protected both legally and ethically. Firms are not required by law to use a psychologist for test development. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 6.2 Explain what is meant by reliability and validity.

22) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests. Which one of the following, if true, supports the argument that Golden Creamery should require franchise owners to use the firm's preemployment tests? A) Hourly employees at Golden Creamery stores typically remain with the company long enough to be promoted to management positions. B) Golden Creamery franchise owners pay an initial franchise fee and receive a percentage of sales royalties in return. C) Annual turnover rates for hourly employees of Golden Creamery stores are three times the rate of comparable businesses. D) Individuals interested in working at a Golden Creamery store can complete online applications on the firm's Web site. Answer: C Explanation: High turnover rates suggest that Golden Creamery has problems hiring the most appropriate employees, which supports the implementation of a testing program. If hourly workers remained at the firm for a long time, then that would suggest the firm's current hiring practices do not need to be modified. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 6.2 Explain what is meant by reliability and validity.

23) For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests. Which one of the following questions is most relevant to Golden Creamery's decision to implement preemployment testing for all franchises? A) Should Golden Creamery use internal or external sources for job candidates? B) How will Golden Creamery ensure the confidentiality of an applicant's test results? C) How does testing correlate with Golden Creamery's mission and vision statements? D) What is the role of testing in Golden Creamery's strategic performance management system? Answer: B Explanation: Test takers have the right to the confidentiality of test results, so it is important that Golden Creamery develops a plan for maintaining privacy prior to administering tests. Determining whether to hire internally or externally is a recruiting issue rather than a testing concern. Although a firm's mission and vision statements guide its general direction, such statements are not directly relevant to testing. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 6.2 Explain what is meant by reliability and validity. 24) EEO laws require nondiscriminatory selection procedures for protected groups. Answer: TRUE Explanation: During the hiring process, managers need to consider EEO laws, negligent hiring, and defamation. EEO laws require nondiscriminatory selection procedures. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 25) Tests administered for hiring purposes should be both valid and reasonable if used by a firm that adheres to evidence-based human resources. Answer: FALSE Explanation: Reliability and validity are the two requirements of tests. Whether or not a test is reasonable is a matter of opinion. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

26) A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions. Answer: TRUE Explanation: Reliability of a test refers to its consistency. Therefore, when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions and earns similar scores, the test is most likely reliable. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 27) An internal comparison estimate measures a test's internal consistency. Answer: TRUE Explanation: The internal comparison estimate measures the internal consistency or reliability of a test. Internal consistency is one reason that you find apparently repetitive questions on some test questionnaires. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 28) Equivalent form estimates compare test scores from the same test administered at two points in time to determine test equivalence. Answer: FALSE Explanation: An equivalent form estimate occurs when you administer a test and then administer what experts believe to be an equivalent test later. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 29) Content validity is based on showing that the scores on the test are related to job performance. Answer: FALSE Explanation: Criterion validity is a type of validity based on showing that scores on the test (predictors) are related to job performance (criterion). A test that is content valid contains a fair sample of the tasks and skills actually needed for a specific job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

30) Test validity in employment testing is demonstrated through criterion validity and content validity. Answer: TRUE Explanation: The validity of a test is shown through criterion validity and content validity. Content validity indicates that a test is a fair sample of the job's content. Criterion validity relates to the idea that performance on a test equates to performance on the job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 31) Organization-person fit is the primary concern of most employers during the selection process. Answer: FALSE Explanation: Job-person fit is usually the main consideration in selection, but employers should care about organization-person fit as well. Candidates should have the necessary skills for a job, and they should also fit well with the organizational culture. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 32) There are five steps in the validation process beginning with analyzing the job and concluding with administering the test. Answer: FALSE Explanation: Although the first step of the validation process begins with job analysis, the last step is revalidating. Administering the test is the third step. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 33) A test battery is based on a combination of several tests that can then measure an array of predictors. Answer: TRUE Explanation: Employers usually don't start with just one test but choose several tests and combine them into a test battery. The test battery aims to measure an array of possible predictors, such as aggressiveness, extroversion, and numerical ability. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

34) Employers concerned about ethical and EEO violations may purchase employment tests that have been validated. Answer: TRUE Explanation: Given the EEO and ethical issues involved, many firms use a professional, such as a licensed industrial psychologist or purchase validated tests from companies such as Psychological Assessment Resources. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 35) Concurrent validation is the most dependable way to validate a selection test. Answer: FALSE Explanation: Predictive validation is a more dependable way to validate a selection test than concurrent validation. The test is administered before you hire them. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 36) To use predictive validation, one administers the test to applicants before they are hired. The applicants are then hired using existing selection techniques but not the new tests in development. Later, job performance measures are compared to the test scores under development. Answer: TRUE Explanation: Predictive validation is the second and more dependable way to validate a test. Here you administer the test to applicants before you hire them. Then hire these applicants using only existing selection techniques, not the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores. You can then determine whether you could have used their performance on the new test to predict their subsequent job performance. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 37) If there is a correlation between test and job performance, one can develop an expectancy chart to illustrate the relationship between test scores and job performance graphically. Answer: TRUE Explanation: Any correlations between test and job performance can be illustrated on an expectancy chart. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

38) The strong correlation between test results and job performance has led to numerous expert recommendations that tests be used as the only selection tool in the hiring process. Answer: FALSE Explanation: Although correlations exist in some tests, most experts recommend that tests be used as supplements rather than as primary hiring tools. Interviews and background checks are also important to use in the hiring process. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 39) Selection tests must be validated in the organization that uses them regardless of the validity shown in other similar organizations. Answer: FALSE Explanation: It's best to validate them in your own organization. However, the fact that the same tests have proven valid in similar organizations–called validity generalization–is usually adequate. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 40) Selection tests should be used as supplements to other tools like interviews and background checks. Answer: TRUE Explanation: Tests should serve as supplemental tools in the selection process in addition to interviews and background checks. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 41) The American Psychological Association's standards for educational and psychological tests are legally enforceable. Answer: FALSE Explanation: Test takers have rights to privacy and feedback under the American Psychological Association's (APA) standard for educational and psychological tests; these guide psychologists but are not legally enforceable. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

42) The Federal Privacy Act allows federal employees to view their personnel files. Answer: TRUE Explanation: According to the Federal Privacy Act, employees of the federal government may inspect their personnel files. The law also limits the disclosure of personnel information without the employee's consent, among other things. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 43) Criterion validity shows a relationship between how well a person performs on a selection test and how well a person performs on the job. Answer: TRUE Explanation: Criterion validity involves demonstrating statistically a relationship between scores on a selection procedure and job performance of a sample of workers. For example, it means demonstrating that those who do well on the test also do well on the job, and that those who do poorly on the test do poorly on the job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity. 44) According to the Uniform Guidelines, employers are required to prove the validity of selection procedures for all assessments. Answer: FALSE Explanation: The Uniform Guidelines require users to produce evidence of validity only when adverse impact is shown to exist. If there is no adverse impact, there is no validation requirement under the Guidelines. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 6.2 Explain what is meant by reliability and validity.

45) Why are tests and other screening tools an important aspect of employee selection? What rights do test takers have during the testing process? Answer: Once you review your applicants' résumés, the next step is selecting the best candidates for the job, which is where testing and other screening tools become important. Employers narrow the applicant pool by using the screening tools such as tests, assessment centers, and background and reference checks. Then the supervisor can interview likely candidates and decide who to hire. Nothing you do at work is more important than hiring the right employees. It is important for three main reasons: performance, costs, and legal obligations. Test takers have rights to privacy and feedback under the American Psychological Association's (APA) standard for educational and psychological tests; these guide psychologists but are not legally enforceable. Test takers have the right to the confidentiality of test results, the right to informed consent regarding use of these results, the right to expect that only people qualified to interpret the scores will have access to them, or that sufficient information will accompany the scores to ensure their appropriate interpretation and the right to expect the test is fair to all. For example, no one taking it should have prior access to the questions or answers. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 6.2 Explain what is meant by reliability and validity. 46) What is test validity? How are selection tests validated? Answer: Test validity answers the question "Does this test measure what it's supposed to measure?" Put another way, validity refers to the correctness of the inferences that we can make based on the test. With employee selection tests, validity often refers to evidence that the test is job related–in other words, that performance on the test is a valid predictor of job performance. Selection tests are validated by a five step process: analyze the job, choose the tests, administer the test, relate test scores to criteria, and revalidate the test. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 6.2 Explain what is meant by reliability and validity.

47) What is the difference between criterion validity and content validity? Which one is more difficult to demonstrate? Answer: Criterion validity means demonstrating that those who do well on the test also do well on the job and those that do poorly on the test do poorly on the job. Employers can demonstrate content validity of a test by showing that the test constitutes a fair sample of the content of the job. If the content on the test is representative of what the person needs to know for the job, then the test is probably content valid. Demonstrating content validity sounds easier than it is in practice. Demonstrating that (1) the tasks the person performs on the test are really a comprehensive and random sample of the tasks performed on the job and (2) the conditions under which the person takes the test resemble the work situation is not always easy. For many jobs, employers opt to demonstrate other evidence of a test's validity–most often, criterion validity. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 6.2 Explain what is meant by reliability and validity. 48) ________ tests include assessments of general reasoning ability and of specific mental abilities like memory and inductive reasoning. A) Motor ability B) Personality C) Achievement D) Cognitive Answer: D Explanation: Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning. Employers may also use tests to measure an applicant's motor and physical abilities. Achievement tests measure what someone has learned, and personality tests measure aspects of an applicant's personality, such as stability, motivation, and introversion. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

49) Grafton Industries administers selection tests to job candidates. The tests measure a range of abilities including memory, vocabulary, verbal fluency, and numerical ability, so they are most likely ________ tests. A) standardized B) intelligence C) achievement D) personality Answer: B Explanation: Intelligence (IQ) tests are tests of general intellectual abilities. They measure not a single trait but rather a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability. Difficulty: Easy Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 50) All of the following are measured by aptitude tests EXCEPT ________. A) deductive reasoning B) numerical ability C) temperament D) memory Answer: C Explanation: Temperament and other interpersonal skills are measured by personality tests. Aptitude tests measure deductive and inductive reasoning, verbal comprehension, numerical ability, and memory. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 51) As part of the selection process for a position at UPS, Jacques has been asked to lift weights and jump rope. which one of the following is most likely being measured by UPS? A) interpersonal skills B) cognitive skills C) physical abilities D) achievements Answer: C Explanation: Physical abilities are measured by testing an applicant's static strength (lifting weights), dynamic strength, body coordination (jumping rope), and stamina. A UPS worker needs to have such skills to perform the job. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 19 Copyright © 2020 Pearson Education, Inc.

52) Carlos recently participated in a selection test for a position at Northern Aeronautics. The test measured Carlos's finger dexterity and reaction time, so it was most likely a(n) ________ test. A) motor ability B) personality C) cognitive D) interest Answer: A Explanation: Some jobs require applicants be tested for motor abilities, such as finger dexterity, manual dexterity, and (if hiring pilots) reaction time. For example, the Crawford Small Parts Dexterity Test measures the speed and accuracy of simple judgment as well as the speed of finger, hand, and arm movements. Difficulty: Easy Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 53) All of the following are most likely assessed on personality tests EXCEPT ________. A) extraversion B) reasoning C) sensitivity D) emotional stability Answer: B Explanation: Reasoning skills are tested with aptitude tests. Personality tests measure introversion, sensitivity, motivation, and emotional stability among other qualities. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

54) According to experts, most people are hired for their qualifications and fired because of attitude, motivation, and ________. A) physical limitations B) lack of aptitude C) temperament D) psychological issues Answer: C Explanation: A person's cognitive and physical abilities alone seldom explain his or her job performance. Most people are hired based on qualifications, but most are fired for nonperformance, which is usually the "result of personal characteristics, such as attitude, motivation, and especially, temperament." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 55) Make a Picture Story and the Forer Structured Sentence Completion Test are examples of ________ tests. A) intelligence B) apperception C) self-reported D) projective Answer: D Explanation: Projective techniques include Make a Picture Story (MAPS) and the Forer Structured Sentence Completion Test. With projective tests, the psychologist presents an ambiguous stimulus (like an inkblot or clouded picture) to the person who then reacts to it. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 56) Which one of the following is a projective personality test? A) MMPI B) California Psychological Inventory C) Make a Picture Story D) Myers Briggs Test Answer: C Explanation: Make a Picture Story is a projective personality test. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

57) The Big Five personality dimensions include all of the following EXCEPT ________. A) neuroticism B) optimism C) extroversion D) conscientiousness Answer: B Explanation: Industrial psychologists often focus on the "big five" personality dimensions: extroversion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience. Optimism is not one of the big five. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 58) Which one of the following personality dimensions represents a tendency to exhibit poor emotional adjustment and experience negative effects such as anxiety, insecurity, and hostility? A) neuroticism B) extroversion C) conscientiousness D) openness to experience Answer: A Explanation: Neuroticism relates to anxiety and insecurity and hostility. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 59) ________ represents a tendency to be sociable, assertive, and active. A) Extroversion B) Conscientiousness C) Agreeableness D) Openness to experience Answer: A Explanation: Extroversion represents a tendency to be sociable, assertive, and active. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

60) Michelle Simmons recently applied for a position with Pfizer Pharmaceuticals. Which personality trait most likely has the strongest correlation to Michelle's success as a pharmaceutical sales representative? A) extroversion B) agreeableness C) conscientiousness D) openness to experience Answer: A Explanation: Extroversion represents a tendency to be sociable, assertive, and active, which are necessary characteristics for sales reps. Studies have shown that extroversion correlates to success in sales and management jobs. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 61) Which personality characteristic refers to the disposition to be imaginative, nonconforming, and unconventional? A) extroversion B) conscientiousness C) neuroticism D) openness to experience Answer: D Explanation: Openness to experience is the disposition to be imaginative, nonconforming, unconventional, and autonomous. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 62) The tendency for one to be trusting, compliant, caring, and gentle is the personality dimension known as ________. A) extroversion B) conscientiousness C) agreeableness D) openness to experience Answer: C Explanation: Agreeableness is the tendency to be trusting, compliant, caring, and gentle. Neuroticism, extroversion, conscientiousness, and openness to experience are the other personality traits known as the big five. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 23 Copyright © 2020 Pearson Education, Inc.

63) Which personality characteristic comprises both achievement and dependability? A) neuroticism B) extroversion C) conscientiousness D) agreeableness Answer: C Explanation: Conscientiousness is comprised of two related facets: achievement and dependability. According to research, conscientiousness has been the most consistent and universal predictor of job performance. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 64) While some personality characteristics are associated with success in different types of jobs, which personality trait is most frequently associated with job performance in all jobs? A) openness to experience B) conscientiousness C) extroversion D) agreeableness Answer: B Explanation: According to research, conscientiousness has been the most consistent and universal predictor of job performance. Conscientiousness is comprised of two related facets: achievement and dependability. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

65) Red Robin Gourmet Burgers is a national restaurant chain with nearly 36,000 employees that began as a small restaurant in Seattle. Over the years, Red Robin has attempted to develop a reputation as a fun, family restaurant that offers both excellent food and service. Red Robin's core values—honor, integrity, having fun, and continually seeking knowledge—serve as the basis for all of the firm's decisions and are even embroidered on the sleeves of every employee's uniform. As Red Robin continues to expand, executives are considering adding tests to the screening process. Which one of the following, if true, would best support the argument that Red Robin should use personality tests in the employee selection process? A) Red Robin encourages employees to participate in the firm's environmental stewardship program to show community support. B) Red Robin seeks outgoing, motivated, and compassionate employees to enhance the experience of its customers. C) Red Robin offers monetary incentives to managers who meet quarterly sales targets and exceed performance expectations. D) Red Robin desires employees with extensive knowledge of the restaurant industry and at least two years of experience serving customers. Answer: B Explanation: Personality traits, as uncovered by personality tests, often correlate to job performance. Red Robin seeks employees that match the firm's core values of honor, integrity, having fun, and continually seeking knowledge, and personality tests would indicate an applicant's level of extroversion and openness to experiences. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

66) Red Robin Gourmet Burgers is a national restaurant chain with nearly 36,000 employee that began as a small restaurant in Seattle. Over the years, Red Robin has attempted to develop a reputation as a fun, family restaurant that offers both excellent food and service. Red Robin's core values—honor, integrity, having fun, and continually seeking knowledge—serve as the basis for all of the firm's decisions and are even embroidered on the sleeves of every employee's uniform. As Red Robin continues to expand, executives are considering adding tests to the screening process. Which one of the following, if true, would most likely undermine the argument that Red Robin should use achievement tests in the employee selection process? A) Red Robin receives so many applications that it only considers individuals with previous job experience in the restaurant industry. B) Red Robin provides a two-week training session to all new hires, which are frequently college students with little experience in the restaurant industry. C) Red Robin expects applicants for management positions to understand current EEO laws and be aware of ADA requirements. D) Red Robin requires applicants for cashier positions to take typing tests to assess their speed at the cash register. Answer: B Explanation: Red Robin will train new hires and does not need to assess their job knowledge, so achievement tests are unnecessary. If Red Robin expected applicants to have a certain level of skill or knowledge then achievement tests would be appropriate. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 67) An interest inventory compares an applicant's current interests with the interests of ________. A) retired workers B) other people in the same industry C) other people in various occupations D) managers and executives in the firm Answer: C Explanation: Interest inventories compare an applicant's interests with those of people in various occupations. Thus, a person who takes the Strong-Campbell Interests Inventory would receive a report comparing his or her interests to those of people already in occupations like accounting, engineering, or management. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

68) Which one of the following is used to measure job knowledge? A) aptitude tests B) interest inventories C) achievement tests D) projective tests Answer: C Explanation: Achievement tests measure what someone has learned. They measure your "job knowledge" in areas like economics, marketing, or human resources. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 69) Talent analytics helps employers by ________. A) scanning resumés to reject over-qualified candidates B) identifying exaggerations on resumés C) searching government databases to make sure the candidate is in the U.S. legally D) identifying patterns and correlations that show what types of people succeed or fail. Answer: D Explanation: Analytics refers to using tools like statistical techniques to examine data, in order to draw cause-effect conclusions from that data. Talent analytics means using such techniques to let employers search through their employee data to identify patterns and correlations that show what types of people or processes succeed or fail. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 70) Interest inventories are useful for career planning because they compare the interests of the test taker to the interests of people in various occupations. Answer: TRUE Explanation: Interest inventories compare your interests with those of people in various occupations. Interest inventories are irreplaceable in career planning, since a person will likely do better in jobs that involve activities in which he or she is interested. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

71) Intelligence tests measure what the individual has learned over his/her lifetime. Answer: FALSE Explanation: Intelligence (IQ) tests are tests of general intellectual abilities. They measure not a single trait but rather a range of abilities. Achievement tests measure what someone has learned. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 72) In a brief essay, discuss the use and effectiveness of cognitive tests versus work sampling techniques for employee selection. Answer: Cognitive tests are tests of general intellectual abilities. They measure not a single trait but rather a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability. Psychologists often call such tests aptitude tests, since they purport to measure aptitude for the job in question. Consider the Test of Mechanical Comprehension which tests applicants' understanding of basic mechanical principles. This may reflect a person's aptitude for jobs–like that of machinist or engineer–that require mechanical comprehension. The work sampling technique tries to predict job performance by requiring job candidates to perform one or more samples of the job's basic tasks. Work sampling has several advantages. It measures actual job tasks, so it's harder to fake answers. The work sample's content–the actual tasks the person must perform– is not as likely to be unfair to minorities. Designed properly, work samples exhibit better validity than do other tests designed to predict performance. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 73) How would an employer benefit from using both personality tests and situational tests when screening job applicants? Answer: A person's cognitive and physical abilities alone seldom explain his or her job performance. Other factors, like motivation and interpersonal skills, are very important, and these can be discovered through personality tests. Employers use personality tests to measure and predict intangibles of an applicant's personality, such as introversion, stability, and motivation. Situational tests require examinees to respond to situations representative of the job. Work sampling, video-based tests, and miniature job training are situational tests. Miniature job training and evaluation assumes that a person who demonstrates that he or she can learn and perform the sample of tasks will be able to learn and perform the job itself. This approach tests applicants with actual samples of the job, so it's inherently content relevant and valid. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

74) Industrial psychologists often emphasize the "big five" personality dimensions in personnel testing. List and explain the meaning of the big five dimensions. How do personality traits correlate with job performance? Answer: The "big five" personality dimensions are neuroticism, extroversion, agreeableness, conscientiousness, and openness to experience. Neuroticism refers to a tendency to exhibit poor emotional adjustment and experience negative effects like anxiety and insecurity. Extroversion represents a tendency to be sociable, assertive, and active. Openness to experience is the disposition to be imaginative, nonconforming, unconventional, and autonomous. Agreeableness is the tendency to be trusting, compliant, caring, and gentle. Conscientiousness is comprised of two related facets including achievement and dependability. Extroversion is generally associated with success in sales. Extroversion, conscientiousness, and openness to experience are strong predictors of leadership. Neuroticism is negatively related to motivation. Conscientiousness is the most consistent and universal predictor of job performance. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples. 75) What are three arguments against the use of personality tests as predictors of job performance? Answer: First, projective tests are hard to interpret. An expert must analyze the test taker's interpretations and infer from them his or her personality. The test's usefulness then assumes there's a measurable relationship between a personality trait (like introversion) and success on the job. Second, personality tests can trigger legal challenges. For example, one court held that the MMPI is a medical test (because it can screen out applicants with psychological impairments), and so might violate the ADA. Third, some experts dispute that self-report personality tests predict performance at all. Fourth, people can and will fake responses to personality tests. So personality tests can be useful tools but there can be significant concerns about use. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 6.3 List and briefly describe the basic categories of selection tests, with examples.

76) With the work sampling technique, applicants are ________. A) asked to submit examples of projects they have completed for other employers B) tested on their ability to perform several tasks crucial to performing the job of interest C) tested on their ability to perform a range of tasks related to several positions in a firm D) given video-based situational interviews to assess their critical thinking skills Answer: B Explanation: The work sampling technique tries to predict job performance by requiring job candidates to perform one or more samples of the job's basic tasks. An observer monitors performance on each task and rates the applicant's performance. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 77) Which one of the following is the primary advantage of the work sampling technique? A) Applicants find it difficult to fake answers. B) Employers learn about an applicant's personality. C) Applicants can evaluate their own performance. D) Fine motor skills can be accurately assessed over time. Answer: A Explanation: Work sampling has several advantages. It measures actual job tasks, so it's harder to fake answers. Work sampling doesn't delve into the applicant's personality, so there's almost no chance of applicants viewing it as an invasion of privacy. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 78) A(n) ________ is a multi-day simulation in which candidates perform realistic tasks in hypothetical situations and are scored on their performance. A) work sampling event B) situational judgment test C) management assessment center D) applicant personality test Answer: C Explanation: A management assessment center is a 2- to 3-day simulation in which 10 to 12 candidates perform realistic management tasks (like making presentations) under the observation of experts who appraise each candidate's leadership potential. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection.

79) Typical simulated exercises used in management assessment centers include all of the following EXCEPT ________. A) the in-basket B) leaderless group discussions C) motor skills assessments D) management games Answer: C Explanation: Management assessment center tasks include the in-basket, leaderless group discussion, management games, individual oral presentations, testing, and interviews. Motor skills are not assessed. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 80) Which one of the following is the primary advantage of using management assessment centers in the selection process? A) Development costs are very low. B) Minimal time is required for test administration. C) Industrial psychologists are involved in the testing process. D) Experts observe and appraise each candidate's leadership potential. Answer: D Explanation: Management assessment centers are expensive to develop, take much longer than conventional tests, require managers acting as assessors, and often require psychologists. However, studies suggest they are worth it as they gain valuable insights about the candidates under the observation of experts who appraise each candidate's leadership potential. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 81) Work sampling, miniature job training, and video-based tests are examples of ________. A) intelligence tests B) personality tests C) situational tests D) interests inventories Answer: C Explanation: Situational tests, such as work sampling, miniature job training, and video-based tests, require examinees to respond to situations representative of the job. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection.

82) Which one of the following terms refers to training candidates to perform several of the job's tasks and then assessing the candidates' performance prior to hire? A) achievement testing B) work sampling technique C) management assessment center D) miniature job training Answer: D Explanation: Miniature job training and evaluation means training candidates to perform several of the job's tasks, and then evaluating the candidates' performance prior to hire. The approach assumes that a person who demonstrates that he or she can learn and perform the sample of tasks will be able to learn and perform the job itself. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 83) Carter Vacuums needs to hire 20 new employees to fill positions at its manufacturing facility. The HR department wants to minimize the costs related to screening applicants but also wants the assessment method to be highly valid to the specific jobs. Which one of the following would be the best choice for Carter Vacuums? A) structured interviews B) cognitive ability tests C) assessment centers D) work samples Answer: B Explanation: Cognitive ability tests are highly valid and the costs related to developing and administering the tests are low and they measure mental ability, such as deductive reasoning verbal comprehension, memory and numerical ability for jobs like machinists or engineers. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 6.4 Explain how to use two work simulations for selection.

84) Blue Bay Hotels is in the process of modifying the assessment methods the company uses to hire new employees. In the past, the hotel chain has been accused by minority organizations of violating EEO laws in its hiring practices. Which one of the following applicant assessment methods would most likely have the LEAST adverse impact on minorities? A) aptitude tests B) cognitive ability tests C) work sampling technique D) job knowledge tests Answer: C Explanation: Work samples have a low adverse impact on applicants. Cognitive ability tests, also known as aptitude tests, and job knowledge tests have a high adverse impact against minorities. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 6.4 Explain how to use two work simulations for selection. 85) Marlena is applying for a job as an assembly worker at Honda. As part of the selection procedure, Marlena received classroom instruction and was asked to practice assembling windshield wipers onto cars. Marlena most likely participated in ________. A) miniature job training and evaluation B) situational judgment tests C) assessment centers D) management games Answer: A Explanation: Miniature job training and evaluation means training candidates to perform several of the job's tasks, and then evaluating the candidates' performance prior to hire. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 6.4 Explain how to use two work simulations for selection.

86) As the HR manager at Johnson Manufacturing, Danté is responsible for deciding which selection tools are most appropriate. When deciding on a specific selection tool, Danté should most likely consider all of the following factors EXCEPT the tool's ________. A) return on investment B) adverse impact C) persistence D) usability Answer: C Explanation: The employer needs to consider several things before deciding to use a particular selection tool. These include the tool's reliability and validity; its return on investment (in terms of utility analysis); applicant reactions; usability (in terms of your managers' and employees' willingness and ability to use it); adverse impact; and the tool's selection ratio. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 6.4 Explain how to use two work simulations for selection. 87) Although inexpensive to develop, assessment centers are infrequently used by employers because such tests have a weak correlation with future job performance. Answer: FALSE Explanation: Assessment centers are expensive to develop and take much longer than conventional tests. However, assessment center performance shows a unique and substantial contribution to the prediction of future job success. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 88) Most small businesses find it cost-effective to conduct validity studies of the selection tools they use. Answer: FALSE Explanation: Many employers, particularly smaller ones, won't find it cost-effective to conduct validity studies for the selection tools they use. These employers must identify tests and other screening tools that have been shown to be valid in other settings (companies), and then bring them in-house in the hopes that they'll be valid there, too. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection.

89) What is a management assessment center? What are some of the most common tasks conducted in management assessment centers? Answer: A management assessment center is a 2-3 day simulation in which 10-12 candidates perform realistic management tasks under the observation of experts who appraise each candidate's leadership potential. Typical simulated exercises include 1) the in basket, 2) leaderless group discussion, 3) management games, 4) individual presentations, 5) objective tests, and 6) the interview. These centers can be used for promotion and development purposes as well as for selection. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 6.4 Explain how to use two work simulations for selection. 90) Employers most likely conduct background investigations and reference checks to verify a candidate's ________. A) age B) marital status C) military service D) disability history Answer: C Explanation: Employers verify data regarding military service, employment history, education, and credit. An applicant's age, marital status, ethnicity, and medical history or disabilities are considered irrelevant to hiring, and an employer may violate EEO laws by requesting such information. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 91) According to surveys of HR managers, which one of the following is most frequently verified during an employment background investigation? A) age B) references C) credit ratings D) driving records Answer: B Explanation: Nearly 90% of HR managers reported conducting reference checks. Credit checks were performed by 35% of HR managers, while 56% investigated an applicant's driving history. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

92) Which one of the following is the primary reason that firms conduct background investigations of job applicants? A) adhere to legal hiring practices B) limit the number of applicants C) uncover false information D) report criminals to police Answer: C Explanation: There are two main reasons to check backgrounds–to verify the applicant's information (name and so forth) and to uncover damaging information, such as criminal activities or falsified information about education and experience. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 93) Alesandro, a manager at Harwood Publishing, gave a bad reference to a former employee. Alesandro could most likely be accused of ________ if the information is both false and harmful. A) discrimination B) adverse impact C) arbitration D) defamation Answer: D Explanation: A communication is defamatory if it is false and tends to harm the reputation of another by lowering the person in the estimation of the community or by deterring other persons from associating or dealing with him or her. Managers, supervisors, and employers can be sued for defamation if comments are found to be false and harmful. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

94) Which one of the following methods for gathering background information about a job applicant is NOT recommended because of potential legal violations? A) searching social networking sites for posted information about the applicant B) using a database to access information about the applicant's credit history C) locating references other than the ones provided by the applicant D) using a search engine to find information about the applicant Answer: A Explanation: Using a search engine like Google is acceptable, but checking social networking sites raises legal issues, especially when done without the candidate's prior approval. Using databases and contacting references are recommended for finding useful information about an applicant. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 95) According to state and federal laws, which one of the following actions is NOT required of employers who check background information on applicants? A) disclosing to the applicant that a credit report will be requested B) certifying to the reporting agency of the employer's legal compliance C) providing copies of reports to the applicant if adverse action is considered D) providing a detailed rationale explaining the reason for any adverse action Answer: D Explanation: Employers must disclose to the applicant that a report will be requested and certify with the reporting agency that the employer has the consent of the applicant. If adverse action, such as withdrawing an employment offer, is being considered or occurs, then the employer must provide the applicant with a copy of the report but a detailed rationale is not needed. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

96) In which one of the following situations is it NOT legal to require an applicant to take a polygraph test as part of the selection process? A) electrical engineer at the Department of Energy B) pharmacist's assistant at Walgreen's C) security guard at Wells Fargo Bank D) cashier at J.C. Penney's Answer: D Explanation: Local, state, and federal government employers can use polygraphs, but state laws restrict many local and state governments. Private employers can use polygraph testing, but only under strictly limited circumstances, such as for security personnel or for positions with access to drugs. Cashiers at retail stores should not be asked to take polygraph tests. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 97) What type of screening device is designed to measure attitudes regarding tolerance of others who steal and other forms of counter productivity? A) honesty tests B) interest inventories C) personality tests D) graphology Answer: A Explanation: Honesty tests are psychological tests designed to predict job applicants' proneness to dishonesty and other forms of counter productivity. Most measure attitudes regarding things like tolerance of others who steal, acceptance of rationalizations for theft, and admission of theftrelated activities. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

98) In which one of these situations is an employer allowed to administer a polygraph test? A) A complaint has been filed with the employer that one of the employees may have a weapon stored in his/her locker, in violation of company policy. B) John was involved in an accident at work but denies he was under the influence of illegal or controlled substances at the time. C) One employee has accused another of unwanted sexual advances. D) Makesh has noticed on several occasions that the cash register records do not match the cash count at the end of the evening and suspects the thief may be an employee. Answer: D Explanation: Private employers can use polygraph testing when there is an ongoing investigation for theft. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 99) Graphology, a tool for assessing basic personality traits, is also called ________. A) numerology B) reasoning analysis C) handwriting analysis D) polygraph output assessment Answer: C Explanation: Graphology refers to the use of handwriting analysis to determine the writer's basic personality traits. Graphology thus has some resemblance to projective personality tests, although graphology's validity is highly suspect. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 100) What type of screening is used to reduce absenteeism and establish a baseline for future insurance claims? A) physical exams B) personality tests C) substance abuse screening D) fine motor skills assessments Answer: A Explanation: Preemployment medical exams are used to verify that the applicant meets the position's physical requirements, to discover any medical limitations you should consider in placing him or her, and to establish a baseline for future insurance or compensation claims. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 39 Copyright © 2020 Pearson Education, Inc.

101) Which one of the following is most likely true regarding substance abuse screening? A) According to federal law, all employers must test all employees for illegal drugs. B) Some urine sample tests cannot distinguish between legal and illegal substances. C) Most employers test potential applicants during the recruitment process. D) Most urine sample tests measure the degree of impairment. Answer: B Explanation: Some urine sample tests cannot tell the difference between legal and illegal substances, such as Advil and marijuana. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 102) E-Verify is primarily used by employers to ________. A) review an applicant's employment records B) file an applicant's income tax information C) determine if an applicant is eligible to work in the U.S. D) report an applicant's work status to the U.S. government Answer: C Explanation: E-Verify is the federal government's voluntary electronic employment verification program used by many employers. Federal contractors are required to use E-Verify to determine if an applicant is eligible to work in the U.S. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

103) According to experts known as human lie detectors, which one of the following characteristics most likely indicates that a job candidate is being deceptive? A) uncrossed legs B) irregular breathing C) unchanging pupils D) slow verbal responses Answer: B Explanation: Human lie detectors are experts who may (or may not) be able to identify lying just by watching candidates. Signs include pupils changing size (which often corresponds to emotions, such as fear); irregular breathing (may flag nervousness); micro-expressions (quick transitory facial expressions that may portray emotions such as fear); crossing legs ("liars typically try to distance themselves from an untruth"); and quick verbal responses (possibly reflecting scripted statements). Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 104) Managers cannot be sued for defamation when giving bad references because only employers are held responsible by state and federal courts. Answer: FALSE Explanation: First-line supervisors and managers, not just employers, are potentially at risk for defamation lawsuits. A communication is defamatory if it is false and tends to harm the reputation of another by lowering the person in the estimation of the community or by deterring other persons from associating or dealing with him or her. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 105) Most employers report preferring written references to telephone references because written letters provide more candid information about job candidates. Answer: FALSE Explanation: Telephone references typically provide more candid information than written references. Employers are able to ask follow up questions during a phone conversation, which is more likely to provide useful information about an applicant. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

106) Employment screening services are useful in the selection process because they have access to a job applicant's credit history, driving record, and workers' compensation claims history. Answer: TRUE Explanation: It is easy to have employment screening services check out applicants. Numerous firms do this. Top providers use databases to access information about matters such as workers' compensation and credit histories, and conviction and driving records. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 107) The Privacy Act is the main directive at the federal level that governs how employers acquire and use applicants' and employees' background information. Answer: FALSE Explanation: Employees hired in the United States must prove they are eligible to work in the United States. However, a person does not have to be a U.S. citizen to be employable. They may be eligible if they have a work permit. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 108) In order to be legally eligible to work in the United States, a person must be a U.S. citizen. Answer: FALSE Explanation: Employees hired in the United States must prove they are eligible to work in the United States. However, a person does not have to be a U.S. citizen to be employable. They may be eligible if they have a work permit Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

109) How can employers protect themselves against negligent hiring? Answer: Negligent hiring means hiring employees with criminal records or other problems who then use access to customers' homes (or similar opportunities) to commit crimes. Avoiding negligent hiring claims requires good screening. This means taking "reasonable" action to investigate the candidate's background. Specifically, ". . . make a systematic effort to gain relevant information about the applicant, verify documentation, follow up on missing records or gaps in employment, and keep a detailed log of all attempts to obtain information, including the names and dates for phone calls or other requests." Background investigations and reference checks can be major ways of avoiding negligent hiring. Honesty testing and drug testing can be others. Difficulty: Hard Objective: 1, 5 AACSB: Written and Oral Communication Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process. 110) Various federal and state laws govern how employers acquire and use applicants' and employees' background information. What four steps are necessary in order for an employer to be in compliance with these laws? Answer: The four steps are 1) disclosure and authorization; 2) certification; 3) provision of report copies; and 4) notice after adverse action. In the first step, employers must disclose to the applicant or employee that a report will be requested and that copies may be provided to the employee/applicant, and the employer must obtain the employee/applicant's written authorization. In the second step, the employer must certify to the reporting agency that the employer will comply with the federal and state legal requirements. In the third step, the employer must provide copies of the report to the applicant/employee if adverse action such as withdrawing an offer or dismissing the employee is contemplated. After the employer provides the employee or applicant with copies of the consumer and investigative reports and a "reasonable period" has elapsed, the employer may take adverse action. If so, the employee or applicant must receive an adverse action notice. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 6.5 Describe four ways to improve an employer's background checking process.

Human Resource Management, 16e (Dessler) Chapter 7 Interviewing Candidates 1) Which one of the following is the most commonly used selection tool? A) telephone reference B) reference letter C) interview D) personality test Answer: C Explanation: Interviews are the most widely used selection procedure. Not all managers use tests, reference checks, or situational tests, but most interview a person before hiring. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 2) Which one of the following refers to a procedure designed to predict future job performance based on an applicant's oral responses to oral inquiries? A) work sample simulation B) selection interview C) reference check D) arbitration Answer: B Explanation: A selection interview is a procedure designed to predict future job performance based on applicant's oral responses to oral inquires. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 3) When an interview is used to predict future job performance on the basis of an applicant's oral responses to oral inquiries, it is called a ________ interview. A) screening B) selection C) benchmark D) background Answer: B Explanation: Selection interviews are designed to predict future job performance based on the applicant's oral responses to oral inquiries. Interviews may be one-on-one or may be conducted in group settings. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

4) According to the text, selection interviews are classified by all of the following factors EXCEPT ________. A) administration B) structure C) content D) length Answer: D Explanation: Selection interviews are classified according to how structured they are, their "content"–the types of questions they contain, and how the firm administers the interviews. Length is not a category. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 5) What is the type of interview which lists the questions ahead of time? A) structured interview B) unstructured interview C) situational interview D) behavioral interview Answer: A Explanation: Structured (or directive) interviews list the questions ahead of time and may even list and weight possible answers for appropriateness. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 6) Which one of the following is another term for an unstructured interview? A) directive B) nondirective C) unformatted D) administrative Answer: B Explanation: In unstructured or nondirective interviews, the manager follows no set format. A few questions might be specified in advance, but they're usually not, and there is seldom a formal guide for scoring "right" or "wrong" answers. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

7) Which one of the following is an advantage of using a nondirective format when interviewing job candidates? A) allows candidates to ask questions B) uses a manager's time more effectively C) pursues points of interest as they develop D) scores and compares candidates with consistency Answer: C Explanation: In unstructured or nondirective interviews, the manager follows no set format and there is seldom a formal guide for scoring "right" or "wrong" answers. With unstructured interviews, an interviewer can pursue points of interest as they develop and ask follow up questions because of the format's flexibility. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 8) Which one of the following is the primary disadvantage of using highly structured interviews during the employee selection process? A) higher potential for bias B) limited validity and reliability C) inconsistency across candidates D) reduced opportunities for asking follow-up questions Answer: D Explanation: Structured interviews when followed blindly limit the interviewer's chance to ask follow-up questions. Structured interviews are typically reliable, valid, consistent, and have a lower potential for bias. As a result, they have a greater ability to withstand legal challenges. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 9) How do situational interviews differ from behavioral interviews? A) Situational interviews are based on an applicant's responses to actual past situations. B) Situational interviews are based on how an applicant might behave in a hypothetical situation. C) Situational interviews ask applicants job-related questions to assess their knowledge and skills. D) Behavioral interviews ask applicants to describe their emotions in different hypothetical situations. Answer: B Explanation: Situational interviews ask applicants to describe how they would react to a hypothetical situation today or tomorrow, and behavioral interviews ask applicants to describe how they reacted to actual situations in the past. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 3 Copyright © 2020 Pearson Education, Inc.

10) Which one of the following statements is representative of what might be asked in a behavioral interview? A) "Consider a time when you were faced with an angry client. What did you do to turn the situation around?" B) "We are concerned with employee pilferage. As a manager here, how would you go about discouraging this behavior?" C) "Employees in this division are frequently under a great deal of pressure. How do you think you would handle the stress of the position?" D) "What would you do if a subordinate threatened to sue the company for discrimination?" Answer: A Explanation: Behavioral questions start with phrases like, "Can you think of a time when . . . What did you do?" Situational questions start with phrases such as, "Suppose you were faced with the following situation . . . What would you do?" Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 11) What type of interview would most likely include the statement, "Tell me about a time when you worked successfully in a team environment"? A) situational B) behavioral C) puzzle D) stress Answer: B Explanation: Behavioral interview questions ask applicants to describe how they reacted to actual situations in the past. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews.

12) Which one of the following statements is representative of what might be asked in a situational interview? A) "Tell me about a time you showed leadership in a difficult situation." B) "Suppose you were confronted with an angry customer who threatened to sue the company. What would you do?" C) "Can you think of a time when you were especially proud of your management skills? Tell me about that." D) "In this position, you are responsible for hiring and firing subordinates. Have you ever fired anyone before? Describe how you handled the situation." Answer: B Explanation: Situational questions start with phrases such as, "Suppose you were faced with the following situation . . . What would you do?" Behavioral questions start with phrases like, "Can you think of a time when . . . What did you do?" Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 13) What type of interview would most likely include the following statement? "Imagine that you have just been assigned the task of winning the business of our competition's biggest client. How would you proceed?" A) behavioral B) stress C) puzzle D) situational Answer: D Explanation: Situational interviews ask questions based on hypothetical events. Behavioral interview questions ask applicants to describe how they reacted to actual situations in the past. Puzzle questions require applicants to solve a problem, and stress questions may be invasive and rude. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews.

14) In a stress interview, the interviewer ________. A) provides an applicant with a task to complete in a set amount of time B) tries to make the applicant uncomfortable in order to spot sensitivity C) gives a word problem to see how the candidate thinks under pressure D) describes a hypothetical situation to assess how the applicant responds Answer: B Explanation: In a stress interview, the interviewer seeks to make the applicant uncomfortable with occasionally rude questions. The aim is supposedly to spot sensitive applicants and those with low (or high) stress tolerance. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 15) Which one of the following questions would most likely be asked during a stress interview? A) "I see that you switched colleges four times before finally earning your degree. I think that reflects an inability to make good decisions and remain focused. What do you think?" B) "Can you tell me about a time in the past when you used leadership skills to handle a difficult situation?" C) "Mike and Todd have $21 between them. Mike has $20 more than Todd has. How much does Mike have and how much does Todd have?" D) "Why are you leaving your current position and changing careers?" Answer: A Explanation: In a stress interview, the interviewer seeks to make the applicant uncomfortable with occasionally rude questions. The aim is supposedly to spot sensitive applicants and those with low (or high) stress tolerance. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 16) What type of interview would most likely include the following: "It must be difficult to leave a company after such strong accusations of unethical behavior. Tell me about that"? A) situational B) behavioral C) stress D) puzzle Answer: C Explanation: In a stress interview, the interviewer seeks to make the applicant uncomfortable with rude questions. The aim is supposedly to spot sensitive applicants and those with low (or high) stress tolerance. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews.

17) Which one of the following terms refers to a group of interviewers working together to question and rate one applicant? A) serial interview B) board interview C) sequential interview D) mass interview Answer: B Explanation: A panel interview, also known as a board interview, is an interview conducted by a team of interviewers, who together interview each candidate and then combine their ratings into a final panel score. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 18) Kevin is interviewing for a position as a public relations specialist in a communications firm. He first meets with the HR manager. Afterwards, he meets with the department manager. Finally, he meets with the company president. Kevin is most likely experiencing a ________ interview. A) board B) panel C) serial D) mass Answer: C Explanation: In a sequential or serial interview, several persons interview the applicant, in sequence, one-on-one, and then make their hiring decision. Board or panel interviews involve multiple interviewers questioning a candidate at the same time. With a mass interview, a panel interviews several candidates simultaneously. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 19) In a ________ interview, a panel questions several candidates simultaneously. A) formal B) topical C) panel D) mass Answer: D Explanation: With a mass interview, a panel interviews several candidates simultaneously. The panel poses a problem and then watches to see which candidate takes the lead in formulating an answer. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

20) Dr. Ross is interviewing for a position as Assistant Professor of Biology. His interview is conducted by a team of other faculty members in the department who interview him simultaneously and then combine their ratings into one score. This is an example of a ________ interview. A) serial B) panel C) one-on-one D) mass Answer: B Explanation: A panel interview, also known as a board interview, is an interview conducted by a team of interviewers, who together interview each candidate and then combine their ratings into a final panel score. This contrasts with the one-on-one interview (in which one interviewer meets one candidate) and a serial interview (where several interviewers assess a single candidate oneon-one, sequentially). A mass interview involves a panel interviewing several candidates simultaneously. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 21) An employer can most likely increase the reliability of a panel interview by ________. A) using an unstructured interview format B) interviewing multiple candidates simultaneously C) providing interviewers with scoring sheets and sample answers D) requiring candidates to participate in work sampling techniques Answer: C Explanation: Structured panel interviews are more reliable and valid than unstructured ones. Panel interviews in which members use scoring sheets with descriptive scoring examples for sample answers are more reliable and valid than those that don't. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews.

22) Ellen is interviewing along with several other talented candidates for a position as a journalist at a newspaper. A team of interviewers will meet with all the candidates at once. The team will pose problems to the candidates and see which candidate takes the lead in formulating an answer. This is most likely an example of a ________ interview. A) serial B) board C) mass D) panel Answer: C Explanation: A mass interview involves a panel interviewing several candidates simultaneously. A panel interview, also known as a board interview, is an interview conducted by a team of interviewers, who together interview each candidate and then combine their ratings into a final panel score. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 7.1 Give examples of the main types of selection interviews. 23) With phone and tablet video functionalities FaceTime™ and Skype™, Web-based "inperson" interview use is widespread. In a recent year about ________ of candidates took such interviews. A) 2% B) 7% C) 18% D) 45% Answer: C Explanation: With phone and tablet video functionalities and FaceTime™ and Skype™, Webbased "in-person" interview use widespread; about 18% of candidates took such interviews in one recent year. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 24) Bahar is completing an online interview for an entry-level position in the research department of a large bio-medical firm. He will most likely see ________. A) situational questions about his leadership skills B) behavioral questions about his past team activities C) essay questions regarding his hobbies and other interests D) multiple choice questions about his background and experience Answer: D Explanation: Most such interviews present a series of multiple-choice questions regarding background, experience, education, skills, knowledge, and work attitudes. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 9 Copyright © 2020 Pearson Education, Inc.

25) Career FAQs lists things that interviewees should keep in mind when doing an online video interview. Which one of the following is NOT one of them? A) clean up the room B) use a new computer C) do a dry run D) look presentable Answer: B Explanation: As being prepared for an online video interview is important, using an unfamiliar computer can lead to problems if the interviewee doesn't know its functions well. The interviewee doesn't want technology to get in the way of a successful interview. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 26) The primary purpose of conducting a stress interview is to determine ________. A) why an applicant wants to work for the firm B) how an applicant solves complex problems C) why an applicant lied on the resume D) how an applicant handles criticism Answer: D Explanation: Stress interviews may help unearth hypersensitive applicants who might overreact to mild criticism with anger and abuse. Puzzle questions are used to determine how applicants handle pressure. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 27) Which one of the following statements is most likely true? A) Interpersonal skills are difficult to judge from phone interviews. B) Phone interviews can generate spontaneous answers from candidates. C) Candidates prefer phone interviews more than face-to-face interviews. D) Interviewers usually judge candidates the same in phone and face-to-face interviews. Answer: B Explanation: Candidates, who are often surprised by an unexpected call from the recruiter, tend to give answers that are spontaneous. Phone interviews can actually be more accurate than faceto-face interviews for judging an applicant's interpersonal skills. In a typical study, interviewers tended to evaluate applicants more favorably in telephone versus face-to-face interviews, particularly where the interviewees were less physically attractive. The applicants themselves preferred the face-to-face interviews. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

28) Which one of the following is a common characteristic of computerized interviews? A) multiple-choice questions B) puzzle questions C) follow-up questions D) open-ended questions Answer: A Explanation: Most computerized interviews present a series of multiple-choice questions regarding background, experience, education, skills, knowledge, and work attitudes. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 29) Which one of the following most likely combines aspects of behavioral and situational questioning? A) computerized interviews B) panel interviews C) mass interviews D) case interviews Answer: D Explanation: By having candidates explain how they would address the case "clients'" problems, the case interview combines elements of behavioral and situational questioning to provide a more realistic assessment of the candidate's consulting skills. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 30) The primary purpose for conducting a case interview is to ________. A) provide a candidate with a realistic job preview B) form a realistic assessment of a candidate's skills C) ensure that a candidate's needs are expressed D) determine how a candidate handles criticism Answer: B Explanation: By having candidates explain how they would address the case "clients'" problems, the case interview combines elements of behavioral and situational questioning to provide a more realistic assessment of the candidate's consulting skills. Case interviews are less likely to provide a realistic job preview, allow candidates to express their needs, or determine if a candidate is hypersensitive. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

31) The interview is the most widely used personnel selection procedure. Answer: TRUE Explanation: The personal interview is the most widely used selection procedure. Not all HR managers use tests or reference checks, but nearly all conduct personal interviews with job candidates. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 32) Nondirective interviews follow no set format so the interviewer can ask follow-up questions and pursue points of interest as they develop. Answer: TRUE Explanation: In unstructured (or nondirective) interviews, the manager follows no set format. A few questions might be specified in advance, but they're usually not, and there is seldom a formal guide for scoring "right" or "wrong" answers. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 33) Nonstructured interviews are preferred to directive interviews because they are more reliable and valid. Answer: FALSE Explanation: Structured interviews are known as directive interviews, and they are considered more reliable than unstructured interviews. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 34) Nondirective interviews can be described as little more than a general conversation. Answer: TRUE Explanation: Nondirective or unstructured interviews follow no format and are similar to a general conversation. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

35) All structured interviews specify acceptable answers for each question. Answer: FALSE Explanation: Some structured interviews may include possible answers with scores, but not in all cases. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 36) Behavioral interviews ask interviewees to describe how they would react to a hypothetical situation at some point in the future. Answer: FALSE Explanation: Situational interviews ask candidates to address hypothetical problems, while behavioral interviews focus on how a candidate reacted in the past. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 37) In a stress interview, the interviewer seeks to make the applicant uncomfortable with rude questions. Answer: TRUE Explanation: In a stress interview, the interviewer seeks to make the applicant uncomfortable with occasionally rude questions. The aim is supposedly to spot sensitive applicants and those with low (or high) stress tolerance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 38) The majority of selection interviews are one-on-one and sequential. Answer: TRUE Explanation: Most selection interviews are one-on-one and sequential. In a one-on-one interview, two people meet alone. In a sequential (or serial) interview, several persons interview the applicant, in sequence, one-on-one, and then make their hiring decision. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews.

39) Studies suggest that interviewers tend to evaluate applicants less favorably in telephone interviews than in face-to-face interviews. Answer: FALSE Explanation: In a typical study, interviewers tended to evaluate applicants more favorably in telephone versus face-to-face interviews, particularly where the interviewees were less physically attractive. Telephone interviews can actually be more accurate than face-to-face interviews for judging an applicant's conscientiousness, intelligence, and interpersonal skills. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 40) A computerized selection interview presents a series of multiple-choice questions regarding background, experience, education, skills, knowledge, and work attitudes. Answer: TRUE Explanation: Computerized selection interviews present a series of multiple-choice questions regarding background, experience, education, skills, knowledge, and work attitudes. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 41) Computer-aided interviews are primarily used to administer and score essay questions. Answer: FALSE Explanation: Multiple-choice questions are the typical format for computerized selection interviews. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 7.1 Give examples of the main types of selection interviews. 42) What three ways can selection interviews be classified? How does each classification affect an interview? Answer: Selection interviews can be classified according to 1) how structured they are, 2) their content, and 3) how they are administered. Structure can range from unstructured to structured. Content classifications are situational or behavioral. Examples include job-related interviews and stress interviews. Interviews can be administered by one person or by a panel of interviewers. Interviews may also be computer-administered. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 7.1 Give examples of the main types of selection interviews.

43) In a brief essay, discuss the effect of modern communications technology on interviews. Answer: More employers and job interviewees are using iPhone and Web cams to conduct job interviews. Firms have long used the Web to do selection interviews (particularly the initial, prescreening interviews), and with the widespread use of Skype™-type products, their use is growing. Most firms do not eliminate face-to-face interviews, but the video interviews do reduce travel and recruiting expenses, and make things easier for candidates. With employers cutting their recruitment budgets, more are conducting at least the initial screening interviews over the Internet. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 7.1 Give examples of the main types of selection interviews. 44) Which one of the following interview formats will most likely result in the highest validity? A) structured, situational B) unstructured, situational C) structured, behavioral D) unstructured, behavioral Answer: A Explanation: Structured interviews (particularly structured interviews using situational questions) are more valid than unstructured interviews for predicting job performance. Situational interviews yield a higher mean validity than do job-related or behavioral interviews, which in turn yield a higher mean validity than do "psychological" interviews, which focus more on motives and interests. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 45) Which one of the following traits is most likely to be assessed accurately during an interview? A) intelligence B) agreeableness C) conscientiousness D) emotional stability Answer: B Explanation: Interviews are better for revealing some traits than others. Interviewers are able to size up the interviewee's extroversion and agreeableness but not conscientiousness, intelligence, and emotional stability. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

46) According to studies, which one of the following has the most influence on the outcome of a job interview? A) thank-you notes sent from the candidate to the interviewer B) an interviewer's first impression of the candidate C) favorable information about the candidate D) a candidate's extroverted personality Answer: B Explanation: Perhaps the most consistent research finding is that interviewers tend to jump to conclusions–make snap judgments–about candidates during the first few minutes of the interview or even before the interview starts, based on test scores or résumé data. Being extroverted is not beneficial for all jobs, and unfavorable information is more influential than favorable information about a candidate. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 47) Which one of the following refers to an error of judgment on the part of the interviewer due to interviewing one or more very good or very bad candidates just before the interview in question? A) context error B) contrast error C) recency error D) primacy error Answer: B Explanation: Candidate-order or contrast error means that the order in which you see applicants affects how you rate them. An interviewer is more likely to rate a candidate incorrectly based on the candidates that are interviewed just before. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

48) During an interview, Tanya discusses her numerous accomplishments at previous jobs and praises the interviewer frequently. Tanya is most likely using ________. A) impression management B) talent management C) mixed motives D) behavior modification Answer: A Explanation: Psychologists call using techniques like ingratiation and self-promotion "impression management." Self-promotion means promoting one's own skills and abilities to create the impression of competency, and ingratiation involves praising and agreeing with the interviewer. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 49) When interviewing an applicant with a disability who uses assistive technology, which one of the following questions should NOT be asked? A) Have you ever experienced any problems between your technology and an employer's information system? B) How have you addressed any barriers or obstacles that you may have encountered in previous jobs? C) What is the severity and exact nature of your disability and how does the technology assist you? D) What specific technology have you successfully used in previous jobs that facilitated your work? Answer: C Explanation: Under the Americans with Disabilities Act, the interviewer must limit his or her questions to whether the applicant has any physical or mental impairment that may interfere with his or her ability to perform the job's essential tasks. An interviewer should not ask about the severity or nature of an applicant's disability. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

50) Which one of the following terms refers to individuals asked by the EEOC to apply for employment which they do not intend to accept, for the sole purpose of uncovering unlawful discriminatory hiring practices? A) spies B) moles C) testers D) insiders Answer: C Explanation: The use of employment discrimination "testers" makes nondiscriminatory interviewing even more important. As defined by the EEOC, testers are "individuals who apply for employment which they do not intend to accept, for the sole purpose of uncovering unlawful discriminatory hiring practices." Although they're not really seeking employment, testers have legal standing with the courts and with the EEOC. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 51) Which one of the following best describes telegraphing during an interview? A) drawing out the most useful information from an applicant B) searching for hidden meanings in an applicant's answers C) smiling at an applicant to suggest a desired answer D) allowing an applicant to dominate an interview Answer: C Explanation: Some interviewers inadvertently telegraph the expected answers, as in: "This job calls for handling a lot of stress. You can do that, can't you?" or using subtle cues (like a smile or nod) to telegraph the desired answer. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

52) Which one of the following characteristics of an interview would most likely raise concerns about interview discrimination? A) job-related questions B) multiple interviewers C) non-directive interview questions D) standardized interview administration Answer: C Explanation: With charges of interview discrimination, courts will most likely assess whether the interview process is structured and consistently applied. A structured and fair process involves objective/job-related questions, standardized interview administration, and involves multiple interviewers. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 53) Which one of the following applicant characteristics is LEAST likely to be assessed accurately during a selection interview? A) extroversion B) agreeableness C) job knowledge D) conscientiousness Answer: D Explanation: Studies indicate that interviews are better for revealing some traits than others. Interviewers are able to size up an interviewee's extroversion, knowledge, and agreeableness. However, conscientiousness and emotional stability are difficult to assess. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

54) Which one of the following would most likely increase candidate-order errors? A) applicant gender B) recruiting pressure C) poor first impression D) lack of job knowledge Answer: B Explanation: Candidate-order error means that the order in which you see applicants affects how you rate them. Pressure to hire accentuates this problem. Researchers told one group of managers to assume they were behind in their recruiting quota. They told a second group they were ahead of their quota. Those "behind" evaluated the same recruits much more highly than did those "ahead." Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 55) The following are interviewing errors to avoid EXCEPT ________. A) asking prepared questions B) first impressions C) pressure to hire D) not clarifying what the job involves Answer: A Explanation: Interviewing errors to avoid include first impressions, (snap judgments), not clarifying what the job involves and requires, candidate-order error and pressure to hire, nonverbal behavior and impression management. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 56) First impressions created from a candidate's application forms or personal appearance rarely affect interviewer ratings of candidates. Answer: FALSE Explanation: Interviewers tend to jump to conclusions–make snap judgments–about candidates during the first few minutes of the interview. One researcher estimates that in 85% of the cases, interviewers had made up their minds before the interview even began, based on first impressions the interviewers gleaned from candidates' applications and personal appearance. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

57) Candidates who make an initial bad impression on an interviewer are typically able to reverse the situation if they close the interview in a strong manner. Answer: FALSE Explanation: Candidates who start with a poor first impression rarely change the opinion of the interviewer. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 58) Employers typically base decisions on false impressions and stereotypes when they fail to clarify in advance what traits and knowledge are necessary for a specific job. Answer: TRUE Explanation: Interviewers who don't have an accurate picture of what the job entails and what sort of candidate is best suited for it usually make their decisions based on incorrect impressions or stereotypes of what a good applicant is. They then erroneously match interviewees with their incorrect stereotypes. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 59) Interviewers tend to rate candidates who promote themselves and use impression management tactics more poorly on candidate-job fit. Answer: FALSE Explanation: Candidates often use ingratiation and other impression management tactics to persuade interviewers to like them. Such methods of praising interviewers or appearing to agree with their opinions lead interviewers to rate candidates more highly. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 60) When interviewing disabled people, interviewers tend to avoid directly addressing the disability, which limits an interviewer's opportunity to adequately determine whether or not a candidate can perform the job. Answer: TRUE Explanation: Research shows that interviewers tend to avoid directly addressing a candidate's disability, and therefore make their hiring decisions without getting all the facts. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 21 Copyright © 2020 Pearson Education, Inc.

61) Disabled candidates prefer a discussion regarding whether an applicant has any physical or mental impairment that may interfere with his or her ability to perform the job's essential tasks. Answer: TRUE Explanation: Among the questions they said they would like interviewers to ask were these: Is there any kind of setting or special equipment that will facilitate the interview process for you? Is there any specific technology that you currently use or have used that assists the way you work? What other kind of support did you have in previous jobs? Is there anything that would benefit you? Discuss a barrier or obstacle, if any, that you have encountered in any of your previous jobs. How was that addressed? And, Do you anticipate any transportation or scheduling issues with the position's work schedule? Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 62) The EEOC uses testers who apply for employment which they do not intend to accept for the purpose of uncovering unlawful discriminatory hiring practices. Answer: TRUE Explanation: Testers are used by the EEOC to uncover employment discrimination. They do not intend to accept employment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 63) Because EEOC testers are not really seeking employment, they do not have legal standing in court to charge unlawful discriminatory hiring practices. Answer: FALSE Explanation: Testers of the EEOC have legal standing in the court system. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

64) Research indicates that interviewers typically have negative reactions towards candidates who are wheelchair-bound. Answer: TRUE Explanation: In general, candidates evidencing various attributes and disabilities (such as being wheelchair-bound) had less chance of obtaining a positive decision, even when the person performed very well in the structured interview. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 65) Interviewers tend to be more influenced by unfavorable than favorable information about a candidate. Answer: TRUE Explanation: Unfavorable information about a candidate usually influences interviewers more than favorable information. Their impressions are much more likely to change from favorable to unfavorable than from unfavorable to favorable. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 66) How can a firm protect itself from charges of discrimination in its interview process? What is the role of testers in employment discrimination? Answer: Employers should ensure that the interview process is structured and consistently applied. The interview should have objective, job-related questions and be administered in a standardized format. There should be multiple interviewers. Employers can also reassure candidates that the job interview process is fair, treat the interviewees with respect, and be willing to explain the process and the rationale for the interview questions. Testers are used to determine whether or not employment discrimination is occurring at a specific business. They make nondiscriminatory interviewing practices even more important to employers. As defined by the EEOC, testers are "individuals who apply for employment which they do not intend to accept, for the sole purpose of uncovering unlawful discriminatory hiring practices." Although they're not really seeking employment, testers have legal standing with the courts and with the EEOC. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness.

67) How do nonverbal behaviors and impression management affect an interview? Answer: An applicant's nonverbal behavior and use of impression management can have a large impact on his or her rating. Interviewers tend to respond more positively to candidates showing more extroverted behavior like good eye contact and high energy. Even smiling can affect interviewer ratings of candidates. Interviewers infer the interviewee's personality from the way he or she acts in the interview. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 68) What are some common errors that managers make during interviews and what impact can they have? Answer: Potential interviewing errors to avoid include: • First impressions (snap judgments) • Not clarifying what the job involves and requires • Candidate-order error and pressure to hire • Nonverbal behavior and impression management • The effects of interviewees' personal characteristics • The interviewer's inadvertent behaviors page Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 7.2 Give examples of the main errors that can undermine an interview's usefulness. 69) What is the best way to avoid most interview errors? A) conduct panel interviews B) use a structured interviewing format C) utilize computerized interviewing technology D) ask only situational questions during the interview Answer: B Explanation: The single biggest rule for conducting effective selection interviews is to structure the interview around job-relevant situational and behavioral questions. There is little doubt that the structured situational interview–a series of job-relevant questions with predetermined answers that interviewers ask of all applicants for the job–produces superior results. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

70) George Reyes has recently been hired as the vice president of marketing at Great Toys, a mid-size firm that specializes in classic wooden toys. The CEO of Great Toys wants to expand the firm's presence in the toy market, which is highly competitive. As a result, the marketing department's budget has been significantly increased. George plans to use some of the additional funds to hire a new media planner. George is considering the idea of conducting a structured situational interview in the hiring process. Which one of the following, if true, best supports the argument that George should use a structured situational interview to hire a media planner? A) Great Toys' HR department has developed a job description for the new media planner position. B) Great Toys' competitors typically face legal issues in the hiring process stemming from the ADA. C) Great Toys' employees typically remain with the company for many years because they feel comfortable with the organizational culture. D) Great Toys' executives want to ensure that the interview process is fair to all candidates and that the best candidate is hired. Answer: D Explanation: Structured situational interviews produce superior results compared to other interviewing methods. Job descriptions are necessary for the process, but they are useful for all types of interviews. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

71) George Reyes has recently been hired as the vice president of marketing at Great Toys, a mid-size firm that specializes in classic wooden toys. The CEO of Great Toys wants to expand the firm's presence in the toy market, which is highly competitive. As a result, the marketing department's budget has been significantly increased. George plans to use some of the additional funds to hire a new media planner. George is considering the idea of conducting a structured situational interview in the hiring process. Which one of the following most likely undermines the argument that George should use a structured situational interview to hire a media planner? A) The HR department prefers handling job evaluations without the assistance of managers. B) George and the HR manager lack the time required to participate in a lengthy interview process. C) George worked as a media planner at another firm and is familiar with the tasks involved in the job. D) Great Toys has used headhunters in the past to fill executive-level positions at the firm. Answer: B Explanation: Structured situational interviews produce superior results compared to other interviewing methods. However, the process is very time consuming and involves many people, so if George lacks the time, another interviewing option should be found. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 72) A series of job-relevant questions with predetermined answers that interviewers ask of all applicants for a job is known as a ________. A) nondirective situational interview B) structured behavioral interview C) nondirective behavioral interview D) structured situational interview Answer: D Explanation: A series of job-relevant questions with predetermined answers that interviewers ask of all applicants for a job is known as a structured situational interview. People familiar with the job develop questions based on the job's actual duties. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

73) When developing a structured situational interview, the first step in the process is ________. A) rating the job's main duties B) creating interview questions C) analyzing the job D) creating benchmark answers Answer: C Explanation: The first step in developing a structured situational interview involves analyzing the job. An individual should write a job description with a list of job duties, required knowledge, skills, abilities, and other worker qualifications. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 74) What is the second step in the procedure for developing a guide for a structured situational interview? A) rate the job's main duties B) create interview questions C) create benchmark answers D) appoint the interview panel Answer: A Explanation: Identifying the job's main duties is the second step of the process. To do so, an interviewer rates each job duty based on its importance to job success and on the time required to perform it compared to other tasks. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 75) In a structured situational interview, interview questions should primarily address ________. A) essential job duties B) occupational benefits C) salary requirements D) personality issues Answer: A Explanation: Most questions for a structured situational interview should focus on essential job duties. Questions may be situational, behavioral, job knowledge, or willingness questions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

76) After creating questions for a structured situational interview, ________ need to be developed for scoring purposes. A) grade definitions B) alternative rankings C) benchmark answers D) human resource metrics Answer: C Explanation: Each question requires an ideal or benchmark answer for rating purposes. Benchmark answers would likely include examples of a good, marginal, and poor answer. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 77) Which one of the following is a true statement regarding structured situational interviews? A) Answers are compared to industry standards. B) Hypothetical questions are typically avoided. C) Job descriptions are written after the interview. D) Interviews are usually conducted by a panel. Answer: D Explanation: Employers generally conduct structured situational interviews using a panel, rather than one-on-one. Hypothetical questions are included, and job descriptions are written in advance of the interview. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 78) Which one of the following is an example of a job knowledge question? A) "What are the legal restrictions regarding the use of telemarketing for consumers who have a past relationship with a company?" B) "Suppose you were confronted with an angry customer who threatened to sue the company. What would you do?" C) "Mike and Todd have $21 between them. Mike has $20 more than Todd has. How much has Mike and how much has Todd?" D) "Can you tell me about a time in the past when you used leadership skills to handle a difficult situation?" Answer: A Explanation: Job knowledge questions assess knowledge essential to job performance. Behavioral questions ask candidates how they've handled similar situations. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 28 Copyright © 2020 Pearson Education, Inc.

79) How many interviewers usually make up a panel interview? A) 1 B) 2 C) 3-6 D) 8-10 Answer: C Explanation: A panel interview, also known as a board interview, is conducted by a team of three to six members during the interview. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 80) What is the first step in conducting an effective interview? A) knowing the job B) developing relevant questions C) establishing rapport with candidates D) asking technical questions Answer: A Explanation: The first step in conducting an effective interview is knowing the job, which can be done by studying the job description. Developing and asking questions and establishing rapport are steps that occur later in the process. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 81) In order to conduct an effective interview, interviewers should NOT ask job candidates about their ________. A) knowledge B) last job C) willingness D) preferred work environment Answer: B Explanation: Use job knowledge, situational, or behavioral questions, and know enough about the job to be able to evaluate the interviewee's answers. Questions that simply ask for opinions and attitudes, goals and aspirations, and self-descriptions and self-evaluations allow candidates to present themselves in an overly favorable manner. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

82) Which one of the following is the most likely outcome of using the same questions with all candidates being interviewed? A) responses improved B) weaknesses revealed C) reliability limited D) bias reduced Answer: D Explanation: Using the same questions with all candidates reduces bias because of the obvious fairness of giving all the candidates the exact same opportunity. Using the same questions with all candidates improves reliability. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 83) Which question below is an example of a situational question? A) "Suppose you were giving a sales presentation and a difficult technical question arose that you could not answer. What would you do?" B) "Based on your past work experience, what is the most significant action you have ever taken to help out a co-worker?" C) "What work experiences, training, or other qualifications do you have for working in a teamwork environment?" D) "What factors should one consider when developing a television advertising campaign?" Answer: A Explanation: Situational questions pose hypothetical situations to the candidate. The other questions focus on knowledge and past behaviors. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 84) Which question below is an example of a behavioral question? A) "Can you tell me about a time when you solved a really difficult problem?" B) "What is your attitude about working with a sales team instead of independently?" C) "What factors do you consider before underwriting an insurance policy for a new client?" D) "What are your long-term goals and aspirations as a social worker?" Answer: A Explanation: Behavioral questions address the candidate's actual actions in the past, such as how he or she handled a problem. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 30 Copyright © 2020 Pearson Education, Inc.

85) All of the following will most likely improve the structure of an interview EXCEPT ________. A) using the same questions for all candidates B) rating candidate answers against a scale C) asking candidates to describe themselves D) using a standardized interview form Answer: C Explanation: Asking all candidates the same job-related questions and rating them against a scale improves the interview's structure. A standardized interview form also improves structure. Questions asking candidates to describe themselves will not likely reveal weaknesses, and they fail to improve the structure of the interview. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 86) Consider the question: "Can you provide an example of a specific instance where you provided leadership in a difficult situation?" What type of question is this? A) background question B) behavioral question C) situational question D) job knowledge question Answer: B Explanation: Behavioral questions ask about a candidate's past behavior. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 87) Consider the question: "What factors should be considered when developing a customer database?" What type of question is this? A) background question B) past behavior question C) situational question D) job knowledge question Answer: D Explanation: Job knowledge questions assess knowledge essential to job performance. Background questions address a candidate's experience and training. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

88) All of the following are guidelines for conducting an effective interview EXCEPT ________. A) taking brief notes during the interview B) scheduling a private room for the interview C) showing courtesy and friendliness towards the candidate D) asking the candidate questions that require yes or no answers Answer: D Explanation: Scheduling a private room, reviewing a candidate's qualifications, showing courtesy, and taking notes are ways to conduct an effective interview. Candidates should be asked open-ended rather than yes or no questions. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 89) Which one of the following is recommended advice for conducting an effective interview? A) Telegraph the desired answer to the candidate. B) Allow the candidate to control the interview. C) Ask the candidate for specific examples. D) Ask the candidate about work-related injuries. Answer: C Explanation: Effective interviewers ask candidates for specific examples. It is inappropriate to telegraph desired answers or ask about work-related injuries. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 90) Which one of the following best explains why most firms do not provide rejected applicants with detailed explanations about the employment decision? A) lack of technical abilities B) adherence to federal laws C) concerns about legal disputes D) time required of line managers Answer: C Explanation: Most firms are concerned about the legal ramifications of providing rejected applicants with too much information. Firms are reluctant to give rejected applicants information that can be used to dispute the decision. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

91) Marion Franklin is the CEO of a local real estate company, Action Realty. The community has seen an increase in population over the last two years, and new neighborhoods are being built as a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although Marion has hired agents in the past, they have not always turned out to be as successful as she had hoped. Marion is considering making changes to the way she interviews job candidates. Which one of the following best supports the argument that Marion should use structured interviews? A) Marion likes applicants to evaluate themselves and to describe their goals. B) Marion is viewed as a fair employer by most of her subordinates. C) Marion lacks highly effective interviewing skills. D) Marion's best agent has recently retired. Answer: C Explanation: In structured interviews, all interviewers generally ask all applicants the same questions, which helps less talented interviewers conduct better interviews. The opinion of Marion's employees and recent retirements are less relevant. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 92) Marion Franklin is the CEO of a local real estate company, Action Realty. The community has seen an increase in population over the last two years, and new neighborhoods are being built as a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although Marion has hired agents in the past, they have not always turned out to be as successful as she had hoped. Marion is considering making changes to the way she interviews job candidates. Which one of the following would most likely improve the reliability and validity of Marion's selection process? A) asking all applicants the same questions B) holding Web-assisted interviews with candidates C) conducting stress interviews by a group of interviewers D) using the speed dating approach to interviewing applicants Answer: A Explanation: In structured interviews, all interviewers generally ask all applicants the same questions. Partly because of this, these interviews tend to be more reliable and valid. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

93) Marion Franklin is the CEO of a local real estate company, Action Realty. The community has seen an increase in population over the last two years, and new neighborhoods are being built as a result. Marion's staff of realtors is very busy, and Marion needs to hire a new agent. Although Marion has hired agents in the past, they have not always turned out to be as successful as she had hoped. Marion is considering using the streamlined interview process to hire a new real estate agent. Which one of the following questions would be most relevant for Marion to ask if she wants an employee with extensive knowledge in real estate? A) How do you handle sellers who believe their home is more valuable than it really is? B) What are the loan options you would suggest for first-time home buyers? C) What is the most frustrating aspect of being a realtor? D) What motivated you to become a real estate agent? Answer: B Explanation: Asking candidates what loan options are available for first-time buyers will assess job knowledge. The other questions are less about knowledge and more about the candidate's motivation and personality. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 94) Antone is applying for a job with Boscom Manufacturing as a chemical engineer. During the interview, Antone is asked the following question: "How does extreme heat affect hydrochloric acid?" The interviewer is most likely trying to assess Antone's ________. A) motivation B) flexibility C) knowledge D) leadership Answer: C Explanation: Knowledge and experience are often probed with situational questions. Managers want to find out if the candidate has the knowledge to perform a job. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

95) A manager who begins an interview by asking the applicant about the weather is most likely attempting to ________. A) seek a spontaneous answer from the candidate B) identify the candidate's leadership abilities C) assess the candidate's interpersonal skills D) put the candidate at ease Answer: D Explanation: The main reason for the interview is to find out about the applicant. To do this, start by putting the person at ease. Greet the candidate and start the interview by asking a noncontroversial question, perhaps about the weather or the traffic conditions that day. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 96) A structured behavioral interview contains a series of hypothetical job-oriented questions with predetermined answers that interviewers ask of all applicants for the job. Answer: FALSE Explanation: Structured situational interviews involve a series of job-relevant questions with predetermined answers that interviewers ask of all applicants for a job. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 97) When developing a structured situational interview, it is important that people familiar with the job rate the job's main duties based on importance and time. Answer: TRUE Explanation: People familiar with a job should rate each job duty based on its importance to job success and on the time required to perform the duty. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

98) Structured situational interviews contain situational questions, job knowledge questions, and willingness questions but not behavioral questions. Answer: FALSE Explanation: Structured situational interviews contain situational questions, job knowledge questions, willingness questions, and behavioral questions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 99) Conscientiousness questions assess an applicant's ability to meet the job requirements. Answer: FALSE Explanation: Interviews do not accurately assess important traits like conscientiousness and emotional stability. Job knowledge questions will assess the applicant's ability to meet the job requirements. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 100) Companies generally conduct structured situational interviews using a panel, rather than sequentially. Answer: TRUE Explanation: Employers generally conduct structured situational interviews using a panel, rather than one-on-one. The panel usually consists of three to six members, preferably the same ones who wrote the questions and answers. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 101) Interviews can be made more effective if the interviewer studies the job description and uses a standardized interview form. Answer: TRUE Explanation: Making sure the interviewer understands the job, structuring the interview, and using standardized interview forms improve the effectiveness of an interview. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

102) When rejecting a job candidate, it is best to refrain from providing an explanation detailing the reason for the rejection because most candidates view an employer more positively when they don't know the reason for the rejection. Answer: FALSE Explanation: In one study, rejected candidates who received an explanation detailing why the employer rejected them felt that the rejection process was fairer. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 103) In a brief essay, discuss the differences between structured situational interviews and nondirective interviews. Answer: The structured situational interview is a series of job-related questions with predetermined answers that interviewers ask of all applicants for the job. Steps in creating a structured situational interview include analyzing the job, rating the job's main duties, creating interview questions, creating benchmark answers, and appointing the interview panel and conducting interviews. In unstructured (or nondirective) interviews, the manager follows no set format. A few questions might be specified in advance, but they're usually not, and there is seldom a formal guide for scoring "right" or "wrong" answers. This type of interview could even be described as little more than a general conversation. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 104) In a brief essay, discuss the three main types of questions that are frequently used in structured situational interviews. Explain the purpose of each question type and provide an example of each. Answer: The three types of questions are situational, job knowledge and behavioral. Situational questions pose a hypothetical job situation such as "What would you do if the machine suddenly began heating up?" Job knowledge questions assess knowledge essential to job performance, such as "What is HTML?" Behavioral questions, of course, ask candidates how they've handled similar situations, such as "How have you handled disgruntled customers at your previous job?" Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews.

105) As an HR manager, you will most likely interview job candidates. What actions can you take to ensure that an interview is effective? Answer: Interviewers should structure the interview, base questions on actual job duties, use job knowledge, situational, or behavioral questions, and know enough about the job to be able to evaluate the interviewee's answers. Questions that simply ask for opinions and attitudes, goals and aspirations, and self-descriptions and self-evaluations allow candidates to present themselves in an overly favorable manner or avoid revealing weaknesses. Interviewers should also use descriptive rating scales (excellent, fair, poor) to rate answers, establish rapport with candidates. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 106) What are profiles? What role do profiles play in the employee selection process? Answer: Profiles are the competencies, traits, knowledge and experience needed for a position. Talent management involves using the same profile for recruiting as for selecting, training, appraising, and paying the employee. Profiles can play an important role in employee selection. Managers can use a job's profile to formulate job-related situational, behavioral, and knowledge interview questions when selecting someone for a job or set of roles. Selecting employees based on a specific profile helps to ensure that an employer focuses questions on the things that someone must be proficient at to do the job successfully. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 7.3 Define a structured situational interview and explain how to conduct effective selection interviews. 107) Which type of interview questions are most likely designed to probe an applicant's ability to meet the job's requirements? A) willingness B) behavioral C) personality D) job knowledge Answer: D Explanation: Interviewers should focus more on situational and job knowledge questions that help you assess how the candidate will actually respond to typical situations on that job. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 7.4 Give examples of how to use employee selection to improve employee engagement.

108) A total selection program has the goal of selecting candidates whose totality of attributes best fits the employer's requirements. Answer: TRUE Explanation: A total selection program is aimed at selecting candidates whose totality of attributes best fits the employer's total requirements. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 7.4 Give examples of how to use employee selection to improve employee engagement. 109) Deciding to whom to extend a job offer in the judgmental approach quantifies all the evidence and perhaps uses a formula to predict job success. Answer: FALSE Explanation: The statistical approach quantifies all the evidence and perhaps uses a formula to predict job success. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 7.5 List the main points to know about developing and extending the actual job offer. 110) What are some issues and parameters an employer should consider in developing and extending a job offer? Answer: The employers can extend an actual job offer to the candidate verbally and then follow up in writing. The employer's point person would discuss the offer's main parameters, for instance in terms of pay rates, benefits, and actual job duties. There may be some negotiations. Once an agreement is reached, the employer would extend a written job offer to the candidate. There are several issues to consider with the written offer. In the job offer letter, the employer lists the offer's basic information. This typically starts with a welcome sentence. It then includes job specific information (such as details on salary and pay), benefits information, paid leave information, and terms of employment (including, for instance, successful completion of job testing and physical exams). There should be a strong statement that the employment relationship is "at will." There is then a closing statement. This again welcomes the employee, mention who the employer's point person should be if any questions arise, and instruct the candidate to sign the letter of offer if it is acceptable. It is prudent to have an attorney review the offer before extending it. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 7.5 List the main points to know about developing and extending the actual job offer.

Human Resource Management, 16e (Dessler) Chapter 8 Training and Developing Employees 1) On Letitia's first day of work at a software firm, she attended a meeting with the HR manager and other new employees. Letitia learned about employee benefits packages, personnel policies, and the structure of the company. In Which one of the following did Letitia most likely participate? A) recruitment B) selection C) employee orientation D) employee development Answer: C Explanation: Employee orientation or onboarding provides new employees with the basic background information (such as computer passwords and company rules) they need to do their jobs; ideally it should also help them start becoming emotionally attached to and engaged in the firm. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 8.1 Summarize the purpose and process of employee orientation. 2) Which one of the following terms refers to helping new employees appreciate the values and culture of a firm? A) onboarding B) outsourcing C) organizing D) offshoring Answer: A Explanation: Onboarding is synonymous with employee orientation, which involves providing new employees with the information they need to function. Onboarding also tries to help new employees understand a firm's values and culture. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 8.1 Summarize the purpose and process of employee orientation.

3) Which one of the following is most likely NOT one of the goals of a firm's employee orientation program? A) making new employees feel like part of a team B) helping new employees become socialized into the firm C) assisting new employees in selecting the best labor union D) teaching new employees about the firm's history and strategies Answer: C Explanation: During employee orientation, firms try to make the new employee feel welcome and at home and part of the team, make sure the new employee has the basic information to function effectively, help the new employee understand the organization in a broad sense, and start the person on the process of becoming socialized into the firm's culture, values, and ways of doing things. It is less likely that the firm would help employees join a labor union. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 8.1 Summarize the purpose and process of employee orientation. 4) All of the following topics are typically addressed during employee orientation EXCEPT ________. A) employee benefits B) personnel policies C) work behavior expectations D) wage curves Answer: D Explanation: A wage curve is the graphic relationship between the value of the job and the average wage paid for the job. It is unlikely that wage curves would be addressed during orientation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 8.1 Summarize the purpose and process of employee orientation. 5) Employee orientation programs range from brief, informal introductions to lengthy, formal courses. Answer: TRUE Explanation: The length of the employee orientation process depends on the firm and the job. In some cases, onboarding-type programs may take many days, while in other cases, orientation consists of showing someone around and making introductions. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 8.1 Summarize the purpose and process of employee orientation.

6) Hiring highly-skilled employees with great potential eliminates the need to provide orientation and training. Answer: FALSE Explanation: Having high-potential employees doesn't guarantee they'll succeed. Instead, they must know what you want them to do and how you want them to do it. If they don't, they will improvise or do nothing useful at all. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 8.1 Summarize the purpose and process of employee orientation. 7) What is the purpose of employee orientation? What role does training play in employee orientation? Answer: New employees should feel welcome and at ease. New employees should understand the organization in a broad sense including its past, present, culture, and vision for the future. They should be clear about what is expected in terms of work and behavior. They should have begun the socialization process into the firm's way of doing things. Directly after orientation, training should begin. Training means giving new or current employees the skills they need to perform their jobs. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 8.1 Summarize the purpose and process of employee orientation. 8) The methods used to give new or present employees the skills they need to perform their jobs are called ________. A) orientation B) training C) development D) management Answer: B Explanation: Training means giving new or current employees the skills they need to perform their jobs. Training is essential to good management. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

9) MTR Enterprises failed to provide adequate safety training to one of its employees. As a result, the employee harmed a customer. A court would most likely find MTR liable for ________. A) discrimination B) negligent training C) occupational fraud D) hazardous training Answer: B Explanation: Inadequate training can expose employers to negligent training liability. If an employer fails to train adequately and an employee harms a third party, it is likely that the court will find the employer liable. Difficulty: Easy Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 10) Which one of the following will most likely NOT help employers protect themselves against charges of negligent training? A) confirming an employee's claims of skill and experience B) providing extensive and appropriate training C) evaluating the effectiveness of the training D) paying employees for their training time Answer: D Explanation: Employers should confirm the applicant/employee's claims of skill and experience, provide adequate training (particularly where employees use dangerous equipment), and evaluate the training to ensure that it's actually reducing risks. Paying employees for training will not necessarily protect an employer. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 11) ________ identifies the training employees will need to fill future jobs. A) Competency modeling B) Performance analysis C) Strategic training needs analysis D) Screening Answer: C Explanation: Strategic goals (perhaps to enter new lines of business or to expand abroad) often mean the firm will have to fill new jobs. Strategic training needs analysis identifies the training employees will need to fill these future jobs. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

12) What is the first step in the ADDIE training process? A) assessing the program's successes B) appraising the program's budget C) analyzing the training need D) acquiring training materials Answer: C Explanation: The gold standard of training programs is the basic analysis-design-developimplement-evaluate (ADDIE) training process model that training experts have used for years. The first step is to analyze the training need. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 13) What is the second step in the ADDIE training process? A) developing training aids B) defining the training objectives C) designing the overall training program D) designating employees who need training Answer: C Explanation: The basic analysis-design-develop-implement-evaluate (ADDIE) training process model has been used by training experts for years. The second step of the process is designing the overall training program. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 14) Which one of the following will most likely occur during the third step of the ADDIE training process? A) training a targeted group B) creating training materials C) evaluating the success of the program D) estimating a budget for the training program Answer: B Explanation: The basic analysis-design-develop-implement-evaluate (ADDIE) training process model has been used by training experts for years. The third step, developing the course, involves assembling and creating the training materials. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

15) What is the final step in the ADDIE training process? A) evaluating the program's successes or failures B) rewarding employees for program participation C) conducting a budget and needs analysis D) training the targeted group of employees Answer: A Explanation: Evaluating the program is the final step in the training process. After training is complete, employees are often rewarded for using new skills, but not during the training process. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 16) James, an HR manager, is currently identifying the specific knowledge and skills required for a telemarketing position at Newman Enterprises. James is most likely involved in which one of the following? A) task analysis B) program evaluation C) employee development D) screening Answer: A Explanation: Task analysis is a detailed study of the job to determine what specific skills–like Java (in the case of a Web developer) or interviewing (in the case of a supervisor)–the job requires. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 17) Amy, an accounting supervisor, has been asked to provide training for her subordinates about new tax laws. In order to motivate the individuals who attend her training session, Amy should most likely do all of the following EXCEPT ________. A) use as many visual aids as possible during the session B) provide an overview of the material to be covered C) use new terminology and technical concepts D) give information in logical, meaningful sections Answer: C Explanation: Using visual aids, providing an overview at the beginning of the session, and organizing information in logical, meaningful units will likely motivate employees. Terms and concepts used during a training session should be familiar to trainees rather than unfamiliar. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

18) Trainees should be provided adequate practice and be allowed to work at their own pace during a training session in order to ________. A) screen applicants based on ability B) transfer skills more easily to the job C) reduce training costs D) determine appropriate pay scales Answer: B Explanation: Allowing trainees to work at their own pace, providing adequate practice, and maximizing the similarity between the training situation and the work situation are all techniques that enable trainees to transfer new skills from the training site to the work site. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 19) ________ is a detailed study of the job to determine what specific skills the job requires. A) Needs analysis B) Task analysis C) Training strategy D) Development planning Answer: B Explanation: Task analysis is a detailed study of the job to determine what specific skills the job requires. Job descriptions and job specifications are important here because they list the job's specific duties and skills, which are the basic reference points in determining the training required. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 20) Which one of the following consolidates information regarding required tasks and skills in a format that is helpful for determining training requirements? A) training assessment form B) task analysis record form C) organizational skills sheet D) work function analysis Answer: B Explanation: Some managers supplement the job description and specification with a task analysis record form. This consolidates information regarding required tasks and skills in a form that's especially helpful for determining training requirements. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

21) Employers will most likely use all of the following methods to identify training needs for new employees EXCEPT ________. A) analyzing job descriptions B) reviewing performance standards C) questioning current job holders D) conducting a work sampling Answer: D Explanation: Work sampling is a method used for screening job applicants and will not likely be used to identify training needs. Managers can uncover training needs by reviewing performance standards, assessing job descriptions, performing the job, and questioning current job holders and their supervisors. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 22) A graphic model that presents a precise overview of the knowledge, skills, and behaviors someone would need to perform a job well is known as a(n) ________. A) scatter plot B) competency model C) classification table D) organizational chart Answer: B Explanation: The competency model consolidates, usually in one diagram, a precise overview of the competencies (for example, in terms of knowledge, skills, and behaviors) someone would need to do a job well. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 23) The process of verifying that there is a performance deficiency and determining if such deficiencies should be corrected through training or through some other means is called ________. A) needs analysis B) training assessment C) performance analysis D) performance appraisal Answer: C Explanation: Performance analysis is the process of verifying that there is a performance deficiency and determining whether the employer should correct such deficiencies through training or some other means (like transferring the employee). Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 8 Copyright © 2020 Pearson Education, Inc.

24) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of ten employees. Members of Mark's sales force vary in experience level. Four members of the sales team have worked at Samson for less than one year. The other six salespeople have been with Samson anywhere from three to seven years. Mark recently received the annual sales report and noticed that sales have been dropping steadily over the last year. Mark is considering the idea of providing training to his sales team as a way to boost sales. Which one of the following best supports the argument that the drop in Samson's sales can be solved through training? A) Attitude surveys sent to Samson personnel suggest that the firm's elimination of year-end bonuses has angered many employees. B) Recent studies suggest that sales of name-brand pharmaceuticals, such as Samson, are dropping as more people are choosing to use generic drugs instead. C) The rising costs associated with college recruiting have forced Samson to hire sales associates through online job sites. D) Members of the sales team have expressed that they do not fully understand the benefits and side effects of the latest medications released by Samson. Answer: D Explanation: If the sales force does not understand the benefits and side effects of Samson's latest drugs, then it is most likely unable to sell the products effectively. Training would provide salespeople with the necessary information. Poor attitudes suggest that the sales team doesn't want to sell products, which is not an issue that can be corrected with training. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

25) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of ten employees. Members of Mark's sales force vary in experience level. Four members of the sales team have worked at Samson for less than one year. The other six salespeople have been with Samson anywhere from three to seven years. Mark recently received the annual sales report and noticed that sales have been dropping steadily over the last year. Mark is considering the idea of providing training to his sales team as a way to boost sales. Which one of the following most likely undermines the argument that the drop in Samson's sales can be solved through training? A) The newest members of the Samson sales force are unfamiliar with the procedures used by the firm to measure the effectiveness of new drugs. B) Samson recently eliminated its long-standing policy of paying salespeople commissions on top of base salaries, which angered employees. C) Samson's most experienced salesperson retired after working at the firm for more than twenty years. D) Samson sales team members recently received their annual performance appraisals. Answer: B Explanation: Angry employees may lack the motivation to perform, and training would not likely change their attitudes. Training can help eliminate problems associated with a lack of job knowledge. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 26) Mark Caffrey, vice president of sales at Samson Pharmaceuticals, manages a sales team of ten employees. Members of Mark's sales force vary in experience level. Four members of the sales team have worked at Samson for less than one year. The other six salespeople have been with Samson anywhere from three to seven years. Mark recently received the annual sales report and noticed that sales have been dropping steadily over the last year. Mark is considering the idea of providing training to his sales team as a way to boost sales. All of the following questions are relevant to Mark's decision to implement a training program for his sales team EXCEPT: A) What methods are used for recruiting and interviewing individuals for sales positions? B) Does every salesperson understand what his or her performance standards are? C) What tools are available to sales team members to help them work efficiently? D) What were the results of attitude surveys distributed to the sales team? Answer: A Explanation: Although recruiting and interviewing affect the quality of employees on a sales team, once the workers are hired the focus should be on training. The other questions relate to the decision of implementing a training program. Difficulty: Easy Objective: 3 AACSB: Application of Knowledge Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

27) Which one of the following best describes the first step in a performance analysis? A) comparing a person's actual performance to the ideal performance B) investigating employee-related customer complaints C) evaluating supervisor performance reviews D) conducting job knowledge assessments Answer: A Explanation: The first step in performance analysis is usually to compare the person's actual performance to what it should be. Doing so helps to confirm that there is a performance deficiency and may also help the manager to identify its cause. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 28) Studies show that trainees are distracted by visual aids presented during training sessions. Answer: FALSE Explanation: Presentations should include as many visual aids as possible because they make learning more meaningful. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 29) Training sessions should be half-day or three-fourths day in length rather than a full day, because the learning curve goes down late in the day. Answer: TRUE Explanation: The learning curve goes down late in the day, so that "full day training is not as effective as half the day or three-fourths of the day." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 30) The purpose of a current training needs analysis is to ensure that critical employees receive adequate training and development for future positions with the firm. Answer: FALSE Explanation: A strategic training needs analysis focuses on training employees who will be needed to fill future jobs. A current training needs analysis is focused on training new employees or deficient employees for the purpose of improving current performance. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

31) Performance analysis is a detailed study of a job to determine what specific skills the job requires. Answer: FALSE Explanation: Task analysis is a detailed study of the job to determine what specific skills–like Java (in the case of a Web developer) or interviewing (in the case of a supervisor)–the job requires. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 32) Attitude surveys, employee diaries, tests, and performance appraisals are tools for conducting a performance analysis. Answer: TRUE Explanation: The first step in performance analysis is usually to compare the person's actual performance to what it should be. Doing so helps to confirm that there is a performance deficiency, and can be accomplished through attitude surveys, diaries, tests, and performance appraisals. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 33) What are the four steps involved in the training process? After a training program has been established, how can managers make the training material more meaningful for employees? Answer: Training programs consist of four steps. In the first, needs analysis step, you identify the specific knowledge and skills the job requires, and compare these with the prospective trainees' knowledge and skills. In the second, instructional design step, you formulate specific, measurable knowledge and performance training objectives, review possible training program content (including workbooks, exercises, and activities), and estimate a budget for the training program. The third step is to implement the program, by actually training the targeted employee group using methods such as on-the-job or online training. Finally, in an evaluation step, you assess the program's success. There are five suggestions for making training material more meaningful for employees. First, an overall picture of the training material that will be presented should be provided at the start of training. Second, familiar examples should be used. Third, the information should be logically organized and presented. Fourth, the vocabulary used during training should be familiar to the trainees. Fifth, many visual aids should be used. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 8.3 List and briefly explain each of the steps in the training process.

34) What is the difference between a task analysis and a performance analysis? What is the purpose of each in regards to training? Answer: Task analysis is a detailed study of the job to determine what specific skills–like Java (in the case of a Web developer) or interviewing (in the case of a supervisor)–the job requires. Job descriptions and job specifications are important here. These list the job's specific duties and skills, which are the basic reference points in determining the training required. For underperforming current employees, you can't assume that training is the problem: Is it lack of training, or something else? Performance analysis is the process of verifying that there is a performance deficiency and determining whether the employer should correct such deficiencies through training or some other means (like transferring the employee). The first step in performance analysis is usually to compare the person's actual performance to what it should be. Doing so helps to confirm that there is a performance deficiency and may also help the manager to identify its cause. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 8.3 List and briefly explain each of the steps in the training process. 35) Which one of the following would most likely occur during the fourth step of the ADDIE training process? A) holding on-the-job training sessions B) selecting employees for training C) preparing online training materials D) asking participants for feedback Answer: A Explanation: The basic analysis-design-develop-implement-evaluate (ADDIE) training process model has been used by training experts for years. The fourth step involves providing the training to a targeted employee group. Training methods vary but may include on-the-job training or online training. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques.

36) Tyler, a new accounts representative at Martin Marketing, is learning the job by actually doing job-related tasks such as contacting customers. Tyler is most likely participating in ________. A) on-the-job training B) socialization C) social learning D) modeling Answer: A Explanation: On-the-job training (OJT) means having a person learn a job by actually doing it. Every employee, from mailroom clerk to CEO, gets on-the-job training when he or she joins a firm. Difficulty: Easy Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 37) Which one of the following training methods is most frequently used by employers? A) job instruction training B) apprenticeship training C) on-the-job training D) classroom training Answer: C Explanation: On-the-job training (OJT) means having a person learn a job by actually doing it. Every employee, from mailroom clerk to CEO, gets on-the-job training when he or she joins a firm, which is why it is the most popular method. In many firms, OJT is the only training available. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 38) All of the following are types of on-the-job training EXCEPT ________. A) programmed learning B) understudy method C) special assignments D) job rotation Answer: A Explanation: Programmed learning is not a type of OJT but is a step-by-step, self-learning method. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

39) Rebekah was hired soon after graduation and assigned to complete a management trainee program. She will move to various jobs each month for a nine-month period of time. Her employer is utilizing the ________ form of training. A) job rotation B) understudy C) job expansion D) informal learning Answer: A Explanation: Job rotation, in which an employee (usually a management trainee) moves from job to job at planned intervals, is another OJT technique. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 40) Mario hopes to be promoted to the head of his department next year. In the meantime, he has been assigned to spend a year as an assistant to the current department head. Which type of training is most likely being used in this example? A) job rotation B) job instruction C) coaching method D) informal learning Answer: C Explanation: The most familiar on-the-job training is the coaching or understudy method. Here, an experienced worker or the trainee's supervisor trains the employee. This may involve simply acquiring skills by observing the supervisor, or (preferably) having the supervisor or job expert show the new employee the ropes, step-by-step. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 41) The on-the-job method of ________ involves giving lower-level executives firsthand experience in working on actual problems. A) coaching B) informal learning C) special assignments D) programmed learning Answer: C Explanation: Special assignments similarly give lower-level executives firsthand experience in working on actual problems. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

42) The method being used to train Ivan in a new job involves a sequence of steps he is expected to learn step-by-step. This method is called ________. A) task analysis B) job instruction training (JIT) C) informal learning D) job rotation Answer: B Explanation: Many jobs (or parts of jobs) consist of a sequence of steps best learned step-bystep. Such step-by-step training is called job instruction training (JIT). Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 43) Surveys estimate that as much as ________ of what employees learn on the job they learn through informal means. A) 10% B) 50% C) 70% D) 95% Answer: C Explanation: Surveys estimate that as much as 80% of what employees learn on the job they learn through informal means. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 44) A structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training is called ________. A) job instruction training B) programmed learning C) apprenticeship training D) coaching technique Answer: C Explanation: Apprenticeship training is a process by which people become skilled workers, usually through a combination of formal learning and long-term on-the-job training. It traditionally involves having the learner/apprentice study under the tutelage of a master craftsperson. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

45) Which form of on-the-job training usually involves having a learner study under the tutelage of a master craftsperson? A) programmed learning B) mentoring C) apprenticeship training D) coaching Answer: C Explanation: Apprenticeship training traditionally involves having the learner/apprentice study under the tutelage of a master craftsperson. It is a process by which people become skilled workers, usually through a combination of formal learning and long-term on-the-job training. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 46) Ian is currently being trained on the job and is at the first step in the OTJ process, which involves ________. A) showing the trainee how do the task B) verbalizing the steps of the task C) checking to make sure the task was learned by the trainee D) familiarizing the trainee with equipment, tools, and trade terms Answer: D Explanation: Preparing the trainee is the first step in the OJT process, and it involves familiarizing a worker with equipment, materials, tools, and trade terms. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 47) When jobs consist of a logical sequence of steps and are best taught step-by-step, the most appropriate training method to use is ________. A) job instruction training B) apprenticeship training C) programmed learning D) job rotation Answer: A Explanation: Many jobs (or parts of jobs) consist of a logical sequence of steps that one best learns step-by-step. This step-by-step training is called job instruction training (JIT). Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

48) With job instruction training, which one of the following should most likely be included beside each step listed? A) sources for more information B) any legal requirements C) key points or guidelines D) quality requirements Answer: C Explanation: With job instruction training, all the steps in a job are listed in the correct order, and any key points or guidelines are listed beside each step to provide clarification to the trainee. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 49) Which one of the following is the primary advantage of lecturing as a method of training? A) motivational for employees B) effective for informal learning C) appropriate for large groups D) requires limited preparation Answer: C Explanation: Although some correctly view lectures as being boring, studies and practical experience show that they can be effective. Lecturing is a quick and simple way to present knowledge to large groups of trainees, as when the sales force needs to learn a new product's features. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 50) Which one of the following will most likely help a speaker improve the effectiveness of a training lecture? A) opening with a familiar joke B) talking from a prepared script C) watching the audience's body language D) using exaggerated hand gestures to emphasize points Answer: C Explanation: Watching for negative signals in the audience's body language can help a speaker realize that he or she needs to make modifications to the lecture. Irrelevant or old jokes are not effective openers. Speakers should use notes rather than a script and control their hands. Speeches are more effective when broken into short talks. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

51) Which one of the following is a systematic method for teaching job skills that involves presenting questions or facts, allowing the person to respond, and giving the learner immediate feedback on the accuracy of his or her answers? A) job instruction training B) programmed learning C) apprenticeship training D) simulated learning Answer: B Explanation: Programmed learning is a step-by-step, self-learning method that consists of three parts: presenting questions, facts, or problems to the learner; allowing the person to respond; and providing feedback on the accuracy of answers. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 52) Which one of the following is NOT an advantage of programmed learning? A) Training time is significantly reduced. B) Trainees can work at their own pace. C) Trainees benefit from a skilled coach. D) Trainees receive immediate feedback. Answer: C Explanation: Programmed learning's main advantage is that it reduces training time. It also facilitates learning by letting trainees learn at their own pace and receive immediate feedback. However, programmed learning occurs with a book or computer rather than a coach. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 53) Which one of the following terms refers to computer-based training systems that adjust to meet each trainee's specific learning needs? A) virtual learning systems B) video-based simulations C) multi-media training plans D) intelligent tutoring systems Answer: D Explanation: Intelligent tutoring systems are computerized, supercharged, programmed instruction programs. In addition to the usual programmed learning, intelligent tutoring systems learn what questions and approaches worked and did not work for the learner, and therefore adjust the suggested instructional sequence to the trainee's unique needs. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

54) Wells Fargo and Company is a financial services firm that provides banking, insurance, and mortgage services at 10,000 stores nationwide. Wells Fargo offers its employees many professional development opportunities such as training programs and tuition reimbursement. Wells Fargo executives are considering the expansion of the firm's existing training programs after employees have expressed strong interest in the idea. Which one of the following, if true, best supports the argument that Wells Fargo should use intelligent tutoring systems to provide training for loan officers? A) Current Wells Fargo employees indicate that they prefer to work at their own pace and have a variety of learning styles. B) Since Wells Fargo stores are spread throughout the country, the firm needs to provide training at a central location to a large group of current employees at once. C) Wells Fargo's employee orientation program provides new employees with information about the history, culture, and vision of the firm. D) Wells Fargo's board of directors sets training policies and works closely with HR to develop the most appropriate training programs for new employees. Answer: A Explanation: Intelligent tutoring systems learn what questions and approaches worked and did not work for the learner, and therefore adjust the suggested instructional sequence to the trainee's unique needs. Such systems also enable trainees to work at their own pace. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 55) ________ training is a method in which trainees learn on actual or simulated equipment but are trained away from the job. A) Vestibule B) Virtual-reality C) Programmed D) Job instruction Answer: A Explanation: Vestibule training is a method in which trainees learn on the actual or simulated equipment they will use on the job, but are trained off the job (perhaps in a separate room or vestibule). Vestibule training is necessary when it's too costly or dangerous to train employees on the job. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

56) American Airlines uses flight simulators to train pilots about airplane equipment and safety measures. This is an example of ________. A) on-the-job training B) vestibule training C) virtual reality training D) programmed learning Answer: B Explanation: Vestibule training is a method in which trainees learn on the actual or simulated equipment they will use on the job, but are trained off the job. Vestibule training is necessary when it's too costly or dangerous to train employees on the job, such as with pilots. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 57) Which one of the following involves a trainer in a central location teaching groups of employees at remote locations over cable broadband lines or the Internet? A) audiovisual-based instruction B) programmed learning C) vestibule training D) videoconferencing Answer: D Explanation: With videoconferencing, a trainer in a central location teaches groups of employees at remote locations via cable broadband lines, the Internet, or satellite. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 58) Travel agents at Apollo Travel Services follow a computer program that displays question prompts and dialogue boxes with travel policies as the agent enters information about the consumer's travel plans. This is an example of a(n) ________. A) audiovisual-based training method B) electronic performance support system C) intelligent tutoring system D) computer-based training module Answer: B Explanation: Electronic performance support systems (EPSS) are computerized tools and displays that automate training, documentation, and phone support. In this example, a client calling the travel service is asked questions that are prompted by an EPSS to take both the client and travel agent step-by-step, through an analytical sequence. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques.

59) ________ are special software tools that support Internet training by helping employers identify training needs, and to schedule, deliver, assess, and manage the online training itself. A) Learning management systems B) Intelligent tutoring systems C) Computer simulations D) Learning portals Answer: A Explanation: Learning management systems (LMS) are special software tools that support Internet training by helping employers identify training needs, and to schedule, deliver, assess, and manage the online training itself. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 60) Which one of the following terms refers to a set of instructions, diagrams, or similar methods available at the job site to guide the worker? A) task analysis record form B) position replacement card C) skills sheet D) job aid Answer: D Explanation: A job aid is a set of instructions, diagrams, or similar methods available at the job site to guide the worker. Job aids work particularly well on complex jobs that require multiple steps, or where it's dangerous to forget a step. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 61) United Airlines utilizes a checklist of things that pilots should do prior to take-off and landing. This checklist is an example of a(n) ________. A) job aid B) skill sheet C) work function analysis D) electronic support system Answer: A Explanation: A job aid is a set of instructions, diagrams, or similar methods available at the job site to guide the worker. Job aids work particularly well on complex jobs that require multiple steps, or where it's dangerous to forget a step, such as airplane take-off. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques.

62) Wells Fargo and Company is a financial services firm that provides banking, insurance, and mortgage services at 10,000 stores nationwide. Wells Fargo offers its employees many professional development opportunities such as training programs and tuition reimbursement. Wells Fargo executives are considering the expansion of the firm's existing training programs after employees have expressed strong interest in the idea. Which one of the following, if true, best supports the argument that Wells Fargo should integrate computer simulations into its training program for bank tellers? A) The Wells Fargo intranet-based learning portal provides employees with access to a variety of training courses. B) Wells Fargo is one of the few financial institutions to require all employees to participate in at least 30 hours of training each year. C) Wells Fargo bank tellers use electronic performance support systems to assist them with handling complicated bank transactions. D) Employee surveys indicate that many Wells Fargo bank tellers are uncertain about the best methods for handling angry customers. Answer: D Explanation: Computer simulations provide a representation of a situation and the tasks to be performed in the situation. Simulations can help employees learn conflict resolution skills to deal with angry bank customers. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 8.4 Explain how to use five training techniques. 63) Which one of the following terms refers to a section of an employer's Web site that provides employees with online access to job-related training courses? A) virtual classroom B) videoconferencing C) job simulation D) learning portal Answer: D Explanation: A learning portal is a section of an employer's Web site that offers employees online access to many or all of the training courses they need to succeed at their jobs. When employees go to their firm's learning portal, they actually access the menu of training courses that the ASP company contracted with the employer to offer. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

64) Which one of the following terms refers to a teaching method that uses special collaboration software to enable multiple remote learners to participate in live audio and visual discussions via a PC or laptop? A) computer simulation B) virtual classroom C) intelligent tutoring system D) learning portal Answer: B Explanation: A virtual classroom is a teaching method that uses special collaboration software to enable multiple remote learners, using their PCs or laptops, to participate in live audio and visual discussions, communicate via written text, and learn via content such as PowerPoint slides. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 65) All of the following are literacy training methods used by employers EXCEPT ________. A) providing computerized simulations B) assigning writing exercises to employees C) hiring teachers from local schools to conduct classes at the worksite D) sending employees to adult education classes Answer: A Explanation: Employers often have supervisors teach basic skills by giving employees writing and speaking exercises. Another approach is to bring in outside professionals to teach, say, remedial reading or writing. Having employees attend adult education or high school evening classes is another option. Computerized simulations are more appropriate for teaching job skills rather than reading and writing. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

66) ________ attempts to foster harmonious working relationships and to develop cross-cultural sensitivity among the employees of a firm. A) Adaptability screening B) Multicultural simulation C) Mandatory arbitration D) Diversity training Answer: D Explanation: Diversity training aims to create better cross-cultural sensitivity, with the goal of fostering more harmonious working relationships among a firm's employees. Such training typically includes improving interpersonal skills, understanding and valuing cultural differences, improving technical skills, socializing employees into the corporate culture, and indoctrinating new workers into the U.S. work ethic. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 67) What is the primary purpose of implementing a cross training program at a firm? A) compiling skills records B) creating a diverse environment C) facilitating flexible job assignments D) assessing employee technical skills Answer: C Explanation: Cross training means training employees to do different tasks or jobs than their own; doing so facilitates flexibility and job rotation, as when you expect team members to occasionally share jobs. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 68) All of the following are characteristics of most interactive training programs, such as simulations, EXCEPT ________. A) mastery of learning B) responsive feedback C) increased learning time D) increased retention rate Answer: C Explanation: In general, interactive technologies reduce learning time by an average of 50%. Other advantages include instructional consistency (computers, unlike human trainers, don't have good days and bad days), mastery of learning (if the trainee doesn't learn it, he or she generally can't move on to the next step), increased retention, and increased trainee motivation (resulting from responsive feedback). Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 25 Copyright © 2020 Pearson Education, Inc.

69) Lower-level managers who are given firsthand experience working on existing problems are being trained through the special assignments approach. Answer: TRUE Explanation: Special assignments give lower-level executives firsthand experience in working on actual problems. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 70) Surveys estimate that approximately 20% of what employees learn on the job is learned through informal means while the rest is learned through formal training programs. Answer: FALSE Explanation: Surveys from the American Society for Training and Development estimate that as much as 70% of what employees learn on the job they learn not through formal training but through informal means, including performing their jobs on a daily basis in collaboration with their colleagues. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 71) Apprenticeship training is a step-by-step self-learning method which uses a textbook, computer, or the Internet. Answer: FALSE Explanation: Apprenticeship training is a process by which people become skilled workers, usually through a combination of formal learning and long-term on-the-job training. It typically involves the trainee working under the guidance of an expert rather than on his or her own. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 72) Evidence suggests that Web-based instruction is significantly more effective than classroom instruction for teaching information about how to perform a job-related task. Answer: FALSE Explanation: In one review of the evidence, Web-based instruction was a bit more effective than classroom instruction for teaching memory of facts and principles, and Web-based instruction and classroom instruction were equally effective for teaching information about how to perform a task or action. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

73) Providing learning content on demand through cell phones and laptops is known as mobile learning. Answer: TRUE Explanation: Mobile learning (or "on-demand learning") means delivering learning content on demand via mobile devices like cell phones, laptops, and iPhones, wherever and whenever the learner has the time and desire to access it. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 74) With a lifelong learning account, employers and employees can contribute money that can be used by employees to attend school. Answer: TRUE Explanation: Somewhat similar to 401(k) plans, employers and employees contribute to LiLA plans (without the tax advantages of 401(k) plans), and the employee can use these funds to better himself or herself. Lifelong learning may thus range from basic remedial skills (for instance, English as a second language) to college. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques. 75) Team training is used by many firms to develop strong management teams, enhance interpersonal skills, and encourage job flexibility. Answer: TRUE Explanation: Team training often focuses on technical, interpersonal, and team management issues. By working in teams, employees are able to share jobs, which encourages flexibility in the workplace. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 8.4 Explain how to use five training techniques.

76) In a brief essay, discuss how mobile devices, such as iPhones, are used by firms to facilitate employee training. Answer: Mobile learning (or "on-demand learning") means delivering learning content on demand via mobile devices like cell phones, laptops, and iPhones, wherever and whenever the learner has the time and desire to access it. For example, using Domino's iPod touch and iPhone optimized Touch Learning Center Portal, trainees can log in and take full online courses. Employers use mobile learning to deliver corporate training and downloads on everything from how to close an important sales deal to optimizing organizational change. Most large employers distribute internal communications and training via mobile devices. Employers use mobile learning to deliver training and downloads on topics "from how to close an important sales deal to optimizing organizational change." IBM uses mobile learning to deliver just-in-time information (for instance, about new product features) to its sales force. To facilitate this, its training department often breaks up, say, an hour program into easier-to-use 10-minute pieces. Some employers use blogs to communicate learning to trainees. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 8.4 Explain how to use five training techniques. 77) What is on-the-job training? What types of on-the-job training methods are most frequently used by employers? Answer: On-the-job training (OJT) means having a person learn a job by actually doing it. Every employee, from mailroom clerk to CEO, gets on-the-job training when he or she joins a firm. In many firms, OJT is the only training available. The types of on-the-job training include the coaching or understudy method, the job rotation method, and the special assignments method. Using the understudy method, an experienced worker or the trainee's supervisor trains the employee. At lower levels, the trainee might observe the supervisor, but it is also used at higher levels. Job rotation means that an employee moves from job to job at planned intervals. This is common in management training programs. Special assignments give employees firsthand experience in working on actual problems. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 8.4 Explain how to use five training techniques.

78) Describe elements of computer-based training and why it can be effective. Answer: Computer-based training refers to training methods that use interactive computer-based systems to increase knowledge or skills. For example, employers use CBT to teach employees safe methods for avoiding falls. The system lets trainees replay the lessons and answer questions, and is especially effective when paired with actual practice under a trainer's watchful eye. Computer-based training is increasingly realistic. For example, interactive multimedia training integrates the use of text, video, graphics, photos, animation, and sound to create a complex training environment with which the trainee interacts. In training a physician, for instance, such a system lets a medical student take a hypothetical patient's medical history, conduct an examination, and analyze lab tests. The student can then interpret the sounds and draw conclusions for a diagnosis. Virtual reality training takes this realism a step further, by putting trainees into a simulated environment Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 8.4 Explain how to use five training techniques. 79) What is programmed learning and why is it used in organizations? Answer: Programmed learning is a step-by-step self-learning method using a medium such as a textbook, computer, or the Internet. The three parts of the method include presenting questions, facts, and problems to the learner, allowing the person to respond, and then providing feedback on the accuracy of answers. Programmed learning reduces training time. It also facilitates learning by letting trainees learn at their own pace, get immediate feedback, and reduce their risk of error. Some argue that trainees do not learn much more from programmed learning than from a textbook. Yet studies generally support programmed learning's effectiveness. In addition to the usual programmed learning, computerized intelligent tutoring systems learn what questions and approaches worked and did not work for the learner, and then adjust the instructional sequence to the trainee's unique needs. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 8.4 Explain how to use five training techniques. 80) Any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills is called ________. A) human resource management B) performance enhancement C) management development D) talent management Answer: C Explanation: Management development is any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 29 Copyright © 2020 Pearson Education, Inc.

81) Which process involves assessing the company's strategic needs, appraising the current performance of managers, and building skills of managers? A) management development B) performance management C) strategic management D) management by objectives Answer: A Explanation: Management development is any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills. The management development process consists of assessing the company's strategic needs, appraising managers' current performance, and then developing the managers. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 82) All of the following are on-the-job training methods used for managerial positions EXCEPT ________. A) job rotation B) action learning C) case study method D) understudy approach Answer: C Explanation: Job rotation, action learning, and the coaching/understudy approach are managerial on-the-job training methods. The case study method is considered an off-the-job management training technique. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 83) Which one of the following enables management trainees to work full-time analyzing and solving problems in other departments? A) management games B) action learning C) role playing D) job rotation Answer: B Explanation: Action learning programs give managers and others released time to work analyzing and solving problems in departments other than their own. The basics include carefully selected teams of 5 to 25 members, assigning the teams real-world business problems that extend beyond their usual areas of expertise, and structured learning through coaching and feedback. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 30 Copyright © 2020 Pearson Education, Inc.

84) Eric is in a group with five other management trainees at Coca-Cola. Eric's group is competing against other management trainees at the firm in a simulated marketplace. Each group must decide how much to spend on advertising and how many products to manufacture over the next three years. In which one of the following activities is Eric most likely participating? A) on-demand learning B) apprenticeship training C) management games D) behavior modeling Answer: C Explanation: With computerized management games, trainees divide into five- or six-person groups, each of which competes with the others in a simulated marketplace. Each group typically must make managerial decisions related to advertising, production, and inventory. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 8.5 List and briefly discuss four management development methods. 85) Succession planning is a type of management development program that focuses on planning and filling lower and middle-management positions. Answer: FALSE Explanation: Succession planning refers to the process through which a company plans for and fills senior-level openings rather than middle-management positions. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 86) The case study method is an on-the job management development technique that presents a manager with a written description of an organizational problem that needs to be diagnosed and solved. Answer: FALSE Explanation: The case study method is an off-the-job management training technique that presents a manager trainee with a written description of an organizational problem. The trainee analyzes the case, diagnoses the problem, and presents his or her findings and solutions in a discussion with other trainees. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods.

87) Management games are considered an effective training tool because trainees are actively involved, and the activities help trainees focus on planning and solving problems. Answer: TRUE Explanation: Management games are effective. People learn best by being involved, and games gain such involvement. They also help trainees develop their problem-solving skills, and to focus attention on planning rather than just putting out fires. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.5 List and briefly discuss four management development methods. 88) Both action learning and management games require trainees to work in groups. In a brief essay, explain the similarities and differences between the two management development techniques. Answer: Action learning programs give managers and others released time to work analyzing and solving problems in departments other than their own. The basics include carefully selected teams of 5 to 25 members, assigning the teams real-world business problems that extend beyond their usual areas of expertise, and structured learning through coaching and feedback. The employer's senior managers usually choose the projects and decide whether to accept the teams' recommendations. With computerized management games, trainees divide into five- or sixperson groups, each of which competes with the others in a simulated marketplace. Each group typically must decide, for example, (1) how much to spend on advertising, (2) how much to produce, (3) how much inventory to maintain, and (4) how many of which product to produce. Usually, the game compresses a two- or three-year period into days, weeks, or months. As in the real world, each company team usually can't see what decisions (such as to boost advertising) the other firms have made, although these decisions do affect their own sales. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 8.5 List and briefly discuss four management development methods. 89) According to Kurt Lewin, in order for organizational change to occur, which stage must occur first? A) unfreezing B) moving C) refreezing D) freezing Answer: A Explanation: Kurt Lewin's model of change indicates that unfreezing is the first step. Moving and refreezing are the next steps in the process. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

90) According to Kurt Lewin, all of the following should occur in the moving stage of organizational change EXCEPT ________. A) developing a vision B) mobilizing commitment C) consolidating gains D) creating a leading coalition Answer: B Explanation: The moving stage is characterized by helping employees make the change, developing a vision, consolidating gains, and creating a leading coalition. Mobilizing commitment occurs in the unfreezing stage. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 91) ________ is an approach to organizational change in which the employees formulate the change that's required and implement it. A) Action research B) Succession planning C) Organizational development D) Participative talent management Answer: C Explanation: Organizational development is a change process through which employees formulate the change that's required and implement it, often with the assistance of trained consultants. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

92) ________ means collecting data about a group, department, or organization, and feeding the information back to the employees so they can analyze it and develop hypotheses about what the problems might be. A) Laboratory training B) Action research C) Group therapy D) Diversity training Answer: B Explanation: Action research means collecting data about a group, department, or organization, and feeding the information back to the employees so they can analyze it and develop hypotheses about what the problems might be. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 93) Which organizational development application involves methods like performance appraisals, reward systems, and employee wellness? A) human process B) strategic applications C) technostructural D) human resource management Answer: D Explanation: There are four basic categories of OD applications: human process, technostructural, human resource management, and strategic applications. HR management involves performance appraisals, reward systems, diversity programs, and goal setting. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 94) Lewin's change process consists of unfreezing, moving, and refreezing. Answer: TRUE Explanation: Psychologist Kurt Lewin formulated a model of change to summarize what he believed was the basic process for implementing a change with minimal resistance. Lewin's process consists of unfreezing, moving, and freezing. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

95) According to Lewin's change process, unfreezing involves developing new behaviors, values, and attitudes through organizational development methods such as team building. Answer: FALSE Explanation: Unfreezing means reducing the forces that are striving to maintain the status quo, usually by presenting a provocative problem or event to get people to recognize the need for change and to search for new solutions. Moving means developing new behaviors, values, and attitudes. The manager may accomplish this through organizational development techniques. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 96) During the refreezing stage of Lewin's change process, managers are likely to use new appraisal systems and incentives as a way to reinforce desired behaviors. Answer: TRUE Explanation: During the refreezing stage, managers reinforce the new ways of doing things with changes to the company's systems and procedures. This is done by using new appraisal systems and incentives to reinforce the desired behaviors. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 97) During the unfreezing stage of organizational change, managers need to establish a sense of urgency, which may be accomplished by providing employees with reports indicating that the firm faces significant problems. Answer: TRUE Explanation: Most managers start by creating a sense of urgency during the unfreezing stage. This often takes creativity. For example, the CEO might present executives with a (fictitious) analyst's report describing the firm's imminent demise. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

98) The human process category of organizational development includes T-groups, process consultation, and third-party intervention. Answer: TRUE Explanation: The human process category of OD includes T-groups, process consultation, thirdparty intervention, team building, organizational confrontation meetings, and survey research. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 99) Organizational development is usually characterized by the use of action research and the application of behavioral science knowledge. Answer: TRUE Explanation: OD usually involves action research, which means collecting data about a group, department, or organization, and feeding the information back to the employees so they can analyze it and develop hypotheses about what the problems in the unit might be. OD also involves the application of behavioral science knowledge to improve the organization's effectiveness. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 100) Organizational development interventions in the area of human resource management most likely involve changing a firm's formal structure. Answer: FALSE Explanation: OD practitioners make technostructural interventions when they get involved in changing firms' structures, methods, and job designs. For example, in a formal structural change program, the employees collect data on the company's existing organizational structure; they then jointly redesign and implement a new one. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

101) Survey research and team building are technostructural organizational development techniques. Answer: FALSE Explanation: Survey research, team building, and T-groups are OD techniques related to the human process rather than technostructural issues. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 102) In a brief essay, discuss the theory behind Kurt Lewin's model of change. According to Lewin, what is the process that should be followed to implement organizational change? Answer: According to Lewin, all behavior in organizations is a product of two kinds of forces– those striving to maintain the status quo and those pushing for change. Implementing change means either weakening the status quo forces or building up the forces for change. Lewin's change process consists of three steps: 1) unfreezing the forces that seek to maintain the status quo, 2) moving to develop new behaviors and attitudes, and 3) refreezing the organization into its new system to prevent it from reverting to its old ways. Difficulty: Hard Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change. 103) What is meant by the idea of organizational change? How does organizational development facilitate organizational change? Answer: Managers can change one or more of five aspects of their companies–their strategy, culture, structure, technologies, or the attitudes and skills of the employees. Organizational change often begins with a change in the firm's strategy, mission, and vision–with strategic change. However, strategic, cultural, structural, and technological changes will fail without the employees' active support. Organizational change therefore invariably involves bringing about changes in the employees themselves and in their attitudes, skills, and behaviors. Unfortunately, getting that active support (or at least silent compliance) from your employees is easier said than done. The manager invariably runs into employee resistance. Knowing how to deal with that resistance is the heart of implementing an organizational change program. Organizational development is a change process through which employees formulate the change that's required and implement it, often with the assistance of trained consultants. Difficulty: Hard Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 8.6 List and briefly discuss the importance of the steps in leading organizational change.

104) Which one of the following is most likely NOT measured when evaluating a training program? A) what trainees learned from the program B) participants' reactions to the program C) overall organizational productivity D) changes in on-the-job behavior Answer: C Explanation: There are several things firms can measure to evaluate a training program, such as the participants' reactions to the program, what (if anything) the trainees learned from the program, and to what extent their on-the-job behavior or results changed as a result of the program. It would be difficult to link overall organizational productivity to a training program. Difficulty: Hard Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects. 105) Which one of the following terms refers to a formal method for testing the effectiveness of a training program? A) electronic performance monitoring B) factor comparison method C) controlled experimentation D) performance management Answer: C Explanation: A controlled experiment uses both a training group and a control group that receives no training to test the effectiveness of a training program. Data are obtained both before and after the group is exposed to training and before and after a corresponding work period in the control group. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects. 106) The most common aspects measured when evaluating training are participants' reactions to the program, what the trainees learned from the program, and to what extent their on-the-job behavior or results changed as a result of the program. Answer: TRUE Explanation: There are several things you can measure when evaluating training with the most common participants' reactions to the program, what (if anything) the trainees learned from the program, and to what extent their on-the-job behavior or results changed as a result of the program. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects. 38 Copyright © 2020 Pearson Education, Inc.

107) Research suggests that most firms evaluate their training programs by measuring the reactions of participants. Answer: TRUE Explanation: Training programs can be measured by participants' reactions to the program, what (if anything) the trainees learned from the program, and to what extent their on-the-job behavior or results changed as a result of the program. In one survey of about 500 U.S. organizations, 77% evaluated their training programs by eliciting reactions, 36% evaluated learning, and about 10% to 15% assessed the program's behavior and/or results. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects. 108) When designing a training evaluation study, many firms prefer to use a time series design instead of a controlled experiment because the time series design correlates change to training while the controlled experiment cannot. Answer: FALSE Explanation: The time series design provides an initial reading on the program's effectiveness. However, you can't be sure from this that the training (rather than, say, a new pay plan) caused any change. Controlled experimentation is therefore the evaluation process of choice by most firms. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects. 109) A time series design is a training program evaluation tool that measures the outcomes of a group that receives training with the outcomes of a group that receives no training. Answer: FALSE Explanation: Controlled experimentation is a formal method for testing the effectiveness of a training program, preferably with before and after tests and a control group. Time series design is another evaluation tool that does not use a control group. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects.

110) The four basic categories of training program outcomes that are typically measured include reactions, learning, behavior, and results. Answer: TRUE Explanation: Reaction, learning, behavior, and results are the four categories measured when evaluating a training program. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 8.7 Explain why a controlled study may be superior for evaluating the training program's effects.

Human Resource Management, 16e (Dessler) Chapter 9 Performance Management and Appraisal 1) Which one of the following terms refers to the process of evaluating an employee's current and/or past performance relative to his or her performance standards? A) employee selection B) performance appraisal C) employee orientation D) organizational development Answer: B Explanation: Performance appraisal means evaluating an employee's current and/or past performance relative to his or her performance standards. Performance appraisal always involves setting work standards, assessing the employee's actual performance relative to those standards, and providing feedback to the employee. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 2) The primary purpose of providing employees with feedback during a performance appraisal is to motivate employees to ________. A) apply for managerial positions B) remove any performance deficiencies C) revise their performance standards D) enroll in work-related training programs Answer: B Explanation: The purpose of providing feedback to the employee is to motivate him or her to eliminate performance deficiencies or to continue to perform above par. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process.

3) Which one of the following is NOT one of the recommended guidelines for setting effective employee goals? A) creating specific goals B) assigning measurable goals C) administering consequences for failure to meet goals D) encouraging employees to participate in setting goals Answer: C Explanation: Effective goals should be specific, measurable, attainable, relevant, and timely. Goals should be challenging but doable, and employee participation should be encouraged. Giving consequences for failing to meet goals is not recommended and unlikely to motivate employees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 4) SMART goals are best described as ________. A) specific, measurable, attainable, relevant, and timely B) straightforward, meaningful, accessible, real, and tested C) strategic, moderate, achievable, relevant, and timely D) supportive, meaningful, attainable, real, and timely Answer: A Explanation: The acronym SMART stands for specific, measurable, attainable, relevant, and timely. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 5) All of the following are reasons for appraising an employee's performance EXCEPT ________. A) correcting any work-related deficiencies B) creating an organizational strategy map C) determining appropriate salary and bonuses D) making decisions about promotions Answer: B Explanation: Most employers still base pay and promotional decisions on the employee's appraisal. Appraisals also let the boss and subordinate develop a plan for correcting any deficiencies, and serve a useful career planning purpose. Creating a strategy map is not a likely purpose for conducting a performance appraisal. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process.

6) In most organizations, who is primarily responsible for appraising an employee's performance? A) employee's direct supervisor B) company appraiser C) human resources manager D) employee's subordinates Answer: A Explanation: The supervisor–not HR–usually does the actual appraising, and a supervisor who rates his or her employees too high or too low (or all average) is doing a disservice to them and to the company. Subordinates rate supervisors in some organizations, but the upward feedback is not the primary appraisal of the supervisor. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 7) Which one of the following is most likely NOT a role played by the HR department in the performance appraisal process? A) conducting appraisals of employees B) monitoring the appraisal system's effectiveness C) providing performance appraisal training to supervisors D) ensuring the appraisal system's compliance with EEO laws Answer: A Explanation: Supervisors, rather than HR managers, conduct the actual appraisals. However, the HR department monitors the system's effectiveness and compliance with EEO laws. HR managers also provide supervisors with tools, advice, and training in regards to performance appraisals. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 8) What is the first step of any performance appraisal? A) giving feedback B) setting work standards C) making plans to provide training D) assessing the employee's performance Answer: B Explanation: Performance appraisal always involves the three-step performance appraisal process: (1) setting work standards, (2) assessing the employee's actual performance relative to those standards, and (3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 3 Copyright © 2020 Pearson Education, Inc.

9) ________ means making sure that the manager and the subordinate agree on the subordinate's job standards and the appraisal method to be used. A) SMART goals B) Organizational development C) Defining the job D) Forced distribution Answer: C Explanation: Defining the job means making sure that you and your subordinate agree on his or her duties and job standards and on the appraisal method you will use. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 10) Who is in the best position to observe and evaluate an employee's performance for the purposes of a performance appraisal? A) customers B) rating committees C) top management D) immediate supervisor Answer: D Explanation: Supervisors' ratings are the heart of most appraisals. The supervisor usually is in the best position to evaluate the subordinate's performance and is responsible for that person's performance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 11) Employee performance appraisals are conducted by all of the following EXCEPT ________. A) peers B) competitors C) subordinates D) rating committees Answer: B Explanation: Performance appraisals are primarily performed by supervisors. However, firms are increasingly using peers, rating committees, and subordinates to conduct appraisals. Competitors are not used for performance appraisals. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process.

12) Peer appraisals have been shown to result in a ________. A) reduction of social loafing B) reduction of group cohesion C) decrease in task motivation D) decrease in group satisfaction Answer: A Explanation: Peer appraisals have been shown to improve social loafing, group viability, cohesion, task motivation, and satisfaction. Employees are often motivated to meet the expectations of their colleagues. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 13) In most firms, a rating committee used for performance appraisals consists of ________ members. A) 2-3 B) 4-5 C) 6-8 D) 9-10 Answer: B Explanation: A rating committee usually consists of the employee's immediate supervisor and three or four other supervisors. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 14) What usually occurs when employees rate themselves for performance appraisals? A) Ratings are reliable but invalid. B) Ratings are subject to halo effects. C) Ratings are higher than when provided by supervisors. D) Ratings are about the same as when determined by peers. Answer: C Explanation: Employees usually rate themselves higher than they are rated by supervisors or peers. Self-ratings are neither reliable nor valid in most cases. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process.

15) Which one of the following terms refers to the process of allowing subordinates to rate their supervisor's performance anonymously? A) supplemental evaluation B) upward feedback C) paired evaluation D) peer evaluation Answer: B Explanation: Many employers let subordinates anonymously rate their supervisor's performance, a process some call upward feedback. The process helps top managers diagnose management styles, identify potential "people" problems, and take corrective action with individual managers as required. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 16) According to research, what is the typical result of upward feedback? A) Firms are protected against biased appraisals. B) Managers get defensive. C) Managers improve their performance. D) Managers seek to find out who gave them bad ratings. Answer: C Explanation: The evidence suggests that upward feedback improves managers' performance. One study focused on 252 managers during five annual administrations of an upward feedback program. Managers who were initially rated poor or moderate "showed significant improvements in [their] upward feedback ratings over the five-year period." Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 17) Which one of the following terms refers to a performance appraisal based on surveys from peers, supervisors, subordinates, and customers? A) 360-degree feedback B) team appraisals C) upward feedback D) rating committee Answer: A Explanation: Many firms expand the idea of upward and peer feedback into "360-degree feedback." Here ratings are collected "all around" an employee, from supervisors, subordinates, peers, and internal or external customers. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process.

18) A performance appraisal is based on the assumption that an employee understood what his or her performance standards were prior to the appraisal. Answer: TRUE Explanation: The term "appraisal" assumes that the employees knew what their performance standards were and that they received feedback required to remove performance deficiencies. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 19) Supervisors should provide employees with feedback, development, and incentives necessary to help employees eliminate performance deficiencies or to continue to perform well. Answer: TRUE Explanation: Performance appraisal always involves setting work standards, assessing the employee's actual performance relative to those standards, and providing feedback to the employee with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 20) The third step of the performance appraisal process is to assess the employee's actual performance relative to work standards. Answer: FALSE Explanation: The third step of the performance appraisal process is providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 21) In order to ensure that performance goals are challenging and relevant, Matthew, a marketing manager, should independently set goals for his subordinates because participatively setting goals usually produces lower job performance. Answer: FALSE Explanation: Goals should be challenging but doable, and it is more effective for supervisors and employees to work together at setting goals. Participatively set goals usually produce higher performance. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 9.1 Describe the performance appraisal process.

22) Formal performance appraisals have been eliminated by almost all major firms and replaced by daily assessments by peers. Answer: FALSE Explanation: Conventional appraisals are still the norm, although many progressive employers, such as Toyota, have essentially eliminated formal appraisals. Appraisals at such firms mainly involve having teammates continuously assessing each other, day-to-day. However, not all employers can or necessarily would benefit from such systems, so formal appraisals remain the most common. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 23) The HR department monitors the performance appraisal system, but it is typically not involved in rating employees. Answer: TRUE Explanation: The human resources department serves a policy-making and advisory role but does not usually rate the performance of employees. It is the role of the supervisor to conduct a performance appraisal. The human resource team should also be responsible for training supervisors to improve their appraisal skills, for monitoring the appraisal system's effectiveness, and for ensuring that it complies with EEO laws. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 24) In order to ensure that performance appraisals are effective, Felicia, a line supervisor, should make sure to schedule a feedback session to address each subordinate's performance, progress, and future development plans. Answer: TRUE Explanation: An effective appraisal requires a feedback session. Here, you and the subordinate discuss his or her performance and progress, and make plans for any development required. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 9.1 Describe the performance appraisal process. 25) Peer appraisals have been shown to have a negative effect on task motivation, cohesion, and job satisfaction, so most organizations no longer use them. Answer: FALSE Explanation: Peer appraisals have been shown to have an immediate positive impact on improving the perception of open communication, task motivation, social loafing, group viability, cohesion, and satisfaction. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 8 Copyright © 2020 Pearson Education, Inc.

26) Studies suggest that managers who receive upward feedback from identified subordinates view the upward appraisal process more negatively than do managers who receive anonymous upward feedback. Answer: FALSE Explanation: Managers who receive feedback from subordinates who identify themselves view the upward appraisal process more positively than do managers who receive anonymous feedback. However, subordinates (not surprisingly) are more comfortable giving anonymous responses; those who have to identify themselves tend to provide inflated ratings. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 27) Three hundred and sixty-degree feedback is generally used for development purposes rather than for pay increases. Answer: TRUE Explanation: With 360-degree feedback, ratings are collected "all around" an employee, from supervisors, subordinates, peers, and internal or external customers. Employers generally use the feedback for development rather than for pay increases. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 28) As a manager, how can you set effective performance appraisal standards for your employees? Explain your answer in a brief essay. Answer: Managers can set effective goals by following certain guidelines. • Set SMART goals. These are specific, measurable, attainable, relevant, and timely. • Assign specific goals. Employees who have specific goals usually perform better than those who do not. • Assign measurable goals. Always try to express the goal in terms of numbers, and include target dates or deadlines. • Assign challenging but doable goals. Make them challenging, but not so difficult that they appear impossible or unrealistic. • Encourage participation. Participatively set goals usually produce higher performance. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 9.1 Describe the performance appraisal process.

29) What are the essential steps of the performance appraisal process? Answer: The performance appraisal process itself contains three steps: 1) setting work standards, 2) assessing the employee's actual performance relative to those standards, and 3) providing feedback. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 9.1 Describe the performance appraisal process. 30) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's CEO advocates shifting from performance appraisals to performance management in an attempt to make Oshman more competitive and performance driven. Which one of the following, if true, best supports the argument to replace Oshman's traditional appraisal methods with the performance management approach? A) Oshman's competitors in the small appliance industry monitor the performance of their employees through electronic performance monitoring systems. B) Oshman executives want to align the firm's strategic plan with individual employee goals and development needs. C) Oshman has experienced problems associated with central tendency and bias, and the firm wants to ensure that appraisals are legally sound. D) Oshman uses management by objectives as a primary appraisal method and requires supervisors to develop SMART goals. Answer: B Explanation: Performance management refers to the continuous process of aligning the performance of individuals and teams with an organization's goals. Performance management does not necessarily eliminate problems like central tendency and bias. Instead, the approach focuses on monitoring an employee's performance and making sure it matches the needs of the firm. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

31) Which one of the following is the easiest and most popular technique for appraising employee performance? A) alternation ranking B) graphic rating scale C) forced distribution D) constant sum rating scale Answer: B Explanation: The graphic rating scale is the simplest and most popular method for appraising performance. A graphic rating scale lists traits and a range of performance values for each trait. The supervisor rates each subordinate by circling or checking the score that best describes the subordinate's performance for each trait. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 32) Which performance appraisal technique lists traits and a range of performance values for each trait? A) behaviorally anchored rating scale B) graphic rating scale C) forced distribution D) critical incident Answer: B Explanation: A graphic rating scale lists traits (such as "quality and reliability" or "teamwork") and a range of performance values (from "unsatisfactory" to "outstanding," or "below expectations" to "role model") for each trait. The supervisor rates each subordinate by circling or checking the score that best describes the subordinate's performance for each trait. The assigned values for the traits are then totaled. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

33) Wilson Consulting is a management consulting firm with seventy employees. As associate vice president of marketing, Paulo Ruiz is responsible for conducting performance appraisals of the twelve employees under his direct supervision. Paulo plans to use a graphic rating scale to evaluate the performance of his subordinates. Which one of the following, if true, best supports the argument that a graphic rating scale is the most appropriate performance appraisal tool for Paulo to use? A) The firm wants Paulo to evaluate her subordinates on an ongoing basis and to keep a log of critical incidents. B) Paulo wants to ensure that the firm is protected from employee discrimination lawsuits, so she has conducted a job analysis of each position. C) Paulo wants a quantitative rating of each employee based on competencies important to the firm, such as problem-solving skills. D) Employees in Paulo's department participated in developing their own performance standards when they were first hired by the firm. Answer: C Explanation: Graphic rating scales with competency-based appraisal forms enable an employer to focus on the extent to which an employee exhibits the competencies essential for the job. Graphic rating scales do not track critical incidents, and they are not the best tool for protecting a firm from legal charges because of problems with bias, central tendency, and halo effect. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 34) All of the following are usually measured by a graphic rating scale EXCEPT ________. A) generic dimensions of performance B) performance of co-workers C) achievement of objectives D) job-related competencies Answer: B Explanation: A paired comparison method involves making comparisons of employees with their co-workers. The graphic rating scale measures four job-relevant job dimensions including generic job dimensions, a job's actual duties, competencies, and objectives. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

35) Which performance appraisal tool requires supervisors to categorize employees from best to worst on various traits? A) graphic rating scale B) critical incident method C) alternation ranking method D) electronic performance monitoring Answer: C Explanation: The alternation ranking method involves ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 36) The most popular method for ranking employees is the ________ method. A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution Answer: B Explanation: It is usually easier to distinguish between the worst and best employees, and the alternation ranking method is the most popular choice for supervisors. Paired comparison and forced distribution are less popular methods for ranking employees from best to worst on a trait or traits. A graphic rating, not ranking, scale is a popular appraisal tool. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

37) Svetlana needs to rate five of her subordinates. She makes a chart of all possible pairs of employees for each trait being evaluated. Then, she indicates the better employee of each pair with a positive symbol on the chart. Finally, she totals the number of positive symbols for each employee. Which method of performance appraisal has Svetlana most likely used? A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution Answer: C Explanation: The paired comparison method helps make the ranking method more precise. For every trait (quantity of work, quality of work, and so on), you pair and compare every subordinate with every other subordinate. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 38) Which performance appraisal tool is being used when a supervisor places predetermined percentages of appraisees into various performance categories? A) behaviorally anchored rating scale B) graphic ranking scale C) alternation ranking D) forced distribution Answer: D Explanation: The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of appraisees into various performance categories. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

39) Rolf, the supervisor of the manufacturing department at a computer firm, is in the process of evaluating his staff's performance. He has determined that 15% of the group will be identified as high performers, 20% as above average performers, 30% as average performers, 20% as below average performers, and 15% as poor performers. Which performance appraisal tool has John chosen to use? A) behaviorally anchored rating scale B) forced distribution C) alternation ranking D) paired comparison Answer: B Explanation: The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of appraisees into various performance categories. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 40) Which one of the following measurement methods is similar to grading on a curve? A) forced distribution B) graphic rating scale C) constant sums rating D) behaviorally anchored rating scale Answer: A Explanation: The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of appraisees into various performance categories. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 41) Which of the following is one of the primary complaints regarding the use of the forced distribution method for performance appraisals? A) difficult to implement B) harm to employee morale C) high costs of administration D) time consuming to administer Answer: B Explanation: The biggest complaints regarding the forced distribution method are that it damages morale. The tool is not difficult to implement, time consuming, or costly. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 15 Copyright © 2020 Pearson Education, Inc.

42) Which performance appraisal tools require a supervisor to maintain a log of positive and negative examples of a subordinate's work-related behavior? A) alternation ranking B) paired comparison C) critical incident D) graphic rating Answer: C Explanation: With the critical incident method, the supervisor keeps a log of positive and negative examples (critical incidents) of a subordinate's work-related behavior. Every six months or so, supervisor and subordinate meet to discuss the latter's performance, using the incidents as examples. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 43) Which one of the following is a downside of the critical incident method of compiling incidents? A) doesn't provide examples of excellent work performance B) doesn't produce relative ratings for pay raise purposes C) doesn't make the supervisor think about the subordinate's appraisal all year D) doesn't compile examples of ineffective work performance Answer: B Explanation: Compiling incidents provides a number of useful examples but doesn't produce relative ratings for pay raise purposes. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

44) Wilson Consulting is a management consulting firm with 70 employees. As associate vice president of marketing, Paulo Boyle is responsible for conducting performance appraisals of the 12 employees under his direct supervision. Paulo plans to use the critical incident method to evaluate the performance of her subordinates. Which one of the following, if true, most likely undermines the argument that the critical incident method is the most appropriate performance appraisal tool for Paulo to use? A) Employee performance standards are closely aligned with Wilson Consulting's long-term strategic plans. B) Paulo will be conducting performance appraisals in conjunction with the HR manager to ensure EEO compliance. C) Wilson Consulting will be allowing employees to rate themselves as part of its organizational development strategy. D) Due to economic difficulties, the firm will be laying off the two lowest performing employees in Paulo's department. Answer: D Explanation: A firm that will be laying off the two lowest performing employees needs employees to be ranked from best to worst, and the critical incident method makes ranking difficult. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 45) Which appraisal method combines the benefits of narrative critical incidents and quantified scales by assigning scale points with specific examples of good or poor performance? A) behaviorally anchored rating scale B) constant sums rating scale C) alternation ranking D) forced distribution Answer: A Explanation: Behaviorally anchored rating scale (BARS) is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

46) Which one of the following best describes a behaviorally anchored rating scale? A) chart of paired subordinates ranked in order of performance B) combination of narrative critical incidents and quantified performance scales C) diary of positive and negative examples of a subordinate's work performance D) list of subordinates from highest to lowest based on specific performance traits Answer: B Explanation: Behaviorally anchored rating scale (BARS) is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 47) The first step in developing a behaviorally anchored rating scale is to ________. A) develop performance dimensions B) write critical incidents C) reallocate incidents D) scale incidents Answer: B Explanation: Writing about critical incidents is the first step in BARS. A supervisor will ask persons who know the job (jobholders and/or supervisors) to describe specific illustrations (critical incidents) of effective and ineffective job performance. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 48) Tamika is using a behaviorally anchored rating scale as a performance appraisal tool. She has already asked employees and supervisors to describe critical incidents of effective and ineffective job performance. What should Tamika most likely do next? A) create a final appraisal instrument B) develop performance dimensions C) reallocate the incidents D) rate the incidents Answer: B Explanation: Developing performance dimensions is the second step of the BARS process. Tamika should have these people group the incidents into 5 or 10 dimensions and then define each dimension, such as "salesmanship skills." Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 18 Copyright © 2020 Pearson Education, Inc.

49) Wilson Consulting is a management consulting firm with 70 employees. As associate vice president of marketing, Paulo Boyle is responsible for conducting performance appraisals of the 12 employees under her direct supervision. Paulo plans to use the behaviorally anchored rating scale (BARS) to evaluate the performance of her subordinates. Which one of the following, if true, supports the argument that BARS is the most appropriate performance appraisal tool for Paulo to use? A) Paulo wants to provide her subordinates with specific examples of their good and poor job performance during the appraisal interview. B) Paulo encourages her subordinates to review and make comments about their appraisal during a formal appeals process. C) Wilson Consulting recently installed an electronic performance monitoring system to help supervisors conduct appraisals. D) Paulo provides her subordinates with upward feedback as a way to illustrate the ratings she assigns to each employee. Answer: A Explanation: BARS, the most accurate appraisal tool, uses critical incidents as support for ratings, which helps supervisors explain appraisals more clearly to subordinates during the appraisal interview. Upward feedback is feedback about supervisors provided by subordinates. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 50) Which one of the following is an advantage of a behaviorally anchored rating scale? A) It is easier for the rater to score the rate high on all dimensions. B) It is easier for the rater to determine superior, average, and poor performance. C) The rater can determine for each rate which dimensions to score. D) This type of scale eliminates rater biases. Answer: B Explanation: The BARS method has several advantages. Most notably, the critical incidents along the scale illustrate what to look for in terms of superior, average, and poor performance. They also make it easier to explain the ratings to appraisees. And, the clustering of similar critical incidents into several performance dimensions (such as "salesmanship skills") helps make the performance dimensions more independent of one another. (For example, a rater should be less likely to rate an employee high on all dimensions simply because he or she was rated high in "salesmanship skills.") Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

51) Which one of the following terms refers to setting specific measurable goals with each employee and then periodically reviewing the progress made? A) behaviorally anchored rating scale B) management by objective C) mixed standard scales D) forced distribution Answer: B Explanation: MBO requires the manager to set specific measurable, organizationally relevant goals with each employee, and then periodically discuss the latter's progress toward these goals. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 52) All of the following are benefits of using computerized or Web-based performance appraisal systems EXCEPT ________. A) merging examples with performance ratings B) helping managers maintain computerized notes C) combining different performance appraisal tools D) enabling managers to monitor employees' computers Answer: D Explanation: Employers increasingly use computerized or Web-based performance appraisal systems. These enable managers to keep computerized notes on subordinates during the year, merge notes with ratings, and generate written text to support each part of the appraisal. Most appraisal software combines several appraisal methods. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 53) Which one of the following enables supervisors to oversee the amount of computerized data an employee is processing each day? A) computerized performance appraisal system B) online management assessment center C) digitized high-performance work center D) electronic performance monitoring system Answer: D Explanation: Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. They thus allow managers to monitor the employees' rate, accuracy, and time spent working online. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 20 Copyright © 2020 Pearson Education, Inc.

54) Nicholai supervises a team of data entry specialists. Lately, productivity has been down, and Nicholai believes his subordinates are not working as efficiently as possible. Which one of the following tools would provide Nicholai with daily information about each employee's rate, accuracy, and time spent entering data? A) digital dashboard device B) electronic performance monitoring system C) Web-based management oversight device D) electronic performance support system Answer: B Explanation: Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. They thus allow managers to monitor the employees' rate, accuracy, and time spent working online. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 55) Which term refers to ranking of employees from best to worst on a trait or traits, choosing highest than lowest until all are ranked? A) performance management B) paired comparison C) alternation ranking D) direction sharing Answer: C Explanation: The alternation ranking method is ranking employees from best to worst on a trait or traits. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 56) The forced distribution method is the simplest and most popular technique for appraising performance. Answer: FALSE Explanation: The graphic rating scale is the simplest and most popular method for appraising performance. The forced distribution method is used by many firms, but it is not the most popular performance appraisal tool. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

57) In the paired comparison method, the manager places predetermined percentages of ratees into performance categories. Answer: FALSE Explanation: In the paired comparison method, for every trait (quantity of work, quality of work, and so on), you compare every employee with every other employee. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 58) Supervisors at Sparkle Dynamics use the forced distribution method to evaluate performance, so they must ensure that the proportions in each category are symmetrical. Answer: FALSE Explanation: Proportions in each category do not need to be symmetrical with the forced distribution method of performance evaluation. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 59) The basic problem with using a ranking method for performance appraisals is not identifying the extreme good and bad performers but differentiating meaningfully between the others. Answer: TRUE Explanation: Distinguishing between top and bottom performers is usually not a problem when using a ranking method. The difficulty regards distinguishing meaningfully between the employees that fall in the middle. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 60) The use of a forced distribution system requires the termination of the bottom 10% of employees. Answer: FALSE Explanation: Some firms that use the forced distribution method have policies of dismissing employees who rank at the bottom. At GE, 20% of employees were placed in the top ranking, 70% in the middle, and 10% in the bottom. Most of those in the bottom 10% lost their jobs. GE no longer strictly adheres to its 20/70/10 split, and is experimenting with less stressful alternatives. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 22 Copyright © 2020 Pearson Education, Inc.

61) Paired comparison is a rating approach that involves keeping a record of uncommonly good or undesirable examples of an employee's work-related behavior and reviewing it with the employee at predetermined times. Answer: FALSE Explanation: Paired comparison involves ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 62) The advantages of using BARS as a performance appraisal tool are the method's accuracy, clear standards, and consistency. Answer: TRUE Explanation: The advantages of the BARS-based evaluations include the consistency of ratings, clear standards, and its high rate of accuracy. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 63) Management by objectives requires a manager to set specific measurable, organizationally relevant goals with each employee and then periodically discuss the employee's progress toward these goals. Answer: TRUE Explanation: MBO requires the manager to set specific measurable, organizationally relevant goals with each employee and then periodically discuss the latter's progress toward these goals. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

64) Sam supervises a team of data entry clerks at Geico. The firm's electronic performance monitoring system enables Sam to electronically monitor the amount of computerized data an employee processes each day. Answer: TRUE Explanation: Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. They thus allow managers to monitor the employees' rate, accuracy, and time spent working online. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 65) The alternation ranking method of performance appraisals can be problematic and unfair if all employees have excellent job performance. Answer: TRUE Explanation: The alternation ranking method can cause disagreements among employees and may be unfair if all employees are, in fact, excellent workers. Advantages of the method include the fact that it is easy to use and avoids central tendency problems. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 66) Ongoing performance monitoring is an element of performance management that involves the use of computer-based systems that measure an employee's progress and send out reports regarding an employee's performance. Answer: TRUE Explanation: Ongoing performance monitoring usually includes using computer-based systems that measure and then e-mail progress and exception reports based on the person's progress toward meeting his or her performance goals. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

67) A talent management philosophy involves segmenting employees based on their value to the firm's success and providing those employees with special coaching, feedback, and development opportunities. Answer: TRUE Explanation: Talent management involves actively managing mission-critical employees. Such employees are segmented for the purpose of receiving special coaching, feedback, and development opportunities. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 68) What are the four job-relevant dimensions that can be measured by the graphic-rating scale method of performance appraisal? What problems are associated with graphic-rating scales? Answer: The employer may measure generic dimensions of performance such as quantity or quality of work. The performance appraisal may focus on the job's actual duties and assess how well the employee did in exercising his or her specific job duties. Competency-based appraisals focus on the extent to which the employee exhibits the competencies that the employer values. The employer could also appraise the employee based on the extent to which he or she is achieving his or her objectives. Graphic-type rating scales in particular are susceptible to several problems: unclear standards, halo effect, central tendency, leniency or strictness, and bias. Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 69) In a brief essay, describe the forced distribution method. What are the advantages and disadvantages of the forced distribution method? Answer: The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. The proportions in each category need not be symmetrical; GE used top 20%, middle 70%, and bottom 10% for managers. The advantage of the method is that you end up with a predetermined number of people in each group. The disadvantage is that employees' appraisal results depend on your choice of cutoff points. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods.

70) What is a behaviorally anchored rating scale (BARS)? How would a manager develop a BARS? Answer: A behaviorally anchored rating scale is a rating scale that is anchored with specific behavioral examples of good or poor performance. Because of the anchors, which are based on the dimensions of performance illustrated by critical incidents, a BARS combines the benefits of narratives, critical incident, and quantified scales. There are five steps required for developing a BARS. Each step is explained below. • Step 1: Write critical incidents. In this step, people who know the job are asked to describe specific illustrations of effective and ineffective performance. • Step 2: Develop performance dimensions. The people who know the job are then asked to cluster the incidents into a smaller set of performance dimensions and to define each dimension with a name. • Step 3: Reallocate incidents. Another group of people, who also know the job, should reallocate the original critical incidents. They will receive the cluster definitions and the list of critical incidents. They will then reassign each incident into the cluster they think it fits best. If the assignments made by the first group and second group match well, then that critical incident is retained. • Step 4: Scale the incidents. The second group then rates the behavior described by the incident as to how effectively or ineffectively it represents performance on the dimension. • Step 5: Develop a final instrument. Six or seven of the incidents are the dimension's behavioral anchors. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 9.2 Discuss the pros and cons of at least eight traditional performance appraisal methods. 71) Graphic rating scales are subject to all of the following problems EXCEPT ________. A) unclear standards B) halo effects C) complexity D) leniency Answer: C Explanation: The graphic rating scale is the simplest and most popular method for appraising performance. However, graphic-type rating scales in particular are susceptible to several problems including unclear standards, halo effect, central tendency, leniency or strictness, and bias. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems.

72) Which one of the following terms refers to an appraisal that is too open to interpretation? A) unclear standards B) halo effects C) leniency D) biased Answer: A Explanation: An appraisal that is too open to interpretation has unclear standards. Specific standards are likely to result in consistent and more easily explained performance appraisals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 73) Which one of the following is the best way for a supervisor to correct a performance appraisal problem caused by unclear standards? A) focusing on performance instead of personality traits B) using graphic rating scales to rank employees C) using descriptive phrases to illustrate traits D) allowing employees to rate themselves first Answer: C Explanation: The best way to fix a problem associated with unclear standards is to include descriptive phrases that define or illustrate each trait. Specificity results in more consistent and more easily explained appraisals. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 74) Which one of the following is a performance appraisal problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits? A) recency effect B) halo effect C) central tendency D) stereotyping Answer: B Explanation: Experts define halo effect as "the influence of a rater's general impression on ratings of specific ratee qualities." For example, supervisors often rate unfriendly employees lower on all traits, rather than just on "gets along well with others." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems.

75) Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly. Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work." Which one of the following problems has most likely affected Jason's performance appraisal? A) central tendency B) leniency C) halo effect D) recency effect Answer: C Explanation: Experts define halo effect as "the influence of a rater's general impression on ratings of specific ratee qualities." Central tendency refers to rating all employees average. Recency effect means focusing on the most recent behavior of an employee rather than his or her performance over a year. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 76) A supervisor who frequently rates all employees as average on performance appraisals most likely has a problem known as ________. A) halo effect B) stereotyping C) central tendency D) leniency Answer: C Explanation: Central tendency refers to the tendency of supervisors to rate all employees the same way, such as rating them all average. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 77) The best way to reduce the problem of central tendency in performance appraisals is to ________. A) rank employees B) use graphic rating scales C) limit the number of appraisals D) appraise personal characteristics Answer: A Explanation: Ranking employees instead of using graphic rating scales can reduce the problem of central tendency. Ranking means you can't rate all employees as average. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems.

78) Which performance appraisal problem is associated with supervisors giving all of their subordinates consistently high ratings? A) central tendency B) leniency C) strictness D) halo effect Answer: B Explanation: Some supervisors tend to rate all their subordinates consistently high or low. Leniency refers to giving high ratings, while strictness refers to giving low ratings. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 79) The ________ problem occurs when supervisors tend to rate all their subordinates consistently low. A) central tendency B) leniency C) strictness D) halo effect Answer: C Explanation: Some supervisors tend to rate all their subordinates consistently high or low. Leniency refers to giving high ratings, while strictness refers to giving low ratings. Central tendency refers to giving average scores. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 80) Which one of the following is the best method for reducing the problems of leniency or strictness in performance appraisals? A) keep critical incident logs B) require multiple appraisals C) impose a performance distribution D) reconsider the timing of the appraisal Answer: C Explanation: Enforcing a performance distribution is one way of correcting leniency/strictness problems. Another option is to rank employees. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems.

81) Which one of the following has most likely occurred when a supervisor conducting a performance appraisal is influenced by a subordinate's individual differences such as age, sex, and race? A) bias B) halo affect C) central tendency D) unclear standards Answer: A Explanation: Bias refers to the tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings that employees receive. Halo effect, unclear standards, and central tendency are other problems associated with performance appraisals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 82) Which one of the following is LEAST likely to cause a supervisor's performance appraisal of a subordinate to be biased? A) purpose of the appraisal B) location and time of the appraisal C) personal characteristics of the subordinate D) relationship between supervisor and subordinate Answer: B Explanation: Appraisal bias has been shown to be caused by the appraisal's purpose but not the location or time of the appraisal. The personality of the supervisor, personal characteristics of the subordinate, and relationship between the two parties all tend to lead to bias. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 83) All of the following guidelines will most likely improve the effectiveness of a performance appraisal EXCEPT ________. A) maintaining a diary of employees' performance during the year B) using a graphic rating scale to ensure fair and consistent ratings C) knowing the advantages and disadvantages of different appraisal tools D) developing a plan to assist employees with performance improvement Answer: B Explanation: Graphic rating scales do not necessarily lead to effective performance appraisals, and they are susceptible to problems like bias and central tendency. Keeping a diary, knowing which tool to use and forming a performance improvement plan are all methods for improving the effectiveness of a performance appraisal. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 30 Copyright © 2020 Pearson Education, Inc.

84) Marva manages the accounting department at an advertising agency. She needs to conduct performance appraisals for the eight employees in her department. Marva wants a performance appraisal tool that is highly accurate, ranks employees, and uses critical incidents to help explain ratings to appraisees. Which performance appraisal tool is best suited for Marva? A) graphic rating scale B) alternation ranking method C) critical incident method D) behaviorally anchored rating scale Answer: D Explanation: For those for whom accuracy is a great concern, BARS are superior, but require much more time to develop and use. The integration of critical incidents helps a supervisor explain ratings to appraisees. Graphic rating scales and alternation rankings do not include critical incidents, while the critical incident method includes examples without rankings. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 85) Which one of the following is the primary advantage of using graphic rating scales as performance appraisal tools? A) eliminates central tendency errors B) offers extremely high rate of accuracy C) provides quantitative rating for each employee D) links with mutually agreed upon performance objectives Answer: C Explanation: Graphic rating scales are simple to use and provide quantitative ratings for each employee. However the tool has problems with central tendency and unclear standards. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 86) All of the following are considered best practices for administering fair performance appraisals EXCEPT ________. A) explaining how subordinates can improve their performance B) basing the appraisal on observable job behaviors C) using subjective performance data for appraisals D) training supervisors how to conduct appraisals Answer: C Explanation: Appraisals should be based on objective rather than subjective performance data and also on observable job behaviors. Appraisers should explain how subordinates can improve their performance, clarify in advance the performance objectives, and train supervisors in how to conduct appraisals. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 31 Copyright © 2020 Pearson Education, Inc.

87) Which one of the following would most likely result in a legally questionable appraisal process? A) basing appraisals on subjective supervisory observations B) administering and scoring appraisals in a standardized fashion C) using job performance dimensions that are too clearly defined D) assigning specific trait names when using graphic rating scales Answer: A Explanation: Courts have ruled in favor of employees when performance appraisals were based on subjective factors such as age, sex, or gender rather than actual job performance. Performance appraisals are more legally sound if based on clearly specified job performance dimensions. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 88) Unclear standards on a performance appraisal tool will most likely lead to unfair appraisals because performance traits are too open for interpretation. Answer: TRUE Explanation: A performance appraisal tool with unclear standards will probably result in unfair appraisals, because the traits and degrees of merit are ambiguous and too open to a rater's interpretation. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 89) Central tendency is a problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits. Answer: FALSE Explanation: Central tendency means rating all employees average. The halo effect refers to the problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 90) In order to ensure that a performance appraisal is legally defensible, a supervisor should use only one performance appraisal tool. Answer: FALSE Explanation: Using a single overall rating of performance is usually not acceptable to the courts. It is suggested that more than one appraisal tool be used. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 32 Copyright © 2020 Pearson Education, Inc.

91) What are the guidelines that supervisors should follow to hold effective appraisals and minimize problems like bias and halo effects? How can rating committees improve the fairness of the appraisal process? Answer: The first technique is to learn and understand the potential problem and possible solutions. Simply understanding the potential for the problem can help to avoid it. Second, using the right appraisal tool for each situation is important. Third, supervisors can keep a diary of critical incidents to file and use for later reference for subordinate's appraisals. This technique helps to ensure that both negative and positive incidents are recorded. Fourth, make sure that the primary goal of the appraisal is to improve unsatisfactory performance or reinforce exemplary performance. Finally, the appraisal should be fair. Many employers use rating committees. These committees usually contain the employee's immediate supervisor and two or three other supervisors. Using multiple raters makes sense. Although there may be discrepancies among ratings by individual supervisors, the composite ratings tend to be more reliable, fair, and valid. Using several raters can also help cancel out problems like bias and halo effects. Difficulty: Hard Objective: 1, 3 AACSB: Written and Oral Communication Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems. 92) In a brief essay, discuss how a supervisor can develop and conduct a performance appraisal that is legally defensible. Answer: Supervisors should conduct a job analysis to establish criteria and standards for successful performance and incorporate these criteria and standards into a rating system. It is important to communicate performance standards to employees and supervisors in writing and avoid abstract trait names when using graphic rating scales. Steps to ensure the appraisal are legally defensible are these: Base the performance appraisal criteria on a job analysis. At the start of the period, communicate performance standards to employee in writing. Using a single overall rating of performance is not acceptable to the courts. Include an employee appeals process. One appraiser should never have absolute authority to determine a person's actions. Document all information bearing on a personnel decision in writing. Also train supervisors. If formal rater training is not possible, at least prove rates with written instruction on how to use the rating scale. Difficulty: Moderate Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 9.3 Give examples of how to deal with potential appraisal error problems.

93) Which one of the following best describes the purpose of an appraisal interview? A) training supervisors in the rating process B) identifying potential interpersonal problems C) making plans to correct employee weaknesses D) discussing and scheduling training programs Answer: C Explanation: The appraisal typically culminates in an appraisal interview. Here, the supervisor and the subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview. 94) You are conducting an appraisal interview with an employee whose performance is satisfactory but for whom promotion is not possible. Which incentive listed below would be the LEAST effective option for maintaining satisfactory performance in this situation? A) time off B) small bonus C) recognition D) professional development Answer: D Explanation: For employees whose performance is satisfactory but for whom promotion is not possible, the objective is to maintain satisfactory performance. The best option is usually to find incentives that are important to the person and sufficient to maintain performance, such as extra time off, a small bonus, and recognition. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 9.4 List steps to take in the appraisal interview. 95) When conducting an appraisal interview, supervisors should do all of the following EXCEPT ________. A) ask open-ended questions B) give specific examples of poor performance C) write up an action plan with goals and dates D) compare the person's performance to that of other employees Answer: D Explanation: When a supervisor conducts an appraisal interview, it is advisable to speak in terms of objective work data with specific examples of poor performance. A supervisor should also ask the employee open-ended questions to encourage conversation and write up an action plan. It is inappropriate to compare a person's performance with another person. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview. 34 Copyright © 2020 Pearson Education, Inc.

96) When a supervisor must criticize a subordinate in an appraisal interview, it is most important for the supervisor to ________. A) limit negative feedback to once every year B) provide specific examples of critical incidents C) acknowledge the supervisor's personal biases in the situation D) hold the meeting with other people who can document the situation Answer: B Explanation: When you must criticize, it should be done privately and should include examples of critical incidents and specific suggestions of what to do and why. Avoid once-a-year "critical broadsides" by giving feedback periodically, so that the formal review contains no surprises. Criticism should be objective and free of personal bias. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview. 97) When an employee's performance is so poor that a written warning is required, the warning should ________. A) identify the standards by which the employee is judged B) provide examples of employees who met the standards C) provide examples of times when the employee met the standards D) be written by a labor law attorney in accordance with federal guidelines Answer: A Explanation: Written warnings should identify the employee's standards, make it clear that the employee was aware of the standard, specify any deficiencies relative to the standard, and show the employee had an opportunity to correct his or her performance. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview. 98) During an exit interview, a supervisor and a subordinate review the appraisal and make plans to correct deficiencies and reinforce strengths. Answer: FALSE Explanation: Appraisal interviews involve a supervisor and a subordinate reviewing the appraisal and making plans to correct deficiencies and reinforce strengths. Exit interviews are conducted when an employee leaves a company. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview.

99) The goal for a supervisor conducting a satisfactory-not promotable appraisal interview is to maintain satisfactory performance by finding incentives that are important to the person. Answer: TRUE Explanation: Satisfactory—not promotable appraisal interviews are for employees whose performance is satisfactory but for whom promotion is not possible. The objective here is to maintain satisfactory performance. The best option is usually to find incentives that are important to the person and sufficient to maintain performance, such as extra time off or a small bonus. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview. 100) Tyler, an accounting manager at Firestone, is preparing for an appraisal interview with an employee whose performance is unsatisfactory but correctable. Tyler's primary objective during the interview should be to encourage the employee with positive reinforcements like job enlargement and compliments. Answer: FALSE Explanation: When the person's performance is unsatisfactory but correctable, the interview objective is to lay out an action plan for correcting the unsatisfactory performance. Employees who have satisfactory performance but who are not promotable should be encouraged with incentives. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 9.4 List steps to take in the appraisal interview. 101) While formal written warnings are provided too late to salvage an employee's performance and position at the company, they are useful in court proceedings. Answer: FALSE Explanation: An employee's performance may be so weak that it requires a formal written warning. Such warnings serve two purposes: (1) They may serve to shake your employee out of his or her bad habits, and (2) they can help you defend your rating, both to your own boss and (if needed) to the courts. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 9.4 List steps to take in the appraisal interview.

102) Why is it important for a manager to appraise a subordinate's performance? How can a manager handle a subordinate who is defensive when told that his or her performance is poor? Answer: There are four reasons for conducting performance appraisals. First, most employers base pay, promotion, retention decision on the employee's appraisal. Second, appraisals play a central role in the employer's performance management process. Third, it lets the manager and subordinate develop a plan for correcting any deficiencies that might exist and to reinforce and support things that are done well. Fourth, appraisals can serve a useful career planning purpose by providing the opportunity to review the employee's career plans in light of his or her strengths and weaknesses. When a supervisor tells someone his or her performance is poor, the first reaction is often denial. Denial is a defense mechanism. Understanding and dealing with defensiveness is an important appraisal skill. A supervisor should recognize that defensive behavior is normal and never attack a person's defenses. A supervisor should postpone action because given sufficient time, a more rational reaction may take over. A supervisor should not try to be a psychologist. Offering understanding is one thing; trying to deal with psychological problems is another. Difficulty: Hard Objective: 1, 4 AACSB: Written and Oral Communication Learning Outcome: 9.4 List steps to take in the appraisal interview. 103) Describe the four basic types of appraisal interviews. Answer: The first type of appraisal interview is the satisfactory-promotable appraisal interview. This occurs when the person's performance is satisfactory and there is a promotion ahead. The objective is to discuss the person's career plans and to develop a specific action plan for the educational and professional development the person needs to move to the next job. The second type of interview is the satisfactory-not promotable appraisal interview. This is for employees whose performance is satisfactory but for whom promotion is not possible. The objective is to maintain satisfactory performance. The best option is to find incentives that are important to the person. The third type of interview is the unsatisfactory but correctable interview. In this situation, the objective is to develop an action plan for correcting the unsatisfactory performance. The final type of interview is the unsatisfactory-uncorrectable interview. In this situation, the interview may even be skipped. The person's poor performance is tolerated or the person is dismissed. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 9.4 List steps to take in the appraisal interview.

104) In his appraisal interview with Juan, Tomas was candid and objective but also supportive. In this way Tomas provided Juan with ________. A) job significance B) job security C) psychological meaningfulness D) psychological safety Answer: D Explanation: Employees who experience "psychological safety" (the perception that it's safe to bring oneself to a role without fear of damage to self-image, status, or career) were more engaged. Therefore, be candid and objective but do so supportively and without unnecessarily undermining the employee's self-image. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 9.5 Explain key points in how to use the appraisal interview to boost employee engagement. 105) Indira is concerned that her workers are not fully engaged and has come to you for advice. After observing her in one appraisal interview, you determine that she should ________. A) set clearer goals for her employees B) emphasize the employee's shortcomings C) focus on the employee's strengths D) explain the mission and vision of the company Answer: C Explanation: Emphasizing negatives during an appraisal interview undermines employee engagement. Managers who focus on strengths find more of their employees are engaged than do those who focus on negatives. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 9.5 Explain key points in how to use the appraisal interview to boost employee engagement. 106) During the appraisal interview, the manager should make clear that the manager is responsible for decision-making. Answer: FALSE Explanation: Involvement in decision making and letting employees voice their opinions improve employee engagement. Use the interview as an opportunity to show your employees that you listen to their ideas and value their contributions. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 9.5 Explain key points in how to use the appraisal interview to boost employee engagement.

107) Discuss three ways a manager can use the appraisal interview to improve their employees' engagement. Answer: (Can be any combination of three) 1. Employees who understand how they and their departments contribute to the company's success are more engaged. Therefore, take the opportunity to show the employee how his or her efforts contribute to the "big picture"–to his or her team's and the company's success. 2. Another study found that employees' engagement rose when they experienced what the researchers called "psychological meaningfulness" (namely, the perception that one's role in the organization is worthwhile and valuable). Use the interview to emphasize the meaningfulness to the company of what the employee is doing. 3. Employees who experience "psychological safety" (the perception that it's safe to bring oneself to a role without fear of damage to self-image, status, or career) were more engaged. Therefore, be candid and objective but do so supportively and without unnecessarily undermining the employee's self-image. 4. Efficacy drives engagement, so use the interview to make sure your employee has what he or she needs to do a good job. 5. Managers should be candid and honest, but don't unnecessarily emphasize the negatives. Doing so undermines employee engagement. In one survey, Gallup asked about 1,000 U.S. employees to respond to two statements: "My supervisor focuses on my strengths or positive characteristics" and "My supervisor focuses on my weaknesses or negative characteristics." It found that about three times more employees whose managers focused on strengths were engaged, compared with those who focused on weaknesses. 6. Involvement in decision making and letting employees voice their opinions improve employee engagement. Use the interview as an opportunity to show your employees that you listen to their ideas and value their contributions. 7. Engagement rises when employees have an opportunity to improve their careers. During the interview discuss the person's evaluation in the context of where he or she sees himself or herself heading career-wise. 8. Research shows "a significant positive association between (1) distributive [what rewards people get] and informational [what information they get] justice dimensions, and (2) employee engagement." Bottom line: Make sure that the interviewee views the appraisal and the rewards or remedial actions as fair. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 9.5 Explain key points in how to use the appraisal interview to boost employee engagement.

108) The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals is known as ________. A) strategic management B) performance analysis C) performance appraisal D) performance management Answer: D Explanation: Performance management is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal. 109) Which component of performance management refers to communicating a firm's higherlevel goals throughout the organization and then translating them into departmental and individual goals? A) goal alignment B) performance monitoring C) direction sharing D) developmental support Answer: C Explanation: Direction sharing means communicating the company's higher-level goals (including its vision, mission, and strategy) throughout the company and then translating these into doable departmental, team, and individual goals. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal.

110) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's CEO advocates shifting from performance appraisals to performance management in an attempt to make Oshman more competitive and performance driven. All of the following questions are relevant to Oshman's decision to replace its traditional appraisal methods with the performance management approach EXCEPT: A) What technology is available to help managers gain immediate access to employee performance data? B) How would work procedures need to be modified to provide more frequent feedback to employees? C) How would the firm's mission and vision translate into departmental, team, and individual goals? D) What procedures are already in place to effectively identify and measure critical incidents? Answer: D Explanation: Issues related to performance management include the technology used to monitor employee performance, methods for providing feedback, development of goals, and incentives. Identifying critical incidents is an issue related to traditional appraisal methods rather than performance management. Difficulty: Hard Objective: 6 AACSB: Application of Knowledge Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal. 111) A supervisor working for a firm that uses performance management should most likely expect to ________. A) conduct annual performance appraisals B) compare team goals to industry standards C) re-evaluate how employees accomplish tasks D) use paper forms to handle performance appraisals Answer: C Explanation: Performance management means continuously re-evaluating and (if need be) modifying how the employee and team get their work done. Depending on the issue, this may mean additional training, changing work procedures, or instituting new incentive plans, for instance. Performance management also involves continuous rather than annual performance appraisals, which are managed through computerized systems. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal.

112) Which one of the following is NOT one of performance management's six basic elements? A) habit creation B) goal alignment C) ongoing feedback D) direction sharing Answer: A Explanation: Habit creation is not one of the basic elements of performance management. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal. 113) Performance appraisals are a link between corporate strategy, departmental goals, employee goals and employee performance in the overall performance management process. Answer: TRUE Explanation: Performance management is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal. 114) In a brief essay, discuss the components necessary for an effective performance management process. Answer: The basic building blocks of performance management include the following: • Direction sharing means communicating the company's goal through higher level goals throughout the organization and translating these into doable departmental goals. • Goal alignment means having a process in place that allows any manager to see the link between an employee's goals and those of the department and organization. • Ongoing performance monitoring means using computer-based systems to measure and report on employee progress toward meeting performance goals. • Ongoing feedback includes face-to-face and computer-based feedback regarding progress toward goals. • Coaching and developmental support should be an integral part of the feedback process. • Rewards, recognition, and compensation provide the consequences necessary to keep employee performance on target. Difficulty: Moderate Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 9.6 Explain how you would take a performance management approach to appraisal.

Human Resource Management, 16e (Dessler) Chapter 10 Managing Careers and Retention 1) Which one of the following terms refers to educating, instructing, and training subordinates, usually related to daily tasks? A) mentoring B) coaching C) appraising D) grading Answer: B Explanation: Coaching means educating, instructing, and training subordinates. Coaching focuses on teaching daily tasks that you can easily relearn. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 2) What is defined as the occupational positions a person holds over the years? A) a psychological contract B) a promotion C) reality shock D) a career Answer: D Explanation: A career is the occupational positions a person holds over the years. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 3) John feels that he owes his organization hard work and loyalty while the company owes him fair treatment and satisfactory work conditions. This is an example of ________. A) career planning B) exit interview C) psychological contract D) transfer Answer: C Explanation: The psychological contract is "an unwritten agreement that exists between employers and employees." The psychological contract identifies each party's mutual expectations. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 1 Copyright © 2020 Pearson Education, Inc.

4) The process of advising, counseling, and guiding employees is known as ________. A) coaching B) appraising C) assessing D) mentoring Answer: D Explanation: Mentoring means having experienced senior people advising, counseling, and guiding employees' longer-term career development. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 5) ________ focuses on helping an employee make long-term career plans, while ________ addresses an employee's short-term job skills. A) Mentoring; coaching B) Coaching; mentoring C) Recruiting; coaching D) Appraising; training Answer: A Explanation: Mentoring means advising, counseling, and guiding an employee towards longterm career goals. Coaching means educating, instructing, and training subordinates in performing short-term job-related skills. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 6) Which one of the following is NOT supported by research as to what supervisors can do to be better mentors? A) set high standards B) invest the time and effort the mentoring relationship requires C) steer protégés into important projects D) focus on controlling the mentor Answer: D Explanation: Research suggests that mentors need to actually share control with the mentees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

7) Dick's Sporting Goods is a sports and fitness retailer with over 300 stores in 34 states. After beginning as a small bait and tackle shop in 1948, Dick's has grown to become a leader in the sports and fitness retail industry. Many career opportunities are available in Dick's in areas as diverse as IT, product development, merchandising, and store management. Top management at Dick's realizes the importance of hiring and retaining quality employees. As a result, the firm has decided to implement policies, practices, and programs that support employees' career needs. Which one of the following, if true, would best support the argument that Dick's should assign a coach to each new employee? A) The turnover rate of newly hired hourly employees at Dick's Sporting Goods is higher than the industry average. B) Many new employees at Dick's Sporting Goods have expressed interest in the firm's tuition reimbursement program. C) Dick's Sporting Goods has integrated preretirement counseling and succession planning into its career management practices. D) Dick's Sporting Goods uses talent management software to place new employees in the most appropriate positions. Answer: A Explanation: A high turnover rate of newly hired hourly employees suggests that employees are quitting because they do not know how to perform their jobs. Coaching involves educating, instructing, and training subordinates on short-term job-related skills, and it would most likely help reduce the turnover rate. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 8) Which one of the following is the main difference between coaching and mentoring? A) Coaching focuses on work-related behaviors. B) Mentoring focuses on teamwork related skills. C) Coaching focuses on teaching daily tasks. D) Mentoring is more effective for women. Answer: C Explanation: Mentoring focuses on employees' longer-term career development while coaching focuses on teaching daily tasks that a worker can easily relearn. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

9) ________ is a process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests most effectively within the company and afterwards. A) Career management B) Career development C) Career planning D) Performance management Answer: A Explanation: Career management is a process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests most effectively within the company and after they leave the firm. Specific career management activities might include providing realistic career oriented appraisals, posting open jobs, and offering formal career development activities. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 10) Which one of the following terms refers to the lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment? A) performance management B) career development C) career management D) career planning Answer: B Explanation: Career development is the lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

11) Which one of the following is a specific example of a career development activity? A) job evaluation B) training workshop C) college recruitment D) performance appraisal Answer: B Explanation: Career development is the lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment. A training workshop is a specific method for career development. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 12) Which one of the following best describes career planning? A) a deliberate process through which someone becomes aware of personal skills, interests, knowledge, and motivations and establishes action plans to attain specific career goals B) the lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment C) a process of helping employees to better understand and develop their career skills and interests and to use these skills and interests most effectively D) the process of educating, instructing, and training subordinates as they develop their career interests and job skills Answer: A Explanation: Career planning is the deliberate process through which someone becomes aware of his or her personal skills, interests, knowledge, motivations, and other characteristics. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

13) Jackie is working with a coach to identify her personal skills and interests. Afterwards, she will investigate opportunities that fit her skills and interests and set specific career goals. In which one of the following activities is Jackie most likely participating? A) career management B) career development C) career planning D) job training Answer: C Explanation: Career planning is the deliberate process through which someone becomes aware of his or her personal skills, interests, knowledge, motivations, and other characteristics and establishes action plans to attain specific goals. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 14) Employers benefit from offering career development programs to employees in all of the following ways EXCEPT ________. A) supporting recruitment efforts B) boosting employee commitment C) enhancing employee strengths D) facilitating performance analysis Answer: D Explanation: Performance analysis refers to verifying and correcting an employee's performance deficiency, but it is not a benefit of career development programs. Firms that offer career development programs boost employee commitment, support recruitment and retention efforts, and equip employees with useful skills. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

15) Dick's Sporting Goods is a sports and fitness retailer with over 300 stores in 34 states. After beginning as a small bait and tackle shop in 1948, Dick's has grown to become a leader in the sports and fitness retail industry. Many career opportunities are available in Dick's in areas as diverse as IT, product development, merchandising, and store management. Top management at Dick's realizes the importance of hiring and retaining quality employees. As a result, the firm has decided to implement policies, practices, and programs that support employees' career needs. Which one of the following, if true, would best support the argument that Dick's should add a career development aspect to its human resource activities? A) Dick's Sporting Goods' current policies and practices categorize the firm as a highperformance work system. B) Dick's Sporting Goods' performance appraisals include development plans and individual goal setting. C) Dick's Sporting Goods' sales volume and hourly employee needs typically fluctuate throughout the year. D) Dick's Sporting Goods' screens potential candidates using structured situational interviews. Answer: B Explanation: Performance appraisals with a traditional focus include ratings and rewards, but firms that have a career development focus add development plans and individual goal setting. Such additions can better equip employees and support their career development needs more effectively than traditional appraisals. Career development is the lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

16) Dick's Sporting Goods is a sports and fitness retailer with over 300 stores in 34 states. After beginning as a small bait and tackle shop in 1948, Dick's has grown to become a leader in the sports and fitness retail industry. Many career opportunities are available in Dick's in areas as diverse as IT, product development, merchandising, and store management. Top management at Dick's realizes the importance of hiring and retaining quality employees. As a result, the firm has decided to implement policies, practices, and programs that support employees' career needs. All of the following questions are relevant to Dick's Sporting Goods' decision to implement a career development program EXCEPT: A) What is the average length of time that an employee works for Dick's Sporting Goods? B) How would the customer profile of Dick's Sporting Goods be affected by a change in hiring practices? C) What are the career needs and opportunities available to minorities and women employed by Dick's Sporting Goods? D) What will be the effect on recruiting and placement if employees' interests and attitudes are taken into consideration by the HR department at Dick's Sporting Goods? Answer: B Explanation: Issues such as recruiting, employee commitment, career development needs, and promotion processes are all relevant to a decision to implement a career development program. Profits and hiring practices are less relevant to the decision. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 17) In regards to an employee's career development, it is the primary responsibility of the ________ to make career plans, set goals, and utilize development opportunities. A) employer B) employee C) recruiter D) HR manager Answer: B Explanation: Employees are responsible for making career plans, setting goals, and utilizing development opportunities in respect to their own career development. Managers are responsible for providing feedback and developmental assignments, and the employer should provide training opportunities. No employee should abandon this task to others. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

18) All of the following are the role of the employer in an employee's career development EXCEPT ________. A) communicating policies and procedures B) analyzing interests, values, and skills C) providing performance feedback D) offering a variety of career paths Answer: B Explanation: It is the role of the employee to analyze his or her interests, values, and skills. Employers are responsible for communicating the firm's policies, providing training and feedback, and offering various career paths. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 19) Which one of the following is primarily the role of the manager in an employee's career development? A) providing career information B) seeking development opportunities C) providing academic assistance programs D) providing accurate performance feedback Answer: D Explanation: It is the role of the manager to provide timely and accurate performance feedback to subordinates. Employees are responsible for seeking development opportunities. Employers should provide career information and academic assistance when appropriate. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 20) Which one of the following is the organization's role in an employee's career development? A) providing mentoring opportunities to support growth B) participating in career development discussions C) providing timely performance feedback D) establishing goals and career plans Answer: A Explanation: It is the responsibility of an organization to provide mentoring opportunities to support an employee's growth. The employee is responsible for establishing career plans. Managers should discuss career development with employees and provide performance feedback in a timely manner. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 9 Copyright © 2020 Pearson Education, Inc.

21) Which one of the following refers to an organized learning event in which participants conduct self-assessments, set goals, and develop action plans? A) competency-based job analysis B) career planning workshop C) job instruction training D) management retreat Answer: B Explanation: A career planning workshop is "a planned learning event in which participants are expected to be actively involved, completing career planning exercises and inventories and participating in career skills practice sessions." A typical workshop includes a self-assessment, an environmental assessment, goal-setting, and action-planning. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 22) All of the following are types of career development initiatives implemented by employers EXCEPT ________. A) 401(k) plans B) career coaches C) appraisal committees D) mentoring Answer: A Explanation: Several employers provide 401(k)-type lifelong learning accounts for their employees to use for career-related education, but 401(k) plans are not oriented towards career development. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

23) All of the following are typical activities of career coaches EXCEPT helping employees to ________. A) make 1 to 5-year career plans B) identify development needs C) obtain networking opportunities D) negotiate with firms for higher salaries Answer: D Explanation: Career coaches help individual employees identify their development needs and obtain the training, professional development, and networking opportunities that they need to satisfy those needs. Career coaches generally help employees create 1- to 5-year plans showing where their careers with the firm may lead. Career coaches are not likely to be involved with salary negotiations. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 24) Which one of the following would most likely increase employee commitment? A) document the psychological contract B) create Web-based efficiency programs C) establish a career development program D) promise lifetime employment to managers Answer: C Explanation: The employer's career development efforts, taken as a whole, should send the signal that the employer cares about the employee's career success, and thus deserves the employee's commitment. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

25) All of the following are characteristics of effective mentors EXCEPT ________. A) developing a trustworthy relationship B) guiding protégés into important projects C) focusing on the protégé's daily tasks D) setting high standards for protégés Answer: C Explanation: Coaching, not mentoring, focuses on daily tasks. Effective mentors set high standards, are willing to invest the time and effort the mentoring relationship requires, and actively steer protégés into important projects, teams, and jobs. Effective mentoring requires trust, and the level of trust reflects the mentor's professional competency, consistency, ability to communicate, and readiness to share control. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 26) Based on research studies, which one of the following is most likely a true statement about mentoring programs? A) Traditional mentoring programs are more effective for male than for female employees. B) When the mentor and protégé work in different departments, mentoring is more effective. C) Protégés have more respect for mentors who work two levels above their own rank in a firm. D) Required mentoring relationships are more effective than informal mentoring relationships. Answer: A Explanation: Studies suggest that traditional mentoring is less effective for women than it is for men. For example, in one survey of employees who had "active mentoring relationships" in one recent year, 72% of the men received one or more promotions in the ensuing two years, compared with 65% of the women. Mentoring is more useful when mentors and protégés are in the same department. Trust is the main component of an effective mentoring relationship, not seniority. It makes little difference in the extent or quality of mentoring whether protégés volunteer to take part or are assigned formally to mentors. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

27) Michele's firm does not have a formal mentoring program. However, entry-level employees, such as Michele, are encouraged to form relationships with experienced workers. Michele wants to make sure that she has an effective mentor relationship. Which one of the following mentor relationship guidelines would NOT be recommended to Michele? A) Build trust. B) Share control between mentor and mentee. C) Clarify what you expect in terms of advice. D) Bring personal problems to mentor. Answer: D Explanation: Because the supervisor is usually not a psychologist or trained career advisor, a mentor should often avoid giving advice on personal problems. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 28) What do firms use to coordinate career planning efforts, succession plans, and employees' career interests? A) outplacement counseling B) coaching C) reality shock D) integrated talent management software Answer: D Explanation: Integrated talent management software helps to achieve coordination between succession plans and employee career interests. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 29) Which one of the following is most likely to occur when a new employee's high expectations and enthusiasm confront the reality of a boring job? A) halo effect B) reality shock C) disparate rejection D) cognitive dissonance Answer: B Explanation: Reality shock refers to what occurs when a new employee's expectations and enthusiasm confront the reality of a boring or otherwise unattractive work situation. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 13 Copyright © 2020 Pearson Education, Inc.

30) Reality shock can most likely be prevented by providing new employees with ________. A) flexible schedules B) performance appraisals C) reassignments D) accurate job previews Answer: D Explanation: Realistic job previews, challenging first jobs, and an experienced mentor to help the new employee learn the ropes are important methods for avoiding reality shock. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 31) For many employees, professional growth opportunities act as an incentive to remain with a firm because such programs indicate that a company cares about its workers. Answer: TRUE Explanation: Inadequate career and professional development prospects prompt many employees to leave. Conversely, a well-thought-out training and career development program can provide a strong incentive for staying with the company. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 32) Coaching focuses on helping employees reach long term career goals. Answer: FALSE Explanation: Coaching focuses on teaching daily tasks that a worker can easily relearn. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 33) A quality of being an effective mentor is actively steering protégés into important projects, teams, and jobs. Answer: TRUE Explanation: Effective mentors set high standards, are willing to invest the time and effort the mentoring relationship requires, and actively steer protégés into important projects, teams, and jobs. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 14 Copyright © 2020 Pearson Education, Inc.

34) Effective mentoring does not require trust. Answer: FALSE Explanation: Effective mentoring requires trust, and the level of trust reflects the mentor's professional competency, consistency, ability to communicate, and readiness to share control. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 35) Studies indicate that traditional mentoring is less effective for men than it is for women. Answer: FALSE Explanation: Studies suggest that traditional mentoring is less effective for women than it is for men. For example, in one survey of employees who had "active mentoring relationships" in one recent year, 72% of the men received one or more promotions in the ensuing two years, compared with 65% of the women. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 36) Career development is the lifelong series of activities that contributes to a person's career exploration, establishment, success, and fulfillment. Answer: TRUE Explanation: Career development refers to activities such as workshops, education, and training that contribute to a person's career establishment, success, and fulfillment. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 37) A career is the occupational positions one holds at a single organization. Answer: FALSE Explanation: The term career refers to the occupational positions a person has had over many years, but not necessarily at one organization. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

38) Most young workers entering the job market today are heavily focused on their job and their employer, unlike baby boomers who preferred to balance work and family. Answer: FALSE Explanation: Baby boomers–those retiring in the next few years–tended to be job- and employer-focused. Those entering the job market now often value work arrangements that provide more opportunities for balanced lives. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 39) Studies suggest that firms that support their employees' career development are rewarded with employee commitment and longer retention rates. Answer: TRUE Explanation: Employers benefit from offering career development. The employees, armed with better insights about their occupational strengths, should be better equipped to serve the company. Supporting your employees' career development may also boost employee commitment and support your recruitment and retention efforts. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 40) While career development ultimately should result in an employee who is more employable, such programs often result in increased employee commitment. Answer: TRUE Explanation: Employees who work for firms that offer career development programs become more knowledgeable, which makes them more employable. However, supporting an employee's career development may also boost employee commitment. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

41) The employee, the manager, and the employer equally share the responsibility for an employee's career development and career success. Answer: FALSE Explanation: Although the employer and manager have roles in guiding employees' careers, no employee should ever abandon this task to others. The consequences of a bad choice (or of no choice) are too severe to leave to others. The employee's career success or failure is ultimately the employee's responsibility. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 42) Matching individual strengths and weaknesses with occupational opportunities and threats is a key to the career planning process. Answer: TRUE Explanation: For the employee, career planning means matching individual strengths and weaknesses with occupational opportunities and threats. In other words, the person wants to pursue occupations, jobs, and a career that capitalize on his or her interests, aptitudes, values, and skills. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 43) A career planning workshop helps employees identify their interests, set career goals, and practice career skills. Answer: TRUE Explanation: A career planning workshop is "a planned learning event in which participants are expected to be actively involved, completing career planning exercises and inventories and participating in career skills practice sessions." A typical workshop includes a self-assessment, an environmental assessment, and goal-setting and action-planning segments. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs.

44) Succession planning, job posting, and management counseling are popular career management practices offered by organizations around the world. Answer: TRUE Explanation: Various employer career practices include posting job openings, formal education, career-oriented performance appraisals, counseling by managers, counseling by HR, retirement preparation, and succession planning. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 45) Organizations should schedule regular performance appraisals, and at these reviews cover whether the employee's current skills and performance are consistent with his or her career aspirations. Answer: TRUE Explanation: Performance appraisals are an opportunity for discussing and linking an employee's performance, career interests, and developmental needs into a coherent career plan. Having a regular performance appraisals makes sure such career plans are well aligned. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 46) Reality shock occurs when a new employee's high expectations confront the reality of a boring job. Answer: TRUE Explanation: Reality shock refers to the phenomenon that results when a new employee's expectations meet the reality of an unattractive work situation. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 47) In a brief essay, discuss the roles and responsibilities of managers, mentors, and coaches in an employee's career development. Answer: The manager should provide timely performance feedback, developmental assignments and support. The manager should participate in career development discussions. The manager should support employee development plans. A coach focuses on teaching shorter-term jobrelated skills. A mentor helps employees navigate longer-term, hard-to-reverse issues. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 18 Copyright © 2020 Pearson Education, Inc.

48) What is reality shock? What efforts can be taken by an employer to prevent reality shock? Answer: Reality shock occurs when a new employee has high expectations for a new job but then finds that the job is boring and/or unchallenging. Employers can prevent this by providing realistic job previews and challenging first jobs. A realistic job preview can help prospective employees more accurately gauge whether the job is really for them and whether the job's demands are a good fit with a candidate's skills and interests. Difficulty: Moderate Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 49) What are the characteristics of an effective mentor? Answer: Effective mentors set high standards, are willing to invest the time and effort the mentoring relationship requires, and actively steer protégés into important projects, teams, and jobs. Effective mentoring requires a level of trust that reflects the mentor's professional competency, consistency, ability to communicate, and readiness to share control. A mentoring program may help reduce involuntary employee turnover by providing an employee with a support system for discussing issues, office politics, promotion opportunities, and performance goals. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 10.1 Discuss what employers and supervisors can do to support employees' career development needs. 50) With a(n) ________, a supervisor and employee jointly merge the employee's past performance, career preferences, and developmental needs into a formal career plan. A) career-oriented appraisal B) exit interview C) promotion D) employee qualification databank Answer: A Explanation: With career-oriented appraisals, the supervisor and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 10.2 Explain why career development can improve employee engagement.

51) Which one of the following statements most likely suggests that an employee is engaged? A) "I give 110% effort every day." B) "I take frequent breaks." C) "I daydream at my desk." D) "I enjoy talking to co-workers." Answer: A Explanation: Engaged employees are focused and work with intensity at their jobs. Disengaged workers take unnecessary breaks, daydream, and make idle conversation with co-workers. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 10.2 Explain why career development can improve employee engagement. 52) The tool managers use to meet employees' career development where the manager and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan is called ________. A) orientation sessions B) career-oriented appraisals C) interest inventories D) graphic-rating scales Answer: B Explanation: In career-oriented appraisals the supervisor and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 10.2 Explain why career development can improve employee engagement. 53) With career-oriented appraisals, the supervisor and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan. Answer: TRUE Explanation: Career-oriented appraisals involve the supervisor and employee jointly merging the employee's past performance, career preferences, and developmental needs into a formal career plan. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 10.2 Explain why career development can improve employee engagement.

54) In a career-oriented appraisal, a manager matches an employee's strengths and weaknesses with a feasible career path and developmental needs. Answer: FALSE Explanation: With career-oriented appraisals, the supervisor and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 10.2 Explain why career development can improve employee engagement. 55) The rate at which employees leave a firm is best known as ________. A) downsizing B) retirement C) turnover D) retention Answer: C Explanation: Turnover is the rate that workers leave an employer. Turnover occurs for many reasons and it is costly. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 56) Which one of the following industries has one of the highest turnover rates, at around 100% per year? A) food services B) financial services C) healthcare services D) educational services Answer: A Explanation: The turnover in many food service organizations is around 100% per year. In contrast, voluntary turnover in the educational services industry is about 12%. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees.

57) As an employer, what is the primary benefit of cutting a high turnover rate? A) selling stock B) saving money C) attracting applicants D) meeting legal obligations Answer: B Explanation: High turnover rates have tangible and intangible costs for employers. Recruiting, screening, interviewing, testing, and training are costly. Intangible costs, such as lost productivity and supervising a new worker, waste time. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 58) Which term refers to actions intended to place physical or psychological distance between employees and their work environments? A) employee disengagement B) workplace separation C) job withdrawal D) attrition Answer: C Explanation: Job withdrawal has been defined as "actions intended to place physical or psychological distance between employees and their work environments." Poor attendance and voluntary turnover are two job withdrawal examples. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 59) A(n) ________ describes the criteria by which the firm awards promotions. A) job posting policy B) employee qualification databank C) formal promotion policy D) 9-box plot Answer: C Explanation: The formal promotion policy describes the criteria by which the firm awards promotions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees.

60) Robin, the HR manager at Rightway Enterprises, believes that job withdrawal has become a significant problem at the firm. Robin most likely came to this conclusion after observing all of the following employee behaviors EXCEPT ________. A) frequent vacation time requests B) idle employee conversations C) undeserved work breaks D) excessive absences Answer: A Explanation: Poor attendance and voluntary turnover are two job withdrawal examples. Other types of job withdrawal include "taking undeserved work breaks, spending time in idle conversation and neglecting aspects of the job one is obligated to perform." Requesting vacation is not necessarily indicative of job withdrawal. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 61) Which one of the following would most likely reduce voluntary turnover? A) performance appraisal systems B) high unemployment rates C) numerous job opportunities D) downsizing requirements Answer: B Explanation: High unemployment reduces voluntary turnover, and some locales have fewer job opportunities (and thus turnover) than do others. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 62) What is a crucial first step in retaining employees over time? A) providing employees with proper training B) discussing career plans with workers C) selecting the right workers D) identifying worker goals Answer: C Explanation: Retention starts up front, in the selection and hiring of the right employees. Selection refers not just to the worker but to choosing the right supervisors as well. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees.

63) According to research cited in the text, what is the primary reason that top-performing/high commitment employees gave for voluntarily leaving an organization? A) career development B) work-life balance C) promotions D) salary Answer: D Explanation: The five top reasons high commitment/top-performing employees gave for leaving (ranked from high to low) were pay, promotional opportunities, work-life balance, career development, and health-care benefits. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 64) Apex Carpet has a very high voluntary turnover rate, which executives at the firm want reduced. What is the most effective way to retain top-performing employees at Apex? A) conducting more performance reviews B) developing new recruitment strategies C) establishing a talent management program D) revising the organization's mission statement Answer: C Explanation: Employers can address turnover issues by instituting effective and comprehensive talent management (recruitment, selection, training, appraisal, and compensation) practices. The manager should understand that retaining employees is a talent management issue, and that the best retention strategies are therefore multifunctional. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 65) Apex Carpet has a very high voluntary turnover rate, which executives at the firm want reduced. Which one of the following should Apex most likely do first in its attempt to retain topperforming employees? A) administer attitude surveys to all employees B) provide an across-the-board wage increase C) evaluate the firm's promotion methods D) develop online training courses Answer: A Explanation: Identifying the issues is an important first retention strategy. Many employers routinely administer attitude surveys to monitor employees' feelings about matters such as supervision and pay. Salary, promotions, and training may not necessarily be the reasons for high turnover. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 24 Copyright © 2020 Pearson Education, Inc.

66) Retaining employees is a ________ issue and the best retention strategies are therefore multifunctional. A) talent management B) career management C) strategic management D) human resources management Answer: A Explanation: Retaining employees is a talent management issue, and the best retention strategies are therefore multifunctional. Turnovers (both voluntary and involuntary) often start with poor selection decisions, compounded by inadequate training, insensitive appraisals, and inequitable pay. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 67) According to research, the turnover rate is relatively the same across all industries in the U.S. Answer: FALSE Explanation: Turnover–the rate at which employees leave the firm–varies markedly among industries. Thus, turnover in the accommodation and food services industry is chronically high, with over half the industry's employees voluntarily leaving each year. In contrast, voluntary turnover in the educational services industry is about 12%. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees. 68) Boring jobs, low pay, inadequate supervision, and poor working conditions are likely to lead to job withdrawal. Answer: TRUE Explanation: Job withdrawal occurs when employees mentally and physically separate themselves from their work environments. Boring jobs, poor management, and low pay are some of the many reasons for job withdrawal. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees.

69) Describe at least four ways organizations can work to boost the retention of employees. Answer: RAISE PAY The most obvious explanation for why employees quit is often also the correct one: low pay. Particularly for high performers and key employees, enhanced pay has recently been the retention tool of choice for many employers. HIRE SMART "Retention starts up front, with the selection and hiring of the right employees." This refers not just to the worker but also to hiring the right supervisors. For example, FedEx conducts periodic employee attitude surveys. The supervisor then meets to review the results with his or her employees to address any leadership problems the surveys raise. DISCUSS CAREERS One expert says, "Professionals who feel their company cares about their development and progress are much more likely to stay." Periodically discuss with employees their career preferences and prospects, and help them lay out career plans. PROVIDE DIRECTION People can't do their jobs if they don't know what to do or what their goals are. Therefore, retaining employees requires making it clear what your expectations are regarding their performance and what their responsibilities are. OFFER FLEXIBILITY In one survey, workers identified "flexible work arrangements" and "telecommuting" as the two top benefits that would encourage them to choose one job over another. USE HIGH-PERFORMANCE HR PRACTICES In one study, call centers that made more use of high involvement work practices (for instance, employee empowerment, problem-solving groups, and self-directed teams) had lower rates of quitting, dismissals, and total turnover. So did those that "invested" more in employees (for instance, in terms of promotion opportunities, high relative pay, pensions, and full-time jobs). COUNTEROFFER? If a valued employee says he or she is leaving, should you make a counteroffer? Many argue against doing so, calling it a "Band-Aid for a head wound." Employers who do allow counteroffers need a policy that specifies what people and positions are eligible for counteroffers, allowable compensation enhancements, and how to determine the offer. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 10.3 Describe a comprehensive approach to retaining employees.

70) Miranda wants to make partner at her law firm. However, she is worried because 70-hour work weeks are the norm for someone striving to make partner. Miranda wants to be fair to her family as well as excel at work. The best way for the law firm to address this problem is by ________. A) providing Miranda with a female career coach B) persuading Miranda to temporarily work in a less competitive law firm C) offering a flexible career track that allows Miranda to periodically reduce her work load D) providing a career planning workshop to help Miranda determine a more appropriate occupation Answer: C Explanation: Inflexible promotional ladders can put women–who often have more responsibility for child-raising chores–at a disadvantage. One solution is to institute career tracks (including reduced hours and more flexible year-round work schedules) that enable women to periodically reduce their time at work, but remain on a partner track. Career coaches and career planning workshops are more appropriate for people who are not sure about the direction of their careers, which is not Miranda's problem. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 71) Chelsea Bank employs a diverse group of employees, and the firm wants all of its workers to have equal career advancement opportunities. Which one of the following most likely undermines Chelsea Bank's attempt to meet the career development needs of its diverse workforce? A) scheduling meetings in the early morning or late evening B) offering career advancement seminars for women and minorities C) identifying mentors for women and minorities D) adopting flexible year-round work schedules Answer: A Explanation: Early morning or late evening meetings can be stressful for employees with children because of childcare issues. Career advancement seminars, mentors, and flexible schedules are all effective methods for meeting the various career development needs of a diverse workforce. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

72) Smith Industries has established a career development program for its employees that offers career coaching and workshops. However, a recent employee survey indicates that many women still feel dissatisfied about their career opportunities at the firm. Which one of the following would most likely improve the attitudes of female employees at Smith Industries? A) Smith installs an electronic performance support system for telecommuters. B) Smith provides hardship allowances to all minority employees. C) Smith increases the number of performance appraisals. D) Smith implements a flexible career track system. Answer: D Explanation: Inflexible promotional ladders can put women–who often have more responsibility for child-raising chores–at a disadvantage. One solution is to institute flexible career tracks that enable women to periodically reduce their time at work, but remain on a partner track. Although performance appraisals can be used to discuss career needs, merely increasing the number of appraisals will not likely improve the attitudes of women. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 73) Which one of the following best explains the meaning of the term "glass ceiling"? A) formal corporate policies that prevent women from receiving the training needed to advance their careers B) spoken opinions by corporate leaders that women lack the knowledge and skills required for career advancement C) structural yet subtle barriers in corporate environments that inhibit the rise of talented women to leadership positions D) inadequate educational opportunities which ultimately limit the network opportunities available to women in the workforce Answer: C Explanation: Many refer to the subtle and not-so-subtle barriers to women's career progress as the glass ceiling. Several types of career development programs–fast-track programs, individual career counseling, and career planning workshops–are less available to women than to men. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

74) While women constitute more than 40% of the workforce, they hold only about ________ of top management positions. A) 2% B) 13% C) 25% D) 30% Answer: A Explanation: Women still don't reach the top of the career ladder in numbers proportionate to their numbers in U.S. industry. Women constitute more than 40% of the workforce, but hold less than 2% of top management positions. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 75) Dick's Sporting Goods is a sports and fitness retailer with over 300 stores in 34 states. After beginning as a small bait and tackle shop in 1948, Dick's has grown to become a leader in the sports and fitness retail industry. Many career opportunities are available in Dick's in areas as diverse as IT, product development, merchandising, and store management. Top management at Dick's realizes the importance of hiring and retaining quality employees. As a result, the firm has decided to implement policies, practices, and programs that support employees' career needs. Which one of the following, if true, would best support the argument that the firm should institute a flexible career track program? A) Executive positions at Dick's Sporting Goods are rewarded for a combination of seniority and competency. B) Situational interviews are used at Dick's Sporting Goods to screen potential store managers. C) Executive positions at Dick's Sporting Goods are predominantly held by men. D) Over half of all Dick's Sporting Goods stores are run by female managers. Answer: C Explanation: A firm with few female executives may have inflexible promotional ladders that put women with child-raising duties at a disadvantage. If Dick's implemented a flexible career track with reduced hours and flexible work schedules, women would most likely stay at the firm and rise to high-level positions. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

76) ABC Consulting has a formal mentoring program in which senior-level managers are paired with less-experienced employees. Which one of the following employees most likely needs a mentor? A) Raj, who is uncertain how to navigate office politics B) Jason, who does not perform tasks as quickly as required C) Michele, who is experiencing personal problems at home D) Haley, who is working and attending graduate school simultaneously Answer: A Explanation: Mentoring traditionally means having experienced senior people advising, counseling, and guiding employees' longer-term career development. An employee who agonizes over which career to pursue or how to navigate office politics might need mentoring. Jason would benefit from coaching rather than mentoring, and Haley already has a career plan. Mentors should not discuss personal problems. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 77) Which one of the following terms refers to advancements to positions of increased responsibility? A) transfers B) appraisals C) promotions D) recruitments Answer: C Explanation: Promotions traditionally refer to advancements to positions of increased responsibility. Transfers are reassignments to similar positions within a firm. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 78) Which one of the following terms refers to reassignments to similar positions in other parts of a firm? A) transfers B) layoffs C) dismissals D) promotions Answer: A Explanation: Transfers are reassignments to similar positions within a firm. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 30 Copyright © 2020 Pearson Education, Inc.

79) Competence rather than seniority is most likely the basis for promotion when ________. A) corporate competitiveness is necessary B) union agreements are involved C) civil service regulations apply D) compensation packages are limited Answer: A Explanation: Today's focus on competitiveness favors competency. However, union agreements sometimes contain clauses that emphasize seniority, and civil service regulations that stress seniority rather than competency often govern promotions in many public-sector organizations. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 80) What can diminish positive feelings toward the promotion process? A) rewards B) responsibilities C) secrecy D) job descriptions Answer: C Explanation: Most people crave promotion, which usually means more pay, responsibility, and (often) job satisfaction. Yet the promotion process isn't always a positive experience. Unfairness or secrecy can diminish the process. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 81) Which one of the following is the simplest and most often used method for predicting the future performance of a candidate for promotion? A) prior performance B) aptitude tests C) assessment centers D) psychological exams Answer: A Explanation: Most employers use prior performance as a guide, and assume that (based on exemplary prior performance) the person will do well on the new job. This is the simplest method. Many others use tests or assessment centers to evaluate promotable employees and to identify those with executive potential. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 31 Copyright © 2020 Pearson Education, Inc.

82) All of the following are characteristic of a formal promotion process EXCEPT ________. A) open positions are posted B) promotion criteria are made available C) job postings are circulated to all employees D) promotions are based on unpublished requirements Answer: D Explanation: Informal promotion processes are based on unpublished criteria. With formal promotion processes, employers set formal, published promotion policies and procedures, and employees receive a formal promotion policy describing the criteria by which the firm awards promotions. A job posting policy states the firm will post open positions and their requirements, and circulate these to all employees. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 83) Tanya accused a male superior of sexual harassment. Later, Tanya was turned down for a promotion because the accused superior persuaded Tanya's current supervisor not to promote Tanya. This is most likely an example of ________. A) demotion B) retaliation C) dissonance D) defensive behavior Answer: B Explanation: The U.S. Circuit Court of Appeals case allowed a claim of retaliation to proceed when a female employee provided evidence that her employer turned her down for promotion because a supervisor she had previously accused of sexual harassment made comments that persuaded her current supervisor not to promote her. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

84) According to the court system, promotions based on subjective assessments ________. A) support employers in adverse impact claims B) violate the Americans with Disabilities Act C) must be supported by objective evidence D) are valid under the Civil Rights Act of 1991 Answer: C Explanation: Courts have indicated that while subjective reasons can justify "adverse employment decisions, an employer must articulate any clear and reasonably specific factual bases upon which it based its decision." In other words, you should be able to provide objective evidence supporting your subjective assessment for promotion. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 85) An employer may transfer an employee for all these reasons EXCEPT ________. A) to vacate a position that is no longer needed B) personal enrichment C) to find a better fit position for the employee D) to give a displaced employee a chance for another assignment Answer: B Explanation: Personal enrichment is a reason an employee may seek a transfer, not the employer. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 86) Why are an increasing number of firms focusing on retirement planning? A) concerns about future labor shortages B) surveys of current employee attitudes C) modifications to the promotion process D) increases in health insurance premiums Answer: A Explanation: Retirement planning is a significant long-term issue for employers. In the United States, the number of 25- to 34-year-olds is growing relatively slowly, and the number of 35- to 44-year olds is declining. So, with many employees in their 50s and 60s moving toward traditional retirement age, employers face a longer-term labor shortage. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

87) All of the following are true statements about retirement EXCEPT ________. A) most employees who plan to work after 65 must do so for financial reasons B) most employees expect to continue working after normal retirement age C) most employees who plan to work after 65 want a part-time position D) many retirement age workers want to stay active through working Answer: A Explanation: Seventy eight percent of employees in one survey said they expect to continue working in some capacity after normal retirement age (64% said they want to do so part-time). Only about a third said they plan to continue work for financial reasons; about 43% said they just wanted to remain active. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 88) All of the following methods are used by firms to recruit and retain retirement-age workers EXCEPT ________. A) implementing phased retirement programs B) offering them flexible work arrangements C) using psychometric selection tests D) offering them part-time positions Answer: C Explanation: Firms trying to recruit or retain older workers are using techniques such as creating a culture that honors experience, offering them part-time positions, hiring them as consultants or temporary workers, offering them flexible work arrangements, encouraging them to work past traditional retirement age, providing training to upgrade skills, and instituting a phased retirement program. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 89) The barriers for women to advance at work are referred to as the glass ceiling because federal legislation has enabled women to earn an equal number of top-level positions as men. Answer: FALSE Explanation: The subtle barriers to the career progress of women are known as the glass ceiling because women can see the top positions but are prevented from reaching them. Although women constitute 40% of the workforce, they have only 2% of the top management jobs. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

90) A focus on competitiveness and motivation suggests that a company should promote on the basis of seniority. Answer: FALSE Explanation: Probably the most important decision is whether to base promotion on seniority or competency, or some combination of the two. Today's focus on competitiveness favors competency. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 91) Women constitute approximately 40% of the workforce, but hold less than 2% of top management positions. Answer: TRUE Explanation: Similarly, women still don't make it to the top of the career ladder in numbers proportionate to their numbers in U.S. industry. Women constitute more than 40% of the workforce, but hold less than 2% of top management positions. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 92) An employer's promotion processes are free of the requirements imposed by antidiscrimination laws. Answer: FALSE Explanation: In general, the employer's promotion processes must comply with all the same antidiscrimination laws as do procedures for recruiting and selecting employees or any other HR actions. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 93) Many U.S. firms are concerned about labor shortages because of the rapidly rising number of 25-44 year olds in the workforce and the small number of workers near retirement age. Answer: FALSE Explanation: In the United States, the number of 25- to 34-year-olds is growing relatively slowly, and the number of 35- to 44-year olds is declining. So, with many employees in their 50s and 60s moving toward traditional retirement age, employers face a longer-term labor shortage. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 35 Copyright © 2020 Pearson Education, Inc.

94) Most employees who continue working after retirement age must do so because of their financial instability. Answer: FALSE Explanation: Only one-third of retirement age workers who continue working do so for financial reasons. Most of them work to remain active. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 95) Conducting a demographic analysis of employees is one of the first steps that a firm should take when determining the labor and financial effects of retiring workers. Answer: TRUE Explanation: A reasonable first step in planning for the effects of retiring workers is to conduct numerical analyses of pending retirements. This should include a demographic analysis (including a census of the company's employees), a determination of the average retirement age for the company's employees, and a review of how retirement is going to affect the employer's health care and pension benefits. The employer can then determine the extent of the "retirement problem" and take fact-based steps to address it. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 96) How can firms benefit from retirement planning programs? Answer: Retirement planning is no longer just for helping current employees slip into retirement, but it can also enable the employer to retain, in some capacity, the skills and brain power of those who would normally retire and leave the firm. A reasonable first step is to conduct numerical analyses of pending retirements. Employers seeking to recruit and/or retain retirees need to take several steps. The general idea is to institute human resource policies that encourage and support older workers. Other techniques employers use to keep older workers include offering them part-time positions, hiring them as consultants or temporary workers, offering them flexible work arrangements, encouraging them to work past traditional retirement age, providing training to upgrade skills, and instituting a phased retirement program. The latter lets senior workers ease into retirement with gradually reduced work schedules. Not surprisingly, studies show that employees who are more committed and loyal to the employer are more likely to stay beyond their normal retirement age. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

97) What steps can an employer take to enhance the career development needs and promotional prospects of its female employees? Answer: There are several steps companies can take to enhance the prospects for women. First, organizations should take the career interests of women employees seriously. They should identify institutional barriers and eliminate them. For instance, requiring late evening meetings disproportionately affects women. Unfortunately, many career development programs are not consistent with the needs of minority and nonminority women. For example, many such programs underestimate the role played by family responsibilities in many women's lives. Similarly, some programs assume that career paths are continuous; however, the need to stop working for a time to attend to family needs often punctuates the career paths of many people of color and women. Inflexible promotional ladders (such as "You must work 8 years of 50-hour weeks to apply for partner") can put women–who often have more responsibility for child-raising chores–at a disadvantage. One solution is to institute career tracks (including reduced hours and more flexible year-round work schedules) that enable women to periodically reduce their time at work, but remain on a partner track. Companies should improve the opportunities for networking and mentoring. They should eliminate the glass ceiling; though this is a difficult challenge. Finally, companies can institute flexible schedules to provide women the opportunity to meet their obligations at home and at work successfully. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions. 98) In a brief essay, discuss the four decisions that affect a firm's promotion process. Answer: The first decision is whether to base promotions on seniority or competency or some combination of the two. A focus on competitiveness and motivation favors promotion based on competency. But when union or civil service regulations are involved, seniority may be favored. The second decision occurs if the firm chooses to base the promotional process on competency. If it does, the firm must then decide how to define and measure competency. Past performance is based on defining the job, setting standards, and appraising performance. For promotional purposes, the organization must decide whether this past performance is also predictive of a candidate's future performance. The third decision is whether the process is formal or informal. If the process is informal, employees may feel like one's personal network is more important than performance. Formal procedures include formal promotion policies that are distributed to all employees. They may also include a job-posting policy and the use of employee qualification briefs. The fourth decision is whether the promotion will be vertical or horizontal or something else. This may be an issue if a company is downsizing. Promotions can involve different types of positions aside from supervisory positions. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 10.4 List and briefly explain the main decisions employers should address in reaching promotion and other employee life-cycle career decisions.

99) ________ is reducing, usually dramatically, the number of people employed by a firm. A) Career development B) Coaching C) Transfer D) Downsizing Answer: D Explanation: Downsizing means reducing, usually dramatically, the number of people employed by a firm. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 100) Pablo Industries needs to send home a number of workers due to lack of work, although it expects they will return at a future time. This is an example of a ________. A) transfer B) downsizing C) promotion D) layoff Answer: D Explanation: Layoffs are when the employer sends workers home for a time for lack of work and is usually not a permanent dismissal (although it may turn out to be). Rather, it is a temporary one, which the employer expects will be short term. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 101) Roberto is leaving Smith Industries but before he actually leaves, the company wants to meet with him to elicit information aimed at giving the employer insights into the company. This is known as a(n) ________. A) layoff B) transfer C) exit interview D) termination interview Answer: C Explanation: Exit interviews are interviews, usually conducted by a human resource professional just prior to the employee leaving, that elicit information aimed at giving employers insights into their companies. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 10.5 Explain each of the main grounds for dismissal.

102) Mar-Tel Industries is reducing the size of its workforce. It is providing terminated employees with career planning and job search skills to help them find their next jobs. This service is known as ________. A) outplacement counseling B) a layoff C) a transfer D) career management Answer: A Explanation: Outplacement counseling is when the employer arranges for an outside firm to provide terminated employees with career planning and job search skills. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 103) Willful disregard or disobedience of the boss's authority or legitimate orders is known as ________. A) dismissal B) terminate at will C) reality shock D) insubordination Answer: D Explanation: Insubordination is willful disregard or disobedience of the boss's authority or legitimate orders or criticizing the boss in public. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 104) Dwight has just been in an interview in which he was informed of the fact that he had been dismissed. This is called a(n) ________. A) exit interview B) termination interview C) outplacement interview D) reality shock interview Answer: B Explanation: The termination interview is an interview in which an employee is informed of the fact that he or she has been dismissed. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 10.5 Explain each of the main grounds for dismissal.

105) The two basic categories of insubordination are unwillingness to carry out the manager's orders and disrespectful behavior toward the manager. Answer: TRUE Explanation: The two basic categories of insubordination are unwillingness to carry out the manager's orders and disrespectful behavior toward the manager. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 106) The prevailing rule in the United States has been that without an employment contract, either the employer or the employee can terminate at will the employment relationship. Answer: TRUE Explanation: For more than 100 years, the prevailing rule in the United States has been that without an employment contract, either the employer or the employee can terminate at will the employment relationship. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 107) Termination interviews are interviews, usually conducted by a human resource professional just prior to the employee leaving, that elicit information aimed at giving employers insights into their companies. Answer: FALSE Explanation: It is the exit interview that is usually conducted by a human resource professional just prior to the employee leaving, that elicit information aimed at giving employers insights into their companies. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 10.5 Explain each of the main grounds for dismissal.

108) What are the four major grounds for dismissal? Answer: Unsatisfactory performance refers to a persistent failure to perform assigned duties or to meet prescribed standards on the job. Specific reasons include excessive absenteeism, tardiness, a persistent failure to meet normal job requirements, or an adverse attitude. Misconduct is deliberate and willful violation of the employer's rules and may include stealing and rowdy behavior. Insubordination, a form of misconduct, is sometimes the grounds for dismissal. The two basic categories of insubordination are unwillingness to carry out the manager's orders and disrespectful behavior toward the manager. Lack of qualifications for the job is an employee's inability to do the assigned work, although he or she is diligent. Because this employee may be trying to do the job, it is reasonable to try to salvage him or her—perhaps through further training or by assigning the employee to another job. Changed requirements of the job is an employee's incapability of doing the job after the nature of the job has changed. Similarly, you may have to dismiss an employee when his or her job is eliminated. Again, the employee may be industrious, so it is reasonable to retrain or transfer this person, if possible. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 10.5 Explain each of the main grounds for dismissal. 109) Since dismissing an employee is one of the most difficult tasks a manager can face at work, what are the guidelines a manager should use in a termination interview? Answer: These are the guidelines for the termination interview. • Plan the interview carefully • Get to the point • Describe the situation • Listen • Review the severance package • Identify the next step Difficulty: Moderate Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 10.5 Explain each of the main grounds for dismissal.

110) When the organization desires to cut costs and raise profitability, downsizing could be an option. In a brief essay, discuss the matter that needs to be carefully considered in reducing the number of people employed by a firm. Answer: Downsizing means reducing, usually dramatically, the number of people employed by a firm. The basic idea is to cut cost and raise profitability. Downsizing (some call them "productivity transformation programs") require careful consideration of several matters: 1) First make sure the right people are let go; this requires having an effective appraisal system in place 2) Second is compliance with all applicable laws, including WARN 3) Third is executing the dismissal in a manner that is just and fair 4) Fourth is security, for instance, retrieving keys and ensuring that those leaving don't take prohibited items with them 5) Fifth is to reduce the remaining employees' uncertainty and to address their concerns. That typically involves a post-downsizing announcement and program, including meetings where senior managers field questions from the remaining employees. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 10.5 Explain each of the main grounds for dismissal.

Human Resource Management, 16e (Dessler) Chapter 11 Establishing Strategic Pay Plans 1) Which one of the following terms refers to all forms of pay or rewards going to employees and arising from their employment? A) salary B) employee benefits C) wage reimbursement D) employee compensation Answer: D Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 2) Which one of the following is NOT a type of direct financial payment? A) wages B) insurance C) incentives D) commissions Answer: B Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

3) Which one of the following terms refers to pay in the form of financial benefits, such as insurance? A) direct financial payments B) out-of-pocket expenses C) indirect financial payments D) sales commissions Answer: C Explanation: Employee compensation has two main components: direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 4) John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which one of the following terms best describes John's situation? A) pay for performance B) indirect financial compensation C) time-based compensation D) piecework pay Answer: A Explanation: John earns sales commissions, which means he receives pay for performance. Piecework ties compensation to the number of pieces a worker produces, and John is selling rather than making jewelry. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 5) Which one of the following factors has the LEAST effect on the design of an organization's pay plan? A) legal B) union C) company vision D) company policy Answer: C Explanation: The factors that determine the design of any pay plan include legal, union, company strategy and policy, and equity. A firm's vision indicates what the firm wants to become in the future, and it has less of an impact on pay plan design than the other factors. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

6) Which one of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government? A) Walsh-Healey Public Contract B) Fair Labor Standards Act C) Civil Rights Act D) Davis-Bacon Act Answer: D Explanation: The 1931 Davis-Bacon Act allows the secretary of labor to set wage rates for laborers and mechanics employed by contractors working for the federal government. Amendments provide for paid employee benefits. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 7) Which one of the following sets basic labor standards for employees working on any government contract that amounts to more than $10,000? A) Davis-Bacon Act B) Walsh-Healey Public Contract C) Fair Wages Act D) Fair Labor Standards Act Answer: B Explanation: The 1936 Walsh-Healey Public Contract Act sets basic labor standards for employees working on any government contract that amounts to more than $10,000 and addresses wages, safety, and overtime. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 8) Which compensation-related law contains provisions for minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor? A) Davis-Bacon Act B) Fair Wages Act C) Fair Labor Standards Act D) Walsh-Healey Public Contract Answer: C Explanation: The Fair Labor Standards Act, originally passed in 1938 and since amended many times, contains minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor provisions that are familiar to most working people. It covers the majority of U.S. workers–virtually all those engaged in the production and/or sale of goods for interstate and foreign commerce. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 3 Copyright © 2020 Pearson Education, Inc.

9) Which one of the following issues is NOT addressed by the Fair Labor Standards Act? A) record-keeping B) overtime pay C) child labor D) termination Answer: D Explanation: The Fair Labor Standards Act, originally passed in 1938 and since amended many times, contains minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor provisions that are familiar to most working people. The termination of an employee is not addressed by the FLSA. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 10) Which law makes it illegal to discriminate against any individual with respect to compensation because of race, color, religion, sex, or national origin? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Equal Pay Act D) Taft-Hartley Act Answer: B Explanation: Title VII makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 11) According to the Fair Labor Standards Act, what rate of normal pay would a covered employee receive for working more than 40 hours in a workweek? A) 50% B) 100% C) 150% D) 200% Answer: C Explanation: A provision in the FLSA governs overtime pay. It says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

12) Jill works as a cashier at a grocery store. She earns $10 an hour (or $400 for a 40-hour week). Last week, she worked 46 hours. What is the minimum amount that Jill earned last week? A) $460 B) $490 C) $520 D) $550 Answer: B Explanation: The FLSA says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek. Jill worked 46 hours in one week, so she was paid for 6 of those hours at a rate equal to one-and-a-half times the hourly rate of $10. The 6 overtime hours were at a rate of $15, so Jill earned at least $490. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 13) Joseph worked six hours of overtime this week but has decided to take time off instead of overtime pay. How many hours will Joseph receive in time off from work? A) 3 hours B) 6 hours C) 9 hours D) 18 hours Answer: C Explanation: According to the FLSA, if an employee receives time off for overtime hours instead of money, the employer must compute the number of hours granted off at the one-and-ahalf times rate. Jack would get 9 hours off for the 6 hours of overtime. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 14) Which one of the following is true for employers who use independent contractors? A) Fair Labor Standards Act overtime requirements do not apply. B) Social Security taxes are higher than for regular employees. C) Federal income taxes are charged at a reduced rate. D) Payroll taxes are paid by the employer. Answer: A Explanation: For employers, there are advantages to claiming that someone is an independent contractor. For one thing, the FLSA's overtime and most other requirements do not apply. For another, the employer does not have to pay unemployment compensation payroll taxes, Social Security taxes, or city, state, and federal income taxes or compulsory workers' compensation for that worker. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 5 Copyright © 2020 Pearson Education, Inc.

15) In most cases, which of the following occupations is NOT exempt from the overtime provisions of the Fair Labor Standards Act? A) physicians B) engineers C) paralegals D) teachers Answer: C Explanation: Teachers, doctors, engineers, and architects are typically exempt from the FLSA overtime provisions. Paralegals are considered nonexempt. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 16) Which one of the following jobs is most likely categorized as nonexempt from the overtime pay provisions of the Fair Labor Standards Act? A) taxicab driver B) personnel director C) bookkeeper D) computer systems analyst Answer: C Explanation: Bookkeepers are usually considered nonexempt, so they may earn overtime pay. Scientists, cab drivers, personnel directors, and computer systems analysts are typically exempt employees who are not eligible for overtime pay. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 17) Anita, a manager at a department store, needs to determine whether one of her employees is exempt or nonexempt under the Fair Labor Standards Act. Which one of the following would be the best resource for Anita? A) organizational chart B) performance appraisal C) business plan D) job description Answer: D Explanation: In all but the clearest situations, managers should carefully review the job description to determine if a job is exempt or nonexempt. Make sure, for instance, that the job currently does, in fact, require that the person perform, say, an exempt-type supervisory duty. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates.

18) Which one of the following states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work? A) Americans with Disabilities Act B) Title VII of the Civil Rights Act C) Social Security Act D) Equal Pay Act Answer: D Explanation: The Equal Pay Act, an amendment to the Fair Labor Standards Act, states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 19) Which act regulates vesting rights and portability rights? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Employer Retirement Income Security Act D) Equal Pay Act of 1963 Answer: C Explanation: The Employee Retirement Income Security Act (ERISA) provided for the creation of government-run, employer-financed corporations to protect employees against the failure of their employers' pension plans. In addition, it sets regulations regarding vesting rights and regulates portability rights (the transfer of an employee's vested rights from one organization to another). Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 20) Which one of the following terms refers to the ownership employees build up in their pension plans should their employment with a firm end prior to retirement? A) portability B) equity C) vesting D) shares Answer: C Explanation: ERISA sets regulations regarding vesting rights. Vesting refers to the equity or ownership the employees build up in their pension plans should their employment terminate before retirement. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

21) Which one of the following laws has the LEAST amount of influence on compensation decisions? A) Americans with Disabilities Act B) Labor Management Relations Act C) Family and Medical Leave Act D) Age Discrimination in Employment Act Answer: B Explanation: The ADA, Family and Medical Leave Act, and the Age Discrimination in Employment Act all impact compensation decisions made by organizations. The Labor Management Relations Act prohibited unfair union labor practices and enumerated the rights of employees as union members and has no impact on compensation issues. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 22) Bonnie, a data analyst, needs to take time off from work to care for her elderly mother. According to the Family and Medical Leave Act, what is the maximum number of weeks of unpaid, job-protected leave that Bonnie may take? A) 4 B) 6 C) 12 D) 16 Answer: C Explanation: The Family and Medical Leave Act aims to entitle eligible employees, both men and women, to take up to 12 weeks of unpaid, job protected leave for the birth of a child or for the care of a child, spouse, or parent. Difficulty: Easy Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 23) Which one of the following gives employees the right to organize, bargain collectively, and engage in concerted activities for the purpose of collective bargaining? A) Equal Pay Act B) Civil Rights Act C) Fair Labor Standards Act D) National Labor Relations Act Answer: D Explanation: The National Labor Relations Act of 1935 (Wagner Act) and related legislation and court decisions legitimized the labor movement. It gave unions legal protection, and granted employees the right to unionize, to bargain collectively, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 8 Copyright © 2020 Pearson Education, Inc.

24) What has historically been the key issue in collective bargaining? A) wage rates B) income security C) health care benefits D) cost-of-living adjustments Answer: A Explanation: Historically, the wage rate has been the main issue in collective bargaining. However, unions also negotiate other pay-related issues, including time off with pay, income security, cost-of-living adjustments, and health care benefits. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 25) Which one of the following issues would LEAST likely be negotiated by unions? A) income security B) time off with pay C) health care benefits D) unpaid medical leave Answer: D Explanation: Historically, the wage rate has been the main issue in collective bargaining. However, unions also negotiate other pay-related issues, including time off with pay, income security, cost-of-living adjustments, and health care benefits. Unpaid medical leave is addressed by the Family and Medical Leave Act. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 26) Which one of the following terms refers to a compensation plan that advances a firm's strategic goals? A) strategic management B) performance pay plan C) aligned reward strategy D) workers' compensation package Answer: C Explanation: The compensation plan should advance the firm's strategic aims, so management should produce an aligned reward strategy. This means creating a bundle of rewards–a total reward package including wages, incentives, and benefits–that aims to produce the employee behaviors the firm needs to support and achieve its competitive strategy. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

27) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which one of the following questions is LEAST relevant to Homelife's decision to develop an aligned reward strategy? A) What compensation programs should Homelife use to reinforce necessary employee behaviors? B) How well does Homelife's current compensation program match the company's strategic aims? C) What compensation programs should Homelife use to reinforce desired employee behaviors? D) What are the results of Homelife employee salary surveys in regard to wage satisfaction? Answer: D Explanation: An aligned reward strategy links a firm's compensation plan with its strategic aims. Homelife can create a total reward package including wages, incentives, and benefits that will generate the employee behaviors the firm needs to support and achieve its competitive strategy. Questions about employee behaviors and compensation are relevant, but a question about salary surveys is not. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 28) Which one of the following is the LEAST likely way that an employer would address a costof-living differential? A) paying a nonrecurring amount spread over one to three years B) paying a nonrecurring, lump sum amount C) raising an employee's base salary D) raising commission percentages Answer: D Explanation: Employers handle cost-of-living differentials in several ways. One is to give the transferred person a nonrecurring payment, usually in a lump sum or perhaps spread over one to three years. Others pay a differential for ongoing costs in addition to a one-time allocation or simply raise the employee's base salary. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

29) What theory of motivation states that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards? A) Two-factor theory B) Equity theory C) Learned needs theory D) Expectancy theory Answer: B Explanation: The equity theory of motivation postulates that people are strongly motivated to maintain a balance between what they perceive as their inputs or contributions, and their rewards. Equity theory states that if a person perceives an inequity, a tension or drive will develop in the person's mind, and the person will be motivated to reduce or eliminate the tension and perceived inequity. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 30) Which one of the following is NOT a form of equity related to compensation issues? A) group B) external C) individual D) procedural Answer: A Explanation: Managers address external, internal, individual, and procedural equity when considering compensation issues. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 31) Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies? A) distributive B) internal C) external D) procedural Answer: C Explanation: External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

32) Jason is an information systems technician in a town in North Carolina with a population of 100,000. He receives an annual salary of $35,000. He recently found out that a nearby town with a similar population pays people in the same position $40,000 annually. With which form of equity is Jason most concerned? A) distributive B) procedural C) internal D) external Answer: D Explanation: External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 33) Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs within the same company? A) external B) internal C) distributive D) individual Answer: B Explanation: Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. For instance, is the sales manager's pay fair when compared to what the production manager is earning? Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 34) Totino, a sales manager at IBM, recently learned that an IBM human resources manager with comparable responsibilities and spans of control earns a higher salary than Totino. Which form of equity is of most concern to Totino? A) external B) internal C) distributive D) individual Answer: B Explanation: Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company, such as between managers in different departments. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates.

35) Which form of equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance? A) internal B) distributive C) individual D) procedural Answer: C Explanation: Individual equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance. Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company, such as between managers in different departments. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 36) Angelina is a lawyer in a mid-size firm in Chicago. She recently learned that another lawyer who joined the firm at the same time earns a higher salary than she does. Which form of equity is most relevant to Angelina's situation? A) internal B) distributive C) individual D) procedural Answer: C Explanation: Individual equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 37) Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay? A) internal B) distributive C) individual D) procedural Answer: D Explanation: Procedural equity refers to the "perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay." Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 13 Copyright © 2020 Pearson Education, Inc.

38) External equity refers to ________. A) how a job's pay rate in one company compares to the job's pay rate in other companies B) the fairness of an individual's pay as compared to a co-worker's pay for the same job C) the perceived fairness of the processes and procedures used to make decisions about compensation D) the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry Answer: A Explanation: External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 39) Which one of the following best defines internal equity? A) how a job's pay rate in one company compares to the job's pay rate in other companies B) how fair the job's pay rate is, when compared to other jobs within the same company C) the fairness of an individual's pay as compared to a co-worker's pay for the same job D) the perceived fairness of the processes and procedures used to make compensation decisions Answer: B Explanation: Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 40) Which one of the following is used to maintain internal equity? A) job analysis comparisons B) organizational charts C) incentive pay D) salary surveys Answer: A Explanation: Managers use job analysis and job evaluation comparisons of each job to maintain internal equity. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

41) What type of equity is a manager most likely trying to maintain through the use of performance appraisals and incentive pay? A) internal B) external C) individual D) procedural Answer: C Explanation: Managers use performance appraisal and incentive pay to maintain individual equity. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 42) Irmghard, a small business owner, wants to ensure external equity when establishing pay rates. Irmghard should most likely ________. A) use wage curves to price each pay grade B) compare performance appraisals C) conduct a salary survey D) check online pay sites Answer: C Explanation: The first step in establishing pay rates involves conducting a salary survey of what other employers are paying for comparable jobs to ensure external equity. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates.

43) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which one of the following, if true, best supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan? A) Homelife employees receive annual performance appraisals at which time they set career goals. B) Salary surveys indicate dissatisfaction among the Homelife managers in different departments. C) Online pay sites show the pay range for sales associates at both Homelife and its competitors. D) Homelife pays its sales managers commissions in addition to base salaries and health benefits. Answer: B Explanation: Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. In this case, surveys indicate that managers in different departments at Homelife are dissatisfied with their earnings. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 11.1 List the basic factors determining pay rates. 44) Financial benefits like employer-paid insurance and vacations are not a part of employee compensation. Answer: FALSE Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 45) Indirect payments that contribute to an employee's compensation include variable pay like commissions and bonuses. Answer: FALSE Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments like salaries, commissions, and bonuses and indirect financial payments, which include health benefits. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

46) Direct financial payments may be based on increments of time and on performance. Answer: TRUE Explanation: Direct financial payments include wages, salaries, and commissions. They may be based on time worked or on performance, such as units produced. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 47) Performance-based pay is more popular than time-based pay among most employers in the U.S. Answer: FALSE Explanation: Time-based pay is still the foundation of most employers' pay plans. Blue-collar workers get hourly or daily wages, for instance, and others, like managers, tend to be salaried and paid by the week, month, or year. The second direct payment option is to pay for performance, which ties compensation to the amount of production the worker turns out. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 48) According to the Davis-Bacon Act, when employees work more than 40 hours per week, employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any hours worked over 40 in a workweek. Answer: FALSE Explanation: According to provisions in the Fair Labor Standards Act, employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek. The Davis-Bacon Act sets wage rates for laborers employed by contractors working for the federal government. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 49) Employers prefer to give time off in lieu of overtime pay because they only have to grant the same number of hours off as the employee worked overtime, while overtime pay is calculated at 150% of normal pay. Answer: FALSE Explanation: According to the FLSA, both overtime pay and time off for overtime work must be calculated at the one-and-a-half times rate. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

50) Because the minimum wage is set by the Fair Labor Standards Act, there is no variation from state to state in the minimum wage paid to hourly workers. Answer: FALSE Explanation: The FLSA sets a minimum wage, which sets a floor for employees covered by the act. Many states and cities have their own minimum wage laws, so the minimum wage varies from state to state. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 51) According to the FLSA, agricultural employees, live-in maids, and taxi drivers are always eligible for overtime pay. Answer: FALSE Explanation: However, certain employees are always exempt from overtime pay provisions. They include, among others, agricultural employees, live-in household employees, taxicab drivers, and motion picture theater employees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 52) The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work. Answer: TRUE Explanation: The Equal Pay Act is an amendment to the Fair Labor Standards Act. The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 53) Portability rights refer to an employee's ability to transfer his or her vested rights from one organization to another. Answer: TRUE Explanation: ERISA sets regulations regarding vesting rights and portability rights. Vesting refers to the equity or ownership the employees build up in their pension plans should their employment terminate before retirement, and portability rights is an employee's ability to transfer his or her vested rights from one organization to another. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

54) While laws exist to protect against discrimination in compensation based on gender and age, no law protects against such discrimination against persons with disabilities. Answer: FALSE Explanation: The Americans with Disabilities Act prohibits discrimination against qualified persons with disabilities in all aspects of employment, including compensation. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 55) The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child only applies to women. Answer: FALSE Explanation: The Family and Medical Leave Act aims to entitle eligible employees, both men and women, to take up to 12 weeks of unpaid, job-protected leave for the birth of a child or for the care of a child, spouse, or parent. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 56) According to the court system, the test that distinguishes an independent contractor from an employee is whether or not the firm provides the worker with health insurance benefits. Answer: FALSE Explanation: There is no single rule or test for determining whether an individual is an independent contractor or a bona fide employee. Instead, the courts will look at the total activity or situation. The major consideration is this: The more the employer controls what the worker does and how he or she does it, the more likely it is that the courts will find the worker is actually an employee. Health insurance benefits are not a distinguishing factor. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 57) Wage rate has been the main issue negotiated by unions in collective bargaining. Answer: TRUE Explanation: Historically, the wage rate has been the main issue in collective bargaining. However, unions also negotiate other pay-related issues, including time off with pay, income security, cost-of-living adjustments, and health care benefits. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates.

58) A union is entitled to know the salary of each employee it is representing. Answer: TRUE Explanation: The Wagner Act created the National Labor Relations Board (NLRB) to oversee employer practices and ensure that employees receive their rights. Employers must give the union a written explanation of the employer's wage curves and provide the union with its members' salaries. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 59) External equity refers to how fair the job's pay rate is when compared to other jobs within the same company. Answer: FALSE Explanation: External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 11.1 List the basic factors determining pay rates. 60) What are the two primary ways to make direct financial payments to employees? How does compensation for managers or professionals differ from compensation for clerical or production workers at a firm? Answer: There are two basic ways to make direct financial payments to employees: base them on increments of time or on performance. Time-based pay is still the foundation of most employers' pay plans. Blue-collar and clerical workers get hourly or daily wages, for instance, and others, like managers or Web designers, tend to be salaried and paid by the week, month, or year. The second direct payment option is to pay for performance. Piecework and sales commissions are examples of performance-based compensation. Developing compensation plans for managers or professionals is similar in many respects to developing plans for any employee. The basic aim is the same: to attract and keep good employees. Managerial jobs tend to stress harder to quantify factors like judgment and problem solving more than do production and clerical jobs. There is also more emphasis on paying managers and professionals based on results–based on their performance or on what they can do–rather than on the basis of static job demands like working conditions. So, job evaluation, although still important, usually plays a secondary role to non-salary issues like bonuses, incentives, market rates, and benefits. Difficulty: Hard Objective: 1, 4 AACSB: Written and Oral Communication Learning Outcome: 11.1 List the basic factors determining pay rates.

61) What are the advantages for employers of claiming that someone doing work for them is an independent contractor rather than an employee? What generally makes a worker classified as an "independent contractor"? Answer: There are many advantages to organizations. The Fair Labor Standards Act does not apply to independent contractors. The employer does not have to pay unemployment compensation, payroll taxes, Social Security taxes, or city, state, and federal income taxes. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. However, there is no single rule or test. Instead, the courts will look at the total situation. The major consideration is this: The more the employer controls what the worker does and how he or she does it, the more likely it is that the courts will find the worker to be an employee, not an independent contractor. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 11.1 List the basic factors determining pay rates. 62) What are your compensation options if you are an employer who needs to transfer an employee from a low cost-of-living area to a high cost-of-living area? Answer: Employers have different ways of handling cost-of-living differentials. One is to give the transferred person a nonrecurring payment in a lump sum amount. Another is to pay a differential for ongoing costs in addition to a one-time allocation. Others simply raise the employee's base salary. For international transfers, companies can go with a home-based or host-based salary plan. With a home-based salary plan, an international transferee's base salary reflects his or her home country's salary. The employer then adds allowances for cost-of-living differences–housing and schooling costs, for instance. This is a reasonable approach for short-term assignments and avoids the problem of having to change the employee's base salary every time he or she moves. In the host-based plan, the firm ties the international transferee's base salary to the host country's salary structure. In other words, the manager from New York who is sent to France would have his or her base salary changed to the prevailing base salary for that position in France, rather than keep the New York base salary. The firm usually tacks on cost-of-living, housing, schooling, and other allowances here as well. Most multinational enterprises set expatriates' salaries according to the home-based salary plan. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 11.1 List the basic factors determining pay rates.

63) Explain the equity theory of motivation. What are the four forms of equity? Answer: Equity theory states that people are strongly motivated to maintain a balance between what they perceive as their inputs or contributions and their rewards. If a person perceives an inequity, a tension or drive will develop in the person's mind and the person will be motivated to reduce or eliminate the tension and perceived inequity. The four forms are external, internal, individual, and procedural. External equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies. Internal equity refers to how fair the job's pay rate is when compared to other jobs within the same company. Individual equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance. Procedural equity refers to the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 11.1 List the basic factors determining pay rates. 64) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which one of the following, if true, best supports the argument that Homelife should distribute salary surveys before establishing new pay rates? A) Homelife executives want to identify benchmark jobs before determining the worth of other jobs. B) Homelife executives plan to use the compensable factors emphasized by the Equal Pay Act. C) Computerized job evaluation systems will be used by Homelife to generate questionnaires. D) A wage curve needs to be established by Homelife for the purpose of federal compliance. Answer: A Explanation: Employers use salary surveys to price benchmark jobs. Benchmark jobs are the anchor jobs around which they slot their other jobs, based on each job's relative worth to the firm. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

65) Which one of the following is used to anchor the employer's pay scale? A) grades B) job metric C) benchmark job D) human resource metric Answer: C Explanation: Benchmark jobs are the anchor jobs around which employers slot their other jobs, based on each job's relative worth to the firm. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 66) Which one of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another? A) job analysis B) job evaluation C) job description D) job classification Answer: B Explanation: Job evaluation aims to determine a job's relative worth. The job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. Job evaluation eventually results in a wage or salary structure or hierarchy. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 67) Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________. A) compensable factors B) job evaluation factors C) ranking factors D) analysis factors Answer: A Explanation: Firms can compare several jobs by focusing on certain basic factors the jobs have in common. Compensation management specialists call these compensable factors. They are the factors that establish how the jobs compare to one another and that determine the pay for each job. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

68) In most cases, the majority of the members on a job evaluation committee are ________. A) managers B) employees C) HR specialists D) union representatives Answer: B Explanation: A job evaluation committee usually consists of about five members, most of whom are employees. Management has the right to serve on such committees, but employees may view this with suspicion. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 69) Which one of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job? A) ranking B) point method C) job classification D) paired comparison Answer: D Explanation: A job evaluation committee will probably use one of the following methods: ranking, job classification, or point method. Paired comparison is a method for ranking employee performance. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 70) When using the job evaluation method of job classification, raters categorize jobs into groups of similar jobs called ________. A) classes B) sections C) grades D) cohorts Answer: A Explanation: Job classification is a simple, widely used method in which raters categorize jobs into groups with roughly the same value for pay purposes. The groups are called classes if they contain similar jobs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

71) Which one of the following best describes the point method of job evaluation? A) ranking each job relative to all other jobs based on pay grade B) categorizing jobs into grades and classes based on specific rules C) deciding which jobs have a higher number of compensable factors D) identifying and quantifying the compensable factors present in a job Answer: D Explanation: The point method is a quantitative technique that involves identifying several compensable factors, each having several degrees, as well as the degree to which each of these factors is present in the job. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 72) Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job? A) ranking method B) point method C) job grading method D) job classification method Answer: B Explanation: The point method is a quantitative job evaluation method in which a number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 73) Which job evaluation method is used by most modern employers? A) job classification method B) job grading method C) ranking method D) point method Answer: D Explanation: The point method of job evaluation is the most popular job evaluation method today. Job classification, job grading, and ranking are less popular. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

74) What are the two primary components of computerized job evaluations? A) compensable factors and benchmark jobs B) grade definitions and factor comparisons C) structured questionnaires and statistical models D) structured questionnaires and grade definitions Answer: C Explanation: Most computerized job evaluation systems have two main components. A structured questionnaire and a statistical model streamline the job evaluation process. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 75) Which one of the following is NOT one of the compensable factors emphasized in the Equal Pay Act? A) skills B) accountability C) responsibility D) working conditions Answer: B Explanation: The Equal Pay Act emphasizes four compensable factors–skills, effort, responsibility, and working conditions. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 76) A ________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. A) wage curve B) benchmark C) pay grade D) class Answer: C Explanation: A pay grade is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

77) The market-based approach to setting rates involves conducting formal or informal salary surveys to determine what others in the relevant labor markets are paying for particular jobs. Answer: TRUE Explanation: Employers use two basic approaches to setting pay rates: market-based approaches and job evaluation methods. Many firms, particularly smaller ones, simply use a market-based approach. Doing so involves conducting formal or informal salary surveys to determine what others in the relevant labor markets are paying for particular jobs. They then use these figures to price their own jobs. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 78) Salary surveys are used by firms to collect data on employee benefits as well as wage rates for the purpose of pricing jobs. Answer: TRUE Explanation: Salary surveys are aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Formal written questionnaire surveys are the most comprehensive, but telephone surveys and newspaper ads are also sources of information. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 79) The Equal Pay Act focuses on three compensable factors–know-how, problem solving, and accountability. Answer: FALSE Explanation: The Equal Pay Act emphasizes four compensable factors–skills, effort, responsibility, and working conditions. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 80) An advantage of the job classification method is that the objective nature of the system makes it easy to write the class and grade descriptions. Answer: FALSE Explanation: The disadvantage of the classification method is that it is difficult to write the class or grade descriptions, and considerable judgment is required to apply them. Yet many employers use this method with success. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

81) If a job evaluation committee uses the ranking method, then the pay grade consists of all jobs that fall within a specific number of ranks. Answer: TRUE Explanation: A pay grade is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. With the ranking method, the grade consists of all jobs that fall within two or three ranks. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 82) Large corporations are more likely than small businesses to use a market-based approach to setting pay rates because it is easier for a large firm to conduct formal job evaluations. Answer: FALSE Explanation: Employers use two basic approaches to setting pay rates: market-based approaches and job evaluation approaches. Many firms, particularly smaller ones, simply use a market-based approach. The market-based approach bases pay rates on what other firms are paying and does not involve conducting a job evaluation. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation. 83) The point method of job evaluation is the most frequently used job evaluation method, but it is also associated with lawsuits involving comparable worth. In a brief essay, explain the point method of job evaluation and why it is problematic for firms in regard to comparable worth. Answer: The point method is a quantitative technique. It involves identifying (1) several compensable factors, each having several degrees, as well as (2) the degree to which each of these factors is present in the job. Assume there are five degrees of "responsibility" a job could contain. Further, assume you assign a different number of points to each degree of each factor. Once the evaluation committee determines the degree to which each compensable factor (like "responsibility" and "effort") is present in the job, it can calculate a total point value for the job by adding up the corresponding points for each factor. The result is a quantitative point rating for each job. Comparable worth has implications for job evaluation. Virtually every comparable worth case that reached a court involved the use of the point method of job evaluation. By assigning points to dissimilar jobs, point plans facilitate comparability ratings among different jobs. Perhaps the wisest approach is for employers to price their jobs as they see fit (with or without point plans), but to ensure that women have equal access to all jobs. In other words, eliminate the wage discrimination issue by eliminating sex-segregated jobs. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 11.2 Define and give an example of how to conduct a job evaluation.

84) Which one of the following shows the relationship between the value of the job and the average pay for this job? A) benchmark B) pay grade C) scatter plot D) wage curve Answer: D Explanation: The wage curve shows the pay rates currently paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job evaluation. You'll typically use a wage curve to help assign pay rates to each pay grade (or to each job). Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 11.3 Explain in detail how to establish a market-competitive pay plan. 85) The purpose of the wage curve is to ________. A) show the relationship between the value of the job and the current average pay rates B) equate jobs of similar difficulty or importance as established by job evaluation C) choose benchmark jobs within each pay grade D) cluster jobs into logical groupings Answer: A Explanation: The purpose of the wage curve is to show the relationships between the value of the job as determined by one of the job evaluation methods and the current average pay rates for your grades. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 11.3 Explain in detail how to establish a market-competitive pay plan. 86) Raul, the owner of Eastline Electronics, recently learned that the current rate being paid for the position of engineering assistant at his firm falls significantly below the wage line. Which one of the following steps should Raul most likely take to correct this problem? A) enact a pay freeze for that job B) assess a decrease in wages C) pay a one-time bonus D) provide a pay raise Answer: D Explanation: If the current rates being paid for any of your jobs or grades fall well above or below the wage line, raises or a pay freeze for that job may be in order. In this case, a pay raise is appropriate because the rate is below the wage line. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 11.3 Explain in detail how to establish a market-competitive pay plan.

87) Which one of the following terms refers to a series of steps or levels within a pay grade? A) pay metric B) pay range C) wage class D) wage curve Answer: B Explanation: The term pay range refers to a series of steps or levels within a pay grade. It lets the employer take a more flexible stance in the labor market. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 11.3 Explain in detail how to establish a market-competitive pay plan. 88) Which one of the following questions is most relevant to developing a market-competitive pay system? A) What is the ranking of each job? B) What is the relevant labor market? C) What percentage of workers are contingent? D) What are the local and federal pay regulations? Answer: B Explanation: With a market-competitive pay system, the employer's actual pay rates are competitive with those in the relevant labor markets. Rankings are more relevant to the job evaluation method of setting pay rates. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 11.3 Explain in detail how to establish a market-competitive pay plan. 89) Ricardo was recently offered a position as vice president of marketing at a national retail chain. As a top executive at the firm, Ricardo will most likely be compensated with all of the following EXCEPT ________. A) stock options B) pension plans C) sales commissions D) supplemental life insurance Answer: C Explanation: Compensation for a company's top executives usually consists of four main elements: base pay, short-term incentives like bonuses, long-term incentives, and executive perks such as pension plans and supplemental life insurance. Sales commissions are not a typical compensation for top executives. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 11.4 Explain how to price managerial and professional jobs.

90) What is the primary purpose of offering an executive stock options in a compensation package? A) providing the executive with guaranteed bonuses B) encouraging the executive to increase the firm's value C) enabling the firm to decrease the executive's base pay D) offering the executive long-term retirement security Answer: B Explanation: Long-term incentives aim to encourage the executive to take actions that drive up the value of the company's stock and include things like stock options; these generally give the executive the right to purchase stock at a specific price for a specific period. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 11.4 Explain how to price managerial and professional jobs. 91) Job evaluations are used to determine the pay scale of all employees in an organization from hourly workers to the CEO. Answer: FALSE Explanation: For top executive jobs (especially the CEO), job evaluation typically has little relevance, but job evaluations are used for other positions in a firm. Top executive compensation depends on job complexity, the employer's ability to pay, and the executive's human capital. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 11.4 Explain how to price managerial and professional jobs. 92) Most organizations use a market-pricing approach when determining compensation for professional employees such as engineers and scientists. Answer: TRUE Explanation: Most employers use a market-pricing approach when compensating professional employees. They price professional jobs in the marketplace as best they can, to establish the values for benchmark jobs. Then they slot these benchmark jobs and their other professional jobs into a salary structure. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 11.4 Explain how to price managerial and professional jobs.

93) In a brief essay, discuss the purpose of job evaluations. Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm. Answer: Job evaluation aims to determine a job's relative worth. The job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. Job evaluation eventually results in a wage or salary structure or hierarchy (this shows the pay rate for various jobs or groups of jobs). The basic principle of job evaluation is this: Jobs that require greater qualifications, more responsibilities, and more complex job duties should receive more pay than jobs with lesser requirements. Many employers use job evaluation for pricing managerial jobs in most large firms. The basic approach is to classify all executive and management positions into a series of grades, each with a salary range. As with non-managerial jobs, one alternative is to rank the executive and management positions in relation to each other, grouping those of equal value. However, firms also use the job classification and point evaluation methods, with compensable factors like position scope, complexity, and difficulty. Job analysis, salary surveys, and the fine-tuning of salary levels around wage curves also play roles. Difficulty: Hard Objective: 2, 4 AACSB: Written and Oral Communication Learning Outcome: 11.4 Explain how to price managerial and professional jobs. 94) What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years? Answer: For a CEO position, job evaluation typically has little relevance. One recent study concluded that three main factors: job complexity (span of control, the number of functional divisions over which the executive has direct responsibility, and management level), the employer's ability to pay (total profit and rate of return), and the executive's human capital (educational level, field of study, work experience) accounted for about two-thirds of executive compensation variance. There are various reasons why boards are clamping down on executive pay. The Dodd-Frank law of 2010 requires American companies give shareholders a "say on pay." Law firms are filing class-action suits demanding information from companies about their senior executives' pay decisions. As of 2007, the Securities and Exchange Commission (SEC) required filing more compensation-related information, including a detailed listing of all individual "perks" or benefits if they total more than $100,000. As of 2005, the Financial Accounting Standards Board required that most public companies recognize as an expense the fair value of the stock options they grant. The Sarbanes-Oxley Act makes executives personally liable, under certain conditions, for corporate financial oversight lapses. Difficulty: Hard Objective: 4, 5 AACSB: Written and Oral Communication Learning Outcome: 11.4 Explain how to price managerial and professional jobs.

95) A company using competency-based pay compensates employees for all of the following EXCEPT ________. A) behaviors B) job title C) knowledge D) skills Answer: B Explanation: Competency-based pay occurs when a firm pays wages based on an employee's knowledge, skills, behaviors, and abilities rather than for the job title that he or she holds. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 96) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which one of the following, if true, best supports the decision by Homelife executives to implement competency-based pay? A) Homelife will be using the comparable worth method of determining pay to avoid legal problems. B) Most Homelife managers are men, but executives hope to increase the number of minority women working for the company. C) Homelife plans to organize employees into teams, provide regular training, and frequently assess workers' skills and knowledge. D) In an effort to save money, Homelife will be reducing the employee training budget over the next three years. Answer: C Explanation: When used in conjunction with team-building and worker involvement programs, competency-based pay appears to lead to higher quality and lower absenteeism. Comparable worth and minority hiring are irrelevant to competency-based pay. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans.

97) ________ means collapsing salary grades and ranges into just a few wide levels, each of which contains a relatively wide range of jobs and salary levels. A) Comparable worth B) Job evaluation C) Broadbanding D) Job grading Answer: C Explanation: Broadbanding means collapsing salary grades into just a few wide levels or bands, each of which contains a relatively wide range of jobs and pay levels. A company may create broadbands for all its jobs or for specific groups such as managers or professionals. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 98) Which one of the following terms refers to the requirement to pay men and women equal wages for jobs of roughly equivalent value to the employer? A) strategic compensation B) comparable worth C) broadbanding D) job grading Answer: B Explanation: Comparable worth refers to the requirement to pay men and women equal wages for jobs that are of comparable (rather than strictly equal) value to the employer. Comparable worth may involve comparing quite dissimilar jobs. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 99) Which one of the following job evaluation methods is associated with almost every comparable worth lawsuit? A) job classification method B) job grading method C) ranking method D) point method Answer: D Explanation: Virtually every comparable worth case that reached a court involved the use of the point method of job evaluation. By assigning points to dissimilar jobs, point plans facilitate comparability ratings among different jobs. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 34 Copyright © 2020 Pearson Education, Inc.

100) According to many experts, which one of the following likely contributes the pay gap between men and women? A) The "Motherhood Penalty" B) More women than men in the workforce C) Women's preference for part-time positions D) competency-based pay Answer: A Explanation: Reasons put forward for the gap include what one writer calls a "Motherhood Penalty" (women take more time off to care for the family, and are penalized career-wise for this), employer discrimination, the outdated notion that employers view women as having less leverage, the fact that professional men change jobs more often (gaining more raises in the process), and that women tend to end up in departments that pay less. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 101) Which one of the following is LEAST likely a benefit of using competency-based pay? A) supporting a firm's talent management process B) developing an efficient and legally defensible wage curve C) aiding in the implementation of a high-performance work system D) encouraging the development of skills needed for a firm's strategic goals Answer: B Explanation: First, paying for competencies enables companies to encourage employees to develop the competencies the companies require to achieve their strategic aims. Second, paying for measurable competencies provides a focus for the employer's talent management process. Third, traditional pay plans can backfire if a high-performance work system is your goal. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 102) Advocates of competency-based pay assert that the system encourages employees to develop the knowledge, skills, and behaviors a firm needs to achieve its strategic goals. Answer: TRUE Explanation: Experts assert that paying for competencies enables companies to encourage employees to develop the competencies the companies require to achieve their strategic aims. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans.

103) The primary advantage of broadbanding is that it provides greater flexibility into employee assignments. Answer: TRUE Explanation: Companies create broadbands for several reasons. The basic advantage is that it injects greater flexibility into employee assignments. It is especially sensible where firms organize into self-managing teams. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 104) In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting. Answer: TRUE Explanation: Comparable worth refers to the requirement to pay men and women equal wages for jobs that are of comparable (rather than strictly equal) value to the employer. Thus, comparable worth may mean comparing quite dissimilar jobs, such as nurses to truck mechanics or secretaries to technicians. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 105) A key issue in comparable worth is whether women should be paid equal wages for jobs that are truly equal to men's or just comparable to men's jobs. Answer: TRUE Explanation: The question "comparable worth" seeks to address is this: Should you pay women who are performing jobs equal to men's or just comparable to men's the same as men? If it's only for equal jobs, then the tendency may be to limit women's pay to that of the other, lower-paid jobs in which women tend to predominate. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans.

106) Due to federal legislation, greater opportunities for higher learning, and more women in the workforce, women in the U.S. earn approximately 90% as much as men. Answer: FALSE Explanation: Women in the United States earn only about 81% as much as men despite more opportunities for education and an increase of working women. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 107) Competency-based pay systems offer employers more flexibility but are less efficient than traditional job evaluation methods. Answer: TRUE Explanation: Job evaluation is more efficient than competency-based pay systems. However, competency-based pay offers firms more flexibility because workers are compensated for their skills and knowledge rather than a specific job title. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 108) In a brief essay, compare and contrast the use of pay ranges with broadbanding. Answer: There are several reasons to use pay ranges for each pay grade. First, it lets the employer take a more flexible stance in the labor market. For example, it makes it easier to attract experienced, higher-paid employees into a pay grade at the top of the range, since the starting salary for the pay grade's lowest step may be too low to attract them. Pay ranges also let companies provide for performance differences between employees within the same grade or between those with different seniorities. Companies create broadbands for several reasons. The basic advantage is that it injects greater flexibility into employee assignments. It is especially sensible where firms organize into self-managing teams. However, broadbanding can be unsettling, particularly for new employees. "There's a sense of permanence in the set of job responsibilities often attached to job titles," one manager says. That sense of permanence isn't nearly as clear when employees move frequently from project to project and job to job. Difficulty: Hard Objective: 3, 5 AACSB: Written and Oral Communication Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans.

109) What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee? Why? Answer: With job-based pay (JBP), the employee receives the pay attached to the job regardless of whether the employee has the necessary competency for performing the job. With competency-based pay (CBP), the supervisor certifies employee competency prior to any pay increases. With JBP, pay changes when one switches jobs. With CBP, one must demonstrate proficiency prior to getting a raise. Also, one could do a lower-paying job but still receive a higher pay based on skill. JBP systems may tie pay to grade or seniority. CBP pays for competencies, not seniority. There is more advancement possible with CBP plans than with JBP. CBP enhances organizational flexibility because workers' skills are applicable to more jobs, and therefore more portable. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans. 110) What are the five main elements of a competency-based pay plan? Answer: Most competency-based pay plans contain five elements. The employer defines specific required skills and chooses a method for basing the person's pay on his or her skills. A training system lets employees acquire skills. There is a formal competency testing system. And, the work is designed so that employees can easily move among jobs of varying skill levels. Difficulty: Moderate Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 11.5 Explain the difference between competency-based and traditional pay plans.

111) ________ is the concept that employees, including managers, derive more from their work environment than traditional financial rewards. A) Total compensation B) Total rewards C) Total engagement D) Total perquisites Answer: A Explanation: Total rewards is an important concept in compensation management. People bring to their jobs many needs–for challenging work and for respect and appreciation, for instance–not all of which are satisfied by pay or bonuses. "‘Total rewards' encompass not only compensation and benefits but also personal and professional growth opportunities and a motivating work environment." It includes not just traditional financial rewards (wages and incentives plus benefits and perks), but also non-financial and intangible rewards such as recognition, the nature of the job/-quality of work, career development opportunities, good relationships with colleagues, organizational justice, trust in employees, feeling of being valued and involved, opportunities for promotion, and a great work climate. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 11.6 Describe the importance of total rewards for improving employee engagement.

Human Resource Management, 16e (Dessler) Chapter 12 Pay for Performance and Financial Incentives 1) Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________. A) social loafing B) systematic soldiering C) work shifting D) group logrolling Answer: B Explanation: Frederick Taylor popularized using financial incentives in the late 1800s. As a supervisory employee of the Midvale Steel Company, Taylor was concerned with what he called "systematic soldiering"–the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 2) Which one of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard? A) indirect financial payments B) merit payments C) hardship allowances D) financial incentives Answer: D Explanation: Financial incentives are financial rewards paid to workers whose production exceeds some predetermined standard. Indirect financial payments are a type of employee compensation that includes health benefits. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

3) A management approach based on improving work methods through observation and analysis is known as ________. A) strategic management B) scientific management C) management by objectives D) performance management Answer: B Explanation: Frederick Taylor spearheaded the scientific management movement, a management approach that emphasized improving work methods through observation and analysis. Taylor also popularized the use of incentive pay as a way to reward employees who produced over standard. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 4) Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction? A) Frederick Taylor B) Abraham Maslow C) Frederick Herzberg D) David McClelland Answer: C Explanation: Herzberg says the factors ("hygienes") that satisfy lower-level needs are different from those ("motivators") that satisfy or partially satisfy higher-level needs. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 5) Which one of the following is a true statement about Herzberg's Hygiene-Motivator theory? A) Highly motivated workers rely equally on lower-level and higher-level needs. B) Assigning workers to teams can eliminate job-associated stress and frustration. C) Providing employees with feedback and challenge satisfies their lower-level needs. D) Managers can create a self-motivated workforce by providing feedback and recognition. Answer: D Explanation: Instead of relying on lower-level hygienes, says Herzberg, managers interested in creating a self-motivated workforce should emphasize "job content" or motivator factors. Managers do this by enriching workers' jobs so that the jobs are more challenging and by providing feedback and recognition. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 2 Copyright © 2020 Pearson Education, Inc.

6) According to Herzberg's Hygiene-Motivator theory, which one of the following factors will most likely satisfy employees' higher-level needs? A) base salary B) achievement C) incentive pay D) co-worker relationships Answer: B Explanation: Feedback, recognition, challenging work, and achievement help satisfy a worker's higher-level needs. Working conditions, salary, and incentives address a worker's lower-level needs. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 7) Which one of the following found that extrinsic rewards could detract from an employee's intrinsic motivation? A) Frederick Taylor B) Frederick Herzberg C) David McClelland D) Edward Deci Answer: D Explanation: Psychologist Edward Deci's work highlights a potential downside to relying too heavily on extrinsic rewards: They may backfire. Deci found that extrinsic rewards could at times actually detract from the person's intrinsic motivation. Herzberg's work indicates that it is more effective to satisfy an employee's higher-level rather than lower-level needs. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

8) Radi's manager wants to acknowledge her outstanding service record for the past quarter. The manager decides to give Radi a bonus of $1000 as a reward. According to Edward Deci, which one of the following will most likely occur as a result? A) The bonus will encourage Rebecca to work harder than before. B) The bonus will detract from Rebecca's inner desire to work hard. C) Radi's bonus will satisfy her higher-level needs and increase her motivation. D) Radi will feel inadequate because the bonus fails to address hygiene factors. Answer: B Explanation: Psychologist Edward Deci's work highlights a potential downside to relying too heavily on extrinsic rewards: They may backfire. Deci found that extrinsic rewards could at times actually detract from the person's intrinsic motivation. Herzberg's work indicates that it is more effective to satisfy an employee's higher-level rather than lower-level needs. Difficulty: Hard Objective: 1 AACSB: Application of Knowledge Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 9) According to Victor Vroom, expectancy could also be referred to as the ________. A) probability that effort will lead to success B) relationship between performance and reward C) perceived value a person attaches to a reward D) employer's strategy for motivating employees Answer: A Explanation: Vroom says a person's motivation to exert effort depends on the person's expectancy that his or her effort will lead to performance; instrumentality, or the perceived connection between successful performance and actually obtaining the rewards; and valence, which represents the perceived value the person attaches to the reward. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

10) The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________. A) instrumentality B) valence C) expectancy D) optimism Answer: A Explanation: Instrumentality is the perceived connection (if any) between successful performance and actually obtaining the rewards. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 11) In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents ________. A) existence B) expectancy C) esteem D) energy Answer: B Explanation: In Vroom's theory, motivation is thus a product of three things: Motivation = (E × I × V), where, of course, E represents expectancy, I instrumentality, and V valence. If E or I or V is zero or inconsequential, there will be no motivation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 12) In Vroom's theory of motivation, motivation is equal to E * I * V, where I represents ________. A) intrinsic needs B) internalization C) instrumentality D) incentives Answer: C Explanation: In Vroom's theory, motivation is thus a product of three things: Motivation = (E × I × V), where, of course, E represents expectancy, I instrumentality, and V valence. If E or I or V is zero or inconsequential, there will be no motivation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 5 Copyright © 2020 Pearson Education, Inc.

13) In Vroom's theory of motivation, which one of the following terms refers to the perceived value a person attaches to a reward? A) valence B) instrumentality C) expectancy D) variable pay Answer: A Explanation: Valence represents the perceived value the person attaches to the reward. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 14) According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________. A) focus on behavior modification methods B) make incentive plans easy to understand C) provide training and support to employees D) boost the confidence level of employees Answer: A Explanation: Vroom's theory has implications for how managers design incentive plans. Managers must ensure that their employees have the skills to do the job, and believe they can do the job. Thus training, job descriptions, and confidence building and support are important in using incentives. Managers should also create easy to understand incentive plans. Skinner addressed behavior modification methods rather than Vroom. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 15) Behavior modification is based upon the principles of rewards and punishments advanced by ________. A) Frederick Taylor B) Frederick Herzberg C) B.F. Skinner D) Edward Deci Answer: C Explanation: Psychologist B. F. Skinner's findings provide the foundation for much of what we know about incentives. Managers apply Skinner's principles by using behavior modification. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 6 Copyright © 2020 Pearson Education, Inc.

16) Which one of the following terms refers to changing behavior through rewards or punishments that are contingent on performance? A) behavior modification B) personal development C) instrumentality D) internal motivation Answer: A Explanation: Managers apply Skinner's principles by using behavior modification. Behavior modification means changing behavior through rewards or punishments that are contingent on performance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 17) Which one of the following is NOT a basic tenet of behavior modification? A) Behavior that leads to rewards tends to be repeated. B) Properly scheduled rewards can be used to encourage some behaviors. C) Properly scheduled punishments can be used to minimize some behaviors. D) Employees must understand the link between rewards, punishments, and behavior. Answer: D Explanation: For managers, behavior modification boils down to following two main principles: (1) That behavior that appears to lead to a positive consequence (reward) tends to be repeated, while behavior that appears to lead to a negative consequence (punishment) tends not to be repeated; and (2) that, therefore, managers can get someone to change his or her behavior by providing the properly scheduled rewards (or punishment). Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 18) Which one of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability? A) piecework B) variable pay C) pay-for-performance D) merit pay Answer: B Explanation: Traditionally, all incentive plans are pay-for-performance plans. They all tie employees' pay to the employees' performance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 7 Copyright © 2020 Pearson Education, Inc.

19) Under the Fair Labor Standards Act, which one of the following would NOT be included in overtime pay computations? A) bonus for new hires B) Christmas bonus C) efficiency bonus D) union contract bonus Answer: B Explanation: Christmas bonuses are not based on hours worked and may be excluded from overtime pay calculations. Other types of incentive pay must be included according to the Fair Labor Standards Act (FLSA). Bonuses to include in overtime pay computations include those promised to newly hired employees, those provided for in union contracts, those announced to induce employees to work more efficiently, and those for attendance. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 20) Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard. Answer: FALSE Explanation: Frederick Taylor popularized the use of financial incentives in the late 1800s. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 21) Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards. Answer: FALSE Explanation: Studies suggest that employees don't see a strong connection between pay and performance, and their performance is not particularly influenced by the company's incentive plan. About 83% of companies with such programs say their programs are only somewhat successful or not successful at all. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

22) According to Herzberg's theory, a manager would be able to motivate an employee with challenging tasks. Answer: TRUE Explanation: Herzberg's theory states that the best way to motivate someone is to organize the job so that doing it provides the challenge and recognition needed to help satisfy "higher-level" needs for things like accomplishment and recognition. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 23) In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors. Answer: FALSE Explanation: Hygiene factors are factors outside the job itself, such as working conditions, salary, and incentive pay. Motivator factors include challenging tasks, feedback, and recognition. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 24) Herzberg's Hygiene-Motivator theory is based on a needs theory. Answer: TRUE Explanation: Frederick Herzberg said the best way to motivate someone is to organize the job so that doing it provides the feedback and challenge that helps satisfy the person's "higher-level" needs for things like accomplishment and recognition. Satisfying "lower-level" needs for things like better pay and working conditions just keeps the person from becoming dissatisfied. Herzberg's theory is based on a theory of needs. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

25) According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction. Answer: TRUE Explanation: Frederick Herzberg said the best way to motivate someone is to organize the job so that doing it provides the feedback and challenge that helps satisfy the person's "higher-level" needs for things like accomplishment and recognition. Satisfying "lower-level" needs for things like better pay and working conditions just keeps the person from becoming dissatisfied. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 26) The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards to motivate employees. Answer: FALSE Explanation: Psychologist Edward Deci's work highlights another potential downside to relying too heavily on extrinsic rewards: They may backfire. Deci found that extrinsic rewards could at times actually detract from the person's intrinsic motivation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 27) Vroom's expectancy theory observes that people will not pursue rewards that they find unattractive or where their chances of success are very low. Answer: TRUE Explanation: An important motivational fact is that, in general, people won't pursue rewards they find unattractive, or where the odds of success are very low. Psychologist Victor Vroom's expectancy motivation theory echoes these common sense observations. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan.

28) According to Vroom's theory, if expectancy, instrumentality, or valence is equal to zero, there will be no employee motivation. Answer: TRUE Explanation: In Vroom's theory, motivation is thus a product of three things: Motivation = (E × I × V), where E represents expectancy, I instrumentality, and V valence. If E or I or V is zero or inconsequential, there will be no motivation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 29) Behavior modification is based on the idea that people will repeat behavior for which they are punished. Answer: FALSE Explanation: According to Skinner's theory, behavior that appears to lead to a positive consequence (reward) tends to be repeated, while behavior that appears to lead to a negative consequence (punishment) tends not to be repeated. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 30) Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance. Answer: TRUE Explanation: Behavior modification means changing behavior through rewards or punishments that are contingent on performance. Managers apply Skinner's principles of behavior modification when overseeing employees. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 31) If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay. Answer: FALSE Explanation: Under the Fair Labor Standards Act, if the performance-based pay is in the form of a prize or cash award, the employer generally must include the value of that award when calculating the worker's overtime pay for that pay period. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 11 Copyright © 2020 Pearson Education, Inc.

32) Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans? Answer: Vroom states that a person's motivation to exert some level of effort or specific behavior is a function of three things: valence, instrumentality, and expectancy. Valence is the perceived value the person attaches to the reward. Instrumentality is the perceived relationship between successful performance and obtaining the reward. Expectancy is the probability that performance of the behavior or exertion of the effort will result in achieving the desired reward. Motivation is equal to E * I * V. Victor Vroom would say there should be a clear link between effort and performance, and between performance and reward, and that the reward must be attractive to the employee. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 12.1 Explain how you would apply four motivation theories in formulating an incentive plan. 33) What type of pay plan is being used when workers are paid a sum for each unit they produce? A) competency-based pay B) job-based pay C) piecework D) bonus Answer: C Explanation: Piecework is the oldest and still most popular individual incentive plan. Here you pay the worker a sum (called a piece rate) for each unit he or she produces. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 34) Which one of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards? A) variable pay B) straight piecework C) straight hourly pay D) standard hour plan Answer: B Explanation: Piecework generally implies straight piecework, which entails a strict proportionality between results and rewards regardless of output. However, some piecework plans allow for sharing productivity gains between employer and worker. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees.

35) In which one of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard? A) variable pay B) straight piecework C) standard hour plan D) standard piecework Answer: C Explanation: The standard hour plan is a plan by which a worker is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the standard per hour or per day. It is similar to piecework payment but based on a percent premium. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 36) All of the following are disadvantages associated with piecework plans EXCEPT that workers ________. A) resist attempts to modify production standards B) focus on production quantity instead of quality C) view the plans as unfair and complicated D) dislike new technology or processes Answer: C Explanation: Piecework plans are understandable, appear equitable in principle, and can be powerful incentives, since rewards are proportionate to performance. However, workers on piecework may resist attempts to revise production standards, downplay quality, or resist switching from job to job. Attempts to introduce new technology or processes may also trigger resistance. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 37) Which one of the following is the primary advantage of piecework plans? A) powerful incentive to workers B) workers earn efficiency bonuses C) firms save on overtime wages D) entices independent contractors Answer: A Explanation: Piecework plans are understandable, appear equitable in principle, and can be powerful incentives, since rewards are proportionate to performance. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees.

38) Which one of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance? A) competency-based pay B) variable pay C) merit pay D) base pay Answer: C Explanation: Merit pay is any salary increase the firm awards to an individual employee based on his or her individual performance. It is different from a bonus in that it usually becomes part of the employee's base salary, whereas a bonus is a one-time payment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 39) How does merit pay differ from a bonus? A) Merit pay becomes part of an employee's base pay, but a bonus does not. B) A bonus becomes part of an employee's base pay, but merit pay does not. C) Merit pay is linked to individual performance, while a bonus is linked to profits. D) A bonus is linked to individual performance, while merit pay is linked to profits. Answer: A Explanation: Merit pay is any salary increase the firm awards to an individual employee based on his or her individual performance. It is different from a bonus in that it usually becomes part of the employee's base salary, whereas a bonus is a one-time payment. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 40) Studies indicate that in order for merit pay to be most effective, it should be linked to ________. A) company profits B) annual base salary C) employee overtime D) employee performance Answer: D Explanation: Merit raises are more likely to be effective if they are linked to performance, which involves establishing effective appraisal procedures. Merit pay linked to company profits or employees' salaries, overtime, or awards are less likely to be effective incentives. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees.

41) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan. Which one of the following, if true, supports the argument that Ryobi should eliminate all merit raises? A) Performance appraisals at Ryobi occur annually, and standards vary from manager to manager. B) Ryobi employees have the option of accepting lump-sum raises or traditional merit raises. C) Ryobi recently began using an enterprise incentive management system to automate compensation. D) The commission percentage for Ryobi salespeople is based on the ability to meet monthly quotas. Answer: A Explanation: In order for merit raises to be effective, performance appraisals need to be consistent and fair. The distribution method of a merit raise, monthly sales quotas, and enterprise management systems are less relevant to the decision. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 12.2 Discuss the main incentives for individual employees.

42) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan. Which one of the following, if true, undermines the argument that Ryobi should discontinue all merit raises? A) Ryobi employees have expressed that they would prefer stock options to merit raises. B) Ryobi managers have not received significant training about conducting performance appraisals. C) Ryobi managers have noticed significant productivity improvements among employees who receive merit raises. D) Ryobi's top executives receive a combination of base salary and stock options to encourage them to focus on the firm's strategic goals. Answer: C Explanation: If Ryobi managers have noticed productivity improvements among employees who receive merit raises, then the system is most likely effective and should not be discontinued. The decision to discontinue merit raises is supported by employees who prefer stock options and managers who lack performance appraisal training. Executive pay is less relevant to the decision. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 12.2 Discuss the main incentives for individual employees. 43) Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan. Which one of the following questions is most relevant to the decision by Ryobi executives to discontinue all merit raises? A) What are the guidelines for implementing a gainsharing plan? B) What types of merit raises are effective for high-performing managers? C) What organization-wide incentive plans are used by other manufacturing firms? D) What is the connection between merit pay increases and employee productivity? Answer: D Explanation: In order for merit raises to be effective, there should be a clear and consistent connection between productivity and merit pay. There are not different types of merit raises. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 12.2 Discuss the main incentives for individual employees.

44) ________ is a program where informal manager-employee exchanges such as praise, approval, or expressions of appreciation are given for a job well done. A) Merit pay B) A social recognition program C) Performance feedback D) Variable pay Answer: B Explanation: Social recognition programs are programs where informal manager-employee exchanges such as praise, approval, or expressions of appreciation are given for a job well done. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 45) Carlos is a line manager at a paper supply company. All of the following are methods that Carlos should most likely implement to motivate his subordinates EXCEPT ________. A) recognizing an employee's contribution B) encouraging workers to earn overtime pay C) gaining agreement on goals with employees D) using positive reinforcement on a daily basis Answer: B Explanation: The best option for motivating employees is to make sure the employee has a doable goal and that he or she agrees with that. Next, recognizing an employee's contribution is a powerful motivation tool. Finally, managers can use social recognition as daily positive reinforcement. Encouraging overtime is less likely to motivate employees. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 12.2 Discuss the main incentives for individual employees. 46) Which one of the following was shown by the Harvard Business School to have the greatest impact on employee engagement? A) feedback B) job design C) responsibility D) challenging work Answer: B Explanation: A study by Harvard Business School researchers concluded that job design is a primary driver of employee engagement. A study by Sibson consulting concluded that job responsibility and feedback from a job were the fifth and seventh most important drivers of employee engagement. A study by Towers Watson concluded that challenging work ranked as the seventh most important driver for attracting employees. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 17 Copyright © 2020 Pearson Education, Inc.

47) The complicated nature of piecework makes it an unpopular individual incentive plan among employers. Answer: FALSE Explanation: Piecework is the oldest and still most popular individual incentive plan. The straightforward plan requires an employer to pay the worker a sum (called a piece rate) for each unit he or she produces. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 48) The standard hour plan is like the piece rate plan except instead of getting a rate per piece, the employee gets a premium equal to the percent by which his or her performance exceeds the standard. Answer: TRUE Explanation: The standard hour plan is a plan by which a worker is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the standard per hour or per day. It is similar to piecework payment but based on a percent premium. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 49) With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate. Answer: TRUE Explanation: Some firms find that expressing the incentive in percentages reduces the workers' tendency to link their production standard to pay (thus making the standard easier to change). It also eliminates the need to recalculate piece rates whenever hourly wage rates are changed. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 50) Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation. Answer: TRUE Explanation: In the garment industry and other industries, the term piecework has a dreadful reputation because the hourly pay didn't always fulfill the Wage and Hour Act's minimum wage requirements. For these and other reasons, more employers are moving to other plans. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees.

51) All merit raises become part of an employee's base salary. Answer: TRUE Explanation: A merit raise is any salary increase the firm awards to an individual employee based on his or her individual performance. It usually becomes part of the employee's base salary. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 52) According to the FLSA, merit pay can only be given to exempt, nonmanagement employees at a company. Answer: FALSE Explanation: Although the term merit pay can apply to the incentive raises given to any employee–exempt or nonexempt, office or factory, management or nonmanagement–the term is more often used for white-collar employees and particularly professional, office, and clerical employees. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 53) Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once. Answer: TRUE Explanation: Lump-sum merit increases can also be more dramatic motivators than a traditional merit raise. For example, a 5% lump-sum merit payment to a $30,000 employee is $1,500 cash, as opposed to a traditional weekly merit payout of $29 for 52 weeks. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 54) In order for a firm to have an effective incentive plan, there should be a clear relationship between employee effort and quantity or quality of output. Answer: TRUE Explanation: It makes sense to use an incentive plan when there is a clear relationship between employee effort and the quantity or quality of output. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees.

55) Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance. Answer: FALSE Explanation: Dual-career ladders are another way to manage professionals' pay but not necessarily working mothers. At many employers, a bigger salary and bonus requires re-routing from, say, engineering into management. However, not all professionals want such paths. Therefore, many employers institute dual career paths, in other words one path for managers, and another for technical experts. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 12.2 Discuss the main incentives for individual employees. 56) Explain the advantages and disadvantages of using piecework as a pay plan. Answer: Piecework incentive plans have several advantages. They are simple to calculate and easily understood by employees. Piece rate plans appear equitable in principle, and in their incentive value, and are powerful since they tie pay directly to performance. Piecework also has disadvantages. The main one is its unsavory reputation among many employees based on some employers' habit of arbitrarily raising production standards whenever they found their workers earning "excessive wages." A more subtle disadvantage is that since piece rate are quoted on a per piece basis, in workers' minds, production standards (pieces per hour) become tied inseparably to the amount of money earned. Piece rate systems thus risk engendering rigidity. When the employer tries to revise production standards, resistance ensures. Employees become preoccupied with producing the number of units needed. They can become less focused on quality and may resist switching jobs (since doing so could reduce productivity). Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 12.2 Discuss the main incentives for individual employees. 57) Employers may award merit pay as traditional merit increases that increase an employee's base pay or as a lump sum merit raise. Explain the pros and cons of these two choices. Answer: Traditional merit increases are cumulative but most lump sum merit raises are not. For employees receiving traditional merit increases, raises in subsequent years are based on the new higher amount. With lump sum merit raises, payroll expenses can be minimized over time while still offering an incentive. Further, the lump sum amount may seem more impressive to employees because it is a large amount paid at one time. For instance, a lump sum merit payment of $1500 may seem more desirable than a traditional weekly merit payout of $29 for 52 weeks. Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 12.2 Discuss the main incentives for individual employees.

58) Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify some positive reinforcement rewards that a manager could use on a day-to-day basis to reward employees. Answer: There is a long list possible, such as: employee recognition, gift certificates, special events, cash rewards, merchandise incentives, e-mail/print communications, training programs, work/life benefits, variable pay, group travel, individual travel, sweepstakes, encouraging learning and continuous improvement, providing encouragement, giving compliments, allowing employees to set their own goals, expressing appreciation in front of others, sending a note of thanks, giving an employee-of-the-month award, providing a bigger or nicer desk or office. Research indicates that both the financial and nonfinancial incentives improve employee and store performance. The term recognition program usually refers to formal programs, such as employee-of-the-month programs. Social recognition programs generally refer to informal manager-employee exchanges such as praise, approval, or expression of appreciation for a job well done. Employers often supplement financial incentives with various non-financial and recognition based awards. Performance feedback means providing quantitative or qualitative information on task performance to change or maintain performance; showing workers a graph of how their performance is trending is an example. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 12.2 Discuss the main incentives for individual employees. 59) Enterprise incentive management systems enable firms to ________. A) compare corporate incentive programs B) accurately calculate sales commissions C) efficiently administer employee incentive programs D) create a matrix of merit awards and incentive options Answer: C Explanation: Incentive programs can be expensive and complicated to administer. As one solution, vendors provide enterprise incentive management (EIM) systems. These automate the planning, analysis, and management of incentive compensation plans. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople.

60) A straight salary is most appropriate when a salesperson's primary duties involve ________. A) finding new clients B) meeting sales quotas C) pushing hard-to-sell items D) fostering relationships with customers Answer: A Explanation: Some firms pay salespeople fixed salaries, which makes sense when the main task involves prospecting (finding new clients) or account servicing (such as participating in trade shows). Meeting with clients and selling difficult items should be paid with commissions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 61) Using a straight salary to compensate salespeople is most likely ineffective because it ________. A) discourages sales flexibility B) lacks connection to performance C) makes it hard to switch territories D) depends on annual corporate profits Answer: B Explanation: The main disadvantage is that straight salary can demotivate potentially highperforming salespeople. The straight salary approach makes it easier to switch territories or to reassign salespeople, and it can foster sales staff loyalty. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 62) All of the following are disadvantages of straight commission plans EXCEPT ________. A) salespeople avoid pushing hard-to-sell items B) salespeople fail to service small accounts C) payments are complicated to calculate D) significant variations in pay exist Answer: C Explanation: Straight commission plans are easy to understand and compute. However, salespeople tend to focus on making the sale and on high-volume items, and may neglect nonselling duties like servicing small accounts, cultivating dedicated customers, and pushing hard-to-sell items. Wide variations in pay may occur; this can make some feel the plan is inequitable. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 22 Copyright © 2020 Pearson Education, Inc.

63) Which one of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople? A) provides a guaranteed minimum salary B) allows freedom to choose own work activities C) completely links to performance D) offers simple administration Answer: A Explanation: The main advantage of combination plans is that they offer salespeople a floor to their earnings. However, such plans are usually complicated and difficult to administer, and only the commission percentage is linked to performance. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 64) Eduardo is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses. As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Eduardo wants to motivate his sales force but avoid having excessive commissions. All of the following questions are relevant to developing an effective sales compensation plan EXCEPT: A) How much time does each Wilson salesperson spend with qualified prospects? B) What are the motivation and skill levels of Wilson sales team members? C) What is the average annual bonus received by Wilson's CEO? D) What is Wilson's desired profit for each car sale? Answer: C Explanation: Questions about profit, motivation, skill levels, and time spent with likely customers are relevant to developing an effective sales compensation plan. The annual bonus received by Wilson's CEO is not directly relevant to motivating the sales team. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople.

65) Eduardo is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses. As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Eduardo wants to motivate his sales force but avoid having excessive commissions. Which one of the following, if true, supports the argument that Eduardo should pay his sales team a combination of salary plus commission? A) Wilson Auto Mart's sales team consists of high-performing, experienced salespeople. B) Wilson Auto Mart has a sales force that has a significant desire for a floor to their earnings. C) Each Wilson Auto Mart salesperson is encouraged to sell at least ten vehicles each month. D) Wilson Auto Mart salespeople are primarily asked to find new clients and service current accounts. Answer: B Explanation: A major advantage of combination plans is they give salespeople a floor to their earnings. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 66) One possible outcome of a commission plan is ________. A) administrative costs decline B) turnover may increase C) commissions that limit earnings can discourage effort D) absenteeism may decline Answer: C Explanation: Distinguishing among performers is also important. For example, some companies distinguish among stars, laggards, and core sales performers. Companies that limit commission earnings can perversely encourage stars to stop selling when they reach their quotas. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 67) Straight commission plans are attractive to high-performing salespeople. Answer: TRUE Explanation: Commission plans tend to attract high-performing salespeople who see that effort clearly produces rewards. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople.

68) You are the manager of large used car retailer, and sales are sluggish. What incentive plan would be best for motivating your sales team? Answer: Most companies pay salespeople a combination of salary and commissions, usually with a sizable salary component. An incentive mix of about 70% base salary/30% incentive seems typical; this cushions the salesperson's downside risk (of earning nothing), while limiting the risk that the commissions could get out of hand from the firm's point of view. Combination plans give salespeople a floor to their earnings, let the company specify what services the salary component is for (such as servicing current accounts), and still provide an incentive for superior performance. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 12.3 Discuss the pros and cons of commissions versus straight pay for salespeople. 69) Which one of the following terms refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future? A) at-risk variable plan B) multiplier method C) stock option D) gainsharing plan Answer: C Explanation: A stock option is the right to purchase a specific number of shares of company stock at a specific price during a specific period. The assumption is that the price of the stock will go up. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 70) With which one of the following can an executive NOT profit until the stock makes significant gains? A) indexed options B) phantom stock C) restricted stock D) premium priced options Answer: D Explanation: With premium priced options, the exercise price is higher than the stock's closing price on the date of the grant, so the executive can't profit from the options until the stock makes significant gains. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives.

71) With a ________, an executive receives units instead of shares of company stock. In the future, the executive receives cash equal to the appreciation of the units owned. A) nonqualified stock option B) premium priced option C) phantom stock plan D) restricted stock plan Answer: C Explanation: Under phantom stock plans, executives receive not shares but "units" that are similar to shares of company stock. Then at some future time, they receive value (usually in cash) equal to the appreciation of the "phantom" stock they own. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 72) Which term refers to payments companies make in connection with a change in ownership or control of a company? A) pension B) golden parachute C) retirement bonus D) stock option Answer: B Explanation: Golden parachutes are extraordinary payments companies make to executives in connection with a change in ownership or control of a company. For example, a company's golden parachute clause might state that, with a change in ownership of the firm, the executive would receive a one-time payment of two million dollars. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 73) The most common eligibility determinant for bonuses is ________. A) salary grade B) job title C) officer status D) base salary Answer: A Explanation: Rather than job title or officer status, salary grade or band was the most common eligibility determinant, reported by 42% of employers in one survey. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives.

74) Annual bonus plans are long-term incentives, and stock options are short-term incentives. Answer: FALSE Explanation: Most firms have annual bonus plans aimed at motivating managers' short-term performance. Short-term bonuses can easily result in plus or minus adjustments of 25% or more to total pay. Stock options are a type of long-term incentive. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 75) Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives. Answer: TRUE Explanation: Long-term incentives are also "golden handcuffs"–they motivate executives to stay with the company by letting them accumulate capital that they can only cash in after a certain number of years. Popular long-term incentives include cash, stock, stock options, stock appreciation rights, and phantom stock. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 76) Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals. Answer: TRUE Explanation: Many blame stock options for contributing to corporate scandals, in which executives allegedly manipulated the dates they received their options to maximize their returns. Options may also encourage executives to take perilous risks in pursuit of higher, short-term profits. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives. 77) Golden parachutes are large payments companies make to executives in connection with a change in company ownership or control. Answer: TRUE Explanation: Golden parachutes are extraordinary (large) payments companies make to executives in connection with a change in company ownership or control. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.4 Describe the main incentives for managers and executives.

78) You are the CEO of Blue Bay Motor Boat Company, a mid-size firm that manufactures speed boats. What incentive plan would you implement for the firm's engineers? What incentive plan would you implement for the firm's managers? Explain why. Answer: Stock options, bonuses, and profit sharing would be appropriate for the engineers. Recognition-based awards and nonfinancial incentives would most likely encourage engineers to work hard as well. For executives, stock options, performance shares, stock plans, and golden parachutes are useful long-term incentives. Annual bonuses are useful in motivating the shortterm performance of managers. Difficulty: Hard Objective: 2, 4 AACSB: Written and Oral Communication Learning Outcome: 12.4 Describe the main incentives for managers and executives. 79) What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not? Answer: The Sarbanes-Oxley Act of 2002 affects how employers formulate their executive incentive programs. Congress passed Sarbanes-Oxley to inject a higher level of responsibility into executives' and board members' decisions. It makes them personally liable for violating their fiduciary responsibilities to their shareholders. The act also requires CEOs and CFOs of a public company to repay any bonuses, incentives, or equity-based compensation received from the company during the 12-month period following the issuance of a financial statement that the company must restate due to material noncompliance with a financial reporting requirement stemming from misconduct. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 12.4 Describe the main incentives for managers and executives. 80) All of the following are advantages of team incentive plans EXCEPT that ________. A) jealousy is reduced B) wage equity is guaranteed C) team planning is reinforced D) problem solving is encouraged Answer: B Explanation: The benefits of team incentive plans include reduced jealousy and increased team planning, problem solving, and collaboration. The primary problem relates to inequity in financial compensation because everyone is paid equally but does not work equally. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

81) The employees at DataMax participate in a profit-sharing plan. DataMax distributes 15% of its profits as profit shares to employees at regular intervals. Which one of the following is most likely used at DataMax? A) current profit-sharing B) Lincoln incentive system C) deferred profit-sharing plan D) employee stock ownership plan Answer: A Explanation: There are several types of profit-sharing plans. With current profit-sharing or cash plans, employees share in a portion of the employer's profits quarterly or annually. In cash plans, the firm simply distributes a percentage of profits (usually 15% to 20%) as profit shares to employees at regular intervals. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 82) Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which one of the following is most likely the type of profit-sharing plan used by Tanner's employer? A) deferred profit-sharing plan B) Lincoln incentive system C) Jefferson incentive system D) gainsharing plan Answer: A Explanation: With deferred profit-sharing plans, the employer puts cash awards into trust accounts for the employees' retirement. Here the employer generally distributes the awards based on a percentage of the employee's salary, or some measure of the employee's contribution to company profits. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

83) Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires? A) cash plan B) Lincoln incentive system C) deferred profit-sharing plan D) employee stock ownership plan Answer: C Explanation: With deferred profit-sharing plans, the employer puts cash awards into trust accounts for the employees' retirement. Here the employer generally distributes the awards based on a percentage of the employee's salary, or some measure of the employee's contribution to company profits. There is a tax advantage, since employees' income taxes on the distributions are deferred, often until the employee retires. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 84) The Scanlon plan includes all of the following features EXCEPT ________. A) identity B) competency C) a philosophy of cooperation D) a focus on individual achievement Answer: D Explanation: The five features of the Scanlon plan include a philosophy of cooperation, identity, competency, an involvement system, and a sharing of benefits formula. The plan does not call for focusing on individual achievement. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

85) Which incentive plan is based on a philosophy that managers and employees must cooperate together? A) cash plan B) Scanlon plan C) deferred profit-sharing plan D) employee stock ownership plan Answer: B Explanation: The Scanlon plan is based on a philosophy of cooperation. This philosophy assumes that managers and workers must rid themselves of the "us" and "them" attitudes that normally inhibit employees from developing a sense of ownership in the company. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 86) Which one of the following best explains identity in regards to the Scanlon plan? A) philosophy of cooperation among employees B) clear articulation of the company mission C) high level of competency from all employees D) corporate-wide benefits and savings Answer: B Explanation: One feature of the Scanlon plan is identity. Identity means that in order to focus employee involvement, the company must articulate its mission or purpose, and employees must understand how the business operates in terms of customers, prices, and costs. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 87) Competence in the Scanlon plan refers to a focus on ________. A) cooperation B) corporate vision C) employee abilities D) significant improvements Answer: C Explanation: Competence is a third basic feature of the Scanlon plan. The program, say three experts, "explicitly recognizes that a Scanlon plan demands a high level of competency from employees at all levels." This suggests careful selection and training. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

88) The Scanlon plan is an early version of a ________ plan, an incentive plan that engages employees in a common effort to achieve productivity objectives. A) performance achievement B) golden parachute C) gainsharing D) variable pay Answer: C Explanation: The Scanlon plan is one early version of a gainsharing plan. Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 89) Gainsharing is an incentive plan that ________. A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement B) engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees D) provides tax advantages for employees by deferring income taxes, often until the employee retires Answer: B Explanation: Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

90) Which one of the following is NOT a type of gainsharing plan? A) Improshare B) Lincoln C) Rucker D) Roth Answer: D Explanation: In addition to the Scanlon plan, other popular gainsharing plans include the Lincoln, Rucker, and Improshare plans. Roth is not a type of gainsharing plan. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 91) Tyler Oil offers a profit-sharing plan to its employees. Each year, Tyler Oil distributes total annual profits less taxes among employees based on employee merit ratings. Which one of the following is most likely used by Tyler Oil? A) cash plan B) Lincoln incentive system C) deferred profit-sharing plan D) employee stock ownership plan Answer: B Explanation: In one version of the Lincoln incentive system, first instituted at the Lincoln Electric Company of Ohio, employees work on a guaranteed piecework basis. The company distributes total annual profits (less taxes, 6% dividends to stockholders, and a reserve) each year among employees based on their merit rating. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

92) The Lincoln incentive system is an incentive plan that ________. A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees D) involves the firm distributing total annual profits each year among employees based on their merit rating Answer: D Explanation: In one version of the Lincoln incentive system, first instituted at the Lincoln Electric Company of Ohio, employees work on a guaranteed piecework basis. The company distributes total annual profits each year among employees based on their merit rating. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 93) When hired by Delmar Designs, Hai agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does Hai most likely participate? A) earnings-at-risk pay plan B) variable risk sharing plan C) at-risk gainsharing plan D) employee at-risk plan Answer: A Explanation: At-risk variable pay plans are plans that put some portion of the employee's weekly, monthly, or yearly pay at risk. If employees meet or exceed their goals, they earn back not only the portion of their pay that was at risk, but also an incentive. If they fail to meet their goals, they forego some of the pay they would normally earn. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

94) Anabet, the HR manager at Western Enterprises, will get stock distributed to her from a trust when she retires. This is known as a(n) ________. A) profit-sharing plan B) earnings-at-risk plan C) Employee stock ownership plan (ESOP) D) gainsharing plan Answer: C Explanation: Employee stock ownership plans (ESOP) are company-wide plans in which the employer contributes shares of its own stock (or cash to be used to purchase such stock) to a trust established to purchase shares of the firm's stock for employees. The trust holds the stock in individual employee accounts. It then distributes the stock to employees upon retirement. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 95) In ________, employees agree to put some portion of their normal pay at risk if they don't meet their goals, in return for a much larger bonus if they exceed their goals. A) earnings-at-risk pay plans B) gainsharing C) the Scanlon plan D) team incentive plans Answer: A Explanation: In earnings-at-risk pay plans, employees agree to put some portion (say, 10%) of their normal pay at risk (forego it) if they don't meet their goals, in return for possibly obtaining a much larger bonus if they exceed their goals. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 96) Studies suggest that ESOPs probably do lead to increases in employee ________. A) performance B) sense of ownership C) motivation D) helping behaviors Answer: B Explanation: Studies suggest that ESOPs probably do encourage employees to develop a sense of ownership in and commitment to the firm, but their effects on motivation and performance are questionable. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

97) What percentage of large employers use some type of group- or team-based incentives? A) 15% B) 40% C) 60% D) 85% Answer: D Explanation: About 85% of large employers reportedly use some type of group- or team-based incentives. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 98) The main feature of broad-based stock option plans is ________. A) monthly stock options B) option to buy as many shares as desired C) restricted to closely held organizations D) all or most employees can participate Answer: D Explanation: All or most employees can participate in broad-based stock option plans. The basic thinking is that sharing ownership in the company with employees makes motivational and practical sense. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 99) Employees at GameTime Software participate in a gainsharing plan. Employee bonuses are calculated by dividing payroll expenses by total sales. GameTime Software most likely uses which one of the following plans? A) Lincoln B) Rucker C) Improshare D) Scanlon Answer: D Explanation: The Scanlon formula divides payroll expenses by total sales (or, sometimes, by total sales plus increases in inventory). Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

100) McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees. Which one of the following is most likely offered by McDonald Manufacturing? A) cash plans B) Lincoln incentive systems C) deferred profit-sharing plans D) employee stock ownership plans Answer: D Explanation: Employee stock ownership plans (ESOPs) are company-wide plans in which the employer contributes shares of its own stock to a trust established to purchase shares of the firm's stock for employees. The firm generally makes these contributions annually in proportion to total employee compensation, with a limit of 15% of compensation. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 101) Which one of the following is the primary benefit of employee stock ownership plans? A) Firms are able to implement the plans with minimal costs and complications. B) Firms pay distribution taxes for employees prior to retirement. C) Firms may borrow against employee stock held in trust. D) Employees are able to diversify their investments. Answer: C Explanation: The main reason that ESOPs are popular is that a firm gets a tax deduction equal to the fair market value of the shares it transfers to the trustee and can claim an income tax deduction for dividends paid on ESOP-owned stock. Employees are taxed when they receive a distribution from the trust, usually at retirement. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

102) Research indicates that employee stock ownership plans most likely ________. A) encourage employees to retire too early B) place firms at greater risk for employee lawsuits C) increase employee commitment D) encourage transparency within global organizations Answer: C Explanation: Research suggests that ESOPs do encourage employees to develop a sense of ownership in and commitment to the firm. For the plans to be effective, firms must be responsible for their funds. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 103) Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan. Which one of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises? A) Delays rarely occur. B) The job is standardized. C) Employees are unskilled but motivated. D) A link exists between employee effort and output. Answer: C Explanation: Incentive plans are effective and appropriate when motivation (and not ability) is the problem. They are also appropriate when there is a clear relationship between employee effort and quantity or quality of output, the job is standardized, and delays are few or consistent. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 104) Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members, which fosters cooperation. Answer: FALSE Explanation: Most large employers use team incentive plans, but studies suggest they are counterproductive. Inequity is the issue because usually a few people do the work but everyone shares the reward. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

105) The Scanlon plan is a type of gainsharing plan. Answer: TRUE Explanation: The Scanlon plan is one early version of a gainsharing plan. Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 106) Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm, which is why the programs are decreasing in popularity. Answer: FALSE Explanation: Research suggests that ESOPs encourage employees to develop a sense of ownership in and commitment to the firm. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 107) Gainsharing is an incentive plan where employee efforts that result in cost-savings gains are shared among employees and the company. Answer: TRUE Explanation: Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

108) In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans. Answer: Most firms have annual bonus plans aimed at motivating managers' short-term performance. Short-term bonuses can easily result in plus or minus adjustments of 25% or more to total pay. Three factors influence one's bonus: eligibility, fund size, and individual performance. Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Popular gainsharing plans include the Scanlon, Lincoln, Rucker, and Improshare plans. The basic difference among these plans is how employers determine employee bonuses. The Scanlon formula divides payroll expenses by total sales (or, sometimes, by total sales plus increases in inventory). In one version of the Lincoln incentive system, first instituted at the Lincoln Electric Company of Ohio, employees work on a guaranteed piecework basis. The company then distributes total annual profits (less taxes, 6% dividends to stockholders, and a reserve) each year among employees based on their merit rating. Most firms customize their gainsharing plans. Difficulty: Hard Objective: 4, 5 AACSB: Written and Oral Communication Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans. 109) Explain the advantages of employee stock ownership plans. Answer: The company that offers the ESOP receives a tax deduction equal to the fair market value of the shares that are transferred to the trustee and can claim an income tax deduction for dividends paid on ESOP-owned stock. Employees aren't taxed until they receive a distribution from the trust, usually at retirement when the tax rate is lower. The Employee Retirement Income Security Act allows a firm to borrow against employee stock held in trust and then repay the loan in pretax rather than after-tax dollars. ESOPs also help shareholders of closely held corporations to diversify their assets by placing some of their own shares of the company's stock into the ESOP trust and purchasing other marketable securities for themselves in their place. ESOPs also encourage employees to develop a sense of ownership in and commitment to the firm. They provide increased financial incentives, create a sense of ownership, and help to build teamwork. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

110) Describe what a Scanlon Plan is and its five major elements. Answer: The Scanlon plan was developed in 1937 by Joseph Scanlon, a United Steel Workers Union official. Scanlon plans have five basic features. The first is Scanlon's philosophy of cooperation. This philosophy assumes that managers and workers must rid themselves of the "us" and "them" attitudes that normally inhibit employees from developing a sense of ownership in the company. A second feature is what its practitioners call identity. This means that in order to focus employee involvement, the company must articulate its mission or purpose, and employees must understand how the business operates in terms of customers, prices, and costs. Competence is a third basic feature. The program, say three experts, "explicitly recognizes that a Scanlon plan demands a high level of competency from employees at all levels." This suggests careful selection and training. The fourth feature of the plan is the involvement system. Employees present improvement suggestions to the appropriate departmental-level committees, which transmit the valuable ones to the executive-level committee. It then decides whether to implement the suggestion. The fifth element of the plan is the sharing of benefits formula. If a suggestion is implemented and successful, all employees usually share in 75% of the savings. For example, assume that the normal monthly ratio of payroll costs to sales is 50%. (Thus, if sales are $600,000, payroll costs should be $300,000.) Assume the firm implements suggestions that result in payroll costs of $250,000 in a month when sales were $550,000 and payroll costs therefore should have been $275,000 (50% of sales). The savings attributable to these suggestions is $25,000 ($275,000 minus $250,000). Workers would typically split 75% of this ($18,750), while $6,250 would go to the firm. In practice, the firm sets aside about one-quarter of the $18,750, for months when payroll costs exceed the standard. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 12.5 Name and describe the most popular organization-wide incentive plans.

111) In a brief essay discuss the three points relating incentive plans to employee engagement. Answer: Although the compensation professionals believed that total rewards programs can influence employee engagement, many of these professionals did not specifically include employee engagement as one of the goals of their compensation plans. About 60% agreed or strongly agreed that "employee engagement and performance metrics are incorporated into variable pay programs in our organization." Only 37% agreed or strongly agreed that "in the organization, engagement levels fostered by line managers are important factor in evaluating performance." Second, they concluded that the most direct ways to encourage employee engagement with incentives are (1) to measure the extent to which supervisors are encouraging their subordinates to be engaged, and (2) to use incentives to reward supervisors for improving employee engagement. Third, even more important than the rewards themselves, getting employees involved in developing the rewards programs was the "gold standard" for building employee cooperation and commitment. Difficulty: Hard Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 12.6 Explain how to use incentives to improve employee engagement.

Human Resource Management, 16e (Dessler) Chapter 13 Benefits and Services 1) The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called ________. A) compensation B) salary C) benefits D) remuneration Answer: C Explanation: Benefits–indirect financial and nonfinancial payments employees receive for continuing their employment with the company–are an important part of just about everyone's compensation. They include things like health and life insurance, pensions, time off with pay, and child-care assistance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 2) Nonfinancial payments like health and life insurance, pensions, time off with pay, and child care facilities are examples of ________. A) competency-based incentives B) variable pay C) benefits D) bonuses Answer: C Explanation: Benefits are indirect financial and nonfinancial payments employees receive for continuing their employment with the company. They include things like health and life insurance, pensions, time off with pay, and child-care assistance. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 3) Which one of the following benefits is required by federal or state law? A) unemployment insurance B) disability insurance C) health insurance D) pensions Answer: A Explanation: Federal law requires that employers provide unemployment insurance, but disability insurance, health insurance, and pensions are optional for employers. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 1 Copyright © 2020 Pearson Education, Inc.

4) All of the following benefits are required by federal or state law EXCEPT ________. A) workers' compensation B) unemployment insurance C) disability insurance D) maternity leave Answer: C Explanation: Workers' compensation and unemployment insurance are required by federal and/or state laws. Maternity leave is covered under the Family Medical Leave Act. Disability insurance is not required. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 5) Which one of the following terms refers to benefits for time not worked, such as unemployment insurance, vacation and holiday pay, and sick pay? A) supplemental pay benefits B) employee assistance C) financial incentives D) premium benefits Answer: A Explanation: Pay for time not worked–also called supplemental pay benefits–is the most costly benefit. Common time-off-with-pay periods include holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for laid-off or terminated employees. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 6) Keith works as a construction foreman, and he is viewed as a reliable, competent employee. During the 2007-2009 recession, Keith's employer reduced its workforce and Keith was let go without the expectation of being called back. Which one of the following would most likely provide Keith with benefits? A) group life insurance B) unemployment insurance C) workers' compensation insurance D) supplemental unemployment benefits Answer: B Explanation: Unemployment insurance provides benefits if a person is unable to work through no fault of his or her own. Workers' compensation is for on-the-job injuries, and supplemental unemployment benefits provide a guaranteed annual income when certain industries are forced to shut down temporarily. Keith did not die, so group life insurance would provide no benefits. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 2 Copyright © 2020 Pearson Education, Inc.

7) Which one of the following provides pay to an employee when he or she is temporarily out of work because of illness? A) sick leave B) severance pay C) supplemental pay D) workers' compensation Answer: A Explanation: Sick leave provides pay to employees when they're out of work due to illness. Most sick leave policies grant full pay for a specified number of sick days–usually up to about 12 per year. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 8) What is the maximum number of weeks of unpaid leave that an employee may take under the Family and Medical Leave Act? A) six B) ten C) twelve D) sixteen Answer: C Explanation: Private employers of 50 or more employees must provide eligible employees (women or men) up to 12 weeks of unpaid leave for their own serious illness, the birth or adoption of a child, or the care of a seriously ill child, spouse, or parent. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 9) All of the following are true statements regarding the application of the Family and Medical Leave Act EXCEPT ________. A) employers must receive advance notice and medical certification from the employee B) eligible employees must have worked for the employer for at least one year C) employees must be employed at job sites with at least 50 employees D) up to 12 weeks must be granted in a 12-month period Answer: A Explanation: Employers require employees to provide advance notice and medical certification when possible, but this is not always possible, as in the case of a sudden illness or an accident. Employees are eligible for up to 12 weeks of leave if they have worked for the employer for at least 1 year and if the employer has at least 50 workers on site. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

10) To be eligible for leave under the Family and Medical Leave Act, an employee must have worked ________ hours during the past twelve consecutive months. A) 850 B) 1000 C) 1250 D) 1600 Answer: C Explanation: Employees are eligible if they have worked for the employer for at least 1 year and for 1,250 hours over the last 12 months. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 11) Eric has worked full-time for a large manufacturing company for over three years. Eric and his wife have recently adopted a baby, and Eric wants to take time off from work to care for the child. Which one of the following laws most likely applies to Eric's situation? A) Pregnancy Discrimination Act B) Family and Medical Leave Act C) Title VII of the Civil Rights Act D) Health Insurance Portability and Accountability Act Answer: B Explanation: Private employers of 50 or more employees must provide eligible employees (women or men) up to 12 weeks of unpaid leave for their own serious illness, the birth or adoption of a child, or the care of a seriously ill child, spouse, or parent. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

12) The Family and Medical Leave Act ________. A) provides guidelines regarding what rates of return employers should use in computing their pension plan values B) ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition C) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay D) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality Answer: B Explanation: The FMLA of 1993 ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 13) Which one of the following is NOT an employer cost associated with granting leave to employees under the Family and Medical Leave Act? A) paying temporary workers B) recruiting replacement workers C) paying employee for time not worked D) compensating for lower productivity of new workers Answer: C Explanation: FMLA leaves are usually unpaid, but they're not costless. The costs associated with hiring temporary replacements, training them, and compensating for their lower productivity can be considerable. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

14) Rita was terminated from her position as an accounts manager with Carson Financial, Inc. On her last day at work, Rita received a check for $3,500. Which one of the following did Rita most likely receive from Carson Financial? A) merit pay B) annual bonus C) severance pay D) performance pay Answer: C Explanation: Many employers provide severance pay, a one-time separation payment when terminating an employee. Severance pay is a humanitarian gesture, and it reduces the chances of litigation from disgruntled former employees. Difficulty: Easy Objective: 1 AACSB: Application of Knowledge Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 15) All of the following are typical reasons that employers provide severance pay when downsizing EXCEPT ________. A) reducing litigation chances B) ensuring good public relations C) reassuring remaining employees D) adhering to government requirements Answer: D Explanation: Employers are not required to provide severance pay. It is a humanitarian gesture and good public relations. It also reduces the chances of litigation from disgruntled former employees and helps reassure employees who stay on after the employer downsizes its workforce. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

16) Elizabeth works at an auto manufacturing firm that recently shut down for five weeks to change machinery. However, during the shutdown, Elizabeth was able to maintain her standard of living because of the firm's ________. A) supplemental unemployment benefits B) workers' compensation insurance C) disability insurance D) severance pay Answer: A Explanation: Supplemental unemployment benefits are cash payments that supplement the employee's unemployment compensation, to help the person maintain his or her standard of living while out of work. They generally cover three contingencies: layoffs, reduced workweeks, and facility relocations. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 17) Which one of the following requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits? A) Family and Medical Leave Act B) Pregnancy Discrimination Act C) Comprehensive Omnibus Budget Reconciliation Act D) Health Insurance Portability and Accountability Act Answer: B Explanation: The Pregnancy Discrimination Act requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any other employees not able to work, with respect to all benefits. The FMLA allows employees to take medical leave for the birth of a child. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 18) Benefits are an important aspect of employee compensation, and they involve the direct financial payments employees receive for remaining with an employer. Answer: FALSE Explanation: Benefits are indirect financial and nonfinancial payments employees receive for continuing their employment with the company. Direct financial payments are salaries and bonuses. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

19) Employee benefits account for a little under one-third of total compensation. Answer: TRUE Explanation: Employee benefits account for approximately 31% of total payrolls. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 20) Legally required benefits, such as unemployment insurance, are costlier to employers than health insurance. Answer: FALSE Explanation: Legally required benefits (like unemployment insurance) represent 8.2% of total compensation while insurance, including health insurance, represents 8.0%. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 21) Supplemental pay benefits can provide employees with time-off-with-pay for jury duty, vacations, funerals, and military responsibilities. Answer: TRUE Explanation: Pay for time not worked–also called supplemental pay benefits–is very costly, because of the large amount of time off that most employees receive. Common time-off-with-pay periods include holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for laid-off or terminated employees. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 22) Most employees in America receive fourteen days of leave after working for a company for one year. Answer: FALSE Explanation: On average, American workers get 9 days of leave after 1 year's employment. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

23) Documenting employee absences, conducting exit interviews, and requiring written approval for personal leave are employer methods for controlling unemployment insurance costs. Answer: TRUE Explanation: Employers spend thousands of dollars on unemployment taxes, which would not be necessary if they protected themselves with extensive documentation. Employers can control unemployment insurance costs by recording employees' absences, requiring advance written approval for personal leave, and conducting exit interviews to produce information for protesting unemployment claims. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 24) Federal law requires private sector employers to grant a minimum amount of paid vacation leave. Answer: FALSE Explanation: It is up to the discretion of private firms to decide how many leave days to offer employees, if any. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 25) Pooled paid leave plans combine sick leave, vacation, and personal days into a single leave pool. Answer: TRUE Explanation: Pooled plans lump together sick leave, vacation, and personal days, and they have been shown to reduce employee absences. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 26) The stipulations of the Family and Medical Leave Act apply to private employers of 50 or more employees. Answer: TRUE Explanation: Private employers of 50 or more employees must provide eligible employees (women or men) up to 12 weeks of unpaid leave for their own serious illness, the birth or adoption of a child, or the care of a seriously ill child, spouse, or parent. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

27) Since leaves associated with the Family and Medical Leave Act do not require employers to pay salaries, employers are not financially affected. Answer: FALSE Explanation: FMLA leaves are usually unpaid, but they're not costless. The costs associated with hiring temporary replacements, training them, and compensating for their lower productivity can be considerable. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 28) What benefits are required by federal or state laws? What benefits are discretionary on the part of employers? Describe the basic nature of several of these benefits. Answer: Benefits required by law include Social Security, unemployment insurance, workers' compensation, and leaves under the FMLA. Discretionary benefits include disability, health, and life insurance, pension plans, executive perks, paid time off, employee assistance programs, and family-friendly benefits. Difficulty: Moderate Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 29) What is sick leave? Why is sick leave problematic for many employers? Discuss some ways organizations can reduce sick leave related costs. Answer: Sick leave provides pay to employees when they are out of work due to illness. Most sick leave policies grant full pay for a set number of sick days and the sick days accumulate over time. The problem with sick leave is that many employees use sick leave for reasons other than illness. Some use the days as vacation or to take care of family issues, personal needs, and stress. Such absenteeism costs U.S. employers perhaps $100 billion per year, with personal illness accounting for about a third of the absences. Employers use several tactics to reduce excessive sick leave absence. Some repurchase unused sick leave at the end of the year by paying their employees a sum for each unused sick day. The problem is that legitimately sick employees may come to work. Others hold monthly lotteries in which only employees with perfect monthly attendance are eligible for a cash prize. At Marriott, employees can trade the value of some sick days for other benefits. Others aggressively investigate all absences, calling absent employees at home. Many employers use pooled paid leave plans (or "banks"). These plans lump together sick leave, vacation, and personal days into a single leave pool. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits.

30) As an HR manager, you need to control costs associated with unemployment insurance. What are steps you can take to protect your employer from paying unemployment claims for employees who were dismissed for inadequate performance? Answer: • Keep a documented history of lateness, absence, and warning notices • Warn chronically late employees before discharging them • Have a policy that three days' absence without calling is reason for automatic discharge • Request a doctor's note on return to work after absence • Make written approval for personal leave mandatory • Stipulate date for return to work from leave • Obtain a signed resignation statement • Mail job abandonment letters if an employee fails to return on time following a leave • Document all instances of poor performance • Require supervisors to document the steps taken to remedy the situation • File the protest against a former employee's unemployment claim on time • Use proper terminology on claim form and attach documented evidence regarding separation • Attend hearings and appeal unwarranted claim • Check every claim against the individual's personnel file • Routinely conduct exit interviews to produce information for protesting unemployment claims Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 13.1 Name and define each of the main pay for time not worked benefits. 31) Who contributes funds for workers' compensation benefits? A) state governments B) federal government C) insurance providers D) employers Answer: D Explanation: Employers must carry workers' compensation insurance, which is the source of workers' compensation benefits. State governments, federal governments, and insurance providers do not contribute to workers' compensation funds. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

32) Which one of the following provides income and medical benefits to employment-related accident victims or their dependents? A) severance pay B) family and medical leave C) workers' compensation D) health insurance benefits Answer: C Explanation: Workers' compensation laws aim to provide sure, prompt income and medical benefits to work-related accident victims or their dependents, regardless of fault. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 33) Employers must provide employees who have work-related injuries with all of the following EXCEPT ________. A) cash benefits B) medical services C) hospital services D) time off with full pay Answer: D Explanation: Employers must provide cash benefits and medical, surgical, and hospital services. Time off with pay is not an aspect of workers' compensation claims. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 34) Which one of the following conditions must be met for an injured employee to receive workers' compensation from the employer? A) The employee was injured while on the job. B) The employee suffered the injury through no fault of his or her own. C) The employee worked full-time for the employer for a minimum of 12 months. D) The employee received adequate job training to understand the position's requirements. Answer: A Explanation: For workers' compensation to cover an injury or work-related illness, one must only prove that it arose while the worker was on the job. It does not matter that he or she may have been at fault; if the person was on the job when the injury occurred, he or she is entitled to workers' compensation. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

35) Which one of the following is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee? A) nurse management B) case management C) health maintenance D) medical rehabilitation Answer: B Explanation: Case management is a popular cost-control option. It is "the treatment of injured workers on a case-by-case basis by an assigned manager, usually a registered nurse, who coordinates with the physician and health plan to determine which care settings are the most effective for quality care and cost." Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 36) Which health benefit is offered by almost all employers? A) vision insurance B) chiropractic insurance C) prescription drug coverage D) health maintenance organization Answer: C Explanation: Prescription drug coverage is offered by 98% of employers. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 37) Which one of the following is a prepaid health care system that provides medical services for employees who pay a nominal fee? A) PPO B) HMO C) DMO D) ESOP Answer: B Explanation: Many employers offer membership in a health maintenance organization (HMO) as a hospital/medical insurance option. It provides routine medical services to employees who pay a nominal fee. PPOs require higher fees due to having more provider options. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

38) ________ are groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee. A) PPOs B) HMOs C) DMOs D) ADDs Answer: A Explanation: Preferred provider organizations (PPOs) are a cross between HMOs and the traditional doctor-patient arrangement: They are "groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee." Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 39) The primary difference between health maintenance organizations and preferred provider organizations is that ________. A) PPOs are less costly than HMOs B) HMOs are more flexible than PPOs C) HMOs offer mental health services while PPOs do not D) PPOs allow patients to choose from a list of doctors without referrals Answer: D Explanation: Unlike HMOs, PPOs let employees select providers (such as doctors) from a relatively wide list, and see them in their offices, often without gatekeeper doctor approval. The providers agree to provide discounts and submit to certain utilization controls, such as on the number of diagnostic tests they can order. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 40) All of the following are the most likely reasons that mental health costs are rising EXCEPT ________. A) widespread drug and alcohol problems B) more mental health referrals by specialists C) mental health claims triggering health care claims D) laws requiring employers to offer mental health benefits Answer: B Explanation: Mental health costs are rising. Reasons include widespread drug and alcohol problems, an increase in states that require employers to offer minimum mental health benefits, and the fact that mental health claims tend to trigger other health care claims. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 14 Copyright © 2020 Pearson Education, Inc.

41) Which one of the following sets minimum mental health care benefits? A) Civil Rights Act B) Employee Mental Health Act C) Americans with Disabilities Act D) Mental Health Parity Act Answer: D Explanation: The Mental Health Parity Act of 1996 (as amended in 2008) sets minimum mental health care benefits; it also prohibits employer group health plans from adopting mental health benefits limitations without comparable limitations on medical and surgical benefits. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 42) Which one of the following requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time? A) FMLA B) COBRA C) OSHA D) ADA Answer: B Explanation: COBRA–Consolidated Omnibus Budget Reconciliation Act–requires most private employers to continue to make health benefits available to separated employees and their families for a time, generally 18 months after separation. The former employee must pay for the coverage. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

43) The Consolidated Omnibus Budget Reconciliation Act ________. A) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay B) limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits C) requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time D) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality Answer: C Explanation: COBRA–Consolidated Omnibus Budget Reconciliation Act–requires most private employers to continue to make health benefits available to separated employees and their families for a time, generally 18 months after separation. The former employee must pay for the coverage. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 44) COBRA requires most private employers to continue to make health benefits available to terminated or retired employees and their families for a period of time, generally ________ months. A) 6 B) 12 C) 18 D) 24 Answer: C Explanation: COBRA–Consolidated Omnibus Budget Reconciliation Act–requires most private employers to continue to make health benefits available to separated employees and their families for a time, generally 18 months after separation. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

45) Which one of the following is NOT a true statement about the Protection and Affordable Care Act of 2010? A) Employers must offer health insurance coverage to employees who work at least 30 hours per week. B) Employers will be required to pay a 20% excise tax on high-cost health insurance plans. C) Employers with 50 or more employees must offer minimum levels of health care coverage or face a penalty. D) Health plans with dependent coverage must expand eligibility up to age 26. Answer: B Explanation: In 2018, a 40% excise tax on high cost health insurance plans goes into effect. Employers must offer coverage to employees including those working at least 30 hours per week, contributions to health care flexible spending arrangements will be limited to $2,500 as of January 1, 2013, and individual and group health plans that already provide dependent coverage must expand eligibility up to age 26. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 46) Which one of the following represents the largest proportion of all reported disabilities? A) respiratory diseases B) cardiovascular diseases C) mental illness D) cancer Answer: C Explanation: The World Health Organization estimates that more than 34 million people in the United States between the ages of 18 and 64 suffer from mental illness. Mental illnesses represent about 24% of all reported disabilities, more than disabling injuries, respiratory diseases, cardiovascular diseases, and cancer combined. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

47) Which one of the following best describes the purpose of the Newborn Mother's Protection Act? A) guarantee pension plans and health insurance coverage for female employees who have recently given birth B) prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally required C) prevent employers from discriminating against women affected by pregnancy or childbirth in respect to benefits coverage D) set minimum requirements for accessing the health records of female employees Answer: B Explanation: The Newborn Mother's Protection Act of 1996 prohibits employers' health plans from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively determined minimum stay. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 48) All of the following are preventive services offered by employers as part of their wellness programs EXCEPT ________. A) anti-smoking incentives B) low-cost immunizations C) case management services D) stress management Answer: C Explanation: Case management is a method used by employers to save money in workers' compensation claims. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 49) In which one of the following can employers and employees deposit pretax wages to pay for non-catastrophic medical expenses? A) health maintenance organizations B) health benefits funds C) health savings accounts D) deferred savings plans Answer: C Explanation: The Medicare Modernization Act of 2003 allows employers to establish tax-free health savings accounts (HSA). After the employer, employee, or both deposit pretax (and thus tax sheltered) pay in the employees' HSAs, employees or their families can use their HSA funds to pay for "low dollar" (not catastrophic) medical expenses. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 18 Copyright © 2020 Pearson Education, Inc.

50) All of the following are health care cost-control methods used by employers EXCEPT ________. A) requiring employees to pay high premiums B) benefits purchasing alliances C) requiring disability insurance D) encouraging medical tourism Answer: C Explanation: Requiring disability insurance is not a common health care cost-control method. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 51) Which one of the following provides lower rates for the employer or employee and includes all employees regardless of health or physical condition? A) workers' compensation insurance B) group life insurance C) disability insurance D) pension plans Answer: B Explanation: In addition to hospitalization and medical benefits, most employers provide group life insurance plans. Employees can usually obtain lower rates in a group plan. And group plans usually accept all employees–including new, nonprobationary ones–regardless of health or physical condition. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 52) About how many million people work part-time in the United States? A) 1 B) 5 C) 11 D) 19 Answer: D Explanation: About 19 million people work part-time in the United States. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

53) Health care costs have dropped significantly in recent years due to government intervention and the increased use of HMOs. Answer: FALSE Explanation: Health care costs are rising, not dropping. Experts are forecasting the total cost of medical and pharmacy benefits to rise by 5% in 2018, to about $14,000 per employee. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 54) In addition to the funds contributed by employers, each state also contributes to funds for workers' compensation. Answer: FALSE Explanation: Every state has its own workers' compensation law and commission, and some run their own insurance programs. However, most require employers to carry workers' compensation insurance with private, state-approved insurance companies. Neither the state nor the federal government contributes any funds for workers' compensation. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 55) In most states, workers' compensation benefits have no time limit, so injured employees may receive monetary and medical compensation for the duration of their employment. Answer: FALSE Explanation: Most states have a time limit–such as 500 weeks–for which benefits can be paid. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 56) If an employee is injured at work due to a blatant disregard for company safety policies, the company is not required to pay workers' compensation. Answer: FALSE Explanation: For workers' compensation to cover an injury or work-related illness, one must only prove that it arose while the worker was on the job. It does not matter that he or she may have been at fault. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

57) Employers are prohibited from inquiring about an applicant's past workers' compensation history by the Americans with Disabilities Act. Answer: TRUE Explanation: ADA provisions generally prohibit employers from inquiring about an applicant's workers' compensation history. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 58) Disability insurance provides income protection for salary loss due to illness or accident. Answer: TRUE Explanation: Disability insurance provides income protection for salary loss due to illness or accident. Benefits usually range from 50% to 75% of the employee's base pay if he or she is disabled. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 59) The Consolidated Omnibus Budget Reconciliation Act requires the government to provide health insurance to terminated or retired employees and their families through the Medicare system. Answer: FALSE Explanation: The Consolidated Omnibus Budget Reconciliation Act requires most private employers to continue to make health benefits available to separated employees and their families for a time, generally 18 months after separation. The former employee must pay for the coverage. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits. 60) Employers are offering tax-free health savings accounts to employees as a cost control measure. Answer: TRUE Explanation: The Medicare Modernization Act of 2003 allows employers to establish tax-free health savings accounts (HSA). The assumption is that this will motivate employees to utilize less expensive health care options, and thus avoid big deductibles. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 13.2 Describe each of the main insurance benefits.

61) What policy issues must employers address when developing benefit plans? What federal laws influence employers' pension and health plans? Answer: In developing benefit plans, employers must address numerous policy issues including 1) what benefits to offer; 2) who receives coverage; 3) whether to include retirees in the plan; 4) whether to deny benefits to employees during the initial "probationary" periods; 5) how to finance benefits; 6) the degree of employee choice in determining benefits; 7) cost-containment procedures; and 8) how to communicate benefits options to employees. COBRA, ERISA, FMLA, HIPAA, and the ADA have significant impacts on employers' pension and health plans. Difficulty: Hard Objective: 1, 2 AACSB: Written and Oral Communication Learning Outcome: 13.2 Describe each of the main insurance benefits. 62) Private employers forced to downsize are required to provide COBRA coverage, and some firms offer dismissed employees severance pay. How do employers benefit from providing severance pay to dismissed employees? How do employees benefit from COBRA? Answer: Severance pay is a one-time payment offered when terminating an employee. There are several reasons for a firm to offer severance pay. It shows good will to the employee. It is good public relations. It is fair since most employees expect to receive notice in advance of an employee leaving to offer the same sort of notice to the employee. It can protect the company from litigation from disgruntled former employees. COBRA, Consolidated Omnibus Budget Reconciliation Act, requires most private employers to continue to make health benefits available to separated employees and their families for a time, generally 18 months after separation. Although the former employee must pay for the coverage, it enables coverage to continue without interruption until the individual finds a new job or purchases his or her own health insurance policy. Difficulty: Hard Objective: 1, 2 AACSB: Written and Oral Communication Learning Outcome: 13.2 Describe each of the main insurance benefits. 63) Because health care coverage is one of the most expensive benefits employers provide, many employers are trying to cut costs. What are some strategies for minimizing costs associated with employee health care? Answer: Employers are endeavoring to rein in health-care costs. Most cost-control efforts should start by instituting methods for measuring and auditing health-care costs. One survey found that although the industry standard for percentage of claims errors is 3%, the actual percentage of claims with errors was about 6.3%. Several possible strategies include wellness programs, on-site primary care, retaining cost containment specialists, offering health savings accounts, high deductible plans, defined contribution health insurance plans, and accountable care organizations (ACO). Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 13.2 Describe each of the main insurance benefits.

64) For individuals born in 1960 or later, the full retirement age for non-discounted Social Security benefits is ________. A) 62 B) 65 C) 67 D) 70 Answer: C Explanation: "Full retirement age" for non-discounted Social Security benefits traditionally was 65–the usual age for retirement. It is now 67 for those born in 1960 or later. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 65) Social Security offers all of the following EXCEPT ________. A) survivor's benefits for those insured under the Social Security Act B) disability payments to employees who become totally disabled C) tax refunds for retirees who are 55 and older D) Medicare program administration Answer: C Explanation: Survivor's benefits provide monthly payments to your dependents regardless of your age at death, again assuming you are insured under the Social Security Act. There are also disability payments to employees who become disabled totally if they meet certain requirements. The Social Security system also administers the Medicare program, but tax refunds are not part of the Social Security system. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 66) How is the Social Security program funded? A) sale of government bonds B) tax on employee wages C) tax on homeowners D) tax on luxury goods Answer: B Explanation: A tax on the employee's wages, shared equally by employees and employers, funds Social Security. As of 2014, the maximum amount of earnings subject to Social Security tax was $117,000. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

67) Which one of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability? A) workers' compensation B) unemployment insurance C) pension plan D) group life insurance Answer: C Explanation: Pension plans are financial programs that provide income to individuals in their retirement. Pension plans provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 68) Taxes on employee wages to fund Social Security apply to all earnings up to ________. A) $46,500 B) $63,700 C) $117,000 D) $128,400 Answer: C Explanation: As of 2018, the maximum amount of earnings subject to Social Security tax was $128,400. Employers and employees each pay 7.65%. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 69) Medicare provides a wide range of health services to people age ________ or over. A) 55 B) 60 C) 65 D) 70 Answer: C Explanation: The Social Security system also administers the Medicare program, which provides health services to people age 65 or older. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

70) When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________. A) qualified B) non-qualified C) defined contribution D) non-contributory Answer: D Explanation: Pension plans are classified in three ways: contributory versus non-contributory plans, qualified versus non-qualified plans, and defined contribution versus defined benefit plans. The employee contributes to the contributory pension plan, while the employer makes all contributions to non-contributory plans. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 71) A plan that contains a formula for determining retirement benefits is known as a ________. A) defined contribution pension plan B) defined benefit pension plan C) cash balance plan D) 401(k) plan Answer: B Explanation: With defined benefit pension plans, employees know ahead of time the pension benefits they will receive (the benefit is "defined" or specified by amount or formula). In contrast, defined contribution pension plans specify what contribution the employee and/or employer will make to the employee's retirement or savings fund. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

72) Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan is most likely classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) non-contributory, defined contribution D) contributory, defined benefit Answer: B Explanation: The employee contributes to the contributory pension plan, while the employer makes all contributions to non-contributory plans. With defined benefit pension plans, employees know ahead of time the pension benefits they will receive (the benefit is "defined" or specified by amount or formula). Therefore, Malcolm has a non-contributory, defined benefit pension plan. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 13.3 Discuss the main retirement benefits. 73) Michiko must contribute at least 5% of her annual salary to her pension plan, and her employer contributes a set amount as well. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan is most likely classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) contributory, defined contribution D) contributory, non-qualified Answer: C Explanation: The employee contributes to the contributory pension plan, while the employer makes all contributions to non-contributory plans. With defined benefit pension plans, employees know ahead of time the pension benefits they will receive (the benefit is "defined" or specified by amount or formula). Defined contribution pension plans specify what contribution the employee and/or employer will make to the employee's retirement or savings fund. Therefore, Michiko has a contributory, defined contribution plan. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 13.3 Discuss the main retirement benefits.

74) A plan in which the employer's contribution to employees' retirement savings funds is specified is known as a ________. A) portable plan B) default investment plan C) defined benefit pension plan D) defined contribution pension plan Answer: D Explanation: Defined contribution pension plans specify what contribution the employee and/or employer will make to the employee's retirement or savings fund. With defined benefit pension plans, employees know ahead of time the pension benefits they will receive (the benefit is "defined" or specified by amount or formula). Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 75) All of the following are characteristic of 401(k) plans EXCEPT ________. A) categorized as a defined contribution plan B) deduction replaces Social Security tax C) pretax salary deductions invested D) considered a savings and thrift plan Answer: B Explanation: A 401(k) plan is a defined contribution plan and a savings and thrift plan. Employees invest by making pretax salary deductions, and the plans are usually administered by investment firms. A 401(k) contribution does not replace the Social Security tax. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 76) Which one of the following refers to a plan in which employees contribute a portion of their earnings to a fund and the employer typically matches the contribution in whole or part? A) group investment plan B) 401(k) plan C) deferred profit-sharing plan D) employee stock ownership plan Answer: B Explanation: In any savings and thrift plan, employees contribute a portion of their earnings to a fund, and the employer usually matches this contribution completely or in part. The 401(k) plan is one example of a savings and thrift plan. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

77) All of the following characterize cash balance plans EXCEPT ________. A) lacks portability B) offers predictable benefits C) considered hybrid pension plans D) employees earn interest on contributed amounts Answer: A Explanation: Cash balance plans are hybrid plans because they combine the portability of defined contribution plans and the predictable benefits of defined benefit plans. Cash balance plans have the portability advantages of defined contribution plans. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 78) Which one of the following requires that pension rights be vested and protected by the Pension Benefits Guarantee Corporation? A) Economic Growth and Tax Relief Conciliation Act B) Employee Retirement Income Security Act C) Job Creation and Worker Assistance Act D) Social Security Act Answer: B Explanation: Signed into law by President Ford in 1974, ERISA requires that pension rights be vested and protected by a government agency, the PBGC. It requires that employers have written pension plan documents and adhere to certain guidelines. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 79) Which one of the following provides guidelines regarding what rates of return employers should use in computing their pension plan values? A) Employee Retirement Income Security Act B) Job Creation and Worker Assistance Act C) Social Security Act D) Equal Pay Act Answer: B Explanation: The Job Creation and Worker Assistance Act provides guidelines regarding what rates of return employers should use in computing their pension plan values. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

80) Social Security provides health benefits to terminated employees and their families for 18 months following the employee's separation from the firm. Answer: FALSE Explanation: COBRA provides health benefits to retired and terminated employees and their families for 18 months following the employee's separation from the firm. Social Security provides income for retirees. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 81) A primary benefit of 401(k) plans is that payments made by employees into the plan are pretax, so the employee pays no income tax on those dollars until after he or she retires or withdraws the money. Answer: TRUE Explanation: Payroll deductions for 401(k) plans are pretax, so the employee pays no income tax on those dollars until after he or she retires (or removes the money from the 401(k) plan). Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 82) There is no limit to the amount an employee can contribute pre-tax into a 401(k) plan each year. Answer: FALSE Explanation: Employees deduct any amount up to the legal maximum. The IRS sets an annual dollar limit, which is currently about $15,000. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 83) Portability makes it easy for employees who leave one firm to work for another firm to take their accumulated pension funds with them. Answer: TRUE Explanation: Portability–making it easier for employees who leave the firm prior to retirement to take their accumulated pension funds with them–is enhanced by switching from defined benefit to defined contribution plans. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits.

84) The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined contribution plans. Answer: FALSE Explanation: ERISA established the Pension Benefits Guarantee Corporation (PBGC) to oversee and insure a pension if a plan terminates without sufficient funds. The PBGC guarantees only defined benefit plans, not defined contribution plans. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 13.3 Discuss the main retirement benefits. 85) What are the three types of benefits provided by Social Security? Answer: Social Security provides retirement benefits, survivor's death benefits, and disability payments. Retirement benefits provide income to those who retire at age 62 or after. Death benefits provide monthly payments to dependents of the deceased individual regardless of the individual's age at death. Disability payments provide payments to employees who become totally disabled and to their dependents if they work and meet certain requirements. Difficulty: Moderate Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 13.3 Discuss the main retirement benefits. 86) What are vested funds? What is the difference between cliff vesting and graded vesting? Answer: Vested funds are the money employer and employee have placed in the latter's pension fund that cannot be forfeited for any reason. The employees' contributions are always theirs, of course. Employers can choose one of two minimum vesting schedules (employers can allow funds to vest faster if they wish). With cliff vesting, the period for acquiring a nonforfeitable right to employer matching contributions (if any) is three years. So, the employee must have nonforfeitable rights to these funds by the end of three years. With the second (graded vesting) option, pension plan participants must receive nonforfeitable rights to the matching contributions as follows: 20% after 2 years, and then 20% for each succeeding year, with a 100% nonforfeitable right by the end of 6 years. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 13.3 Discuss the main retirement benefits.

87) ________ provide services like financial counseling, child care referrals, elder care referrals, adoption assistance, mental health counseling, and life event planning. A) Pension plans B) Employee assistance programs C) Family-friendly benefits D) Benefit management systems Answer: B Explanation: Employee assistance programs (EAPs) provide counseling and advisory services, such as personal legal and financial services, child and elder care referrals, adoption assistance, mental health counseling, and life event planning. EAPs are increasingly popular, with more than 60% of larger firms offering such programs. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits. 88) ________ seek(s) to enable employees to balance their job and family responsibilities. A) Sick leave B) Pension plans C) Work-life benefits D) Benefit management systems Answer: C Explanation: Family-friendly or work-life benefits such as child care and fitness facilities are attempts by firms to help employees balance work and family responsibilities. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits. 89) Which one of the following benefits is NOT classified as a type of family-friendly benefit? A) sick leave B) subsidized child care C) on-site fitness facilities D) elder care Answer: A Explanation: Family-friendly benefits include subsidized child care, elder care, and on-site fitness facilities. Sick leave is useful when a child is ill; however, sick leave is a standard aspect of a job and not necessarily family-friendly. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits.

90) Studies indicate that employee assistance programs most frequently provide help with personal mental health issues and family problems. Answer: TRUE Explanation: EAPs are increasingly popular, with more than 60% of larger firms offering such programs. One study found that personal mental health was the most common problem addressed by employee assistance programs, followed by family problems. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits. 91) Firms that subsidize day care centers are hoping to recruit employees, reduce absenteeism, decrease turnover, and improve morale. Answer: TRUE Explanation: By establishing subsidized day care, employers assumedly can benefit in several ways. These include improved recruiting results, lower absenteeism, improved morale, favorable publicity, and lower turnover. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits. 92) When employers offer domestic partner benefits to employees, it means that employees' same-sex domestic partners are eligible to receive the same benefits as do the husband, wife, or legal dependent of one of the firm's employees. Answer: TRUE Explanation: When employers provide domestic partner benefits to employees, it generally means that employees' same-sex or opposite-sex domestic partners are eligible to receive the same benefits (health care, life insurance, and so forth) as do the husband, wife, or legal dependent of one of the firm's employees. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 13.4 Outline the main employees' services benefits.

93) What are the key steps for launching a successful EAP program? Should firms offer EAPs? Why or why not? Answer: In either case, employers and managers need to keep several issues in mind. Everyone involved with the EAP, including supervisors, secretaries, and support staff, must understand the importance of confidentiality. Also, ensure files are locked, access is limited and monitored, and identifying information is minimized. Be aware of legal issues. For example, in most states counselors must disclose suspicions of child abuse to state agencies. Define the program's purpose, employee eligibility, the roles and responsibilities of EAP and employer personnel, and procedures for using the plan. Also, ensure the vendors you use fulfill professional and state licensing requirements. For employers, EAPs produce advantages, not just costs. Employee assistance programs can reduce absences by providing expert advice on issues like elder care referrals. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 13.4 Outline the main employees' services benefits. 94) Why are family-friendly benefits increasingly popular? Provide examples of family-friendly benefits. Answer: There are many trends that increase the value of family-friendly benefits. There are more households in which both adults work. There are more one-parent households. More women are in the workforce while also struggling to fulfill familial obligations. People are working harder and longer with less time to manage life outside of work. Family-friendly benefits can vary from organization to organization. Some examples include child care, elder care, fitness facilities, sick child benefits and educational subsidies. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 13.4 Outline the main employees' services benefits. 95) Which term refers to individualized plans allowed by employers to accommodate employee preferences for benefits? A) variable pay plan B) cafeteria benefits plan C) matching plan D) executive perquisite plan Answer: B Explanation: A cafeteria plan is one in which the employer gives each employee a benefits fund budget, and lets the person spend it on the benefits he or she prefers. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs.

96) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which one of the following, if true, best supports the argument that Orion should offer its employees a cafeteria benefits plan? A) Orion lacks the resources to join a low-cost health insurance plan, so the firm belongs to a pool with other businesses. B) Some Orion employees have indicated that they would like vision insurance, while others have no interest in dental insurance. C) Orion offers its employees a PPO health insurance plan, but employees have expressed interest in an HMO plan. D) Orion outsources its employee benefits program, so employees go through the plan's administrator when filing claims. Answer: B Explanation: Cafeteria plans enable employees to choose the benefits they need. If some workers want vision while others want dental, then a cafeteria plan would be appropriate. Joining an insurance pool, PPO/HMO plans, and outsourcing benefits administration are not relevant. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs.

97) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which one of the following, if true, undermines the argument that Orion should offer its employees a cafeteria plan? A) A survey of Orion employees indicates that the majority of employees are very satisfied with the firm's current benefit offerings. B) Orion experiences very few workers' compensation claims each year as compared to similarly sized businesses in the Atlanta area. C) Orion employee surveys indicate that most employees are interested in either 401(k) plans or Roth IRAs as methods of saving for retirement. D) Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration. Answer: A Explanation: If Orion's employees are satisfied with the type of benefits offered by the firm, then there is no need to change to a cafeteria plan. Cafeteria plans are useful when employees want more choice and variety in their benefits. Workers' compensation, retirement savings, and employee leasing are irrelevant issues. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 98) Which one of the following best explains why many businesses use employee leasing firms? A) Firms save money by hiring part-time or temporary workers. B) Investment opportunities are more plentiful and reliable. C) Small companies are able to get better insurance rates. D) Franchise owners can offer more flexible schedules. Answer: C Explanation: Employee leasing firms (also called professional employer organizations or staff leasing firms) assume all or most of the employer's human resources chores. Insurance and benefits are usually the big attraction. Getting health and other insurance is a problem for smaller firms, and leasing firms enable them to join a larger pool. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs.

99) Stephanie has opted to work from 7 am to 3 pm so that she can be home when her son finishes school in the afternoons. Her company must offer ________ for Stephanie to have this option. A) shift work B) flextime C) telecommuting D) compressed workweeks Answer: B Explanation: Flextime is a work schedule in which employees' workdays are built around a core of midday hours, and employees determine, within limits, what other hours they will work. A compressed workweek involves working fewer but longer days each week. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 100) Which one of the following is an example of a compressed workweek? A) Maxwell works from 7 am to 3 pm Monday-Friday. B) Shannon works from 7 am to 5 pm Monday-Thursday. C) Tom works from 11 am to 7 pm five days per week. D) Bob works from 12 pm to 6 pm Monday-Sunday. Answer: B Explanation: A compressed workweek involves working fewer but longer days each week, so working four 10-hour days is an example of a compressed workweek. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 101) Which one of the following occupations is commonly subjected to compressed workweeks? A) engineer B) attorney C) teacher D) pilot Answer: D Explanation: Occupations like pilot, nurse, doctor, and firefighter typically involve compressed workweek schedules, which means working fewer days but longer each day. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs.

102) Anne and Martha are both accountant supervisors at a large marketing firm. Anne works from 7:00 a.m. until 12:00 p.m. each day. Martha takes over the same position at 12:00 p.m. and works until 5:00 p.m. each day. Which one of the following most likely describes this type of work arrangement? A) flextime B) job sharing C) work sharing D) compressed workweek Answer: B Explanation: Job sharing allows two or more people to share a single full-time job. Anne and Martha share a 40-hour-per-week job, with one working mornings and the other working afternoons. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 103) Curt works at a computer firm that is experiencing financial difficulties. In an attempt to save money and prevent layoffs, the firm is enforcing a temporary reduction in work hours for Curt's division. Curt now works 35 hours a week instead of 40. Which one of the following most likely describes this situation? A) flextime B) job sharing C) work sharing D) compressed workweek Answer: C Explanation: Work sharing refers to a temporary reduction in work hours by a group of employees during economic downturns as a way to prevent layoffs. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs.

104) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT which one? A) What benefits are available to employees at Orion's main competitors? B) What costs would Orion incur for switching to a cafeteria benefits plan? C) How would a cafeteria plan alter Orion employees' Social Security benefits? D) What effect would a cafeteria plan have on the coverage that Orion employees receive? Answer: C Explanation: Social Security is required, so it is irrelevant to a decision about a cafeteria plan. Costs and changes in coverage are important issues to consider. For recruiting and employee retention purposes, Orion should be aware of what competitors offer. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 105) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which one of the following, if true, best supports Orion's decision to offer flextime to its employees? A) Orion's single-parent employees are frequently late when arriving to work. B) Orion allows some of its employees to telecommute at least one day each week. C) Many Orion employees must conduct business while traveling to different locations. D) Orion employs a large number of part-time employees, most of whom are near retirement age. Answer: A Explanation: Flextime allows workers to shift their work schedules slightly. Single parents who are late because of child care responsibilities would likely be more punctual if they could arrange their schedules around school or daycare hours. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs.

106) Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to offer flextime and job-sharing options to its employees EXCEPT which one? A) What do surveys indicate regarding overall job satisfaction among Orion employees? B) How would the productivity level of Orion's employees most likely change? C) What work schedule configurations are legal? D) What is the average rate of employee absenteeism at Orion? Answer: C Explanation: Job satisfaction, productivity, and absenteeism are important issues to consider if going to a flexible work schedule. Schedule configurations rarely are a legal issue. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 13.5 Explain the main flexible benefit programs. 107) A flextime arrangement may for most employees typically involve one hour of leeway before 9 a.m. or after 5 p.m. Answer: TRUE Explanation: In practice, most employers hold fairly close to the traditional 9:00 a.m. to 5:00 p.m. workday. Therefore, the effect of flextime for most employees is to give them about 1 hour of leeway before 9:00 a.m. or after 5:00 p.m. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs. 108) Flexible work schedules help explain the gender pay gap. Answer: FALSE Explanation: Some writers suggest that inflexible schedules help explain both the gender pay gap and the fact that women hold few top management jobs. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs.

109) Telecommuting involves employees using technology to work away from the office. Answer: TRUE Explanation: Telecommuting involves employees using technology to work away from the office. This will often be computers, cellphones, tablets, and information technology. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs. 110) When groups of employees accept a temporary reduction in work hours in order to prevent layoffs, the employees are job sharing. Answer: FALSE Explanation: Job sharing allows two or more people to share a single full-time job. Work sharing refers to a temporary reduction in work hours by a group of employees during economic downturns as a way to prevent layoffs. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 13.5 Explain the main flexible benefit programs.

Human Resource Management, 16e (Dessler) Chapter 14 Building Positive Employee Relations 1) Joel is a manager who is engaged in an activity that involves establishing and maintaining the positive employee-employer relationships that contribute to satisfactory productivity and a cohesive work environment. This is defined as ________. A) employee relations B) organizational justice C) public policy D) ethics Answer: A Explanation: Employee relations is the managerial activity that involves establishing and maintaining the positive employee-employer relationships that contribute to satisfactory productivity, motivation, morale, and discipline, and to maintaining a positive, productive, and cohesive work environment. Difficulty: Moderate Objective: 1 AACSB: Application of Knowledge Learning Outcome: 14.1 Define employee relations. 2) ________ is the activity that involves establishing and maintaining the positive employeeemployer relationship. A) Quality circles B) Employee relations C) Suggestion teams D) Focus groups Answer: B Explanation: Employee relations is the activity that involves establishing and maintaining the positive employee-employer relationship that contributes to satisfactory productivity, motivation, morale, discipline and to maintaining a positive, productive and cohesive work environment. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 14.1 Define employee relations. 3) Employee relations involves managers establishing and maintaining positive employeeemployer relationships to contribute to satisfactory productivity and a productive work environment. Answer: TRUE Explanation: Employee relations is the managerial activity that involves establishing and maintaining the positive employee-employer relationships that contribute to satisfactory productivity, motivation, morale, and discipline, and to maintaining a positive, productive, and cohesive work environment. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 14.1 Define employee relations. 1 Copyright © 2020 Pearson Education, Inc.

4) Managing employee relations is usually assigned to HR. Answer: TRUE Explanation: Managing employee relations is usually assigned to HR and is an important part of HR's role. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 14.1 Define employee relations. 5) Unfair treatment of employees in the workplace causes all the following EXCEPT ________. A) demoralization B) negative performance C) reduced stress D) reduced morale Answer: C Explanation: Employees who suffered unfair treatment at work know it is demoralizing. Unfair treatment reduces morale, increases stress, and has negative effects on performance. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 6) Which one of the following is NOT an effect of an abusive supervisor? A) more likely to stay with the company B) higher stress C) low job satisfaction D) more likely to quit Answer: A Explanation: Employees of abusive supervisors are more likely to quit and to report lower job and life satisfaction and higher stress. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

7) According to surveys, at work, fair treatment reflects concrete actions such as, "Employees are treated with respect and ________." A) properly served B) treated fairly C) terminated D) not abused Answer: B Explanation: One survey found 45% of employees said they had worked for abusive bosses. At work, fair treatment reflects concrete actions such as "Employees are treated with respect" and "Employees are treated fairly." Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 8) What are the two main components of organizational justice? A) distributive justice and normative judgments B) procedural justice and distributive justice C) normative justice and ethical treatment D) interactional justice and ethical justice Answer: B Explanation: Experts generally define organizational justice in terms of at least two components–distributive justice and procedural justice. Distributive justice refers to the fairness of outcomes. Procedural justice refers to the fairness of the process. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 9) Which component of organizational justice refers to the fairness and justice of a decision's result? A) distributive justice B) procedural justice C) normative justice D) interpersonal justice Answer: A Explanation: Distributive justice refers to the fairness and justice of the outcomes. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

10) The distributive justice component of organizational justice is best defined as the ________. A) fairness of the decision process B) fairness of the decision's outcomes C) degree to which the decision is moral D) extent to which the decision is good or bad Answer: B Explanation: Distributive justice refers to the fairness and justice of the outcomes. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 11) Which component of organizational justice refers to the fairness of a process? A) distributive justice B) procedural justice C) interactional justice D) normative justice Answer: B Explanation: Procedural justice refers to the fairness of the process. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 12) Which one of the following best defines procedural justice? A) fairness of a decision's result B) manner in which firms conduct business C) fairness of the process used to make a decision D) manner in which managers treat subordinates Answer: C Explanation: Distributive justice refers to the fairness and justice of the outcomes. Procedural justice refers to the fairness of the process. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

13) The company Luca works for believes it should (and it does) channel resources toward improving one or more segments of society other than the firm's owners or stockholders. This is known as ________. A) ethics B) quality circles C) procedural justice D) corporate social responsibility Answer: D Explanation: Corporate social responsibility refers to the extent to which companies should and do channel resources toward improving one or more segments of society other than the firm's owners or stockholders. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 14) A(n) ________ is a type of formal problem-solving team, usually composed of 6 to 12 specially trained employees who meet weekly to solve problems affecting their work area. A) action team B) organizational culture C) suggestion team D) quality circle Answer: D Explanation: A quality circle is a type of formal problem-solving team, usually composed of 6 to 12 specially trained employees who meet weekly to solve problems affecting their work area. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 15) Which one of the following is NOT an element of bullying? A) submission B) repetition C) intent to harm D) imbalance of power Answer: A Explanation: Bullying is singling out someone to harass and mistreat. Bullying involves imbalance of power, intent to cause harm, and repetition. Submission is not an element of bullying. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

16) What is defined as the perceptions a company's employees share about the firm's psychological environment? A) bullying B) ethics C) social responsibility D) organizational climate Answer: D Explanation: Organizational climate is perceptions a company's employees share about the firm's psychological environment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 17) A recent survey found approximately what percentage of organizations use social media tools to communicate with employees and to help develop a sense of community? A) 15% B) 25% C) 50% D) 80% Answer: C Explanation: One survey found that just over half of employers use social media tools to communicate with employees and to help develop a sense of community. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 18) Julio is part of a team of eight at work which runs itself with little supervision to accomplish a specific task. This is an example of what type of team? A) sales team B) self-managing work team C) suggestion team D) problem-solving team Answer: B Explanation: Self-managing/self-directed work teams are a small (usually 8 to 10 members) group of carefully selected, trained, and empowered employees who basically run themselves with little or no outside supervision, usually for the purpose of accomplishing a specific task or mission. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

19) The definition of a ________ is a temporary team whose members work on specific analytical assignments, such as how to cut costs or raise productivity. A) quality circle B) suggestion team C) self-managed team D) work team Answer: B Explanation: Suggestion teams are temporary teams whose members work on specific analytical assignments, such as how to cut costs or raise productivity. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 20) Semi-permanent teams that identify and research work processes and develop solutions to work-related problems are called ________. A) suggestion teams B) orientation teams C) problem-solving teams D) self-managed teams Answer: C Explanation: Problem-solving teams are semi-permanent teams that identify and research work processes and develop solutions to work-related problems. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 21) Self-managed teams typically have how many members? A) 1-2 B) 4-6 C) 8-10 D) 15-20 Answer: C Explanation: Self-managed teams generally have 8-10 members. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

22) Which type of bullying involves hitting, punching, and shoving? A) verbal B) social C) cyber bullying D) physical Answer: D Explanation: Bullying can take many forms. Physical bullying involves hitting, punching, and shoving. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 23) Which type of bullying involves name-calling and teasing? A) verbal B) social C) cyber bullying D) physical Answer: A Explanation: Bullying can take many forms. Verbal bullying involves name-calling and teasing. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 24) Which type of bullying involves using the Internet, mobile phones, or other digital technologies to harm others? A) verbal B) social C) cyber bullying D) physical Answer: C Explanation: Bullying can take many forms. Cyber bullying involves using the Internet, mobile phones, or other digital technologies to harm others. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

25) Which element of bullying involves the use of power to control or harm and the people being bullied may have a hard time defending themselves? A) repetition B) imbalance of power C) name-calling D) intent to cause harm Answer: B Explanation: Bullying involves three things: imbalance of power, intent to cause harm, and repetition. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 26) One key element of bullying is ________. A) repetition B) imbalance of power C) the intent to cause harm D) merit Answer: C Explanation: Intent to cause harm is an element of bullying. Intent to cause harm is actions done by the person bullying with a goal to cause harm. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 27) All of the following are common elements of bullying EXCEPT ________. A) power imbalance B) harmful intentions C) verbal name-calling D) repetitive incidents Answer: C Explanation: All types of bullying typically include an imbalance of power, an intent to cause harm, and repetitive occurrences. Not all bullying involves verbal name-calling. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

28) Which type of bullying involves spreading rumors and purposely breaking up friendships in the workplace? A) physical bullying B) cyber bullying C) verbal bullying D) social bullying Answer: D Explanation: Social bullying involves spreading rumors, breaking up friendships, and leaving people out on purpose. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 29) Distributive justice refers to the manner in which managers conduct their interpersonal dealings with employees. Answer: FALSE Explanation: Distributive justice refers to the fairness and justice of the decision's result (for instance, did I get an equitable pay raise?). Procedural justice refers to the fairness of the process. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 30) Procedural justice refers to the fairness of the process by which a decision is made. Answer: TRUE Explanation: Procedural justice refers to the fairness of the process. Distributive justice refers to the fairness and justice of the decision's outcome result. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 31) Two components of organizational justice are distributive justice and procedural justice. Answer: TRUE Explanation: With respect to employee relations, experts generally define organizational justice in terms of at least two components–distributive justice and procedural justice. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

32) Many people in the new business development group at GRS&M feel that Bettine was promoted due to her personal friendship with the supervisor rather than a fair review of the qualified employees in the group. This attitude is the result of the employees' perceived procedural justice relative to the decision. Answer: TRUE Explanation: Procedural justice refers to the fairness of the process (for instance, is the process my company uses to allocate merit raises fair?). Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 33) Fair treatment reflects concrete actions such as "employees are treated with respect," and "employees are treated fairly." Answer: TRUE Explanation: Fair treatment reflects concrete actions such as "employees are treated with respect," and "employees are treated fairly." Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 34) A quality circle is a type of formal problem-solving team, usually composed of 6 to 12 specially trained employees who meet weekly to solve problems affecting their work area. Answer: TRUE Explanation: A quality circle is a type of formal problem-solving team, usually composed of 6 to 12 specially trained employees who meet weekly to solve problems affecting their work area. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 35) Shared perceptions that organizational members have about the firm's psychological environment are called organizational climate. Answer: TRUE Explanation: Organizational climate is the perceptions a company's employees share about the firm's psychological environment. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

36) Self-managed teams are small groups (usually 8 to 10 members) of carefully selected, trained, and empowered employees who basically run themselves with little or no outside supervision, usually for the purpose of accomplishing a specific organizational task. Answer: TRUE Explanation: Self-managing/self-directed work teams are small (usually 8 to 10 members) groups of carefully selected, trained, and empowered employees who basically run themselves with little or no outside supervision, usually for the purpose of accomplishing a specific task or mission. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 37) Studies indicate that some people's traits and behaviors make them more susceptible to bullying. Answer: TRUE Explanation: Numerous studies show that certain people's traits and how they behave make them more likely to be targets of bullying. These include submissive victims (who seem more anxious, cautious, quiet, and sensitive), provocative victims (who show more aggressive behavior), and victims low in self-determination (who seem to leave it to others to make decisions for them and determine the course of their careers). Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 38) Social responsibility refers to the extent to which companies should and do channel resources toward improving one or more segments of society other than the firm's owners or stockholders. Answer: TRUE Explanation: Social responsibility (or corporate social responsibility) refers to the extent to which companies should and do channel resources toward improving one or more segments of society other than the firm's owners or stockholders. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

39) What is organizational justice? How does it related to performance appraisal? Answer: Fairness is inseparable from what most people think of as "justice." A company that is just is, among other things, equitable, fair, impartial, and unbiased in how it does things. With respect to employee relations, experts generally define organizational justice in terms of at least two components–distributive justice and procedural justice. Distributive justice refers to the fairness and justice of the decision's result. Procedural justice refers to the fairness of the process. How you conduct appraisals is important in regards to fairness and organizational justice. Studies confirm that, in practice, some managers ignore accuracy in performance appraisals and instead use the process for political purposes. Few things can send a more damaging signal about how fair and ethical the company is. To send the signal that organizational justice exists, standards should be clear, employees should understand the basis upon which you're going to appraise them, the appraisal itself should be objective, and the employer should include ethics goals in appraisals of its leaders, particularly its senior leaders. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 40) Discuss at least two different types of employee involvement teams. Define each type and when an organization might use them. Answer: Employers also use special teams to gain employees' involvement. Suggestion teams are temporary teams whose members work on specific analytical assignments, such as how to cut costs or raise productivity. One airline split employees (such as baggage handlers and ground crew) into separate teams, linking team members via its Web site for brainstorming and voting on ideas. Some employers go beyond suggestions teams and create problem-solving teams which formalize this process and make the teams semi-permanent. These identify and research work processes and develop solutions to work-related problems. They usually consist of the supervisor and five to eight employees from a common work area. A quality circle is a type of formal problem-solving team, usually composed of 6 to 12 specially trained employees who meet weekly to solve problems affecting their work area. The team gets training in problem-analysis techniques (including basic statistics). Then it applies these techniques to solve problems in its work area. The last type is self-managing/self-directed work teams which are small (usually 8 to 10 members) groups of carefully selected, trained, and empowered employees who basically run themselves with little or no outside supervision, usually for the purpose of accomplishing a specific task or mission. The task or mission might be an auto dashboard installed or a fully processed insurance claim, but the main characteristic is that the one team is created to do the task and has significant autonomy in how they do so. Difficulty: Moderate Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 14.2 Discuss at least four methods for managing employee relations.

41) What are the main characteristics of workplace bullying? How can employers and their HR departments reduce bullying incidents in the workplace? Answer: Bullying—singling out someone to harass and mistreat them—is an increasingly serious problem. While definitions of bullying vary, most would agree that bullying involves three things: • Imbalance of Power: people who bully use their power to control or harm and the people being bullied may have a hard time defending themselves, • Intent to Cause Harm: actions done by accident are not bullying; the person bullying has a goal to cause harm, • Repetition: incidents of bullying happen to the same person over and over by the same person or group. Employers and HR departments must have systems in place to ensure that the company can identify unfair treatment and deal with it expeditiously. This includes having policies in place to monitor employees' use of social media Web sites, developing ethics codes, and establishing an organizational culture that does not tolerate bullying. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 14.2 Discuss at least four methods for managing employee relations. 42) As a manager, all of the following would most likely encourage ethical behavior among subordinates EXCEPT ________. A) clarifying expectations B) serving as a role model C) rewarding honest work D) taking credit for others' work Answer: D Explanation: Taking credit for others' work is one way that managers lead subordinates towards unethical behavior. Managers need to set good examples, clarify expectations, reward honesty, and penalize wrongdoing. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

43) Johnson & Johnson has a corporate ethics code that states "We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services." What is the most likely purpose of Johnson & Johnson's ethics code? A) establishing disciplinary procedures B) providing incentives for employees C) clarifying expectations for employees D) marketing to potential new customers Answer: C Explanation: Johnson & Johnson's ethics code clarifies the firm's expectations with respect to the values it considers critical. The firm expects its employees to follow the ethics code, but it does not necessarily offer incentives. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior. 44) When a company rewards employees who behave ethically using the firm's incentive plan and appraisal system, they are ________ to encourage ethical behavior. A) providing physical support B) organizing ceremonies C) clarifying expectations D) using symbols Answer: A Explanation: Provide physical support. The physical manifestations of the manager's values–the incentives, appraisal criteria, and disciplinary procedures he or she uses, for instance–send strong signals regarding what employees should and should not do. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior. 45) According to surveys, which one of the following is the primary cause of ethical compromises in the workplace? A) feeling peer pressure B) meeting schedule pressures C) advancing a boss' career interests D) advancing personal career interests Answer: B Explanation: One study asked employees to list their reasons for taking unethical actions at work. For most of these employees, "meeting schedule pressures," "meeting overly aggressive financial or business objectives" and "helping the company survive" were the three top causes. "Advancing my own career or financial interests" ranked about last. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 15 Copyright © 2020 Pearson Education, Inc.

46) The principles of conduct governing an individual or a group are referred to as ________. A) judgments B) ethics C) laws D) virtues Answer: B Explanation: Ethics refers to "the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 47) ________ means society's accepted standards of behavior and always involves basic questions of right and wrong. A) Society assessment B) Non-normative statement C) Morality D) Distributive assessment Answer: C Explanation: Morality means society's accepted standards of behavior and always involves basic questions of right and wrong, such as stealing, murder, and how to treat other people. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 48) Ethics refers to the ________. A) basic beliefs about what is right or wrong B) principles of conduct governing an individual or group C) standards used by the organization to decide upon proper conduct D) standards of behavior accepted by society Answer: B Explanation: Ethics refers to "the principles of conduct governing an individual or a group," specifically, the standards you use to decide what your conduct should be. A normative judgment means that something is right or wrong. Morals are society's highest accepted standards of behavior. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

49) Which one of the following guides the most serious societal behaviors such as murder, stealing, and slander? A) normative judgments B) distributive justice C) human rights D) moral standards Answer: D Explanation: Moral standards guide behaviors of the most serious consequence to society's wellbeing, such as murder, lying, and slander. Morality means society's accepted standards of behavior and always involves basic questions of right and wrong, such as stealing, murder, and how to treat people. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 50) Based on research into ethical behavior in the workplace, which one of the following is a true statement? A) Offering rewards for ethical behavior supports the intrinsic nature of personal ethics. B) Punishing unethical behavior fails to alter the behavior of others in the workplace. C) Managers significantly influence the ethical behavior of their subordinates. D) Employees feel uncomfortable discussing ethics, so it should be avoided. Answer: C Explanation: Managers do a lot to influence ethics. According to one report, workplace misconduct dropped dramatically when employees said their supervisors exhibited ethical behavior. Rewarding ethical behavior can backfire, while punishing unethical behavior is essential. Discussing ethics openly is beneficial. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 51) Which one of the following terms refers to the characteristic values, traditions, and behaviors a company's employees share? A) organizational culture B) organizational ethics C) corporate climate D) corporate mission Answer: A Explanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

52) Which one of the following best defines organizational culture? A) basic beliefs about what is right or wrong within a business or corporation B) characteristic values, traditions, and behaviors a firm's employees share C) principles of conduct governing an individual, group, or company D) standards used by an organization to determine proper conduct Answer: B Explanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. A value is a basic belief about right and wrong or what you should or should not do. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 53) Which one of the following best defines values as they relate to organizational culture? A) shortcuts to get work done B) principles of conduct governing an individual or group C) basic beliefs about what is right or wrong D) standards of behavior accepted by society Answer: C Explanation: A value is a basic belief about right and wrong or what you should or should not do. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 54) The applicant screening process would most likely be considered unfair if an HR manager ________. A) encouraged two-way communication B) focused mostly on personality issues C) included an appeals process D) provided useful feedback Answer: B Explanation: The screening process should focus on job-related criteria rather than personality issues. Two-way communication is essential to screening applicants. Applicants should have a chance to demonstrate competency and appeal decisions. Applicants see a selection system as fair to the extent that the employer provides useful feedback about the employee's or candidate's own performance. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

55) What is the most likely reason for more firms providing ethics training to employees? A) Employees seeking professional certification are tested on ethics. B) State laws require businesses to have written codes of conduct. C) Businesses fear being sued by customers for ethical misconduct. D) Federal laws encourage firms to comply with ethics training guidelines. Answer: D Explanation: For all practical purposes, ethics training is mandatory. Federal sentencing guidelines reduced penalties for employers accused of misconduct who implemented codes of conduct and ethics training. An amendment to those guidelines now outlines stricter ethics training requirements. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 56) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, Health-Tech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment. Health-Tech's HR department has devised a brief ethics test for employees to use when determining if their actions match Health-Tech's code of conduct. Which one of the following questions is LEAST likely to be included on the ethics test? A) What Health-Tech employees will be affected by my actions? B) Will my actions reflect negatively on the image of Health-Tech? C) Would I perform this action if I worked for a Health-Tech competitor? D) Is the action I am about to perform on behalf of Health-Tech a legal one? Answer: C Explanation: It is less relevant to ask if the action would be taken if the person worked for another firm because the other firm's values and ethics are not the issue. The other questions are relevant for an employee to ask when evaluating the ethics of a decision made on behalf of Health-Tech. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior.

57) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, Health-Tech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment. Which one of the following, if true, best supports the argument that Health-Tech should utilize online ethics program software? A) Health-Tech executives want to quantify the types of ethical issues that are most common at the firm in order to provide the most relevant training to employees. B) Health-Tech managers are required to monitor the computer usage of subordinates to determine their levels of productivity. C) Health-Tech discusses its code of conduct during employee orientation and also provides new employees with the firm's handbook. D) The Health-Tech legal department requires the firm to post its ethics code and hiring procedures on the firm's Web site to prevent legal problems. Answer: A Explanation: Online ethics program software enables firms to keep track of how well a firm and its employees are doing in terms of maintaining ethical standards. Such software would allow managers at Health-Tech to measure what ethical issues are most common in order to determine the most relevant training. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior. 58) Which one of the following is NOT one of the four types of privacy violations upheld by courts? A) intrusion B) drug testing C) disclosure of medical records D) publication of private matters Answer: B Explanation: The four main types of employee privacy violations upheld by courts are intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee's name or likeness for commercial purposes. Drug testing employees is legal. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

59) Which one of the following involves using fingerprints or iris scans to identify employees? A) electronic performance monitoring system B) location monitoring system C) digital dashboard D) biometrics Answer: D Explanation: Biometrics involves the use of physical traits such as fingerprints or iris scans for identification. With fingerprint technology, the user passes his or her fingertip over an optical reader, or presses it onto a computer chip. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 60) The business purpose exception to the Electronic Communications Privacy Act permits ________. A) employees to access private employer documents if they have reason to suspect unethical behavior by company agents B) employers to monitor communications if they can show a legitimate business reason for doing so C) employers to listen to personal employee phone calls if the calls are made on employer time D) employees to conduct personal business during work hours if they can show it is necessary Answer: B Explanation: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. It contains two exceptions. The "business purpose exception" permits employers to monitor communications if they can show a legitimate business reason for doing so. The second, "consent exception," lets employers monitor communications if they have their employees' consent to do so. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

61) The consent exception to the Electronic Communications Privacy Act permits ________. A) employees to access private employer documents if they have reason to suspect unethical behavior by company agents B) employers to monitor employee communications if the employees have given informed consent C) employers to monitor communications if they can show a legitimate business reason for doing so D) employers to listen to personal employee phone calls if the calls are made on employer time Answer: B Explanation: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. It contains two exceptions. The "business purpose exception" permits employers to monitor communications if they can show a legitimate business reason for doing so. The second, "consent exception," lets employers monitor communications if they have their employees' consent to do so. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 62) Which one of the following laws does NOT deal with ethics and employee rights? A) Title VII of the Civil Rights Act B) Fair Labor Standards Act C) Federal Reserve Act D) Electronic Communications and Privacy Act Answer: C Explanation: The Federal Reserve Act established the Federal Reserve; it has nothing to do with employee rights and ethics. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 63) A review of 30 years of ethics research concluded that there are three major factors that combine to determine the ethical choices we make. Which one of the following is NOT one of them? A) Bad Barrels B) Bad Cases C) Bad Apples D) Bad Behaviors Answer: D Explanation: One review of over 30 years of ethics research concluded that three factors combine to determine the ethical choices we make. The authors suggested three categories: Bad Apples, Bad Cases, and Bad Barrels. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 22 Copyright © 2020 Pearson Education, Inc.

64) In the model of three factors that combine to determine ethical choices, which factor involves company environments that foster unethical choices? A) Bad Apples B) Bad Results C) Bad Barrels D) Bad Cases Answer: C Explanation: "Bad barrels" are company environments that foster or condone unethical choices. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 65) ________ refer to people who are inclined to make unethical choices. A) Bad bosses B) Bad cases C) Bad apples D) Bad barrels Answer: C Explanation: A recent review of over 30 years of ethics research concluded that three factors determine the ethical choices we make. The authors titled the paper "Bad Apples, Bad Cases, Bad Barrels." People who are inclined to make unethical choices were known as "Bad Apples." Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 66) Researchers surveyed CEOs to study the CEOs' intentions to engage in two questionable practices: soliciting a competitor's technological secrets, and making illegal payments to foreign officials. What did they find most strongly affected such decisions? A) outside pressures B) personal predispositions C) firms' characteristics D) number of subordinates Answer: B Explanation: The researchers concluded that the CEOs' personal predispositions more strongly affected their decisions than did outside pressures or characteristics of their firms. The most principled people, with the highest level of "cognitive moral development," think through the implications of their decisions and apply ethical principles. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

67) When examining ethical situations, what kind of ethical dilemmas prompt more bad choices? A) large dilemmas B) small dilemmas C) personal life dilemmas D) group-related dilemmas Answer: B Explanation: The researchers found that "smaller" ethical dilemmas prompt more bad choices. People seemed more likely to "do the wrong thing" in "less serious" situations, in other words. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 68) What kind of company cultures tend to lead to more unethical choices? A) "everyone for him- or herself" culture B) manufacturing cultures C) ethical cultures D) well-being focused cultures Answer: A Explanation: Companies that promoted an "everyone for him- or herself" culture were more likely to suffer more unethical choices. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 69) Carlos, a marketing manager at Devon Consulting, is attending an ethics training program at his workplace. During the training, Carlos is LEAST likely to learn how to ________. A) identify ethical dilemmas B) role play employee dismissals C) use disciplinary practices ethically D) use codes of conduct to resolve problems Answer: B Explanation: Ethics training usually involves showing employees how to recognize ethical dilemmas, how to use codes of conduct to resolve problems, and how to use personnel activities like disciplinary practices in ethical ways. Practicing employee dismissals is unlikely to occur during an ethics training course. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior.

70) All of the following would most likely be addressed in an ethics audit EXCEPT ________. A) employee discrimination B) conflicts of interest C) intranet usage D) gift giving Answer: C Explanation: Ethics audits typically address topics like conflicts of interest, giving and receiving gifts, employee discrimination, and access to company information. It is less likely that usage of the company's intranet would be reviewed. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 71) What is the main purpose of the Electronic Communications Privacy Act (ECPA)? A) help restrict interception and monitoring of oral and wire communications B) allow organization to monitor employees with no restrictions C) support ethical worker actions in organizations D) offer protection for whistleblowers Answer: A Explanation: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. So its main purpose is to restrict such monitoring, although it does contain two exceptions that are used by organizations. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 72) Which one of the following is NOT a major way HR managers can create more ethical organizational environments? A) enforce the rules B) increase organizational support C) punish whistleblowers D) institute ethics policies Answer: C Explanation: To help create ethical organizational environments, organizations should actually encourage whistleblowers. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

73) The standards an individual uses to decide what his or her conduct should be are known as social responsibility. Answer: FALSE Explanation: Ethics refers to the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 74) The president of University National Bank in Palo Alto, California has his office on the main floor of the bank just off the lobby, and his door is always open unless he is in a private meeting. This represents a physical manifestation of the company's culture. Answer: TRUE Explanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. The firm's culture should therefore send clear signals about what is and isn't acceptable behavior, such as leaving office doors open. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 14.3 Explain what is meant by ethical behavior. 75) A principal cause of ethical compromises is based on organizational pressure to meet a schedule or some other objective. Answer: TRUE Explanation: Being expected to meet scheduling pressures was one of the top reported factors for employees who made ethical compromises. For most of these employees, "meeting overly aggressive financial or business objectives" and "helping the company survive" were the other top causes. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 76) Unfortunately, employers have no tools for measuring the ethics of an individual during the applicant screening process, so employers do not realize they have hired an unethical person until it is too late. Answer: FALSE Explanation: Employers can eliminate many ethics problems by making effective hiring decisions. Conducting assessment tests, reference and background checks, drug testing, and making clearly defined job descriptions can reduce the need for many dismissals. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

77) A firm's code of ethics outlines its mission, vision, appraisal system, and hiring policies. Answer: FALSE Explanation: An ethics code memorializes the standards to which the employer expects its employees to adhere, for instance with respect to bribery. Strategies, mission, and vision are not directly relevant to a firm's ethics code. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 78) When firms do not deal swiftly and fairly with the unethical behavior of employees, ethical employees feel penalized. Answer: TRUE Explanation: To the extent that behavior is a function of its consequences, the manager needs to reward ethical behavior and penalize unethical behavior. Research suggests that employees expect the organization to dole out relatively harsh punishment for unethical conduct. If the company does not deal swiftly with unethical behavior, often the ethical employees feel punished. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 79) The fair treatment of job applicants by HR managers leads to applicants having favorable opinions about the selection procedure and the organization. Answer: TRUE Explanation: Job applicants who felt treated unfairly expressed more desire to appeal the outcome. Those who view the firm's programs as fair react more favorably to the selection procedure, and view the company and the job as more attractive. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 80) Most people view invasion of their privacy by employers as fair and ethical. Answer: FALSE Explanation: Most people view invasion of their privacy as both unethical and unfair. At work violations include intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee's name or likeness for commercial purposes. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

81) If an employee conducts a personal phone call at work, the employer can legally eavesdrop and monitor the phone call. Answer: FALSE Explanation: Federal law and most state laws allow employers to monitor employees' phone calls in the ordinary course of business, but they must stop listening once it becomes clear that a conversation is personal rather than business related. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 82) Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. Answer: TRUE Explanation: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 83) Research indicates that individuals are more likely to make unethical choices when faced with minor dilemmas than with major problems. Answer: TRUE Explanation: Apparently "smaller" dilemmas prompt more bad choices than major dilemmas do. Influential issues here include the total harm that can befall victims of an unethical choice, the likelihood that the action will result in harm, and the number of people potentially affected by the act. In apparently less serious situations, it's more likely that someone might say, in effect, "It's okay to do this, even though I know it's wrong." Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior. 84) The three factors that combine to determine the ethical choices we make are called "Bad Apples," "Bad Behaviors," and "Bad Barrels." Answer: FALSE Explanation: The three factors that combine to determine the ethical choices we make are called "Bad Apples," "Bad Cases," and "Bad Barrels." Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 14.3 Explain what is meant by ethical behavior.

85) What is morality? How does an employee's morality relate to making ethical decisions in the workplace? Answer: Making ethical decisions are rooted in morality. Morality is society's highest accepted standards of behavior. Moral standards guide behaviors of the most serious consequence to society's well-being, such as murder, lying, and slander. Authoritative bodies like legislatures can't change what morality means. Moral judgments also trigger strong emotions. Violating moral standards may therefore make someone feel ashamed or remorseful. The most powerful morality comes from within. Because people bring to their jobs their own ideas of what is morally right and wrong, the individual must shoulder much of the credit (or blame) for ethical choices. Research indicates that for CEOs, personal inclinations more strongly affect decisions than do environmental pressures or organizational characteristics. Difficulty: Moderate Objective: 3 AACSB: Ethical Understanding and Reasoning Learning Outcome: 14.3 Explain what is meant by ethical behavior. 86) What is organizational culture? How can managers influence the ethical nature of a firm's culture? Answer: Organizational culture is the characteristic values, traditions, and behaviors a company's employees share. A value is a basic belief about what is right or wrong, or about what you should or shouldn't do. Values are important because they guide and channel behavior. Managing people and shaping their behavior therefore depends on shaping the values they use as behavioral guides. The firm's culture should therefore send clear signals about what is and isn't acceptable behavior. Managers can take several steps, including clarifying expectations with respect to values, providing physical support to reward ethical behavior, and walking the talk by setting a good example of expected behavior. Difficulty: Moderate Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 14.3 Explain what is meant by ethical behavior. 87) What is the "Bad Apples, Bad Cases, and Bad Barrels" way of looking at ethics in organizations? Describe each category. Answer: One review of over 30 years of ethics research concluded that three factors combine to determine the ethical choices we make. The authors titled their paper "Bad Apples, Bad Cases, and Bad Barrels." This title highlighted their conclusion that when "Bad apples" (people who are inclined to make unethical choices), must deal with "Bad cases" (ethical situations that are ripe for unethical choices), while working in "Bad barrels" (company environments that foster or condone unethical choices) then people tend to act unethically. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 14.3 Explain what is meant by ethical behavior.

88) What can you do as an HR manager to ensure that you hire ethical employees? Answer: Employers can start before the applicant even applies by creating recruitment materials that emphasize ethics. Use tools such as honesty tests and background checks to screen out undesirables. Ask behavioral questions such as, "Have you ever observed someone stretching the rules at work? What did you do about it? Difficulty: Moderate Objective: 3 AACSB: Ethical Understanding and Reasoning Learning Outcome: 14.3 Explain what is meant by ethical behavior. 89) What is the Electronic Communications Privacy Act? What are its two primary exceptions? Answer: The ECPA is a federal law intended to help restrict interception and monitoring of oral and wire communications. It contains two exceptions. The "business purpose exception" permits employers to monitor communications if they can show a legitimate business reason for doing so. The second, "consent exception," lets employers monitor communications if they have their employees' consent to do so. Organizations can use these exceptions but need to carefully monitor their monitoring behaviors to make sure they do not go beyond these exceptions into illegal behavior. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 14.3 Explain what is meant by ethical behavior.

90) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, Health-Tech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment. Which one of the following best supports the argument that Health-Tech should make significant changes to its disciplinary process? A) According to surveys, Health-Tech employees feel that managers do not listen to their concerns or take their opinions seriously. B) Health-Tech requires employees to receive annual ethics training to ensure that they understand the firm's latest policies. C) Health-Tech's main competitor uses fictional scenarios to test applicants' morality and has fewer ethics problems than Health-Tech. D) Historically, arbitrators have overturned the dismissal decisions of Health-Tech's managers because of unclear company rules. Answer: D Explanation: Arbitrators are more likely to overturn employers' decisions when the employer fails to have clear rules and regulations. Inattentive managers, ethics training, and competitor's actions are less relevant. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 91) Which one of the following is the primary element of properly developed disciplinary procedures? A) electronic employee monitoring B) clearly established rules C) legal representation D) severe penalties Answer: B Explanation: Proper disciplinary procedures require employers to clearly specify rules and expectations of behavior, otherwise employees do not know what is required of them. Severe punishment and legal assistance may be required in some cases but not all. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

92) In which organizational document are an organization's rules and regulations usually stated? A) employee handbook B) federal code of ethics C) mission and vision statement D) human resource policy manual Answer: A Explanation: Upon hiring, tell employees, preferably in writing, what is not permitted. The employee orientation handbook usually contains the rules and regulations. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 93) Which one of the following terms refers to discipline without punishment? A) democratic punishment B) nonpunitive discipline C) corporal punishment D) positive discipline Answer: B Explanation: Nonpunitive discipline is discipline without punishment. It usually involves a system of oral warnings and paid "decision-making leaves" in lieu of more traditional punishment. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 94) Employees at R&R Carpet and Tile are allowed to take one-hour lunch breaks. Tomas's assistant, Gabriella, took a two-hour lunch break today without prior approval. Gabriella has never broken any other rules since being employed by the company. R&R has a nonpunitive discipline policy. Which one of the following will most likely be Tomas's response to Gabriella's violation? A) issuing a formal written reminder to Suzanne B) giving Suzanne a one-day leave with pay C) telling Suzanne that she is dismissed D) issuing an oral reminder to Suzanne Answer: D Explanation: The first step in nonpunitive discipline is issuing the employee an oral reminder. After that, a formal written reminder, decision-making leave, and the employee's dismissal are appropriate. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

95) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, Health-Tech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment. Which one of the following undermines the argument that Health-Tech should shift from a traditional discipline system to a non-punitive discipline system? A) The most common employee discipline situations at Health-Tech involve theft or physical altercations. B) Health-Tech has already modified its hiring process to include ethics tests when screening job applicants. C) A court ruled in a wrongful discharge case against Health-Tech that the employee handbook served as an implied contract. D) Frequent tardiness is the primary infraction among Health-Tech employees who receive decision-making leave. Answer: A Explanation: A non-punitive discipline program is not appropriate for serious issues, such as criminal activity or fighting. In such cases, immediate dismissal is typical. Non-punitive discipline is more appropriate for tardiness or absenteeism. Decision-making leave is one of the steps in nonpunitive discipline. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 96) The main purpose of discipline in organizations is to ________. A) uphold legal obligations B) encourage employees to behave sensibly at work C) increase employee engagement D) punish wrong-doers Answer: B Explanation: The purpose of discipline is to encourage employees to behave sensibly at work. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

97) From the perspective of discipline, employees behaving "sensibly" means what? A) being engaged at work B) adhering to rules and regulations C) working extra hard D) reporting on rule breakers Answer: B Explanation: The purpose of discipline is to encourage employees to behave sensibly at work (where sensible means adhering to rules and regulations). Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 98) With respect to disciplinary differences between men and women, research has found that ________. A) women in leadership positions tend to see ethics in more concrete black and white terms B) men who do not advance in an organizational hierarchy are likely to blame female managers they have had C) when a woman doesn't act the way other men and women expect she should act, people tend to treat her more harshly than they might if a man acted unexpectedly D) when a team is created, women are more likely to be the scapegoat in the case of failure Answer: C Explanation: What several researchers sadly call the "Evil Woman Thesis" argues that when a woman doesn't act the way other men and women expect she should act, they tend to treat her more harshly than they might if a man acted unexpectedly. While such a thesis might seem preposterous, the research seems to support it. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 99) In major league baseball the first time a player tests positive for steroids he receives an 80game ban. The second time he tests positive for steroids he gets a 162-game ban. A third positive test leads to a lifetime ban from major league baseball. This increasing punishment is an example of which element of discipline? A) clear rules B) progressive discipline C) an appeals process D) consistent harsh punishment Answer: B Explanation: A system of progressive penalties is the second pillar of effective discipline. The severity of the penalty usually depends on the offense and the number of times it has occurred. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 34 Copyright © 2020 Pearson Education, Inc.

100) Tania is frequently absent from work and almost always late, so her manager has decided to fire her. Which one of the following grounds for dismissal will her manager most likely use? A) misconduct B) insubordination C) unsatisfactory performance D) lack of qualifications for the job Answer: C Explanation: Unsatisfactory performance means persistent failure to perform assigned duties or to meet prescribed job standards. Specific grounds include excessive absenteeism, tardiness, a persistent failure to meet normal job requirements, or an adverse attitude toward the company, supervisor, or fellow employees. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 101) With a system of progressive penalties, the severity of the penalty depends on the offense and the employee's seniority level. Answer: FALSE Explanation: A system of progressive penalties is an aspect of effective discipline. Penalties typically range from oral warnings to written warnings to suspension from the job to discharge. The severity of the penalty is usually a function of the type of offense and the number of times it has occurred. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 102) Nonpunitive discipline is discipline involving oral warnings and paid "decision-making leaves of absence." Answer: TRUE Explanation: Nonpunitive discipline involves issuing oral reminders, formal written reminders, and decision-making leaves. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

103) Nonpunitive discipline attempts to gain short-term compliance from employees, while traditional discipline seeks long-term cooperation. Answer: FALSE Explanation: Traditional discipline has two potential drawbacks. First, no one likes to be punished. Second, punishment tends to gain short-term compliance, but not the sort of long-term cooperation employers often prefer. Nonpunitive discipline aims to avoid these drawbacks by gaining employees' acceptance of the rules while reducing the punitive nature of the discipline itself. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 104) Discipline without punishment aims to avoid these drawbacks of normal discipline by reducing its punitive nature. Answer: TRUE Explanation: Traditional discipline processes have two main drawbacks. First, no one likes being punished. Second, punishment tends to gain short-term compliance, but not long-term cooperation. Discipline without punishment (or alternative or nonpunitive discipline) aims to avoid these drawbacks by reducing the punitive nature of the discipline. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 105) A fair discipline process is based on three pillars: rules and regulations, a system of progressive penalties, and an appeals process. Answer: TRUE Explanation: The manager builds a fair discipline process on three pillars: rules and regulations, a system of progressive penalties, and an appeals process. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

106) How do firms make sure disciplinary processes are fair? Describe the three pillars of a fair process. Answer: The three pillars for ensuring that the disciplinary process is fair are establishing clear rules and regulations, a system of progressive penalties, and an appeals process. RULES AND REGULATIONS: An acceptable disciplinary process begins with a set of clear disciplinary rules and regulations. The rules should cover problems such as theft, destruction of company property, drinking on the job, and insubordination. PENALTIES A system of progressive penalties is the second pillar of effective discipline. The severity of the penalty usually depends on the offense and the number of times it has occurred. For example, most companies issue warnings for the first unexcused lateness. However, for a fourth offense, discharge is the usual disciplinary action. APPEALS PROCESS: An appeals process should be part of the disciplinary process. The aim here is to ensure that supervisors mete out discipline fairly. If a decision is unfair the organization wants the employee to have an opportunity to have the decision reviewed and potentially overruled. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices. 107) What is nonpunitive discipline? What are the steps of the nonpunitive discipline process? If you were a manager, would you use a system of traditional discipline or nonpunitive discipline? Why? Answer: Nonpunitive discipline refers to the use of discipline without punishment. In lieu of traditional punishment, employees who have disobeyed corporate rules are disciplined using the following system. First, an oral reminder of the rules in question is issued. If another infraction occurs within six weeks of the first, a formal written reminder is issued and a copy of the reminder is placed in the employee's personnel file. A private discussion is also held with the employee but without any threats. If a third incident occurs, the employee is given a one-day leave with pay to consider whether this job is a good fit for him or her and whether he or she will commit to meeting the company's policies. The following day, the employee meets with his or her supervisor to discuss his or her decision to stay and follow the rules or leave. If no further incidents occur, the suspension information is purged from the employee's file. If the behavior is repeated, the next step is dismissal. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 14.4 Explain what is meant by fair disciplinary practices.

108) Health-Tech Materials is a firm that manufactures medical equipment purchased by hospitals and clinics. The firm employs over 2,500 workers in its two manufacturing facilities located in Texas and Arizona. Recently, Health-Tech dismissed a number of employees for ethics violations ranging from improper Internet usage to stealing company funds. In addition, the firm has been sued by two former employees for wrongful discharge. As a result, HealthTech's top executives are evaluating the firm's hiring process, ethics training system, reward system, and disciplinary system to determine how to promote ethics and fair treatment. Which one of the following best supports the argument that Health-Tech should distribute an anonymous survey to gather information about employee attitudes about management? A) Health-Tech monitors its employees' phone calls and Internet usage to protect itself from lawsuits and ethical violations. B) Independent contractors working for Health-Tech are not allowed to work for the firm's competitors, which angers most contractors. C) Exit interviews at Health-Tech indicate that employees feel uncomfortable about raising ethics concerns with managers. D) Health-Tech managers have been reluctant to terminate disruptive employees for fear of lawsuits. Answer: C Explanation: Anonymous employee surveys would allow employees to express their feelings about the company and their managers. Employees who feel uncomfortable raising ethics concerns with managers or fear retribution for doing so would benefit from a survey. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 14.5 Answer the question, "How do companies become 'Best Companies to Work For'?" 109) Which one of the following is the first step in FedEx's guaranteed fair treatment program? A) officer complaint B) management review C) executive appeals review D) EEO laws Answer: B Explanation: FedEx's multistep program consists of the following three steps: 1) management review, 2) officer complaint, and 3) executive appeals review. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 14.5 Answer the question, "How do companies become 'Best Companies to Work For'?"

110) In FedEx's Guaranteed Fair Treatment Process (GFTP), step three is the officer complaint, where the complainant submits a written complaint to an officer (VP or senior vice president) of the division. Answer: FALSE Explanation: In step three, executive appeals review, the complainant submits a written complaint within seven calendar days of the step two decision to the employee relations department. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 14.5 Answer the question, "How do companies become 'Best Companies to Work For'?"

Human Resource Management, 16e (Dessler) Chapter 15 Labor Relations and Collective Bargaining 1) About ________% of people working in the United States belong to unions. A) 5 B) 11 C) 20 D) 34 Answer: B Explanation: Almost 15 million U.S. workers belong to unions–about 11.1% of the total number of men and women working in this country. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 2) Walmart recently revised its strategy regarding employee relations because ________. A) hiring became more challenging B) employees threatened to unionize C) Amazon was hiring away Walmart's employees D) it lost several certification elections Answer: A Explanation: Recently, Walmart revised its strategies, for several reasons. Amazon was pressuring it on prices. The U.S. labor market tightened, making hiring more challenging. Negative stories about "below living wage" wages and last-minute employee scheduling undermined Walmart's appeal for many consumers. Costco has long parried Walmart's low labor costs by eliciting higher productivity from higher-paid and engaged employees and by maintaining good union relations. Walmart's year on year same-store sales drifted down. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 3) Which one of the following is most likely a false statement about union membership? A) Union members work in both blue-collar and white-collar industries. B) Insurance plan benefits are better for union workers than for nonunion workers. C) Union workers receive more holidays and unpaid leave than nonunion workers do. D) Employers prefer nonunion workers, so they pay them higher wages than union members. Answer: D Explanation: Recent median weekly wage for union workers was $980, while that for nonunion workers was $776. Union workers also generally receive significantly more holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various other benefits than nonunion workers do. Union membership is not exclusive to blue-collar workers. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 1 Copyright © 2020 Pearson Education, Inc.

4) Which one of the following best describes the closed shop form of union security? A) A company can hire nonunion people if they agree to join the union. B) Union members receive higher wages than nonunion employees. C) Union members receive preferential treatment in hiring. D) A company can hire only union members. Answer: D Explanation: Under the closed shop form of union security, the company can hire only current union members. Congress outlawed closed shops in interstate commerce in 1947, but they still exist in some states for particular industries (such as printing). They account for fewer than 5% of union contracts. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 5) The ________ form of union security means that the company can hire only union members. A) closed shop B) union shop C) agency shop D) preferential shop Answer: A Explanation: Under the closed shop form of union security, the company can hire only current union members. Congress outlawed closed shops in interstate commerce in 1947, but they still exist in some states for particular industries. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 6) Which type of union security was outlawed by Congress? A) agency shop B) closed shop C) union shop D) maintenance of membership Answer: B Explanation: Under the closed shop form of union security, the company can hire only current union members. Congress outlawed closed shops in interstate commerce in 1947, but they still exist in some states for particular industries. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement.

7) Which type of union security accounts for almost three-fourths of union contracts? A) maintenance of membership B) closed shop C) union shop D) agency shop Answer: C Explanation: The union shop accounts for about 73% of union contracts. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 8) The ________ form of union security means that the company can hire nonunion people, but those people must join the union within a prescribed period of time and pay dues. A) closed shop B) union shop C) agency shop D) open shop Answer: B Explanation: With the union shop, the company can hire nonunion people, but they must join the union after a prescribed period and pay dues. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 9) Which form of union security requires employees who do not belong to the union to pay union dues on the assumption that the union's efforts benefit all workers? A) union shop B) agency shop C) open shop D) maintenance of agreement Answer: B Explanation: With the agency shop, employees who do not belong to the union still must pay the union an amount equal to union dues on the assumption that the union's efforts benefit all the workers. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement.

10) Which one of the following best defines the preferential shop form of union security? A) A company can hire nonunion people, but they must then join the union. B) Union members must maintain membership for the contract period. C) Employees who do not belong to the union must still pay dues. D) A company gives hiring advantages to union members. Answer: D Explanation: With preferential shop, union members receive preference in hiring. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 11) With the maintenance of membership arrangement of union security, how long must union members employed by a firm maintain union membership? A) until the union disbands B) until negotiations are over C) for the contract period D) for at least one year Answer: C Explanation: With the maintenance of membership arrangement, employees do not have to belong to the union. However, union members employed by the firm must maintain membership in the union for the contract period. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 12) The term ________ describes statutory or constitutional provisions banning the requirement of union membership as a condition of employment. A) termination at will B) right to work C) open shop D) free labor Answer: B Explanation: Right to work is a term used to describe state statutory or constitutional provisions banning the requirement of union membership as a condition of employment. Right to work laws don't outlaw unions, but they do outlaw any form of union security. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement.

13) Right to work laws inhibit union formation by ________. A) banning any form of union security B) making union membership a requirement C) leaving the question of union affiliation up to each company D) leaving the question of union security up to each company Answer: A Explanation: Right-to-work laws don't outlaw unions. They do outlaw (within those states) any form of union security. Right to work is a term used to describe state statutory or constitutional provisions banning the requirement of union membership as a condition of employment. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 14) In which human resource activity does a typical labor agreement NOT give the union a role? A) recruitment B) selection C) dismissal D) appraisals Answer: D Explanation: The typical labor agreement also gives the union a role in other human resource activities, including recruiting, selecting, compensating, promoting, training, and discharging employees. Unions typically play no role in performance appraisals. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 15) Which one of the following best describes the AFL-CIO? A) voluntary federation of national and international labor unions B) local union for automobile workers in Detroit, Michigan C) federation of firms that fight unionization in their plants D) regional branch of the National Labor Relations Board Answer: A Explanation: The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a voluntary federation of about 57 national and international labor unions in the United States. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement.

16) Union membership is exclusive to blue-collar workers, such as those in the construction, manufacturing, and printing industries. Answer: FALSE Explanation: Although many union members are blue-collar workers, unions are not exclusive to blue-collar industries. White-collar workers like doctors, psychologists, graduate teaching assistants, and government office workers belong to unions. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 17) Weekly earnings of union members are much higher than those of nonunion workers. Answer: TRUE Explanation: Recent median weekly wage for union workers was $980, while that for nonunion workers was $776. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 18) All states give unions the right to require union membership as a condition of employment. Answer: FALSE Explanation: Not all states give unions the right to require union membership as a condition of employment. Right to work laws in some states make such requirements illegal. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 19) Right to work refers to state statutory or constitutional provisions banning the requirement of union membership as a condition of employment. Answer: TRUE Explanation: Right to work is a term used to describe "state statutory or constitutional provisions banning the requirement of union membership as a condition of employment." Right-to-work laws don't outlaw unions, but they do outlaw (within those states) any form of union security. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement.

20) Right to work legislation outlaws unions and union membership in specific states. Answer: FALSE Explanation: Right to work is a term used to describe "state statutory or constitutional provisions banning the requirement of union membership as a condition of employment." Right-to-work laws don't outlaw unions, but they do outlaw (within those states) any form of union security. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 21) The Change to Win Coalition was formed by several large unions that left the AFL-CIO due to concerns that the AFL-CIO was not aggressively organizing workers. Answer: TRUE Explanation: Several years ago, six big unions left the AFL-CIO and established their own federation, called the Change to Win Coalition. Change to Win plans to be more aggressive about organizing workers than they say the AFL-CIO was. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 15.1 Present a brief history of the American labor movement. 22) What are the major reasons why workers unionize? What are some of the benefits workers can potentially gain from unionizing? Answer: Pay and working conditions are important factors. Recent median weekly wage for union workers was $980, versus $776 for nonunion workers. Union workers also generally receive more holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and other benefits—about $14.50 per hour in benefits compared with about $7.50 per hour for nonunion workers. But it's not just money. The urge to unionize often comes down to the belief on the part of workers that it's only through unity that they can get their fair share of the "pie" and also protect themselves from the arbitrary whims of management. The bottom line is that low morale, fear of job loss, and poor communication (in other words, poor employee relations) also foster unionization. Modern Survey conducted a study that measured items such as employees' interest in being represented by a union, confidence in senior management, and employee engagement. It concluded that 50% of "actively disengaged" employees would vote "yes" to unionization, while only 20% of such employees would vote "no union". It concludes that "paying attention to employee engagement levels within your organization helps to foster positive relationships between employees and management and decreases the likelihood of a workforce seeking union representation." Gallup conduct its own surveys that complements these conclusions. For example, among the over 500 organizations in which Gallup measures employee engagement, 45% of nonunion employees were engaged, while fewer—38%—of unionized employees were engaged. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 15.1 Present a brief history of the American labor movement. 7 Copyright © 2020 Pearson Education, Inc.

23) What is union security? Explain the five types of union security. Answer: Union security refers to the right to represent a firm's workers and to be the exclusive bargaining agent for all employees in the unit. The five types of union security are closed shop, union shop, agency shop, preferential shop, and maintenance of membership agreement. In the closed shop form, the company can hire only union members. In the union shop form, the company can hire nonunion people, but those people must join the union after a prescribed period of time and pay dues. In the agency shop form, employees who do not belong to the union still must pay union dues on the assumption that the union's efforts benefit all the workers. In a preferential shop, union members are given hiring preference. In the final type, maintenance of membership agreement, employees do not have to belong to the union, but union members employed by the firm must maintain union membership for the period of their contract. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 15.1 Present a brief history of the American labor movement. 24) Which one of the following best describes a "yellow dog" contract? A) As a condition of employment, an employee agrees not to picket. B) Employers agree to give union members preference in hiring. C) As a condition of employment, an employee agrees not to join a union. D) Employers agree to abide by the guidelines of the local labor unions. Answer: C Explanation: "Yellow dog" contracts, whereby management could require nonunion membership as a condition for employment, were widely enforced until about 1930. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 25) Prior to 1930, employers attempted to limit the influence of unions using all of the following methods EXCEPT ________. A) spying on workers B) firing union agitators C) requiring yellow dog contracts D) engaging in collective bargaining Answer: D Explanation: Until about 1930, there were no special labor laws. Employers were not required to engage in collective bargaining with employees and were virtually unrestrained in their behavior toward unions; the use of spies and firing of union agitators were widespread. "Yellow dog" contracts were widely enforced. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 8 Copyright © 2020 Pearson Education, Inc.

26) Which one of the following guaranteed each employee the right to bargain collectively without interference, restraint, or coercion? A) National Labor Relations Act B) Norris-LaGuardia Act C) Davis-Bacon Act D) Taft-Hartley Act Answer: B Explanation: The Norris-LaGuardia Act of 1932 guaranteed to each employee the right to bargain collectively "free from interference, restraint, or coercion." The National Labor Relations Act added on to Norris-LaGuardia by banning certain unfair labor practices. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 27) Which one of the following bans five unfair labor practices and provides for majority rule and secret ballot elections? A) Landrum-Griffin Act B) Norris-LaGuardia Act C) Taft-Hartley Act D) Wagner Act Answer: D Explanation: Congress passed the National Labor Relations (or Wagner) Act to add teeth to Norris-LaGuardia. It did this by banning certain unfair labor practices and by providing for secret-ballot elections and majority rule for determining whether a firm's employees would unionize. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 28) Which one of the following was established by the Wagner Act? A) Labor Management Relations Board B) National Labor Relations Board C) Knights of Labor D) AFL-CIO Answer: B Explanation: The Wagner Act created the National Labor Relations Board to enforce the provisions of the act. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 9 Copyright © 2020 Pearson Education, Inc.

29) Which one of the following was passed in 1935 to amend the Norris-LaGuardia Act? A) Taft-Hartley Act B) New Deal Act C) Wagner Act D) Landrum-Griffin Act Answer: C Explanation: In 1935, Congress passed the National Labor Relations (or Wagner) Act to add teeth to Norris-LaGuardia. It did this by (1) banning certain unfair labor practices, (2) providing for secret-ballot elections and majority rule for determining whether a firm's employees would unionize, and (3) creating the National Labor Relations Board. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 30) Which one of the following best describes a main purpose of the Wagner Act? A) guaranteeing each employee the right to bargain collectively free from interference and coercion B) banning unions from preventing employees from exercising their guaranteed bargaining rights C) allowing secret-ballot elections for determining whether a firm's employees would unionize D) making it illegal for a union to refuse to bargain in good faith with the employer Answer: C Explanation: In 1935, Congress passed the National Labor Relations (or Wagner) Act to add teeth to Norris-LaGuardia. It did this by (1) banning certain unfair labor practices, (2) providing for secret-ballot elections and majority rule for determining whether a firm's employees would unionize, and (3) creating the National Labor Relations Board. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law.

31) The National Labor Relations Board was primarily established for the purpose of ________. A) establishing branches in right-to-work states B) negotiating contracts on behalf of local unions C) investigating unfair labor practice charges D) overseeing the establishment of local unions Answer: C Explanation: The National Labor Relations Board (NLRB) was created by the Wagner Act to investigate unfair labor practice charges and to provide for secret-ballot elections and majority rule in determining whether or not a firm's employees want a union. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 32) Which one of the following was NOT designated an unfair labor practice by the Wagner Act? A) bribing employees B) using company spy systems C) requiring yellow dog contracts D) moving businesses to avoid unionization Answer: C Explanation: Yellow-dog contracts were deemed unenforceable under the Norris-LaGuardia Act. The Wagner Act deemed it unfair to bribe employees, use company spy systems, move a business to avoid unionization, and black-list union sympathizers. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 33) Which one of the following is the most likely reason for the passage of the Taft-Hartley Act? A) high unemployment rates B) significant economic boom C) major shifts in the workforce D) numerous union strikes Answer: D Explanation: Largely because of a series of massive postwar strikes, public policy began to shift against what many viewed as union excesses. Passage of the Taft-Hartley Act occurred to limit the power of unions. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law.

34) The Taft-Hartley Act amended the Wagner Act in all of the following ways EXCEPT by ________. A) prohibiting unfair labor practices B) enumerating the rights of employers C) limiting the power of the National Labor Review Board D) allowing the U.S. President to bar national emergency strikes Answer: C Explanation: The Taft-Hartley Act did not alter the power of the NLRB. The law prohibited unfair labor practices, enumerated the rights of employers and employees, and allowed the President to bar national emergency strikes on a temporary basis. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 35) Which one of the following terms refers to an unfair labor practice in which a union requires an employer to pay an employee for services not performed? A) coercing B) padding C) ballooning D) featherbedding Answer: D Explanation: It is an unfair labor practice for a union to engage in featherbedding. Featherbedding involves requiring an employer to pay an employee for services not performed. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 36) The Taft-Hartley Act prohibits all of the following union labor practices EXCEPT ________. A) forcing an employer to fire a worker for failing to attend union meetings B) refusing to bargain in good faith with an employer about wages and hours C) restraining or coercing employees from exercising their guaranteed bargaining rights D) demanding an employer fire a worker who fails to pay union dues in a closed shop Answer: D Explanation: Where a closed or union shop prevails (and union membership is therefore a prerequisite to employment), the union may demand the discharge of someone who fails to pay his or her initiation fees and dues. The other actions are considered unfair union labor practices under the Taft-Hartley Act. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 12 Copyright © 2020 Pearson Education, Inc.

37) You are a manager at a manufacturing facility, and you tell your subordinates that unions are dangerous to the economy. Which law protects your right to express these views? A) Wagner Act B) Taft-Hartley Act C) Norris-LaGuardia Act D) Landrum-Griffin Act Answer: B Explanation: The Taft-Hartley Act explicitly gave employers certain rights, such as expressing their views concerning union organization. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 38) Which law sought to protect union members from possible wrongdoing on the part of their unions? A) Norris-LaGuardia Act B) Taft-Hartley Act C) Wagner Act D) Landrum-Griffin Act Answer: D Explanation: The Landrum-Griffin Act of 1959 was intended to protect union members from possible wrongdoing on the part of their unions. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law.

39) According to the Landrum-Griffin Act, national and international unions must elect officers at least once every ________ years. A) two B) three C) four D) five Answer: D Explanation: The Landrum-Griffin Act laid out rules regarding union elections. For example, national and international unions must elect officers at least once every five years, using some type of secret-ballot mechanism. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 40) The Taft-Hartley Act amended the National Labor Relations Act by prohibiting unfair union labor practices and specifying the rights of both employers and employees. Answer: TRUE Explanation: The Taft-Hartley Act of 1947 reflected the public's less enthusiastic attitude toward unions. It amended the National Labor Relations Act by limiting unions in four ways: (1) prohibiting unfair union labor practices, (2) enumerating the rights of employees as union members, (3) enumerating the rights of employers, and (4) allowing the President of the United States to bar temporarily national emergency strikes. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 41) The Landrum-Griffin Act of 1932 encouraged union activity by guaranteeing each employee the right to bargain collectively without interference, restraint, or coercion. Answer: FALSE Explanation: The Norris-LaGuardia Act of 1932 guaranteed to each employee the right to bargain collectively "free from interference, restraint, or coercion." The Landrum-Griffin Act of 1959 protected union members from possible wrongdoing on the part of their unions. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law.

42) How did labor laws affect employers and employees in the post-Depression United States? What specific laws significantly affected U.S. unions? Answer: Until about 1930, there were no special labor laws. Employers were not required to engage in collective bargaining with employees and were virtually unrestrained in their behavior toward unions; the use of spies and firing of union agitators were widespread. "Yellow dog" contracts, whereby management could require nonunion membership as a condition for employment, were widely enforced. Most union weapons–even strikes–were illegal. This onesided situation lasted until the Great Depression (around 1930). The Norris-LaGuardia Act of 1932 set the stage for a new era in which union activity was encouraged. It guaranteed to each employee the right to bargain collectively "free from interference, restraint, or coercion." It limited the courts' abilities to issue injunctions (stop orders) for activities such as peaceful picketing and payment of strike benefits. In 1935, Congress passed the National Labor Relations (or Wagner) Act to add teeth to Norris-LaGuardia. It did this by (1) banning certain unfair labor practices, (2) providing for secret-ballot elections and majority rule for determining whether a firm's employees would unionize, and (3) creating the National Labor Relations Board (NLRB) to enforce these two provisions. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law. 43) What are the five employer labor practices that the Wagner Act deemed unfair and considered "statutory wrongs"? Answer: • It is unfair for employers to interface with, restrain, or coerce employees in exercising their legally sanctioned right of self-organization. • It is unfair practice for company representatives to dominate or interfere with either the formation or the administration of labor unions. This includes the use of bribing employees, using company spies, moving a business to avoid unionization, and blacklisting union sympathizers. • Employers are prohibited from discriminating in any way against employees for their legal union activities. • Employers are forbidden to discharge or discriminate against employees simply because the latter file unfair practice charges against the company. • It is an unfair labor practice for employers to refuse to bargain collectively with their employees' duly chosen representatives. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 15.2 Give five examples of unfair union practices and of unfair employer practices in labor law.

44) What is the first step in the union drive process? A) obtaining authorization cards from employees B) making initial contact with employees C) holding an initial organization hearing D) campaigning for employee votes Answer: B Explanation: During the initial contact stage, the union determines the employees' interest in organizing and establishes an organizing committee. The initiative for the first contact between the employees and the union may come from the employees, from a union already representing other employees of the firm, or from a union representing workers elsewhere. Obtaining authorization cards, holding hearings, and campaigning for election votes occur later in the process. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 45) Which one of the following is a union organizing tactic by which union members are placed on nonunion job sites? A) featherbedding B) union salting C) logrolling D) picketing Answer: B Explanation: The National Labor Relations Board defines union salting as "placing of union members on nonunion job sites for the purpose of organizing." Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 46) What percentage of eligible employees in a bargaining unit must sign authorization cards in order for the union to petition the NLRB for an election? A) 20 B) 30 C) 40 D) 50 Answer: B Explanation: Thirty percent of the eligible employees in an appropriate bargaining unit must sign before the union can petition the NLRB for an election. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 16 Copyright © 2020 Pearson Education, Inc.

47) Union authorization cards serve all of the following functions EXCEPT ________. A) subjecting the employee to union rules B) stating that the employee has applied for membership C) enabling employers to modify employment conditions D) designating the union as a bargaining representative Answer: C Explanation: Union authorization cards authorize the union to seek a representation election and designate the union as a bargaining representative. They state that the employee has applied to join the union and is subject to union rules. The cards do not permit employers to modify employment conditions. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 48) Hyper-Tech Enterprises manufactures mechanical parts used in air conditioning and heating units. The company employs over 300 workers at its Alabama facility. None of the Hyper-Tech employees belong to a union; however, management believes that unionization is in the near future. A representative of a local union has recently visited Hyper-Tech in an attempt to solicit members and have them sign authorization cards. Enough eligible employees have signed authorization cards to petition the NLRB for an election. Hyper-Tech's top executives are considering fighting the unionization efforts. Which one of the following questions is LEAST relevant to the decision by Hyper-Tech to fight unionization efforts? A) How many Hyper-Tech employees were hired within the last year? B) What percentage of Hyper-Tech employees signed authorization cards? C) What is the opinion of Hyper-Tech's shareholders and creditors regarding unionization? D) What are the laws regarding what Hyper-Tech managers can and cannot do during a campaign? Answer: A Explanation: The number of newly hired employees is least relevant to the firm's decision to fight unionization. The number of employees who have signed authorization cards, the opinion of stakeholders, and labor laws are more relevant to the decision. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

49) Hyper-Tech Enterprises manufactures mechanical parts used in air conditioning and heating units. The company employs over 300 workers at its Alabama facility. None of the Hyper-Tech employees belong to a union; however, management believes that unionization is in the near future. A representative of a local union has recently visited Hyper-Tech in an attempt to solicit members and have them sign authorization cards. Enough eligible employees have signed authorization cards to petition the NLRB for an election. Hyper-Tech's top executives are considering fighting the unionization efforts. Which one of the following, if true, best supports the argument that Hyper-Tech should contest the union's right to an election? A) Managers believe that they may have inadvertently hired union salts, who most likely instigated the unionization movement at Hyper-Tech. B) The process outlined at Hyper-Tech for filing employee grievances differs from the grievance procedures at other firms in the same industry. C) Hyper-Tech management believes that if employees are provided with additional information from the firm that they will revoke their authorization cards. D) Hyper-Tech managers will soon be conducting annual employee performance appraisals and determining what salary adjustments to make. Answer: C Explanation: If Hyper-Tech wants to contest the union's right, it can insist on a hearing to determine those issues. An employer's decision about whether to insist on a hearing is a strategic one. Management bases it on the facts of each case and on whether it feels it needs more time to try to persuade employees not to elect a union. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 50) Which one of the following terms refers to the group of employees the union will be authorized to represent? A) bargaining unit B) mediating group C) negotiating team D) grievance committee Answer: A Explanation: The bargaining unit is the group of employees that the union will be authorized to represent and bargain for collectively. If the entire organization is the bargaining unit, the union will represent all nonsupervisory, nonmanagerial, and nonconfidential employees, even though the union may be oriented mostly toward blue-collar workers. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

51) The union becomes the employees' representative if it receives ________. A) a "yes" vote from a majority of potential members of the bargaining unit B) signed authorization cards from 30% of employees C) written approval from the employer D) a majority of the votes cast Answer: D Explanation: The union becomes the employees' representative if it wins the election, and winning means getting a majority of the votes cast, not a majority of the total workers in the bargaining unit. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 52) Which one of the following situations would most likely improve a union's chances of winning a certification election at Apex Enterprises? A) geographic area with low percentage of union workers B) high unemployment in the geographic area C) a large portion of workers voting D) small bargaining units Answer: D Explanation: Unions have a higher probability of success in geographic areas with a higher percentage of union workers. High unemployment seems to lead to poorer results for the union. The larger the bargaining unit, the smaller the probability of union victory. The more workers vote, the less likely a union victory. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

53) All of the following increase the likelihood that an employer will lose an NLRB election EXCEPT ________. A) focusing primarily on wage and benefits issues B) appointing a committee to manage the campaign C) distributing employee need and attitude surveys D) delegating personnel relations issues to plant managers Answer: C Explanation: Employers tend to lose elections when they focus too much on wages and benefits, appoint uninformed committees to manage campaigns, and delegate union issues. Employers are more likely to win if they address the attitudes and concerns of all workers by sending out surveys and responding to their needs. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 54) Hyper-Tech Enterprises manufactures mechanical parts used in air conditioning and heating units. The company employs over 300 workers at its Alabama facility. None of the Hyper-Tech employees belong to a union; however, management believes that unionization is in the near future. A representative of a local union has recently visited Hyper-Tech in an attempt to solicit members and have them sign authorization cards. Enough eligible employees have signed authorization cards to petition the NLRB for an election. Hyper-Tech's top executives are considering fighting the unionization efforts. Which one of the following, if true, best supports the suggestion that Hyper-Tech will lose an NLRB election? A) Hyper-Tech recently distributed employee surveys that indicated overall job satisfaction. B) Hyper-Tech executives have decided that a committee should manage the campaign. C) Hyper-Tech managers have been told to share their opinions about unions with subordinates. D) Hyper-Tech managers have been told to avoid making promises to their subordinates. Answer: B Explanation: Forming a committee to manage a campaign is usually detrimental to firms because of the slow nature of committees in making decisions. Experts suggest giving full responsibility to a single, decisive executive. Sharing opinions about unions is acceptable. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

55) Hyper-Tech Enterprises manufactures mechanical parts used in air conditioning and heating units. The company employs over 300 workers at its Alabama facility. None of the Hyper-Tech employees belong to a union; however, management believes that unionization is in the near future. A representative of a local union has recently visited Hyper-Tech in an attempt to solicit members and have them sign authorization cards. Enough eligible employees have signed authorization cards to petition the NLRB for an election. Hyper-Tech's top executives are considering fighting the unionization efforts. Which one of the following, if true, supports the argument by the NLRB that Hyper-Tech has conducted unfair labor practices? A) Hyper-Tech managers prohibited union representatives from soliciting employees who were on duty. B) Hyper-Tech managers intervened when pro-union employees solicited other employees while both were on duty. C) Hyper-Tech managers barred nonemployee union representatives from entering the firm's building. D) Hyper-Tech managers prohibited distribution of union literature in the company cafeteria. Answer: D Explanation: The NLRB has ruled that the act of prohibiting distribution of the literature is an unfair labor practice. Most employers can bar nonemployees from the building's interiors and work areas as a right of private property owners. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 56) ________ is the process of legally terminating a union's right to represent employees. A) Union salting B) Featherbedding C) Decertification D) Collective bargaining Answer: C Explanation: The same law that grants employees the right to unionize also gives them a way to terminate legally their union's right to represent them. The process is called decertification. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

57) It is legal for union organizers to solicit employees for membership as long as the effort does not endanger the performance or safety of the employees. Answer: TRUE Explanation: The union must follow certain rules when it starts contacting employees. The law allows organizers to solicit employees for membership as long as the effort doesn't endanger the performance or safety of the employees. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 58) It is acceptable for an employer to refuse to hire union members even if they are qualified for the position because they might be union salts. Answer: FALSE Explanation: Managers need to know who they are hiring. However, not hiring someone simply because, as a member of the local union, he or she might be pro-union or a union salt would be discriminatory. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 59) As a manager, you are legally prohibited from discussing union membership with employees and from distributing information regarding how employees can revoke their cards. Answer: FALSE Explanation: The NLRB ruled an employer might lawfully inform employees of their right to revoke their authorization cards, even when employees have not asked for such information. The employer can also distribute pamphlets that explain just how employees can revoke their cards. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 60) Most employers decide to contest the union's right to represent their employees. Answer: TRUE Explanation: Most companies do contest the union's right to represent their employees, claiming that a significant number of them don't really want the union. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

61) In the majority of NLRB elections, the employer loses because top management fails to focus enough attention on money and benefits. Answer: FALSE Explanation: In 54% of the elections studied, the company lost because top management concentrated on the wrong issues: money and benefits. Experts claim that employees may want more money, but quite often, if they feel the company treats them fairly, decently, and honestly, they are satisfied with reasonable, competitive rates and benefits. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 62) A union campaign during an NLRB election will usually focus on issues such as respect, dignity, and fairness, in addition to job security. Answer: TRUE Explanation: There will be an emphasis during the organizing campaign on issues such as respect, dignity, and fairness, not just traditional bread-and-butter issues like wages, benefits, and job security. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 63) A supervisor should "hint" during a union campaign that the facility is likely to close if the union wins the election. Answer: FALSE Explanation: This is an unfair employer labor practice. The employer or its representatives cannot threaten, coerce, or make promises to members of the bargaining unit. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 64) Decertification campaigns to end union representation are in principle very similar to the initial certification campaign that brought the union into power. Answer: TRUE Explanation: Decertification campaigns don't differ much from certification campaigns. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

65) What are the ways that an employer can lose an NLRB election? Answer: According to Matthew Goodfellow, there are some sure ways an employer can lose an election: • Asleep at the switch—executives being unaware of important issues among the workforce and growing union sentiment among the workforce. • Appointing a committee—employer forming a committee to manage the union election campaign. The problems here are that (1) promptness is essential in an election situation and committees are slow (2) most committee members are NLRB neophytes, whose views reflect hope rather than experience (3) a committee's decision is usually a compromise decision, not necessarily the most effective one. • Concentrating on money and benefit—employees may want more money, but quite often, if they feel the company treats them fairly, decently, and honestly, they are satisfied with reasonable, competitive rates and benefits. It is only when they feel ignored, uncared for, and disregarded that money becomes a major issue to express their dissatisfaction. • Delegating too much to divisions—for companies with plants scattered around the country, unionizing one or more plants tends to lead to unionizing others. Dealing effectively with unions—monitoring employee's attitudes, reacting properly when the union appears, and so on— generally requires centralized guidance from the main office and its human resources staff. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

66) List and describe the five steps involved in planning a union drive and election. Answer: The five basic steps include 1) make initial contact, 2) obtain authorization cards, 3) hold a hearing, 4) hold a campaign, and 5) hold an election. In the initial contact stage, the union determines the employees' interest in organizing and establishes an organizing committee. In step two, the union organizers try to get the employees to sign authorization cards to authorize the union to seek a representation election and state that the employee has applied to join the union. Thirty percent of the eligible employees in an appropriate bargaining unit must sign before the union can petition the National Labor Review Board for an election. Once the union collects the authorization cards, it enters the third stage. In this stage, three things can occur. First, the employer may choose not to contest union recognition and the parties need no hearing. A special consent election is held. Second, the employer may choose to recognize the union's right to an election and the parties can immediately stipulate an election. Third, the employer may choose to contest the union's right and insist on a hearing to determine those issues. If a hearing is held and the results of the hearing are favorable for the union, the NLRB will order holding an election. In the fourth stage, a campaign will be held for the respective employer and union to appeal to employees for their votes. The election is held within 30-60 days after the NLRB issues its Decision and Direction of Election. The election is by secret ballot. The union wins if it gets a majority of the votes cast. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election. 67) You are a supervisor at a large manufacturing firm. What should and shouldn't you do during organizing and pre-election campaigns? Answer: Supervisors are an employer's first line of defense in the unionizing effort. They are often in the best position to sense employee attitude problems and to discover the first signs of union activity. However, supervisors can also inadvertently undermine their employer's union efforts. Supervisory unfair labor practices could then (1) cause the NLRB to hold a new election after your company has won a previous election, or (2) cause your company to forfeit the second election and go directly to contract negotiation. Supervisors can use the acronym TIPS to remember what not to do during the campaigns. Do not Threaten, Interrogate, make Promises to, or Spy on employees (for instance, do not threaten that you will close or move the business, cut wages, reduce overtime, or lay off employees). FORE outlines what you may do. You may give employees Facts (like what signing the authorization card means), express your Opinion about unions, explain factually correct Rules (such as that the law permits permanently replacing striking employees), and share your Experiences about unions. The Know Your Employment Law feature expands on this. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 15.3 Present three examples of what a supervisor should or should not do during the union drive and election.

68) When representatives of Ford's management and the autoworkers' union meet to negotiate a labor agreement, which one of the following is most likely occurring? A) certification B) union salting C) featherbedding D) collective bargaining Answer: D Explanation: Collective bargaining is the process through which representatives of management and the union meet to negotiate a labor agreement. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 69) Which one of the following is a characteristic of good faith bargaining? A) overlooking bargaining items B) making counterproposals C) bypassing the union representative D) imposing unreasonable conditions Answer: B Explanation: Good faith bargaining is characterized by both parties making every reasonable effort to arrive at an agreement. Proposals are matched with counterproposals in good faith bargaining. Overlooking bargaining items, bypassing union representatives, and imposing unreasonable conditions are actions indicating that bargaining is not in good faith. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 70) Which one of the following terms refers to items in collective bargaining over which bargaining is neither illegal nor mandatory? A) group bargaining items B) permissible bargaining items C) conditional bargaining items D) benefits-related bargaining items Answer: B Explanation: Voluntary (or permissible) bargaining items are neither mandatory nor illegal; they become a part of negotiations only through the joint agreement of both management and union. Neither party can compel the other to negotiate over voluntary items. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

71) All of the following are examples of mandatory bargaining items EXCEPT ________. A) employee security B) profit-sharing plans C) indemnity bonds D) employee drug testing Answer: C Explanation: Mandatory bargaining items are items in collective bargaining that a party must bargain over if they are introduced by the other party, such as wages, hours, rest periods, layoffs, transfers, benefits, drug testing and severance pay. Voluntary bargaining items, which are neither mandatory nor illegal, such as indemnity bonds, become a part of negotiations only through the joint agreement of both management and union. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 72) All of the following are examples of permissible bargaining items EXCEPT ________. A) cafeteria prices B) severance pay C) scope of bargaining unit D) pension benefits for retired employees Answer: B Explanation: Mandatory bargaining items are items in collective bargaining that a party must bargain over if they are introduced by the other party, such as severance pay. Permissible bargaining items become a part of negotiations only through the joint agreement of both management and union. Cafeteria prices, the scope of the bargaining unit, and pension benefits are permissible bargaining items. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 73) Which one of the following is an illegal bargaining item? A) membership of bargaining team B) discriminatory treatment C) continuance of past contract D) employment of strikebreaker Answer: B Explanation: Illegal bargaining items are items in collective bargaining that are forbidden by law, such as discriminatory treatment. Bargaining team membership, contract continuances, and strikebreaker employment are permissible items. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

74) Managers from Ford and representatives from United Auto Workers are in the first stage of collective bargaining over benefits and wages. Which one of the following is most likely occurring? A) Subcommittees are forming to create alternatives. B) Each side is trading some of its demands. C) Each side is checking terms with superiors. D) Each side is presenting its demands. Answer: D Explanation: In the first stage of bargaining, each side presents its demands. At this stage, both parties are usually quite far apart on some issues. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 75) Which one of the following terms refers to a collective bargaining situation that occurs when the parties are not able to move further toward settlement? A) impasse B) picketing C) arbitration D) wildcat strike Answer: A Explanation: In collective bargaining, an impasse occurs when the parties are not able to move further toward settlement. An impasse usually occurs because one party is demanding more than the other will offer. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 76) Negotiators use all of the following types of third-party interventions to overcome an impasse EXCEPT ________. A) binding arbitration B) mediation C) fact finding D) picketing Answer: D Explanation: Negotiators use three types of third-party interventions to overcome an impasse: mediation, fact finding, and arbitration. Picketing is not a third-party intervention method. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

77) Which third-party intervention uses a neutral third party to assist the principals in reaching agreement? A) fact finding B) mediation C) binding arbitration D) non-binding arbitration Answer: B Explanation: With mediation, a neutral third party tries to assist the principals in reaching agreement. The mediator usually holds meetings with each party to determine where each stands regarding its position and then uses this information to find common ground for further bargaining. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 78) Which intervention method listed below is the most definitive of all third-party interventions? A) fact finding B) mediation C) binding arbitration D) picketing Answer: C Explanation: Binding arbitration is the most definitive type of third-party intervention, because the arbitrator often has the power to determine and dictate the settlement terms. Unlike mediation and fact finding, arbitration can guarantee a solution to an impasse. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 79) Fact finding seeks to end an impasse by ________. A) assisting the principals in reaching an agreement B) studying the issues and making a public recommendation C) interpreting and analyzing existing contract terms D) communicating assessments of the likelihood of a strike Answer: B Explanation: A fact finder is a neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

80) The National Air Traffic Controllers Association and the Federal Aviation Administration have reached an impasse during collective bargaining. Which one of the following will most likely be used to reach a settlement? A) fact finding B) mediation C) binding arbitration D) non-binding arbitration Answer: A Explanation: Presidential emergency fact-finding boards have successfully resolved impasses in certain critical transportation disputes. Mediation and arbitration are less likely to be used during this national emergency strike. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 81) Which one of the following terms refers to a strike that takes place when one union strikes in support of another union? A) wildcat strike B) economic strike C) bargaining strike D) sympathy strike Answer: D Explanation: A sympathy strike occurs when one union strikes in support of the strike of another union. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 82) A strike that results from a failure to agree on the terms of a contract, such as wages and benefits, is known as a(n) ________ strike. A) wildcat B) economic C) sympathy D) unfair labor practices Answer: B Explanation: An economic strike results from a failure to agree on the terms of a contract. Unions call unfair labor practice strikes to protest illegal conduct by the employer. A wildcat strike is an unauthorized strike occurring during the term of a contract. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

83) Employers dealing with an unfair labor practice strike can use all of the following responses EXCEPT ________. A) shutting down the affected area until the strike ends B) continuing operations with supervisors filling in C) hiring temporary replacement workers D) hiring permanent replacement workers Answer: D Explanation: Employers cannot permanently replace strikers who are protesting unfair labor practices. Shutting down affected areas, having managers fill in, and hiring temporary workers are options in such a situation. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 84) Union tactics designed to impede or disrupt production by encouraging employees to slow the pace of work, refuse to work overtime, and participate in sick-outs are called ________. A) inside games B) lockouts C) injunctions D) strikes Answer: A Explanation: Inside games are union efforts to convince employees to impede or to disrupt production, such as by slowing the work pace, refusing to work overtime. Inside games are basically strikes in which the company continues to pay the employees. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

85) Manning Enterprises is experiencing an impasse between management and labor. As a result, the union has made an organized effort to pressure Manning by picketing the homes of corporate directors and boycotting the firm's bank. Which one of the following terms best describes the actions of Manning's union members? A) wildcat strike B) inside games C) corporate campaign D) employee lockout Answer: C Explanation: Management and labor each have other weapons to break an impasse and achieve their aims. The union, for example, may resort to a corporate campaign. A corporate campaign is an organized effort by the union that exerts pressure on the employer by pressuring the company's other unions, shareholders, corporate directors, customers, creditors, and government agencies. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 86) Smithson management has refused to provide union workers with work shifts as a result of reaching an impasse during collective bargaining. Which one of the following best describes Smithson's actions? A) lockout B) inside games C) illegal negotiation D) corporate campaign Answer: A Explanation: Employers can try to break an impasse with lockouts. A lockout is a refusal by the employer to provide opportunities to work. It (sometimes literally) locks out employees and prohibits them from doing their jobs (and being paid). Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 87) What is the primary purpose of picketing? A) informing the public about a labor dispute B) increasing the likelihood of a lockout C) gathering sympathy from employers D) encouraging union certification Answer: A Explanation: Picketing is one of the first activities to occur during a strike. The purpose is to inform the public about the labor dispute. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 32 Copyright © 2020 Pearson Education, Inc.

88) Ignoring bargaining items is a good strategy for negotiating with labor unions while staying within the limits of good faith bargaining. Answer: FALSE Explanation: Ignoring bargaining items is an indication that bargaining is not in good faith. Refusal to bargain on a mandatory item or insistence on a permissive item are examples of ignoring bargaining items. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 89) One party can compel the other party to negotiate over permissible items if the employees agree to it. Answer: FALSE Explanation: Voluntary (or permissible) bargaining items are neither mandatory nor illegal; they become a part of negotiations only through the joint agreement of both management and union. Neither party can compel the other to negotiate over voluntary items. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 90) Mediation guarantees a solution to any impasse that may occur during collective bargaining negotiations. Answer: FALSE Explanation: Sometimes an impasse can be resolved through a third party–a disinterested person such as a mediator or arbitrator. If the impasse is not resolved in this way, the union may call a work stoppage, or strike, to put pressure on management. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 91) A wildcat strike is an unauthorized strike that occurs during the term of a contract. Answer: TRUE Explanation: A wildcat strike is an unauthorized strike occurring during the term of a contract. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

92) Rights arbitration centers on working out a labor agreement when one or both of the parties seeks a change in the agreement or when an agreement does not yet exist. Answer: FALSE Explanation: Interest arbitration centers on working out a labor agreement; the parties use it when such agreements do not yet exist or when one or both parties are seeking to change the agreement. Rights arbitration involves interpreting existing contract terms. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 93) Employers can replace strikers permanently unless the strike is based on unfair labor practices. Answer: TRUE Explanation: Employers generally can replace strikers. However, employers cannot permanently replace strikers who are protesting unfair labor practices. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 94) Union pressure on a company's shareholders, directors, and customers is known as a corporate campaign. Answer: TRUE Explanation: Management and labor each have other weapons to break an impasse and achieve their aims. The union, for example, may resort to a corporate campaign, which is an organized effort by the union that exerts pressure on the employer by pressuring the company's other unions, shareholders, corporate directors, customers, creditors, and government agencies. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 95) Employers and unions can seek a court injunction to compel a party or parties to resume or desist from a certain action. Answer: TRUE Explanation: Both employers and unions can seek an injunction from the courts if they believe the other side is taking actions that could cause irreparable harm to the other party. An injunction is a court order compelling a party or parties either to resume or to desist from a certain action. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith.

96) What third-party interventions are available to handle an impasse during collective bargaining? Discuss each type of intervention in a brief essay. Answer: Negotiators use three types of third party interventions to overcome an impasse: mediation, fact-finding, and arbitration. With mediation, a neutral third party tries to assist the principals in reaching an agreement. This includes holding a meeting with each party to determine their respective positions. The mediator serves as a go-between and does not have authority to dictate terms or make concessions. He or she can communicate his or her opinions as to the likelihood of a strike. A fact finder is a neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement. This is commonly used in national emergency disputes. Arbitration offers the arbitrator the power to determine and dictate the settlement terms. If the arbitration is binding, both parties are committed to accepting the decision of the arbitrator. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 97) What are the different types of strikes? What is the purpose of picketing during a strike? Answer: A strike is a withdrawal of labor, and there are four main types of strikes. An economic strike results from a failure to agree on the terms of a contract. Unions call unfair labor practice strikes to protest illegal conduct by the employer. A wildcat strike is an unauthorized strike occurring during the term of a contract. A sympathy strike occurs when one union strikes in support of the strike of another union. Picketing, or having employees carry signs announcing their concerns near the employer's place of business, is one of the first activities to occur during a strike. Its purpose is to inform the public about the existence of the labor dispute and often to encourage others to refrain from doing business with the struck employer. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 15.4 Illustrate with five examples bargaining that is not in good faith. 98) Which one of the following terms refers to the formal process for addressing any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer? A) collective bargaining B) court injunction C) grievance procedure D) arbitration method Answer: C Explanation: The grievance procedure provides an orderly system whereby both employer and union determine whether some action violated the contract. The grievance process allows both parties to interpret and give meaning to various clauses, and transforms the contract into a "living organism." Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 15.5 Develop a grievance procedure. 35 Copyright © 2020 Pearson Education, Inc.

99) Jeff is a manager at a paper mill. He has received a grievance from a group of employees who are union members. The grievance claims that a plant rule barring employees from eating during unscheduled breaks is arbitrary and unfair. What should Jeff most likely do? A) Discuss the case privately with the union steward. B) Agree to make informal changes to the rules. C) Examine the grievants' personnel records. D) Make special arrangements with grievants. Answer: C Explanation: It is appropriate for Jeff to review the employees' personnel files. However, discussing the issue privately with the union steward, making informal rule changes, and making special arrangements are considered inappropriate methods for handling grievances. Difficulty: Hard Objective: 5 AACSB: Application of Knowledge Learning Outcome: 15.5 Develop a grievance procedure. 100) Union activism and ambiguous instructions are often underlying causes for employee grievances. Answer: TRUE Explanation: Organizational factors such as ambiguous job descriptions that frustrate employees also cause grievances. Union activism is another cause; the union may solicit grievances from workers to underscore ineffective supervision. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 15.5 Develop a grievance procedure. 101) The grievance procedure is a standardized process based on NLRB policies and fair labor practices. Answer: FALSE Explanation: Union grievance procedures differ from firm to firm. Some contain simple, twostep procedures. At the other extreme, the grievance procedure may contain six or more steps. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 15.5 Develop a grievance procedure.

102) Supervisors can best handle grievances by providing grievants with long, written responses so that the issue is clear. Answer: FALSE Explanation: Managers should not provide grievants with long, written responses to complaints because such information could later be used against the firm. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 15.5 Develop a grievance procedure. 103) Which one of the following best explains a major reason why union membership in the United States has fallen in the last 50 years? A) Legislation provides workers with protections that were once exclusive to unions. B) Union members earn less on average compared to non-union members. C) Union membership is too expensive for most blue-collar workers. D) Foreign-owned manufacturers will not hire union members. Answer: A Explanation: Union membership has fallen in the last 50 years. Reasons include the shift from manufacturing to service jobs, and new legislation (such as occupational safety laws) provides the sorts of protections that workers could once only obtain from their unions. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations. 104) All of the following most likely explain the decline in union membership EXCEPT ________. A) improved wages and benefits B) increased global competition C) technological improvements D) just-in-time production systems Answer: A Explanation: Increased global competition and new technologies like the Internet and just-intime production systems forced employers to reduce inefficiencies and cut costs. Changes in salaries and wages are less likely to be a cause. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations.

105) ________ has contributed significantly to the decline in union membership in the U.S. A) Political unrest B) The election of a Republican president C) The growth of public sector employment D) A decrease in the proportion of blue-collar jobs Answer: D Explanation: Several factors contributed to the decline. Unions traditionally appealed mostly to blue-collar workers, and the proportion of blue-collar jobs has been decreasing. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations. 106) According to recent federal legislation, ________. A) unions are prohibited from engaging in public relations campaigns B) supervisors must be included in the bargaining unit C) certification elections must be held within two weeks after filing a request with the NLRB D) employers must report their relationships with campaign consultants Answer: D Explanation: And after being exempted for many years from having to disclose their participation with each other in a union campaign, employers and their union campaign consultants and attorneys now must report their relationship. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations. 107) Employers who want to succeed in today's economy must change how they think, by discouraging unionization. Answer: FALSE Explanation: There is little doubt that unions that have a cooperative relationship with management can play an important role in overcoming barriers to the effective adoption of practices that have been linked to organizational competitiveness." However employers who want to capitalize on that potential must change how they think, by emphasizing a cooperative partnership. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations.

108) Labor-management commitment to guarantee employment security is one of the themes that parties agree upon in cooperative agreements. Answer: TRUE Explanation: Cooperative agreements generally commit union and management to adapt to cooperative themes. Themes include intent to cooperate, a statement of commitment to cooperate, committees to review concerns that arise, decisions on traditional issues, guarantees of employment security, commitments to high-performance practices, decisions on strategic issues, and full cooperation. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations. 109) Effective organizational competitiveness can be linked to having cooperative relationships. Answer: TRUE Explanation: Unions "that have a cooperative relationship with management can play an important role in overcoming barriers to the effective adoption of practices that have been linked to organizational competitiveness." Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 15.6 Give an example of cooperative labor relations. 110) In a brief essay, discuss some of the reasons for declining union membership. Do you think this is good or bad for the U.S. economy and U.S. businesses? Why? Answer: Several things contributed to union membership decline over the past 60 or so years. Unions traditionally appealed mostly to blue-collar workers, and the proportion of blue-collar jobs has been decreasing as service-sector and white-collar service jobs have increased. Furthermore, several economic factors, including intense international competition, have put unions under further pressure. Globalization increases competition, and competition increases pressures on employers to cut costs and boost productivity. This in turn puts unions in a squeeze. Other factors pressuring employers and unions include the deregulation of trucking, airlines, and communications; outdated equipment and factories; mismanagement; new technology; and laws (such as Title VII) that somewhat substituted for and reduced the need for unions. The effect of all this has been the permanent layoff of hundreds of thousands of union members, the permanent closing of company plants, the relocation of companies to nonunion settings (either in the United States or abroad), and mergers and acquisitions that eliminated union jobs and affected collective bargaining agreements. Union membership as a percentage of people working has dropped about 2/3 over 50 years. Difficulty: Hard Objective: 6 AACSB: Application of Knowledge Learning Outcome: 15.6 Give an example of cooperative labor relations.

Human Resource Management, 16e (Dessler) Chapter 16 Safety, Health, and Risk Management 1) While accident rates are falling, in one recent year ________ U.S. workers died in workplace incidents. A) 2369 B) 5190 C) 6278 D) 8100 Answer: B Explanation: In one recent year, at least 5,190 people died at work, up from 4,800 the year before. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 16.1 Explain the supervisor's role in safety. 2) Which one of the following is the supervisor's primary role in safety? A) conducting daily safety inspections of the workplace B) helping workers file claims for job-related injuries C) alerting top management to OSHA inspections D) setting health and safety standards for the firm Answer: A Explanation: Safety inspections should always be part of the supervisor's daily routine. Conducting a daily walk-through of the workplace–whether it is a construction site or a dry cleaning facility–is an essential part of a supervisor's job. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 16.1 Explain the supervisor's role in safety. 3) All of the following are effective ways that employers reduce workers' compensation costs EXCEPT ________. A) enforcing safety policies B) communicating safety policies C) providing classroom training D) using appropriate safety equipment Answer: C Explanation: Employers can control workers' compensation costs before accidents by communicating and strictly enforcing safety policies. Classroom training is less likely to reduce workers' compensation costs. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 16.1 Explain the supervisor's role in safety.

4) New computers emit chemical fumes, which are linked to sick building syndrome symptoms such as headaches. Answer: TRUE Explanation: New computers contribute to "sick building syndrome" symptoms such as headaches, which some experts blame on poor ventilation. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 16.1 Explain the supervisor's role in safety. 5) One of the primary duties of a supervisor in regard to workplace safety is to conduct a daily walk-through of a work site. Answer: TRUE Explanation: Safety inspections should always be part of the supervisor's daily routine. Conducting a daily walk-through of the workplace is an essential part of the job. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 16.1 Explain the supervisor's role in safety. 6) Which one of the following best describes the primary purpose of the Occupational Safety and Health Administration? A) set and enforce the safety and health standards for almost all workers in the U.S. B) ensure that employees of state agencies have safe and healthy working conditions C) provide safe and healthy working conditions to all self-employed persons D) ensure that family farms provide healthy and safe working environments Answer: A Explanation: OSHA is the agency created within the Department of Labor to set safety and health standards for almost all workers in the United States. OSHA doesn't cover self-employed persons or farms in which only immediate members of the employer's family work. OSHA covers federal agencies, but usually not state and local governments. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

7) The Occupational Safety and Health Act was intended to ________. A) set national, state, and local safety and health standards B) assure every person safe and healthful working conditions C) provide safe and healthful working conditions to self-employed persons D) prevent the occurrence of occupational illnesses among public employees Answer: B Explanation: The Occupational Safety and Health Act was intended to "assure so far as possible every working man and woman in the nation safe and healthful working conditions and to preserve our human resources." The Occupational Safety and Health Act doesn't cover selfemployed persons or farms in which only immediate members of the employer's family work. The act covers federal agencies, but usually not state and local governments. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 8) All of the following are covered by the Occupational Safety and Health Act EXCEPT ________. A) federal agents B) hospital nurses C) crane operators D) self-employed persons Answer: D Explanation: The Occupational Safety and Health Act doesn't cover self-employed persons or farms in which only immediate members of the employer's family work. The act covers federal agencies, but usually not state and local governments. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 9) Which government agency enforces the standards set out in the Occupational Safety and Health Act? A) Department of Health and Human Services B) Department of Agriculture C) Department of Commerce D) Department of Labor Answer: D Explanation: The Department of Labor enforces the standards established by the Occupational Safety and Health Act to ensure compliance. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

10) Under OSHA, employers with ________ or more employees must maintain records of and report occupational injuries and occupational illnesses. A) 6 B) 11 C) 35 D) 50 Answer: B Explanation: The Department of Labor enforces the standards established by the Occupational Safety and Health Act. Under OSHA, employers with 11 or more employees must maintain records of and report certain occupational injuries and occupational illnesses. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 11) What term is used to describe any abnormal condition or disorder caused by exposure to environmental factors associated with employment? A) on-the-job accident B) chronic condition C) occupational illness D) work-related disease Answer: C Explanation: An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment. This includes acute and chronic illnesses caused by inhalation, absorption, ingestion, or direct contact with toxic substances or harmful agents. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 12) According to OSHA, employers must report occupational injuries that result in any of the following EXCEPT ________. A) first aid treatment B) loss of consciousness C) restriction of motion D) transfer to another job Answer: A Explanation: Employers must report most occupational injuries, specifically those that result in medical treatment (other than first aid), loss of consciousness, restriction of work (one or more lost workdays), restriction of motion, or transfer to another job. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

13) Which one of the following would most likely NOT be considered a reportable injury according to OSHA? A) Mike breaks his arm while playing in a softball game during a mandatory company picnic. B) John sprains his ankle after becoming tangled in his car's seat belt in the company parking lot. C) Leah breaks her wrist after slipping in a puddle on a stairwell inside the company building. D) Tom injures his back during a traffic accident as he delivers lumber in a company truck. Answer: B Explanation: OSHA requires that employers report work related accidents. However, it allows the employer to conclude that the event needn't be reported if the facts so warrant–such as if a worker breaks an ankle after catching his foot on his car's seat belt when parked on the company lot. The other accidents are examples of recordable conditions. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 14) According to OSHA, which one of the following would most likely be considered the highest priority? A) investigating the occurrence of a fatality B) inspecting a site where there may be imminent danger C) conducting random inspections and follow-up inspections D) conducting a special-emphasis inspection aimed at a high-hazard industry Answer: B Explanation: OSHA still makes extensive use of inspections. OSHA takes a "worst-first" approach in setting inspection priorities. Priorities include, from highest to lowest, imminent dangers, catastrophes and fatal accidents, employee complaints, high-hazard industries inspections, and follow-up inspections. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 15) Which one of the following would be considered OSHA's lowest priority for inspection? A) conducting a follow-up inspection B) investigating an employee complaint C) investigating the occurrence of a fatality D) performing a high-hazard industry inspection Answer: A Explanation: OSHA still makes extensive use of inspections. OSHA takes a "worst-first" approach in setting inspection priorities. Priorities include, from highest to lowest, imminent dangers, catastrophes and fatal accidents, employee complaints, high-hazard industries inspections, and follow-up inspections. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 5 Copyright © 2020 Pearson Education, Inc.

16) When a complaint indicates the possibility of imminent danger, OSHA conducts an inspection within ________. A) 12 hours B) 24 hours C) 3 days D) 20 days Answer: B Explanation: Under its priority system, OSHA conducts an inspection within 24 hours when a complaint indicates an immediate danger, and within 3 working days when a serious hazard exists. For a "nonserious" complaint filed in writing by a worker or a union, OSHA will respond within 20 working days. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 17) Which one of the following is LEAST likely to be considered when OSHA calculates a penalty? A) business size B) compliance history C) gravity of violation D) legal representation Answer: D Explanation: In general, OSHA calculates penalties based on the gravity of the violation and usually takes into consideration factors like the size of the business, the firm's compliance history, and the employer's good faith. Legal representation for the employer is less likely to be a factor. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 18) According to the Occupational Safety and Health Act, employers are responsible for ________. A) transferring workers who are cited for OSHA violations B) providing a workplace free from recognized hazards C) scheduling annual consultations with OSHA representatives D) replacing old equipment on an annual basis to comply with OSHA Answer: B Explanation: Employers are responsible for providing "a workplace free from recognized hazards." Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

19) OSHA's standards are vague, which has made them difficult to enforce. Answer: FALSE Explanation: OSHA's standards are very complete and cover in detail just about every conceivable hazard. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 20) An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment. Answer: TRUE Explanation: An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment. This includes acute and chronic illnesses caused by inhalation, absorption, ingestion, or direct contact with toxic substances or harmful agents. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 21) Matthew, an electrician at Carver Industries, cut his hand while splicing wires. Matthew received first aid treatment before returning to work. Carver Industries is required by OSHA to report Matthew's injury. Answer: FALSE Explanation: Employers must report most occupational injuries, specifically those that result in medical treatment, loss of consciousness, restriction of work (one or more lost workdays), restriction of motion, or transfer to another job. However, if first aid is the only treatment, then the injury does not need to be reported. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 22) OSHA insists that occupational injuries be recorded, including ankle sprains that occur during voluntary participation in a company softball game. Answer: TRUE Explanation: OSHA's record-keeping requirements are fairly broad. An ankle sprain that occurs during voluntary participation in a company softball game would need to be reported. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

23) Investigating employee complaints of alleged violation standards is considered the highest priority for OSHA. Answer: FALSE Explanation: OSHA inspection priorities include, from highest to lowest, imminent dangers, catastrophes and fatal accidents, employee complaints, high-hazard industries inspections, and follow-up inspections. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 24) Scaffolding, fall protection, hazard communication, electrical disengagement, and respiratory problems are the most frequent OSHA inspection violation categories. Answer: TRUE Explanation: OSHA inspectors look for all types of violations, but some potential problem areas–such as scaffolding and fall protection–grab more of their attention. The five most frequent OSHA inspection violation areas are scaffolding, fall protection, hazard communication, lockout/tagout (electrical disengagement), and respiratory problems. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 25) Despite many managerial warnings, William refuses to wear a hard hat when working as an electrician for Paulson Homes. William cuts his head when he falls from scaffolding that has not been properly secured. Paulson Homes will most likely not be held liable for William's injury. Answer: FALSE Explanation: Although employees have a responsibility to comply with OSHA standards, they often resist; the employer usually remains liable for any penalties. William's refusal to wear a hard hat does not mean Paulson Home is not liable for his injury, especially since the scaffolding was unsafe. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

26) What is OSHA and how does it help protect workers? Answer: The Occupational Safety and Health Administration (OSHA) was created to protect workers and minimize workplace accidents. OSHA's basic purpose is to administer the Occupational Safety and Health Act of 1970 and to set and enforce the safety and health standards that apply to almost all workers in the United States. The Department of Labor enforces the standards, and OSHA has inspectors working out of branch offices to ensure compliance. Under OSHA, employers with 11 or more employees must maintain records of and report certain occupational injuries and occupational illnesses. OSHA enforces its standards through inspections and (if necessary) citations. The inspection is usually unannounced. OSHA may not conduct warrantless inspections without an employer's consent. It may inspect with an authorized search warrant or its equivalent. OSHA takes a "worst-first" approach in setting inspection priorities. Priorities include, from highest to lowest, imminent dangers, catastrophes and fatal accidents, employee complaints, high-hazard industries inspections, and follow-up inspections. In one recent year, OSHA conducted about 40,600 inspections, and accepted more than 3,000 whistle-blower cases. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA. 27) What types of unsafe conditions are the primary focus of OSHA standards? How does OSHA enforce its standards? Answer: Unsafe conditions are a main cause of accidents. They include things like: • Improperly guarded equipment • Defective equipment • Hazardous procedures in, on, or around machines or equipment • Unsafe storage—congestion, overloading • Improper illumination—glare, insufficient light • Improper ventilation—insufficient air change, impure air source The solution here is to identify and eliminate the unsafe conditions. The main aim of the OSHA standards is to address these mechanical and physical accident-causing conditions. OSHA enforces its standards through inspections and (if necessary) citations. The inspection is usually unannounced. OSHA may not conduct warrantless inspections without an employer's consent. However, it may inspect after acquiring an authorized search warrant or its equivalent. With a limited number of inspectors, OSHA recently has focused on "fair and effective enforcement," combined with outreach, education and compliance assistance, and various OSHA-employer cooperative programs Difficulty: Hard Objective: 2, 3 AACSB: Written and Oral Communication Learning Outcome: 16.2 Explain the basic facts about safety law and OSHA.

28) What is the primary cause of workplace accidents? A) chance occurrences B) unsafe conditions C) unsafe employee behavior D) insufficient safety training Answer: B Explanation: Unsafe conditions are the main cause of workplace accidents. Chance occurrences are a less significant cause of workplace accidents. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 29) Improperly guarded equipment, defective equipment, hazardous procedures, and improper ventilation are all examples of ________. A) chance occurrences B) unsafe conditions C) unsafe employee behavior D) normal occupational hazards Answer: B Explanation: Unsafe conditions refer to any mechanical and physical conditions that cause accidents, such as defective equipment and improper ventilation. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 16.3 Answer the question, "What causes accidents?" 30) Which one of the following accounts for one-third of all industrial accidents? A) forklifts and wheelbarrows B) woodworking machines C) pulleys and flywheels D) ladders and scaffolds Answer: A Explanation: About one-third of industrial accidents occur around forklift trucks, wheelbarrows, and other handling and lifting areas. The most serious accidents usually occur by metal and woodworking machines and saws, or around transmission machinery like gears, pulleys, and flywheels. Falls on stairs, ladders, walkways, and scaffolds are the third most common cause of industrial accidents. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?"

31) Which one of the following factors is LEAST likely to contribute to accidents at work? A) unsafe conditions B) nature of the work C) day of the week D) time of day Answer: C Explanation: Work conditions and the tasks of the job contribute to work accidents. More accidents occur during night shifts, so time of day matters due to worker fatigue. However, the day of the week is less likely to make a difference. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 32) All of the following personality traits are associated with people who file vehicular insurance claims EXCEPT ________. A) impatience B) entitlement C) clumsiness D) aggressiveness Answer: C Explanation: Personality traits that correlate with filing vehicular insurance claims include entitlement, impatience, aggressiveness, and distractibility. Being uncoordinated has not been correlated to poor driving. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 33) Woodworking machines, flywheels, and saws cause the most serious workplace injuries. Answer: TRUE Explanation: The most serious accidents usually occur by metal and woodworking machines and saws, or around transmission machinery like gears, pulleys, and flywheels. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 34) Workplace accidents occur more often during night shifts than during daytime shifts. Answer: TRUE Explanation: Accident rates usually don't increase too noticeably during the first 5 or 6 hours of the workday. But after that, the accident rate increases faster. This is due partly to fatigue and partly to the fact that accidents occur more often during night shifts. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 11 Copyright © 2020 Pearson Education, Inc.

35) People who are impulsive and highly extroverted tend to be accident prone. Answer: TRUE Explanation: There is growing evidence that people with specific traits may indeed be accident prone. For example, people who are impulsive, sensation seeking, extremely extroverted, and less conscientious are more likely to have accidents. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 36) Many employers today are banning mandatory overtime due to the increased likelihood of a workplace accident caused by employee fatigue. Answer: TRUE Explanation: In part due to reduced headcount and more people with second jobs, employee fatigue is a growing problem today. Many employers are therefore taking steps to reduce employee fatigue, such as banning mandatory overtime. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 16.3 Answer the question, "What causes accidents?" 37) All of the following are effective methods of improving workplace safety EXCEPT ________. A) analyzing accident rates B) publicizing an organization's safety policy C) showing an organizational commitment to safety D) setting unreasonable but challenging safety goals Answer: D Explanation: Safety goals should be achievable and specific. Analyzing accident rates, publishing the firm's safety policy, and showing an organizational commitment to safety are effective methods of improving safety. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

38) Which one of the following is NOT a method of minimizing workplace accidents? A) reducing unsafe conditions B) reducing unsafe acts C) screening employees D) paying better wages Answer: D Explanation: Reducing unsafe conditions is always the first line of defense. Reducing unsafe acts–by emphasizing safety and through screening, training, or incentive programs, for example– is the second basic way to reduce accidents. Paying better wages is less likely to affect accidents. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 39) Supervisors can reduce unsafe acts in all of the following ways EXCEPT by ________. A) listening to employee suggestions B) identifying employee interests and preferences C) involving workers in planning safety programs D) providing workers with comfortable protective equipment Answer: B Explanation: Listening to employee suggestions and involving them in the safety program can minimize accidents. Providing PPE that is comfortable and reliable encourages workers to use it. Although screening employees is important, identifying their interests and preferences is less likely to reduce unsafe acts. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 40) In most large facilities, who is responsible for reducing unsafe working conditions and reducing unsafe acts by employees? A) chief safety officer B) OSHA representative C) HR supervisor D) line manager Answer: A Explanation: In large facilities, the chief safety officer (often called the "Environmental Health and Safety Officer") is responsible for reducing unsafe acts and unsafe conditions. In smaller firms, managers, including those from human resources, plant management, and first-line managers, share these responsibilities. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

41) All of the following are considered vulnerable workers EXCEPT ________. A) young workers B) male workers C) immigrant workers D) aging workers Answer: B Explanation: In designing safe and healthy environments, employers need to pay special attention to vulnerable workers, those who are "unprepared to deal with hazards in the workplace," either due to lack of education, ill-fitting personal protective equipment, physical limitations, or cultural reasons. Among others, these may include young workers, immigrant workers, aging workers, and women workers. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 42) Which one of the following should be the first method used to reduce workplace accidents? A) enforcing job rotation B) screening job applicants C) removing physical hazards D) requiring employees to use PPE Answer: C Explanation: Reducing unsafe conditions by removing physical hazards is always the first line of defense against accidents. Then use administrative controls (such as job rotation to reduce long-term exposure to the hazard). Only then, turn to PPE. Reducing unsafe acts–by emphasizing safety and through screening, training, or incentive programs, for example–is the second basic way to reduce accidents. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

43) Thermo is a plastic supply and custom fabrication company. Thermo serves clients in the medical, solar, and semiconductor industries by making acrylic and polycarbonate sheets, tubes, and rods. The company employs approximately 500 workers at its facility in Ohio. Safety is a top priority at Thermo, and supervisors are required to conduct daily inspections of all equipment. Recently, three workers were seriously injured by a large press used to mold plastic parts. The workers spent time in the hospital for hand injuries, and they are currently recuperating at home. As a result, top management is evaluating all aspects of safety at the facility to determine what changes need to be made. Which one of the following, if true, supports the argument that Thermo needs to modify its screening, placement, and training procedures? A) Interviews with the on-duty supervisor indicate that signs were clearly posted near the accident site explaining the importance of using protective guards. B) Supervisors use a combination of recognition and monetary incentives to encourage employees to follow safety procedures. C) Interviews with the injured workers indicate that the most experienced worker removed the safety guard and the other two workers did not know how to respond. D) Noise emitted from the press and the heat in the Thermo facility is considered distracting and potentially dangerous. Answer: C Explanation: Behavioral interview questions during the screening process might have revealed the tendencies of the workers. For example, a question like, "What would you do if you saw another employee working in an unsafe way?" might have revealed personality characteristics of each worker. The most experienced worker disregarded safety, and the other two lacked the confidence or knowledge to counter the decision. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

44) Thermo is a plastic supply and custom fabrication company. Thermo serves clients in the medical, solar, and semiconductor industries by making acrylic and polycarbonate sheets, tubes, and rods. The company employs approximately 500 workers at its facility in Ohio. Safety is a top priority at Thermo, and supervisors are required to conduct daily inspections of all equipment. Recently, three workers were seriously injured by a large press used to mold plastic parts. The workers spent time in the hospital for hand injuries, and they are currently recuperating at home. As a result, top management is evaluating all aspects of safety at the facility to determine what changes need to be made. Which one of the following questions is LEAST relevant to Thermo's decision to minimize unsafe acts at the facility? A) Have Thermo managers trained employees in the use of the company's mechanical security system? B) How are employee safety suggestions and complaints currently handled by Thermo managers? C) How are Thermo employees rewarded or praised for adhering to safety rules and procedures? D) What is the current level of employee involvement in designing Thermos' safety program? Answer: A Explanation: Mechanical security systems are not directly relevant to minimizing unsafe acts by employees on the job. Mechanical security systems, such as access control systems and video surveillance equipment, relate to managing crime at a facility rather than accidents. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 45) How do managers reduce unsafe acts through selection? A) identify traits linked to job accidents and screen candidates for such traits B) train employees on the safe and proper use of equipment and tools C) rotate employees through different positions within the company D) offer monetary incentives to employee teams with low accident rates Answer: A Explanation: Proper employee screening and placement reduces unsafe acts. Here, the employer's aim is to identify the traits that might predict accidents on the job in question and then screen candidates for this trait. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

46) OSHA standards on respiratory protection require that employees ________. A) recognize and repair faulty respiratory equipment B) receive eight hours of training in respiratory safety standards C) demonstrate how to inspect, put on, and remove respirator seals D) pass a written exam on safety inspections of respiratory equipment Answer: C Explanation: OSHA's standards require more than training. Employers must demonstrate that employees actually learned what to do. For example, OSHA's respiratory standard requires that each employee be able to demonstrate how to inspect, put on, and remove respirator seals. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 47) A safety program that identifies employee conduct that contributes to accidents and then trains workers to avoid such conduct is known as a(n) ________ program. A) strategic safety B) behavior-based safety C) positive reinforcement safety D) employee participation-based safety Answer: B Explanation: Behavior-based safety means identifying the worker behaviors that contribute to accidents and then training workers to avoid these behaviors. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

48) Thermo is a plastic supply and custom fabrication company. Thermo serves clients in the medical, solar, and semiconductor industries by making acrylic and polycarbonate sheets, tubes, and rods. The company employs approximately 500 workers at its facility in Ohio. Safety is a top priority at Thermo, and supervisors are required to conduct daily inspections of all equipment. Recently, three workers were seriously injured by a large press used to mold plastic parts. The workers spent time in the hospital for hand injuries, and they are currently recuperating at home. As a result, top management is evaluating all aspects of safety at the facility to determine what changes need to be made. Which one of the following, if true, best supports the argument that Thermo supervisors need additional training in OSHA standards? A) The three workers were working overtime during an evening shift at Thermo, and only one of them had extensive experience using the press. B) The safety gate had been removed from the press to bypass a safety interlock, and the gate was not replaced prior to the three workers using the machine during their morning shift at Thermo. C) Thermo conducts air sampling on a weekly basis as part of its industrial hygiene program, and the firm has never been cited for poor air quality. D) All three of the injured workers had worked at Thermo for over thirty years and were nearing retirement age prior to the accident. Answer: B Explanation: A supervisor's primary duty is to inspect a facility for safety, which includes inspecting equipment. The paragraph indicates that supervisors check equipment each day, but apparently the three workers' supervisor was not knowledgeable enough to realize there was a hazard present with the press. Therefore, supervisors would benefit from additional training in OSHA standards. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

49) Thermo is a plastic supply and custom fabrication company. Thermo serves clients in the medical, solar, and semiconductor industries by making acrylic and polycarbonate sheets, tubes, and rods. The company employs approximately 500 workers at its facility in Ohio. Safety is a top priority at Thermo, and supervisors are required to conduct daily inspections of all equipment. Recently, three workers were seriously injured by a large press used to mold plastic parts. The workers spent time in the hospital for hand injuries, and they are currently recuperating at home. As a result, top management is evaluating all aspects of safety at the facility to determine what changes need to be made. Which one of the following, if true, best supports the argument that Thermo needs to implement a positive reinforcement program? A) Each of the injured workers was given a job simulation test prior to selection and placement. B) The injured workers removed a safety guard while operating the press to speed the process. C) The accident reporting rate at Thermo is lower than that of comparable businesses in the area. D) One of the injured workers was on probation with Thermo for starting a fight with a coworker. Answer: B Explanation: A positive reinforcement program provides positive feedback to workers who focus on safety. The workers in this case ignored safety by removing a safety guard in order to work more quickly, and a positive reinforcement program would likely discourage such hazardous actions. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 50) Which term refers to systematically identifying and eliminating workplace dangers before accidents occur? A) occupational safety program B) job hazard analysis C) operational safety review D) risk management Answer: B Explanation: Job hazard analysis involves a systematic approach to identifying and eliminating such hazards before they occur. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

51) The HR manager at Thompson Industries has been given the task of reducing the number of unsafe acts and creating a supportive environment. Which one of the following would be LEAST effective? A) conducting an operational safety review B) providing leadership training to managers C) stressing the importance of teamwork D) promoting the value of safety Answer: A Explanation: An operational safety review is typically conducted by agencies to determine if employers are in compliance with safety regulations and is not necessarily a key method. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 52) When an agency checks to see if units under their jurisdiction are following safety laws and rules, that is known as a(n) ________. A) job hazard analysis B) citation C) operational safety review D) safety awareness program Answer: C Explanation: Operational safety reviews (or safety operations reviews) are conducted by agencies to ascertain whether units under their jurisdiction are complying with all the applicable safety laws, regulations, orders, and rules. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 53) According to research, which one of the following is an increasing cause of motor vehicle crashes that contribute to 24% of motor vehicle crashes per year? A) alcohol abuse B) hazardous roads C) cell phone usage D) improper driver training Answer: C Explanation: Studies indicate that cell phone activity probably contributes to over 24% motor vehicle crashes per year. Many businesses are therefore banning cell phone use while driving. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

54) Which one of the following is conducted by an agency to determine if a work site is in compliance with safety laws and regulations? A) security plan B) workplace review C) job hazard analysis D) operational safety review Answer: D Explanation: Operational safety reviews (or safety operations reviews) are conducted by agencies to ascertain whether units under their jurisdiction are complying with all the applicable safety laws, regulations, orders, and rules. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 55) Positive reinforcement programs identify the worker behaviors that lead to accidents and then train workers to avoid these behaviors. Answer: FALSE Explanation: Positive reinforcement programs provide workers with continuing positive feedback, usually in the form of graphical performance reports and supervisory support, to shape the workers' safety-related behavior. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 56) Comfort, fit, durability, and convenience are primary concerns regarding personal protective equipment. Answer: TRUE Explanation: Getting employees to wear personal protective equipment (PPE) is a famously difficult chore. Wearability, reliable protection, fit, comfort, and convenience are likely to improve the use of PPE. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 57) The fatality rate of young workers is nearly three times that of older, more experienced workers. Answer: FALSE Explanation: Employers should make special provisions to assist older workers like reducing heavy lifting and boosting lighting levels. The fatality rate for older workers is about three times that of younger workers. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 21 Copyright © 2020 Pearson Education, Inc.

58) Safety awareness programs involve trained supervisors orienting new workers regarding common safety hazards and simple prevention methods in the workplace. Answer: TRUE Explanation: Safety awareness programs mean trained supervisors orienting new workers arriving at a job site regarding common safety hazards and simple prevention methods. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 59) OSHA advocates safety incentive programs because they drastically reduce the number of workplace injuries and illnesses. Answer: FALSE Explanation: OSHA has argued that safety incentive programs don't cut down on actual injuries or illnesses, but only on injury and illness reporting. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 60) An operational safety review involves systematically identifying and eliminating dangers in the workplace before accidents occur and reducing risks to acceptable levels. Answer: FALSE Explanation: Operational safety reviews (or safety operations reviews) are conducted by agencies to ascertain whether units under their jurisdiction are complying with all the applicable safety laws, regulations, orders, and rules. Job hazard analysis involves a systematic approach to identifying and eliminating workplace hazards before accidents occur. Job hazard analysis focuses on the relationship between the worker, the task, the tools, and the work environment and ends by reducing the potential risks to acceptable levels. Difficulty: Moderate Objective: 4 AACSB: Reflective Thinking Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

61) What is the supervisor's role in workplace safety? What actions can supervisors take to reduce the number of unsafe acts by subordinates? Answer: The supervisor is responsible for the day-to-day inspections. Safety inspections should always be part of the supervisor's daily routine. In order to reduce unsafe acts by subordinates, supervisors can take additional actions. Some possible actions include 1) emphasizing the commitment of top management to safety, 2) establishing a safety policy, 3) reducing unsafe acts through selection, 4) providing safety training, 5) using posters, 6) using positive reinforcement, 7) using behavior-based safety programs, 8) encouraging worker participation, and 9) conducting safety and health inspections regularly. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 16.4 List and explain five ways to prevent accidents at work. 62) Discuss what a job hazard analysis is and how it can be conducted. Answer: Job hazard analysis involves a systematic approach to identifying and eliminating such hazards before they cause accidents. According to OSHA, job hazard analysis "focuses on the relationship between the worker, the task, the tools, and the work environment," and ends by reducing the potential risks to acceptable levels. Consider a safety analyst looking at the Yale science lab, with the aim of identifying potential hazards. Performing a job hazard analysis here might involve looking at the situation and asking these questions: What can go wrong? A student's hair or clothing could become caught in the lathe, a rotating object that "catches" it and pulls it into the machine. What are the consequences? The student could receive a severe injury as his or her body part or hair is caught and drawn into the spinning lathe. How could it happen? The accident could happen as a result of the student leaning too close to the lathe while working at the bench, or walking too close to the lathe, or bending to reach for an article that fell close to the lathe. What are other contributing factors? Speed is one contributing factor. The problem would occur so quickly that the student would be unable to take evasive action once the lathe ensnarled the hair. Difficulty: Moderate Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 16.4 List and explain five ways to prevent accidents at work.

63) Workplace security plans should address all the following EXCEPT ________. A) making security functions more informal B) protecting intellectual property C) installing facility security systems D) developing crisis management plans Answer: A Explanation: Workplace security plans should address tasks such as establishing a formal security function, protecting the firm's intellectual property, developing crisis management plans, establishing theft and fraud prevention procedures, preventing workplace violence, and installing facility security systems. Difficulty: Hard Objective: 6 AACSB: Reflective Thinking Learning Outcome: 16.5 Describe how one company uses employee engagement to improve workplace safety. 64) Toyota uses cadmium pigments in the paint for its cars. At the Toyota plant, air samples are frequently taken as a precautionary measure to ensure that employees are not exposed to levels outside the OSHA safety standards. Which one of the following best describes this situation? A) job simulation tests B) unsafe conditions C) industrial hygiene D) screening Answer: C Explanation: Managing exposure hazards like airborne cadmium pigments comes under the area of industrial hygiene and involves recognition, evaluation, and control. Screening refers to evaluating worker traits. If Toyota did not take air samples, the conditions might become unsafe. Difficulty: Moderate Objective: 6 AACSB: Application of Knowledge Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 65) Which one of the following is a major source of occupational respiratory disease? A) dust B) mold C) fertilizer D) asbestos Answer: D Explanation: Asbestos is a major source of occupational respiratory disease. Efforts are still under way to rid old buildings of the substance. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

66) OSHA standards list exposure limits for about how many chemicals? A) 50 B) 200 C) 600 D) 1200 Answer: C Explanation: OSHA standards list exposure limits for about 600 chemicals. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 67) If your employees are traveling to and from international destinations, which one of the following is the most appropriate option for preventing the entry or spread of an infectious disease? A) dismissing the workers from their positions B) denying workers facility access for ten days C) sending workers to a nearby hospital D) offering workers a light-work option Answer: B Explanation: Denying access to your facility for ten days to employees or visitors returning from affected areas, particularly those who have had contact with suspected infected individuals, is the best way to ensure that an infectious disease is not spread. Difficulty: Moderate Objective: 6 AACSB: Application of Knowledge Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 68) All of the following recommendations are suggested for companies seeking to minimize the entry or spread of infectious diseases EXCEPT ________. A) staggering lunch breaks B) administering drug tests frequently C) making hand sanitizers easily available D) cleaning work areas regularly and often Answer: B Explanation: Conducting drug tests will not reduce the spread of disease. However, staggering lunch breaks to reduce overcrowding, monitoring travel alerts, cleaning often, and encouraging hand washing will reduce potential diseases from spreading or entering. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

69) What percent of the US workforce has been impaired on the job (due to alcohol or illegal drugs) at least once during the previous year? A) Eight B) Fifteen C) Twenty-seven D) Forty-three Answer: B Explanation: Alcoholism and substance abuse are problems at work. About 15% of the U.S. workforce (just over 19 million workers) "has either been hung over at work, been drinking shortly before showing up to work, or been drinking or impaired while on the job at least once during the previous year." Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 70) Which one of the following is one of the earliest indicators of an employee's possible alcoholism? A) mood swings B) forgetfulness C) missed deadlines D) personal neglect Answer: C Explanation: Missed deadlines are an early sign of possible alcoholism. Mood swings, forgetfulness, and personal neglect may occur in more advanced stages of alcoholism. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 71) Centerline Communications wants to reduce the number of workplace accidents associated with employee substance abuse. Which one of the following would be the most effective method to accomplish this goal? A) preemployment drug testing B) preemployment psychological screening C) a combination of random ongoing drug testing with psychological evaluations D) a combination of preemployment drug testing and random ongoing drug testing Answer: D Explanation: A combination of preemployment and random ongoing testing was associated with a significant reduction in workplace accidents. Studies have shown a less significant reduction in workplace accidents when only one or the other is used. Difficulty: Moderate Objective: 6 AACSB: Application of Knowledge Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

72) Which one of the following is NOT one of the primary methods of dealing with a current employee who tests positive for illegal drugs? A) arrest B) discipline C) in-house counseling D) referral to outside counseling Answer: A Explanation: When a current employee tests positive for drugs, disciplining, discharge, in-house counseling, and referral to an outside agency are the four traditional prescriptions. Arrest is unlikely in most cases. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 73) All of the following are symptoms of employees in advanced stages of alcoholism EXCEPT ________. A) drinking on the job B) walking with an unsteady gait C) delegating job responsibilities D) showing incompetent job performance Answer: C Explanation: Delegating job responsibilities is not characteristic of advanced alcoholism. However, drinking on the job, walking unsteadily, falling, and performing with incompetence are clear signs. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 74) Lisa, a supervisor at a manufacturing facility, suspects that one of her subordinates may be under the influence of drugs or alcohol. Which one of the following, if true, would lead Lisa to this conclusion? A) The employee becomes very careful in the execution of his duties. B) The employee has become stand-offish with coworkers. C) The employee frequently misses work on Mondays. D) The employee takes frequent rest breaks. Answer: C Explanation: One possible sign of a middle-stage alcoholism problem is frequent absences, especially Mondays. Difficulty: Hard Objective: 6 AACSB: Application of Knowledge Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

75) In some cases, employees accused of alcoholism or drug abuse have retaliated by suing the employer for all of the following EXCEPT ________. A) invasion of privacy B) OSHA violations C) illegal search D) defamation Answer: B Explanation: Employees have sued for invasion of privacy, wrongful discharge, defamation, and illegal searches. An employee would not be able to sue for OSHA violations if accused of substance abuse. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 76) Which one of the following is a personal factor that can lead to stress? A) poor supervision B) pace of work C) divorce D) job security Answer: C Explanation: A variety of workplace factors can lead to stress, such as work schedule, pace of work, job security, poor supervision, and the number and nature of customers or clients. Personal factors also influence stress. For example, Type A personalities normally place themselves under greater stress. Also, nonjob problems like divorce can lead to stress. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 77) David is experiencing significant levels of job stress in his position as vice president of marketing. Which one of the following is LEAST likely to be a consequence of David's stress? A) headaches B) cancer C) depression D) heart disease Answer: B Explanation: Job stress has serious consequences for both employer and employee. The human consequences include anxiety, depression, anger, cardiovascular disease, and headaches. Connections have not been made between stress and the incidence of cancer. Difficulty: Moderate Objective: 6 AACSB: Application of Knowledge Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

78) Which one of the following will most likely increase as a result of employees experiencing significant job stress? A) retirements B) punctuality C) health care costs D) work quality Answer: C Explanation: For the employer, consequences of employee stress include diminished quantity and quality of performance, and increased absenteeism and turnover. One report estimates that work stress costs an extra $125 to $190 billion dollars per year in health-care spending. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 79) Employees who wish to lower their job stress will most likely benefit from doing all of the following activities EXCEPT ________. A) making a list of problems and possible solutions B) putting off dealing with distasteful problems C) requesting realistic project deadlines D) limiting interruptions Answer: B Explanation: Putting off distasteful problems can increase stress, so they should be dealt with swiftly. Making "worry lists," negotiating deadlines, and limiting interruptions can reduce stress. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 80) Work stress costs an extra ________ per year in health-care spending. A) $513-602 million B) $827-878 million C) $125-190 billion D) $235-269 billion Answer: C Explanation: One report estimates that work stress costs an extra $125-190 billion per year in health-care spending. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

81) ________ is defined as the total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal. A) Depression B) Job stress C) Anxiety D) Burnout Answer: D Explanation: Burnout is a phenomenon closely associated with job stress. Experts define burnout as the total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 82) As an HR manager, you need to be aware of the symptoms of burnout among employees. Which one of the following is most likely NOT a sign of employee burnout? A) irritability B) absenteeism C) entrapment D) resentment Answer: B Explanation: Burnout builds gradually, manifesting itself in symptoms such as irritability, discouragement, exhaustion, cynicism, entrapment, and resentment. Absenteeism is not necessarily a sign of burnout, although taking time off from work would be beneficial. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 83) Experts suggest that burnout can most effectively be reduced by ________. A) telecommuting B) taking long vacations C) changing careers D) reassessing goals Answer: D Explanation: Reassessing goals, meditating, and exercising are ways that people can reduce burnout. Studies have shown that long vacations are not necessarily beneficial and that mini vacations during the day are more useful. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

84) Employee depression results in as many as ________ total lost workdays in the United States each year. A) 5 million B) 15 million C) 50 million D) 200 million Answer: D Explanation: Experts estimate that depression results in about 200 million lost workdays in the United States annually and may cost U.S. businesses $17-44 billion or more per year just in absenteeism and lost productivity. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 85) All of the following are most likely signs of employee depression EXCEPT ________. A) lack of sleep B) burnout C) poor concentration D) reduced appetite Answer: B Explanation: Typical warning signs of depression (if they last for more than two weeks) include persistent sad, anxious, or "empty" moods; sleeping too little; reduced appetite; loss of interest in activities once enjoyed; restlessness or irritability; and difficulty concentrating. Burnout is similar to job stress but not necessarily a sign of depression. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 86) Which one of the following is a true statement regarding workplace smoking? A) Workplace smoking rules are determined by local unions and federal laws. B) OSHA requires employers to establish designated smoking areas. C) Employers may decline to hire candidates because they smoke at home. D) The ADA protects the rights of workers to smoke at work. Answer: C Explanation: Employers can deny a job to smokers, even if they only smoke at home. Smoking is not a disability, so the ADA does not protect smokers. Employers have higher costs due to higher health and fire insurance, increased absenteeism, and reduced productivity. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

87) Data entry specialists and assembly line workers are most susceptible to ________. A) repetitive motion disorders B) workplace violence C) job stress D) burnout Answer: A Explanation: According to the U.S. National Institutes of Health, repetitive motion disorders include disorders such as carpal tunnel syndrome, bursitis, and tendonitis, and result from too many uninterrupted repetitions of an activity or motion, or from unnatural motions such as twisting the arm or wrist, or incorrect posture. It usually affects people who perform repetitive tasks such as assembly line work or computer work. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 88) For dealing with hazardous substances, personal protective gear is generally the first option. Answer: FALSE Explanation: Personal protective gear is generally the last option for dealing with such problems. The employer must first install engineering controls (such as process enclosures or ventilation) and administrative controls (including training and improved housekeeping). Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 89) During the evaluation stage of industrial hygiene, a facility's health and safety officers interview employees and conduct a facility survey. Answer: FALSE Explanation: Industrial hygiene involves recognition, evaluation, and control. During recognition, the facility's health and safety officers must recognize possible exposure hazards. This typically involves conducting plant/facility walk-around surveys and employee interviews. Having identified a possible hazard, the evaluation phase involves determining how severe the hazard is by measuring the exposure. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

90) A recent survey indicates that approximately 35% of the U.S. workforce has either been hung over at work or been impaired while on the job at least once during the previous year. Answer: FALSE Explanation: About 15% of the U.S. workforce "has either been hung over at work, been drinking shortly before showing up for work, or been drinking or impaired while on the job at least once during the previous year." Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 91) Pre-employment drug testing tends to discourage drug users from applying for jobs or for applying with companies that perform drug tests. Answer: TRUE Explanation: Pre-employment drug testing also discourages those on drugs from applying for work or going to work for employers who test. One study found that more than 30% of regular drug users employed full-time said they were less likely to work for a company that conducted pre-employment screening. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 92) Most employers do not deal with substance abuse until after a worker is hired. Answer: FALSE Explanation: For many employers, dealing with substance abuse begins with substance abuse testing. It is unusual to find employers who don't at least test job candidates for substance abuse before formally hiring them. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 93) Tardiness and lying are early-stage behaviors that indicate a worker's possible alcoholism. Answer: TRUE Explanation: Arriving at work late, untrue statements, and leaving work early are early stage alcoholism signs. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

94) Repetitive motion disorders include disorders such as carpal tunnel syndrome and tendonitis, and result from too many uninterrupted repetitions of an activity or motion, or from unnatural motions such as twisting the arm or wrist. Answer: TRUE Explanation: Repetitive motion disorders include disorders such as carpal tunnel syndrome and tendonitis, and result from too many uninterrupted repetitions of an activity or motion, or from unnatural motions such as twisting the arm or wrist. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 95) What steps are involved in a basic industrial hygiene program? Answer: The process is basically one of recognition, evaluation, and control. First, the facility's health and safety officers must recognize possible exposure hazards. Doing so typically involves conducting plant/facility walk-around surveys, employee interviews, records reviews, and reviews of government and nongovernmental standards regarding various occupational exposure hazards. Then, the evaluation phase involves determining how severe the hazard is. This usually requires measuring the exposure, comparing the measured exposure to some benchmark and determining whether the risk is acceptable. Finally, the control phase involves taking steps to eliminate or reduce the hazard so that it no longer ranks as dangerous. Difficulty: Moderate Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 96) What steps can employers take to prevent the entry or spread of infectious diseases in the workplace? Answer: The text recommends seven steps. • Closely monitor Centers for Disease Control travel alerts. • Provide daily medical screenings for employees returning from infected areas. • Deny facility access for 10 days to employees or visitors returning from infected areas. • Tell employees to stay home if they have a fever or respiratory system symptoms. • Clean work areas and surfaces regularly. • Stagger breaks. Offer several lunch periods to reduce overcrowding. • Emphasize to employees the importance of frequent hand washing and sanitization. Difficulty: Moderate Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

97) In a brief essay, discuss the observable behaviors that may indicate an employee has an alcohol-related problem. Identify and describe the behavior associated with each stage of alcoholism. Answer: Stage 1, the early stage, is characterized by tardiness, leaving work early, missed deadlines, errors, and poor job efficiency. Stage 2, the middle stage, is characterized by frequent days off with vague reasons, changes in behavior, avoidance of others, anxiety, and injuries at work. Stage 3, the advanced stage, is characterized by personal neglect, unsteady gait, violent outbursts, blackouts, frequent accidents, and incompetent performance. Difficulty: Hard Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 16.6 List five workplace health hazards and how to deal with them. 98) What are the factors leading to job stress? How can employees reduce their job stress? Answer: Job stress can be caused by both external and personal factors. External factors include work schedule, work pace, job security, client interaction, and noise. Personal factors include things like personality and work-family conflict. The following suggestions may assist in reducing job stress. • Build good working relationships with colleagues. • Do not accept work overloads. • Build an effective relationship with one's supervisor. • Negotiate for realistic deadlines. • Learn about upcoming events and get lead time to prepare. • Find time each day to relax. • Take a walk. • Reduce unnecessary noise. • Reduce the amount of trivia in one's job. • Limit interruptions. • Deal with distasteful problems as soon as possible. • Make a constructive "worry" list with possible solutions for each problem. Difficulty: Hard Objective: 6 AACSB: Written and Oral Communication Learning Outcome: 16.6 List five workplace health hazards and how to deal with them.

99) ________ relates to protecting employees from internal and external security risks. A) Risk management B) Security C) Crisis D) Safety Answer: B Explanation: Workplace security relates to protecting employees from internal and external security risks such as criminal acts by outside perpetrators and treats of terrorism. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 100) One of the recommendations to thwart would-be hackers of computer information is to ________. A) store personnel files offsite B) destroy old or unneeded data and use only the latest operating system on the organization's computers C) use only the latest operating system on the organization's computers D) hold the IT department responsible for securing computerized data Answer: B Explanation: "Old data is bad data." In other words, destroy unneeded old personal data (say from five years ago) unless it's absolutely required. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 101) ________ is "the process of assessing exposures to loss within an operation and determining how best to eliminate, manage or otherwise reduce the risk of an adverse event from having a negative impact on the business." A) Workplace safety B) Security C) Crisis management D) Risk management Answer: D Explanation: Enterprise risk management is "the process of assessing exposures to loss within an operation and determining how best to eliminate, manage or otherwise reduce the risk of an adverse event from having a negative impact on the business." Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 36 Copyright © 2020 Pearson Education, Inc.

102) Which one of the following terms refers to taking advantage of a facility's architectural features in order to minimize security problems? A) mechanical security B) organizational security C) natural security D) risk management Answer: C Explanation: Natural security means taking advantage of the facility's natural or architectural features in order to minimize security problems. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 103) The mail room at Citibank uses special scanners to check the safety of incoming mail. This is most likely an example of ________. A) mechanical security B) organizational security C) natural security D) architectural security Answer: A Explanation: Mechanical security is the utilization of security systems such as locks, intrusion alarms, access control systems, and surveillance systems to reduce the need for continuous human surveillance. Difficulty: Easy Objective: 7 AACSB: Application of Knowledge Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 104) The security guards and tellers at National Bank receive extensive training on how to handle medical emergencies, angry customers, and suspicious packages. Which one of the following security programs is most likely being used at National Bank? A) mechanical security B) group security C) organizational security D) natural security Answer: C Explanation: Organizational security means using good management to improve security, which involves proper training and motivation. Difficulty: Moderate Objective: 7 AACSB: Application of Knowledge Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 37 Copyright © 2020 Pearson Education, Inc.

105) Workplace safety relates to protecting employees from internal and external security risks such as criminal acts by outside perpetrators and terrorism. Answer: FALSE Explanation: Workplace security relates to protecting employees from internal and external security risks such as criminal acts by outside perpetrators and terrorism. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 106) About 86% of past workplace violence incidents were anticipated by coworkers. Answer: TRUE Explanation: Risk Management Magazine estimates that about 86% of past workplace violence incidents were anticipated by coworkers, who had brought them to management's attention prior to the incidents actually occurring. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 107) Enterprise risk management involves identifying and handling security risks, such as those associated with workplace crime and facility security. Answer: TRUE Explanation: Identifying security and other corporate risks falls within the domain of enterprise risk management, which means identifying risks and planning to mitigate and actually mitigating these risks. Eliminating crime and enhancing facility security are two important issues here. Difficulty: Easy Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 108) The first step of an effective and comprehensive corporate anti-crime program involves installing an advanced alarm system and metal detector at every entrance. Answer: FALSE Explanation: Ideally, a comprehensive corporate anticrime program should start with a company philosophy and policy on crime. In particular, make sure employees understand that no crime is acceptable and that the employer has a zero-tolerance policy with respect to workers who commit crimes. Difficulty: Moderate Objective: 7 AACSB: Analytical Thinking Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 38 Copyright © 2020 Pearson Education, Inc.

109) What class of risk do employers have to manage? How do employers manage such risk? Answer: How the employer manages a specific risk depends on the class of risk it falls in. For example, internal preventable risks arise from actions within the company and include things like employees' illegal conduct or workplace accidents. Employers manage these risks with methods such as codes of conduct, disciplinary procedures, and safety rules. Strategy risks are risks that managers accept as part of executing their strategies, such as the risk a banker takes that a borrower defaults. Employers manage some strategy risks with independent experts (like those who assess insurance risks) and with internal experts, like the risk managers who help to oversee banks' loan portfolios. External risks come from outside the company and include things like political and natural disasters and terrorism. Managing external risks might involve methods like scenario planning, in which the company endeavors to identify, analyze, and plan for multiple possible eventualities. Difficulty: Hard Objective: 7 AACSB: Written and Oral Communication Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program. 110) When setting up a basic security program, what are the primary threat assessment matters that need to be addressed? Discuss the role of natural, mechanical, and organizational security in your security program. Answer: Security programs ideally start with an analysis of the facility's current level of risk. As part of this initial threat assessment, also review at least these six matters. 1. Access to the reception area, including number of access points, and need for a "panic button" for contacting emergency personnel; 2. Interior security, including possible need for key cards, secure restrooms, and better identification of exits; 3. Authorities' involvement, in particular emergency procedures developed with local law enforcement authorities; 4. Mail handling, including how employees screen and open mail and where it enters the building; 5. Evacuation, including a full review of evacuation procedures and training; and 6. Backup systems, for instance, that let the company store data off site if disaster strikes. Having assessed the potential current level of risk, the employer then turns its attention to assessing and improving natural, mechanical, and organizational security. Natural security means taking advantage of the facility's natural or architectural features in order to minimize security problems. Mechanical security is the utilization of security systems such as locks, intrusion alarms, access control systems, and surveillance systems to reduce the need for continuous human surveillance. Finally, organizational security means using good management to improve security. For example, it means properly training and motivating security staff and lobby attendants. Difficulty: Hard Objective: 7 AACSB: Written and Oral Communication Learning Outcome: 16.7 Discuss the prerequisites for a security plan and how to set up a basic security program.

Human Resource Management, 16e (Dessler) Chapter 17 Managing Global Human Resources 1) Which one of the following terms refers to the human resource management concepts and techniques employers use to manage the challenges of their international operations? A) work councils B) international human resource management C) power distance D) codetermination Answer: B Explanation: International human resource management is the human resource management concepts and techniques employers use to manage the human resource challenges of their international operations. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 17.1 List the HR challenges of international business. 2) International human resource management (IHRM) focuses on three main topics. Which one of the following is NOT one of them? A) comparing human resource management practices B) managing human resources in global companies C) domestic company partnerships D) managing expatriate employees Answer: C Explanation: Comparing human resource management practices, managing human resources in global companies, and managing expatriate employees are the main topics of IHRM. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 17.1 List the HR challenges of international business. 3) The most significant HR challenge faced by international firms is the language barrier. Answer: FALSE Explanation: Vast distances increase the challenges for an international firm. However, language is not necessarily the biggest issue. Cultural, political, legal, and economic differences among countries create challenges for global firms. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 17.1 List the HR challenges of international business.

4) International human resource management (IHRM) is the human resource management concepts and techniques employers use to manage the human resource challenges of their international operations. Answer: TRUE Explanation: International human resource management (IHRM) is the human resource management concepts and techniques employers use to manage the human resource challenges of their international operations. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 17.1 List the HR challenges of international business. 5) Geert Hofstede called the extent to which less powerful members of institutions accept and expect an unequal power distribution ________. A) masculinity B) individualism C) power distance D) tolerance for ambiguity Answer: C Explanation: A study by Professor Geert Hofstede identified international cultural differences. For example, Hofstede says societies differ in power distance, which is the extent to which the less powerful members of institutions accept and expect an unequal distribution of power. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 6) According to research, which one of the following is a greater concern to Chinese managers than United States managers? A) getting tasks accomplished efficiently B) keeping a distance from subordinates C) enforcing a firm's policies and regulations D) maintaining a harmonious work environment Answer: D Explanation: Although many managers endorse performance-based pay in China, other employers, to preserve group harmony, make incentive pay a small part of the pay package. And, as in other parts of Asia, team incentives are advisable. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM.

7) In which country do individuals have a high acceptance of unequal power distribution between managers and subordinates? A) Mexico B) Hong Kong C) Sweden D) United States Answer: A Explanation: Power distance represents the extent to which the less powerful members of institutions accept and expect an unequal distribution of power. Studies show that acceptance of such inequality is higher in some countries (such as Mexico) than in others (such as Sweden). Mexican workers expect managers to keep their distance rather than to be close, and to be formal rather than informal. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 8) Of the countries listed below, in which one do production workers receive the lowest hourly wage? A) United States B) Philippines C) Germany D) Taiwan Answer: B Explanation: Hourly compensation costs (in U.S. dollars) for production workers range from $2.10 in the Philippines to $9.46 in Taiwan, $35.67 in the United States, $45.79 in Germany, to $63.86 in Norway. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 9) ________ are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics affecting the employees. A) Bargaining units B) Works councils C) Mediation groups D) Employee boards Answer: B Explanation: In many European countries, work councils replace the worker-management mediations typical in U.S. firms. Work councils are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics ranging from no-smoking policies to layoffs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 3 Copyright © 2020 Pearson Education, Inc.

10) In many European countries, ________ replace the union-based worker-management mediations typical in the U.S. A) HR managers B) corporate attorneys C) work councils D) bargaining units Answer: C Explanation: In many European countries, work councils replace the worker-management mediations typical in U.S. firms. Work councils are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics ranging from no-smoking policies to layoffs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 11) In Germany, employees have the legal right to a voice in setting company policies. This is called ________. A) codetermination B) employment at will C) internal coordination D) gainsharing Answer: A Explanation: Codetermination is the rule in Germany and several other countries. Codetermination means employees have the legal right to a voice in setting company policies. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 12) The European Union is best described as a ________. A) system of global standards, policies, and legislation B) common market for goods, services, capital, and labor C) political agreement that standardizes human resource laws D) political system for equalizing wages, benefits, and taxation Answer: B Explanation: The separate countries of the former European Community unified into a common market for goods, services, capital, and even labor called the European Union (EU). Tariffs for goods moving across borders from one EU country to another generally disappeared, and employees now move freely between jobs in EU countries. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM.

13) Which one of the following is a true statement regarding the European Union? A) Some EU employers must provide employees with written offers of employment. B) EU employers must provide two weeks' notice when dismissing employees. C) Each EU country pays workers the same minimum hourly wage. D) Workers in the EU must live and work in their home country. Answer: A Explanation: Companies doing business in Europe must adjust their human resource policies and practices to EU directives (laws), as well as to country-specific employment laws. Some details, such as whether job offers must be in writing, and whether there is a mandatory minimum wage (yes in Germany, no in Austria) vary amongst European countries. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 14) Why is recruiting, hiring, and retaining good employees difficult in China? A) economic difficulties B) unmotivated workers C) government restrictions D) training requirements Answer: C Explanation: China's new labor contract law adds numerous new employment protections for employees and makes it correspondingly more expensive for employers in China to implement personnel actions such as layoffs. China's employment contract law requires that employers report the names, sexes, identification numbers, and contract terms for all employees they hire, within 30 days of hiring, to local labor bureaus. Employees gravitate toward employers that provide the best career advancement training and opportunities. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 15) In China, qualified job candidates are most likely to be interested in a firm that offers ________. A) signing bonuses B) performance-based pay C) job expansion opportunities D) training and development programs Answer: D Explanation: Employees are highly career oriented and gravitate toward employers that provide the best career advancement training and opportunities. Group harmony is important in China, so incentive pay is not advisable. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 5 Copyright © 2020 Pearson Education, Inc.

16) Daniel is a manager for a U.S. company's division in France, and it is time to conduct performance appraisals. During the appraisals, it would be most effective for Daniel to ________. A) link performance with employee bonuses B) make personal comments to the employee C) focus on what is wrong because the employees already know what is right D) post appraisal results for each team Answer: C Explanation: When Daniel gives performance feedback in France, employees don't think it's necessary to mention what's right because they know what they've done right. He should focus instead on what's wrong. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 17) A major challenge for international businesses is the need to adapt personnel policies and procedures to the differences among countries. Answer: TRUE Explanation: Taking the company global triggers various management challenges, including how to adapt personnel policies and procedures to various cultures and countries. Human resource management must also consider its systems for recruiting, selecting, training, and appraising and compensating its workers abroad. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 18) Codetermination means that employees have a legal right to voice opinions and preferences in setting company policies. Answer: TRUE Explanation: Codetermination means employees have the legal right to a voice in setting company policies. Workers elect their own representatives to the supervisory board of the employer. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM.

19) Hourly wages for production workers in the United States are higher than those in Germany. Answer: FALSE Explanation: Differences in labor costs are substantial. For example, hourly compensation costs for production workers range from $2.10 in the Philippines, to $9.46 in Taiwan, $35.67 in the United States, $45.79 in Germany, to $63.86 in Norway. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 20) Dismissing employees for poor performance is as easy in Italy as it is in the U.S. Answer: FALSE Explanation: In Italy poor performance is not a reason for dismissal. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 21) In China, a structured interview process is the typical method for selecting employees. Answer: TRUE Explanation: The dominant employee selection method in China involves analyzing the applicant's résumé and then interviewing him or her. The ideal way to do this is to institute a structured interview process, as many of the foreign firms in China have done. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 22) In a planned economy, such as China, some industries are under the direct control of the government while other industries are free to make pricing and production decisions based on market demand. Answer: FALSE Explanation: In planned economies (such as North Korea), the government decides and plans what to produce and sell, at what price. In mixed economies (such as China), many industries are still under direct government control, while others make pricing and production decisions based on market demand. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM.

23) In a brief essay, discuss the economic and labor relations factors that are unique to Europe. Answer: Differences in economic systems also translate into differences in human resource management policies. Hourly compensation costs for production workers vary as well. Several European countries, including the United Kingdom and Germany, require substantial severance pay to departing employees. The U.S. practice of employment at will does not exist in Europe, where firing or laying off workers is usually expensive. And in many European countries, work councils replace the worker-management mediations typical in U.S. firms. Codetermination is the rule in Germany and several other countries. Unions in Europe are influential, and labormanagement bargaining and relations reflect this fact. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 17.2 Illustrate with examples how intercountry differences affect HRM. 24) ________ are citizens of the countries where they are working. A) Home-country nationals B) Multi-nationals C) Expatriates D) Locals Answer: D Explanation: Locals are citizens of the countries where they are working. Expatriates are noncitizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 25) Of the types of international workers that multinational companies can employ, locals are best described as ________. A) citizens of the countries where they are working B) noncitizens of the countries in which they are working C) citizens of the country in which the multinational company has its headquarters D) noncitizens of the country in which the multinational company has its headquarters Answer: A Explanation: Locals are citizens of the countries where they are working. Expatriates are noncitizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

26) Marie is an Italian executive working in a manufacturing plant in Siena, Italy that is owned by a parent company based in Singapore. Marie is a(n) ________. A) local B) expatriate C) third-country national D) home-country national Answer: A Explanation: Locals are citizens of the countries where they are working. Expatriates are noncitizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 27) Jason is a British freelance journalist working in Paris, so he is most likely classified as a(n) ________. A) local B) expatriate C) third-country national D) home-country national Answer: B Explanation: Expatriates are non-citizens of the countries in which they are working. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Third-country nationals are citizens of a country other than the parent or the host country. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 28) ________ are noncitizens of the countries in which they are working. A) Home-country nationals B) Host-country nationals C) Expatriates D) Locals Answer: C Explanation: Expatriates are non-citizens of the countries in which they are working. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 9 Copyright © 2020 Pearson Education, Inc.

29) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which one of the following questions is LEAST relevant to the decision to fill management positions in Chile with expatriates? A) What will be the relocation and compensation costs to Walmart of using expatriates? B) What level of corporate control is needed for opening the new Walmart stores? C) What is the planned Walmart marketing strategy for the new stores in Chile? D) What is the typical attrition rate for expatriate employees at Walmart? Answer: C Explanation: Marketing strategy is irrelevant to a staffing decision. Costs, corporate control, and attrition rates are important aspects to consider when debating between filling management positions with locals or expatriates. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 30) Which one of the following terms refers to citizens of a country other than the parent or the host country? A) third-country national B) home-country national C) multi-national D) local Answer: A Explanation: Third-country nationals are citizens of a country other than the parent or the host country. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

31) Peter is a German citizen working as a manager for Siemens in Freiberg, Germany. Siemens has facilities all over the world, but its headquarters is in Germany. Peter is best categorized as a(n) ________. A) expatriate B) third-country national C) home-country national D) host-country national Answer: C Explanation: Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 32) Which one of the following terms refers to citizens of the country in which the multinational company has its headquarters? A) expatriates B) third-country nationals C) home-country nationals D) locals Answer: C Explanation: Home-country nationals are citizens of the country in which the multinational company has its headquarters. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 33) Donatella is an Italian citizen who spent a great deal of time during her childhood in England. She now works in Brazil as an HR manager for a British company. Donatella is best described as a(n) ________. A) expatriate B) third-country national C) home-country national D) host-country national Answer: B Explanation: Third-country nationals are citizens of a country other than the parent or the host country. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 11 Copyright © 2020 Pearson Education, Inc.

34) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which one of the following, if true, supports the argument that locals should be hired to fill management positions in Chile? A) Chile has a high percentage of younger workers with college degrees. B) Managers in Chile are expected to keep their distance from subordinates. C) Chile has had an increase in foreign direct investment over the last five years. D) Chileans expect managers and subordinates to interact in a highly informal manner. Answer: A Explanation: A high number of skilled and educated locals suggests that Walmart would be able to find competent managers in Chile. The interaction between managers and subordinates does not necessarily explain why locals should be hired as managers instead of expatriates. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 35) Which one of the following is the primary disadvantage of using expatriates to fill foreign subsidiary management positions? A) high costs associated with relocation B) time and effort required for training C) inability to create short-term results D) security concerns Answer: A Explanation: The cost of posting someone abroad is very high due to travel, relocation, housing, and salary. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

36) All of the following are reasons that firms rely heavily on locals to fill foreign subsidiary management positions EXCEPT ________. A) pressure from local government B) lower costs than using expatriates C) improved public relations in community D) high level of skills and technical qualifications Answer: D Explanation: The cost of using expatriates is a key reason that firms use locals. Local governments often pressure firms to use locals and doing so improves the firm's PR in the community. The drawback of locals is that they likely do not have the necessary technical qualifications and require extensive training. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 37) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which one of the following, if true, best supports the argument of using expatriates to establish the new Walmart stores in Chile? A) Local candidates with the necessary managerial experience are difficult to find in Chile. B) Walmart uses an online recruiting system to facilitate human resources activities. C) The State Department has issued travel alerts for Americans traveling in Chile. D) Walmart wants to develop good relationships with the local community. Answer: A Explanation: The primary reason to use expatriates instead of locals is when qualified local candidates cannot be found. Hiring locals instead of expatriates would most likely help improve community relations. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

38) Sahana, who is originally from India, works in Texas for Dell as an IT manager. Dell, which has a localization policy, recently announced that management positions are available in its Bangalore, India, facility. If Sahana, who wants to return to India, is offered the Bangalore position, she would most likely be categorized as a(n) ________. A) commuter employee B) independent contractor C) third-country national D) permanent transferee Answer: D Explanation: About 78% of employers have some form of "localization" policy. This is a policy of transferring a home-country national employee to a foreign subsidiary as a "permanent transferee." In this case, Sara is a U.S. Dell employee originally from India. If she moves back she would be a permanent transferee. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 39) Which one of the following terms refers to having local employees abroad do jobs that the firm's domestic employees previously did in-house? A) adapting B) offshoring C) enlarging D) diversifying Answer: B Explanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is an increasingly popular staffing option. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

40) Call centers that service customers for firms like software and computer hardware companies are increasingly using employees in India to staff the telephones. This is an example of ________. A) outsourcing B) offshoring C) downsizing D) international staffing Answer: B Explanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is a popular staffing option, especially for call centers. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 41) Which one of the following corporate divisions plays the greatest role in offshoring? A) marketing B) accounting C) manufacturing D) human resources Answer: D Explanation: When developing foreign markets or opening new manufacturing facilities, marketing, sales, and production executives play the pivotal roles. Offshoring mostly involves HR management as firms seek to gain cost advantages. Firms look to their HR managers to help identify high-quality, low-cost talent abroad, and to provide the necessary information on skills, foreign wage rates, and working conditions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

42) Which one of the following terms refers to the belief that home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer? A) polycentric B) ethnocentric C) geocentric D) monocentric Answer: B Explanation: An ethnocentric corporation believes that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country might have to offer. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 43) A corporation that believes that only host country managers can ever really understand the culture and behavior of the host country market would be referred to as ________. A) polycentric B) ethnocentric C) geocentric D) monocentric Answer: A Explanation: A polycentric-oriented firm would staff its foreign subsidiaries with host-country nationals, and its home office with parent-country nationals. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 44) Samsung tends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions at its Texas facility? A) home-country nationals B) host-country nationals C) third-country nationals D) local citizens Answer: A Explanation: With an ethnocentric staffing policy, Samsung fills key management jobs with home-country nationals. Managers would be citizens of South Korea where Samsung has its headquarters. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 16 Copyright © 2020 Pearson Education, Inc.

45) Which one of the following is the LEAST likely reason that a firm would choose an ethnocentric staffing policy? A) lack of qualified host-country upper-management candidates B) goal of reducing misunderstandings with locals C) need to transfer core competencies effectively D) desire to maintain a unified corporate culture Answer: B Explanation: Reasons given for ethnocentric staffing policies include lack of qualified hostcountry senior management talent, a desire to maintain a unified corporate culture and tighter control, and the desire to transfer the parent firm's core competencies to a foreign subsidiary more expeditiously. A polycentric-oriented firm would likely reduce the local cultural misunderstandings that might occur with ethnocentric staffing. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 46) Mercedes sent a team of executives from Germany to oversee the start-up of its U.S. operations. Which one of the following terms best describes the values of Mercedes' top executives? A) polycentric B) monocentric C) ethnocentric D) geocentric Answer: C Explanation: With an ethnocentric staffing policy, the firm fills key management jobs with parent-country nationals. Mercedes sent German executives to manage an American facility, so its executives have ethnocentric values. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

47) What value classification refers to a belief that the best manager for a specific position could be in any of the countries in which the firm operates? A) polycentric B) ethnocentric C) global D) monocentric Answer: C Explanation: A global staffing policy seeks the best people for key jobs throughout the firm, regardless of nationality. This can let the global firm use its human resources more efficiently by transferring the best person to the open job, wherever he or she may be. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 48) With a global staffing policy, a firm is most likely able to ________. A) provide effective training B) recruit recent college graduates C) use its human resources efficiently D) strengthen its image within a local community Answer: C Explanation: A global staffing policy fills positions with the best people from within the organization, regardless of nationality. This can let the global firm use its human resources more efficiently by transferring the best person to the open job, wherever he or she may be. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

49) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which one of the following, if true, supports the assertion that Walmart is an ethnocentrically oriented corporation? A) Walmart usually succeeds on an international level because the firm actively works to support local charities. B) Walmart rarely experiences cultural misunderstandings because of its tendency to hire locals to fill management positions. C) Walmart aims to maintain a unified organizational culture by filling foreign management positions with Americans. D) Adaptability screening eliminates problems associated with transferring Walmart managers and their families abroad. Answer: C Explanation: An ethnocentric company fills key management positions with home-country nationals to maintain a unified culture and tight control. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 50) The most common reason that an expatriate fails at an international assignment is ________. A) incompetence B) technical demands C) pressures from family D) language difficulties Answer: C Explanation: It is usually not technical or personality factors but family and personal ones that undermine international assignees. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

51) Which one of the following qualities is most closely linked to an employee's success on an international work assignment? A) technical skills B) responsibility C) intelligence D) flexibility Answer: D Explanation: Flexibility and adaptability are crucial to expatriate success. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 52) Which one of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer? A) skills placement testing B) adaptability screening C) management assessment D) performance appraisal Answer: B Explanation: Adaptability screening attempts to assess the assignee's and his or her spouse's probable success in handling a foreign transfer. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

53) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next five years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which one of the following, if true, undermines the argument of using expatriates to establish the new Walmart stores in Chile? A) Adaptability screening tests indicate that three potential candidates are bilingual and travel overseas frequently. B) Walmart offers overseas candidates extensive training on cultural differences and adaptation skills. C) The most qualified Walmart managers have no foreign travel experience and do not speak Spanish. D) A balance sheet approach is used by Walmart, but workers do not receive hardship allowances for moving to Chile. Answer: C Explanation: Foreign travel experience and language skills demonstrate an ability to live and work with other cultures. If the most qualified candidates lack that experience, then using expatriates is probably a bad idea. Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 54) Which one of the following is likely to cause the failure of an expatriate assignment? Violations of what the expatriate sees as his or her psychological contract with the employer (the unwritten rules, agreements, and expectations governing the person's position abroad) may contribute to expatriate failure. A) close family relationships B) pre-school age children C) violations of the perceived psychological contract D) language training Answer: C Explanation: Violations of what the expatriate sees as his or her psychological contract with the employer (the unwritten rules, agreements, and expectations governing the person's position abroad) may contribute to expatriate failure. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

55) Which term refers to a group of geographically dispersed co-workers that uses a desktop videoconferencing system to communicate and accomplish tasks for the firm? A) virtual team B) telecommuter group C) permanent transferee D) short-term international team Answer: A Explanation: Virtual teams are groups of geographically dispersed co-workers who interact using a combination of telecommunications and information technologies to accomplish an organizational task. With desktop videoconferencing systems often the heart of such systems, communication among team members can embrace the body language and nuances of face-toface communications. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 56) What is the primary problem associated with virtual teams at international firms? A) scheduling meetings B) agreeing on important issues C) facilitating group communication D) building trust among team members Answer: D Explanation: The main challenges that virtual teams face are people-related. These include building trust, cohesion, team identity, and overcoming the isolation among team members. Desktop videoconferencing systems enable team members to communicate with each other and enable members to see the body language and nuances of face-to-face communications. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

57) U.S. employers have most likely experienced an increase in successful expatriate assignments in the last two decades because they have ________. A) focused on job performance as the main selection criteria B) increased the number of selection criteria for global assignees C) provided global assignees with local managers to serve as mentors D) allowed HR managers to have more control of the global hiring process Answer: B Explanation: Traditional expatriate selection focused on job performance in the home country. However, in recent decades, U.S. firms have increased the number of selection criteria used to choose global assignees. Employers now regularly use selection criteria such as technical/professional skills, expatriates' willingness to go, experience in the country, personality factors (including flexibility), leadership skills, the ability to work with teams, and previous performance appraisals in the selection process. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 58) The majority of multinational corporation management positions are filled by expatriates. Answer: FALSE Explanation: Expatriates still represent a minority of multinationals' managers. Locals fill most positions. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 59) Third-country nationals hold citizenship in three countries. Answer: FALSE Explanation: Third-country nationals are citizens of a country other than the parent or the host country–for example, a British executive working in the Tokyo branch of a U.S. multinational bank. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

60) One negative of expatriates is that they can focus too much on short-term results. Answer: TRUE Explanation: Some expatriates overemphasize short-term results (knowing they will soon move on). Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 61) The least expensive way to fill managerial positions in foreign subsidiaries is with local people. Answer: TRUE Explanation: Expatriates are costly due to relocation expenses and housing costs. Filling positions with locals is much more cost effective. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 62) Virtual teams consist of geographically dispersed coworkers who interact using a combination of telecommunications and information technologies to accomplish organizational tasks. Answer: TRUE Explanation: Virtual teams are groups of geographically dispersed coworkers who interact using a combination of telecommunications and information technologies to accomplish an organizational task. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 63) Offshoring involves moving business processes such as manufacturing or call-center operations abroad. Answer: TRUE Explanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Employers look to their HR managers to help identify highquality, low-cost talent abroad, and to provide information on things like literacy, foreign wage rates, and working conditions. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 24 Copyright © 2020 Pearson Education, Inc.

64) In a polycentric corporation, the prevailing belief is that home country attitudes, management style, knowledge, and managers are superior to anything the host country might offer. Answer: FALSE Explanation: Ethnocentric is the notion that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer. Polycentric is the conscious belief that only the host-country managers can ever really understand the culture and behavior of the host-country market. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 65) Firms using a global staffing model will seek the best people for key jobs throughout the organization, regardless of nationality. Answer: TRUE Explanation: A global staffing policy "seeks the best people for key jobs throughout the organization, regardless of nationality." This can let the global firm use its human resources more efficiently by transferring the best person to the open job, wherever he or she may be. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 66) The most expensive approach to staffing is the polycentric staffing model. Answer: FALSE Explanation: A polycentric-oriented firm would staff its foreign subsidiaries with host-country nationals, and its home office with parent-country nationals. It is the least expensive staffing method. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 67) Adaptability screening is a commonly used process to assess the likelihood that an expatriate can reintegrate into his or her home country's culture following a foreign assignment. Answer: FALSE Explanation: Adaptability screening aims to assess the assignees' (and spouses') probable success in handling the foreign transfer, and to alert them to issues (such as the impact on children) the move may involve. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 25 Copyright © 2020 Pearson Education, Inc.

68) The Overseas Assignment Inventory is a test that identifies the characteristics and attitudes international assignment candidates should have based on norms. Answer: TRUE Explanation: Many firms also use tests such as the Overseas Assignment Inventory (OAI). This identifies the characteristics and attitudes international assignment candidates should have. Its publisher establishes local norms and conducts ongoing validation studies. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 69) The deciding factor in the success or failure of an expatriate assignment is the degree of difference in the two cultures. Answer: FALSE Explanation: Studies suggest that it's not how different culturally the host country is from the person's home country that causes problems; it's the person's cross-cultural awareness and ability to adapt. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 70) When considering an employee for an assignment abroad, the screening process should include the employee's spouse if there is one. Answer: TRUE Explanation: It is usually not technical or personality factors but family and personal ones that undermine international assignees. One solution here is to provide realistic previews of what to expect abroad, careful screening of both the prospective expat and his or her spouse. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

71) Over the last decade, the majority of U.S. firms have been steadily increasing the size of their expatriate workforces. Answer: FALSE Explanation: For the past ten years or so the trend has definitely been toward using locals or toward other (non-expat) solutions. New expatriate postings are not only down, but many employers are bringing them home early. Another survey found that about 47% of U.S. multinationals are maintaining the size of their expat workforces; 18% were increasing it, and 35% were decreasing the number of expatriates. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 72) What staffing options do multinational firms have when filling positions in foreign subsidiaries? Answer: Multinational companies employ several types of international managers. They can employ locals, home-country nationals, or third-country nationals. Home-country and thirdcountry-nationals are both types of expatriates. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational firm has its headquarters. Home-country nationals are also called parent-country nationals. Thirdcountry nationals are citizens of a country other than the parent or the host country. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

73) Describe what an expatriate is and factors that impact expatriate success. Answer: Expatriates (expats) are noncitizens of the countries in which they are working. Employers often can't find local candidates with the required qualifications. Multinationals also view a successful stint abroad as a required step in developing top managers. Furthermore, the assumption is that home-country managers are already steeped in the firm's policies and culture, and thus more likely to apply headquarters' ways of doing things. Posting expatriates abroad is expensive, security problems give potential expatriates' pause, returning expatriates often leave for other employers within a year or two, and educational facilities are turning out top-quality candidates abroad. Systematizing the entire expatriate management process is one way to avoid such early returns. For example, employers should have an expatriate policy covering matters such as compensation and travel costs. Include procedures, for instance, requiring that the manager responsible for the expat's costs obtain all chain of command approvals. Another step in avoiding early returns is to test and select people who have the necessary traits and adaptability (as discussed earlier). And perhaps most importantly consider the expat's family situation. In one study, U.S. managers listed, in descending order of importance, reasons for expatriates leaving early: inability of spouse to adjust, managers' inability to adjust, other family problems, managers' personal or emotional immaturity, and inability to cope with larger overseas responsibility. Such findings underscore a truism about selecting international assignees: The problem is usually not incompetence, but family and personal problems. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 74) What are the advantages and disadvantages of using expatriates for staffing foreign subsidiaries? Answer: Expatriates typically share a common culture and educational background with corporate headquarters staff, so they are able to facilitate communication and coordination with corporate headquarters. They are also adept at introducing techniques from home to the host country setting. However, expatriates typically lack the knowledge of the host country's laws, culture, economic conditions, social structure, and political processes. These weaknesses can be overcome with training, but such training is expensive. Further, it is expensive to relocate expatriates and maintain them in the host country. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

75) Explain the meaning of ethnocentrism, polycentrism, and global-ism and how those values might affect a multinational company's staffing policy. Answer: Firms with an ethnocentric value system believe that the knowledge and methods used in the home country are superior to those elsewhere. Consequently, these firms will prefer to staff managerial positions in foreign subsidiaries with home-country nationals. Firms with a polycentric view believe that only host-country nationals can really understand the local culture and customs. These firms will choose locals for managerial positions in international locations. Finally, firms with a global view believe that the best managers could be anywhere. They will likely use a mix of locals, home-country nationals, and third-country nationals. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations. 76) Explain what a virtual team is. What are some challenges virtual teams face and how can they be dealt with? Answer: Virtual teams are groups of geographically dispersed coworkers who interact using a combination of telecommunications and information technologies to accomplish an organizational task. The main challenges virtual teams face are often people related. Challenges include building trust, cohesion, and team identity, and overcoming the isolation among team members. Success therefore depends on human resource management actions. In particular, train virtual team members in leadership, conflict management, and meetings management, and to respond swiftly to virtual teammates. Be scrupulous about answering e-mails and being positive. Select virtual team members using behavioral and situational interviews, where they describe how they'd respond to illustrative virtual team situations. Use current virtual team members to help recruit and select new team members. Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 17.3 List and briefly describe the main methods for staffing global organizations.

77) Before departing for an overseas assignment, an employee would most likely benefit from ________ training. A) technical B) interpersonal C) cross-cultural D) career development Answer: C Explanation: Assignees benefit from training on the culture and language of the country in which they will be living. Such training helps them adapt and to work more effectively with locals. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 78) All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________. A) offering educational opportunities B) developing relationships with co-workers C) cultivating corporate values and standards D) providing spousal networking opportunities Answer: D Explanation: Managers abroad continue to need traditional skills-oriented development to help them grow professionally, hone their skills, and have the same educational opportunities that stateside co-workers have. In addition, seminars help managers form bonds with colleagues around the world and cultivate corporate values. Providing spouses the chance to network is not a primary benefit. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

79) Most North American companies use the ________ approach to formulating expatriate pay. A) equitable wage rate B) balance sheet C) performance D) total package Answer: B Explanation: The most common approach to formulating expatriate pay is to equalize purchasing power across countries, a technique known as the balance sheet approach; about 78% of respondents in one survey used it. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 80) Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country? A) balance sheet B) mobility allowance C) performance pay D) hardship method Answer: A Explanation: The balance sheet approach focuses on four groups of expenses–income taxes, housing, goods and services, and discretionary expenses. The employer estimates what each of these four expenses is in the expatriate's home country, and what each will be in the host country. The employer then pays any differences. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 81) Which one of the following terms refers to paying a portion of an expatriate's salary in homecountry currency and a portion in local currency? A) balance sheet approach B) split pay approach C) hardship premium D) foreign-service premium Answer: B Explanation: When using the balance sheet approach, firms often help the expatriate manage his or her home and foreign financial obligations with the split pay approach. The employer pays part of a person's actual pay in home-country currency and part in the local currency. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 31 Copyright © 2020 Pearson Education, Inc.

82) Which one of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay? A) taxes B) housing C) disposable income D) discretionary expenses Answer: C Explanation: The balance sheet approach focuses on four groups of expenses–income taxes, housing, goods and services, and discretionary expenses. Disposable income is not a category. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 83) ________ are financial payments over and above regular base pay. A) Foreign service premiums B) Hardship allowances C) Balance sheet payments D) Mobility premiums Answer: A Explanation: Foreign service premiums are financial payments over and above regular base pay, typically ranging between 10% and 30% of base pay. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 84) JJP Enterprises seeks to entice one of its star managers to move to Iraq to oversee a construction project. The firm will most likely offer a ________ because of the difficult living and working conditions in Iraq. A) cost-of-living allowance B) performance bonus C) hardship allowance D) mobility premium Answer: C Explanation: Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

85) Which one of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another? A) hardship allowance B) foreign service premium C) cost-of-living allowance D) mobility premium Answer: D Explanation: Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 86) Jim Simmons, an American, has worked for a U.S. firm's Italian operations for two years with great success. Now, the company wants Jim to relocate to France to establish a new division. The company will most likely offer Jim a ________ to reward him for moving from one assignment to another. A) hardship allowance B) foreign service premium C) cost-of-living increase D) mobility premium Answer: D Explanation: Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 87) All of the following characterize European labor relations EXCEPT ________. A) limited number of bargaining units B) informal recognition of labor unions C) employers with multiple unions D) industry-wide collective bargaining Answer: A Explanation: Unions in Europe are influential, and labor-management bargaining and relations reflect this fact. Collective bargaining in Western Europe tends to be industry-wide, which leads to bargaining through employer associations. Union recognition is less formal than in the United States. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 33 Copyright © 2020 Pearson Education, Inc.

88) Which one of the following is most likely NOT covered by kidnapping and ransom insurance policies? A) abductions B) ransoms C) crisis teams D) weapons Answer: D Explanation: K&R insurance typically covers several costs associated with kidnappings, abductions, or extortion attempts. These costs might include, for instance, hiring a crisis team, the actual cost of the ransom payment to the kidnappers or extortionists, insuring the ransom money in transit, legal expenses, and employee death or dismemberment. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 89) Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate. Which one of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping? A) Take the same route to and from work. B) Arrive at the airport close to departure time. C) Wait at the airport in a main traffic area. D) Leave work at the same time each day. Answer: B Explanation: Security experts suggest that business travelers arrive at airports as close to departure time as possible and wait in areas away from the main flow of traffic where they're not as noticeable. Employees should also vary their departure and arrival times and take different routes to and from work. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

90) ________ refers to bringing a manager back home after a foreign assignment has been completed. A) Expatriation B) Repatriation C) Mediation D) Job rotation Answer: B Explanation: Expatriation refers to sending a worker to work overseas, while repatriation is the process of bringing the employee back to his or her home country. Repatriation programs help employees and their families make smooth adjustments. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 91) A formal repatriation program should do all the following EXCEPT ________. A) assist employees with relocation logistics B) seek compensation and benefits on behalf of employees C) help employees update their resumes and make career plans D) reassure employees of the company's concern for their welfare Answer: B Explanation: Repatriation programs are supported by an employee's firm, so seeking compensation and benefits is not part of the activities. However, repatriation programs should help employees with the logistics of moving back, help them with career planning, and reassure them that the firm cares. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 92) Which one of the following is a true statement regarding expatriates? A) Most expatriates require at least one year of psychological help after returning home. B) Most expatriates avoid traveling abroad after returning to their home country. C) Most expatriates and their families prefer open-ended work assignments. D) Some employers lose up to 30% of their returning expatriates. Answer: D Explanation: One survey several years ago found some employers lost 30% or more of their returning expats (although the attrition rate for most were much lower). Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

93) Employees preparing for overseas assignments benefit from training in cultural differences, attitude formation and behavioral influence, factual country knowledge, and language skills. Answer: TRUE Explanation: Orienting and training employees prior to their departure helps them adjust and be more successful. They should receive training in culture, language, and adaptation methods. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 94) The most common approach to formulating expatriate pay is the balance sheet approach. Answer: TRUE Explanation: The most common approach to formulating expatriate pay is to equalize purchasing power across countries, a technique known as the balance sheet approach. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 95) Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations. Answer: FALSE Explanation: Foreign service premiums are paid to encourage the employee to take the job abroad. Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 96) As in the U.S., collective bargaining in Western Europe typically occurs at the plant level rather than at the industry level. Answer: FALSE Explanation: Collective bargaining in Western Europe tends to be industry-wide, whereas in the United States it generally occurs at the enterprise or plant level. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

97) Varying departure and arrival times when working in a foreign country can minimize a business traveler's chances of becoming a crime victim. Answer: TRUE Explanation: Experts advise business travelers to vary their departure and arrival times and to take different routes to and from work to stay safe in a foreign country. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 98) What are some reasons for firms bringing expatriates home early? How can firms ease the transition during repatriation? Answer: New expatriate postings are not only down, but many employers are actually bringing them home early for several reasons. Posting expatriates abroad is very expensive, security problems increasingly give potential expatriates pause, educational facilities are turning out topquality candidates abroad, and the recent global recession made the cost of posting employees abroad even more unattractive. As expatriates return home, employers can ease the transition with a repatriation program. Firms need to make sure that the expatriate and his or her family don't feel that the company has left them adrift. Firms often provide psychologists, mentors, career planning services, and relocation assistance. Difficulty: Hard Objective: 3, 4 AACSB: Written and Oral Communication Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

99) What are the major steps in establishing a global pay system? Answer: Balancing global consistency in compensation with local considerations starts with establishing a rewards program that makes sense in terms of the employer's strategic aims. Then the employer turns to more micro issues, such as, is how we're paying our employees abroad competitive? Steps to follow in creating a global pay system include these: Step 1. Set strategy. First, formulate longer-term strategic goals, for instance, in terms of improving productivity or boosting market share. Step 2. Identify crucial executive behaviors. Next, list the actions you expect your executives to exhibit to achieve these strategic goals. Step 3. Global philosophy framework. Next, step back and ask how you want each pay component (salary, bonus, incentives, and so forth) to contribute to prompting those executive actions. Step 4. Identify gaps. Next, ask, "To what extent do our pay plans around the world now support these actions, and what changes if any are required?" Step 5. Systematize pay systems. Next, create more consistent performance assessment practices, and establish consistent job requirements and performance expectations for similar jobs worldwide. Step 6. Adapt pay policies. Finally, review your global pay policies (for setting salary levels, incentives, and so forth). Conduct surveys and analyses to assess local pay practices. Then finetune the firm's global pay policies so they make sense for each location. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 100) Explain the balance sheet approach to formulating expatriate pay. Answer: This method seeks to equalize purchasing power across countries. The basic method is to take the expenses for an employee in his or her home country, including income taxes, housing, goods and services, and discretionary income, and then to estimate how those expenses will vary in the host country. The employer will pay the differences. The base salary will normally be in the same range as the manager's home-country salary. Then, a foreign service premium and/or hardship allowance might be added. There could also be allowances given for housing and education. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 17.4 Discuss some important issues to keep in mind in training, appraising, and compensating international employees.

101) What are the top drivers of employee engagement around the globe? A) career opportunities B) recognition C) company reputation D) setting goals Answer: A Explanation: Career opportunities was the number-one key driver of employee engagement in all regions of the world, underscoring the universal importance of providing such opportunities. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 17.5 Discuss similarities and differences in employee engagement around the globe. 102) The current global average of employee engagement is ________. A) 23% B) 44% C) 61% D) 83% Answer: C Explanation: Recently, the trend was for employee engagement (highly and moderately engaged) in all regions of the world to be converging around the current global average of about 61% of employees engaged. So, workers everywhere are becoming about equally engaged. Difficulty: Hard Objective: 5 AACSB: Analytical Thinking Learning Outcome: 17.5 Discuss similarities and differences in employee engagement around the globe. 103) The top driver of employee engagement around the globe is career opportunities. Answer: TRUE Explanation: Career opportunities was the number-one key driver of employee engagement in all regions of the world. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 17.5 Discuss similarities and differences in employee engagement around the globe.

104) Which one of the following was determined by a study of six international firms that have successfully established global HR systems? A) Firms should focus on expatriation and repatriation programs to ease the transition period for employees working abroad. B) Firms should develop HR systems that are universally acceptable and that can be effectively implemented in any location. C) Firms rely more heavily on expatriates than locals in foreign subsidiaries, so it is unnecessary to make changes to existing HR policies. D) Firms with foreign subsidiaries should adhere to local customs regarding screening, hiring, and training applicants. Answer: B Explanation: The study's overall conclusion was that employers who successfully implement global HR systems do so by applying several best practices. This enables them to install uniform global human resource policies and practices around the world. The basic idea is to develop systems that are acceptable to employees in units around the world and ones that the employers can implement more effectively. Difficulty: Hard Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program. 105) Which one of the following is a best practice in ensuring success in actually implementing globally consistent human resource policies and practices? A) "Keep it consistent." B) "Provide instruction from above." C) "You can't communicate enough." D) "Form global HR networks." Answer: C Explanation: "You can't communicate enough" is crucial as there's a need for constant contact with the decision makers in each country, as well as the people who will be implementing and using the actual system. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program.

106) Which one of the following is a step in "Making the Global HR System More Acceptable?" A) Identify crucial executive behaviors. B) Remember that it's more important to standardize ends and competencies than specific methods. C) Dedicate adequate resources. D) Try to work within the context of a strong corporate culture. Answer: D Explanation: In "Making the Global HR System More Acceptable" trying to work within the context of a strong corporate culture is valuable as companies that do so find it easier to obtain agreement among far-flung employees. Difficulty: Easy Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program. 107) What is the first step in developing a more effective global HR system? A) adapting pay policies B) forming global HR networks C) identifying crucial executive behaviors D) remembering that truly global organizations find it easier to install global systems Answer: B Explanation: The first step in developing a more effective global HR system is to form global HR networks. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program. 108) A global HR system should integrate global tools, such as online recruitment systems, with local methods. Answer: TRUE Explanation: Effective global HR systems combine the firm's global tools like online recruiting or online benefits management with local methods. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program.

109) Treating locals as equal partners when developing a global HR system will minimize resistance. Answer: TRUE Explanation: Using a global team to develop a global HR system will minimize resistance and increase support. Difficulty: Moderate Objective: 6 AACSB: Analytical Thinking Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program. 110) What are the HR challenges of conducting business on a global scale? How can firms effectively implement global HR management programs? Answer: Managing human resources internationally creates unique challenges. For example, "Should we staff the local offices abroad with local or U.S. managers?" "How should we appraise and pay our local employees?" "How should we deal with the unions in our offices abroad?" "How do we identify and get the right talent and skills to where we need them?" and "How do we spread state-of-the-art knowledge to our operations abroad?" Challenges like these don't just come from the vast distances involved. The bigger issue is coping with the cultural, political, legal, and economic differences among countries. The study's overall conclusion was that employers who successfully implement global HR systems do so by applying several best practices. This enables them to install uniform global human resource policies and practices around the world. The basic idea is to develop systems that are acceptable to employees in units around the world, and ones that the employers can implement more effectively. We'll look at each of these three requirements' best practices. Difficulty: Hard Objective: 2, 6 AACSB: Written and Oral Communication Learning Outcome: 17.6 Explain with examples how to implement a global human resource management program.

Human Resource Management, 16e (Dessler) Chapter 18 Managing Human Resources in Small and Entrepreneurial Firms 1) Human resource management in small firms is unlike HR management in large firms for all of the following reasons EXCEPT ________. A) size B) industry C) priorities D) informality Answer: B Explanation: Managing human resources in small firms is different from HR management in large firms for four main reasons: size, priorities, informality, and the nature of the entrepreneur. Small and large firms exist within the same industry. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 2) Approximately what percentage of people working in the U.S. are employed by small businesses? A) 10% B) 25% C) 50% D) 75% Answer: C Explanation: About half the people working in the United States–about 68 million–work for small firms. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses.

3) Which one of the following is a true statement regarding HR management at small businesses? A) Owners of firms with less than 100 employees usually handle HR tasks. B) Firms with less than ten employees do not have any human resources tasks. C) In most cases, firms with at least 30 employees can afford an HR specialist. D) Human resources activities in small firms tend to be extremely formal. Answer: A Explanation: It's not until a company reaches the 100-employee milestone that it can afford a human resources specialist, so owners conduct most HR tasks. All businesses have HR tasks no matter the size, but small firms focus more on finance, production, and marketing issues. HR at small firms tends to be informally handled. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 4) In most small businesses, which one of the following is the lowest priority for managers? A) sales B) finance C) production D) HR management Answer: D Explanation: It's not just size, but the realities of the entrepreneur's situation that drives them to focus on non-HR issues. Studies indicate that the lack of resources in terms of time, money, people, and expertise forces managers to focus on finance, production and marketing with very little energy given to HR. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses.

5) At most small businesses, human resource management activities can best be described as ________. A) formal and standardized B) informal and flexible C) competitive and brief D) nonexistent Answer: B Explanation: Human resource management activities tend to be informal in smaller firms because entrepreneurs must be able to react quickly to changes in competitive conditions. Given that, there's some logic in keeping things like compensation policies flexible. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 6) Which one of the following terms refers to people who create businesses under risky conditions? A) investors B) developers C) entrepreneurs D) visionaries Answer: C Explanation: Entrepreneurs are "people who create businesses under risky conditions," and starting new businesses from scratch is always risky. Entrepreneurs therefore need to be highly dedicated and visionary. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 7) According to research, which one of the following characteristics is most associated with entrepreneurs? A) creative B) indifferent C) controlling D) personable Answer: C Explanation: Entrepreneurs need to be dedicated and visionary. Researchers therefore believe that small firms' relative informality partly stems from entrepreneurs' unique personalities. Entrepreneurs tend to be somewhat controlling. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 3 Copyright © 2020 Pearson Education, Inc.

8) Which one of the following is a common characteristic of HR at most small businesses? A) dedicated HR manager responsible for recruiting B) strict oversight of compensation regulations C) intranet-based employee benefits enrollment D) duplication of employee data in paperwork Answer: D Explanation: For small businesses, many of which don't use human resource information systems, employee data (name, address, marital status, and so on) often appears on multiple human resource management forms. This leads to duplication and inefficiencies. The other choices are not characteristics of most small businesses. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 9) All of the following HR activities are associated with successful high-growth SMEs EXCEPT ________. A) emphasizing training and development B) conducting regular performance appraisals C) providing job sharing options for employees D) offering competitive recruitment packages Answer: C Explanation: Job sharing is not likely to be an option among SMEs. Research concluded that successful high-growth SMEs place greater importance on training and development, performance appraisals, recruitment packages, maintaining morale, and setting competitive compensation levels than do low-performing firms. Difficulty: Hard Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 10) Approximately one-third of people working in the U.S. are employed by small firms. Answer: FALSE Explanation: About half the people working in the United States–about 68 million out of 118 million–work for small firms. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses.

11) In most cases, when a company has at least 100 employees, it can afford to hire an HR specialist to handle recruiting, training, and compensating employees. Answer: TRUE Explanation: It would be very unusual to find a really small business–say, fewer than 90 or so employees– with a dedicated human resource management professional. The rule of thumb is that it's not until a company reaches the 100-employee milestone that it can afford an HR specialist. Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 12) Human resource management activities, such as training, appraisals, and hiring, are typically formal at small firms but informal at large firms. Answer: FALSE Explanation: Human resource management activities tend to be more informal in smaller firms. Training, for example, tends to involve co-worker and supervisory on-the-job training rather than the formal training programs used by large firms. Difficulty: Easy Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 13) Research indicates that entrepreneurs tend to crave control. Answer: TRUE Explanation: Entrepreneurs tend to be somewhat controlling: "Owners tend to want to impose their stamp and personal management style on internal matters, including the primary goal and orientation of the firm, its working conditions and policies, and the style of internal and external communication and how this is communicated to the staff." Difficulty: Moderate Objective: 1 AACSB: Analytical Thinking Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses.

14) How does HR management differ in small and large firms? Answer: Managing human resources in small firms is different for four main reasons: size, priorities, informality, and the nature of the entrepreneur. Few small firms have a dedicated human resource management professional. The priorities of a small firm are focused less on HR and more on financing, production, and marketing. HR management activities tend to be more informal in smaller firms. Such informality isn't just due to a lack of expertise and resources; it's also partly a "matter of survival." Entrepreneurs must be able to react quickly to changes in competitive conditions. Very small employers (say, with ten employees or less) will probably start with a manual human resource management system. From a practical point of view, this generally means obtaining and organizing a set of standardized personnel forms covering each important aspect of HR–recruitment, selection, training, appraisal, compensation, safety process– as well as some means for organizing all this information for each of your employees. As the small business grows, it becomes increasingly unwieldy and uncompetitive to rely on manual HR systems. For a company with 40 or 50 employees or more, the amount of management time devoted to things like attendance history and performance appraisals can multiply into weeks. It is therefore at about this point that most small- to medium-sized firms begin computerizing individual human resource management tasks. Difficulty: Hard Objective: 1 AACSB: Written and Oral Communication Learning Outcome: 18.1 Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses. 15) Which one of the following agencies offers small businesses the use of "FirstStep Employment Law Advisor"? A) Department of Commerce B) Department of Justice C) Department of Labor D) Department of the Treasury Answer: C Explanation: The U.S. Department of Labor's "FirstStep Employment Law Advisor" helps small employers determine which laws apply to their business. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

16) The purpose of the Web site of "FirstStep Employment Law Advisor" is to help small employers to ________. A) determine which state regulations are relevant to their business B) file their tax forms and pay their federal and state taxes C) realize which federal laws apply to their business D) receive legal advice for specific HR problems Answer: C Explanation: The U.S. Department of Labor's "FirstStep Employment Law Advisor" helps small employers determine which laws apply to their business. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 17) Fred Landon owns a lawn care business and employs 35 people. Fred is unsure whether federal rules regarding employee discrimination apply to his small business. The Web site of which one of the following agencies would be the most useful to Fred? A) Small Business Administration B) Employee Benefits Security Administration C) Equal Employment Opportunity Commission D) Occupational Safety and Health Administration Answer: C Explanation: The EEOC Web site contains information regarding how EEOC laws regarding discrimination apply to small businesses. The EEOC administers Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act of 1967 (ADEA), Title I of the Americans with Disabilities Act of 1990 (ADA), and the Equal Pay Act of 1963. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

18) Elliot owns a catering business and employs 30 people. Elliot is uncertain about when to pay overtime and how to calculate overtime wages. The Web site of which of the following would be the most useful to Elliot? A) Office of Personnel Management B) Department of Labor C) Department of Commerce D) Equal Employment Opportunity Commission Answer: B Explanation: The U.S. Department of Labor's "FirstStep Employment Law Advisor" helps small employers determine which laws apply to their business. A linked DOL site provides information on the Fair Labor Standards Act (FLSA). It contains several specific "elaws advisors." Each one provides practical guidance on questions such as when to pay overtime. Difficulty: Easy Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 19) Marco owns a small business that provides engineering consulting services. Marco is new to business ownership, and he has a list of questions he would like answered. Marco has logged on to the EEOC Web site to search for answers. Which one of Marco's questions is LEAST likely to be addressed on this Web site? A) What employees are exempt from overtime pay? B) How do I know if EEOC laws apply to my business? C) What should I do if someone files a charge against my firm? D) What constitutes unfair treatment in the workplace? E) How would I resolve a discrimination charge without facing a lawsuit? Answer: A Explanation: The DOL Web site rather than the EEOC Web site would most likely provide information regarding overtime pay. The other questions address issues regarding discrimination and would likely be answered on the EEOC Web site. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

20) Jana owns a dry cleaning business and employs 25 people. She needs a safety and accident checklist that is specific to the dry cleaning industry. Jana would most likely find the information she needs on the ________ Web site. A) SBA B) O*NET C) EEOC D) OSHA Answer: D Explanation: OSHA's site provides, among other things, easy access to the OSHA Small Business Handbook. This contains practical information for small business owners, including industry-specific safety and accident checklists. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 21) Small business owners can use O*NET when they need help with ________. A) writing job descriptions B) filing accident reports C) testing job applicants D) filing business taxes Answer: A Explanation: The Department of Labor's O*NET has an online wizard that enables business owners to quickly create accurate and professional job descriptions and job specifications. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 22) Katerina is applying for a job at Logan Electronics, a small firm. Katerina has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure? A) honesty and ethics B) psychological status C) general mental ability D) personality traits Answer: C Explanation: The Wonderlic Personnel Test measures general mental ability. With questions somewhat similar to the SAT, it takes less than 15 minutes to administer the 4-page booklet. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

23) The Wonderlic Personnel Test is especially appropriate for small businesses because it is ________. A) useful for training new hires B) equivalent to the GRE test C) developed by the EEOC D) easy to administer Answer: D Explanation: Some tests are so easy to use they are particularly good for smaller firms. One is the Wonderlic Personnel Test, which measures general mental ability. With questions somewhat similar to the SAT, it takes less than 15 minutes to administer the 4-page booklet. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 24) When Henri applied for a job with Morton Consulting, he was given the Predictive Index. What was Morton Consulting least likely attempting to measure with the Predictive Index? A) dominance B) extroversion C) reading level D) blame avoidance Answer: C Explanation: The Predictive Index measures work-related personality traits, drives, and behaviors–in particular dominance, extroversion, patience, and blame avoidance–on a two-sided sheet. The test is focused on personality rather than specific skills like reading ability. Difficulty: Moderate Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

25) Which one of the following is the primary benefit for a small firm that uses the online services provided by testing vendors such as Wonderlic? A) reduced testing fees B) better match of candidates to jobs C) highly accurate job specifications D) more applicant background checks Answer: B Explanation: Online options with testing vendors have many benefits, beyond just saving the time the owners' employees might have to spend testing employees. Comparing the person's score with the minimum scores recommended for various occupations shows whether he or she achieved the minimum score for the job in question. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 26) What is the primary reason that small firms use the Internet for employee training programs? A) ease of access B) OSHA guidelines C) SBA requirements D) guaranteed results Answer: A Explanation: Small companies can't compete with the training resources of giants like Google. Online learning platforms like Docebo's (www.docebo.com/) make it easy for a company's employees to access off-the-shelf and customized online learning courses and programs. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 27) All of the following are options for small businesses looking for online training programs to improve their employees' skills EXCEPT ________. A) National Association of Manufacturers B) Small Business Administration Association for Talent Development C) Association for Talent Development D) Equal Employment Opportunity Commission Answer: D Explanation: NAM, SBA, and AMA all provide online training programs. The EEOC is a good source for employers to learn about EEOC laws but not for online employee training programs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 11 Copyright © 2020 Pearson Education, Inc.

28) The owner of A-1 Construction paid more in workers' compensation costs than salaries last year. Which one of the following would most likely help the owner of A-1 Construction? A) taking online courses through the SBA B) screening employees with the Predictive Index C) requesting a consultation with an OSHA safety expert D) referring to the "FirstStep Employment Law Advisor" for assistance Answer: C Explanation: OSHA provides free on-site safety and health services for small businesses. This service uses safety experts from state governments who provide consultations, usually at the employer's workplace. Employers with a high number of workers' compensation claims obviously have safety issues, so an OSHA consult would be beneficial. Difficulty: Hard Objective: 2 AACSB: Application of Knowledge Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 29) Which one of the following is an aspect of the OSHA Sharp program? A) free tools for attracting more job applicants B) legal advice for all business aspects C) certification process that employers have commendable levels of safety awareness D) Employers receive visits from inspectors after every workers' compensation claim is filed. Answer: C Explanation: The OSHA Sharp program is a certification process through which OSHA certifies that small employers have achieved commendable levels of safety awareness. Difficulty: Hard Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 30) Without tools like Web-based recruiting and computerized testing, small businesses are at a competitive disadvantage against large firms. Answer: TRUE Explanation: Small business owners run the risk that their relatively rudimentary human resource practices will put them at a competitive disadvantage. Big firms use practices such as Web-based recruiting, computerized testing, and intranet-based employee benefits enrollments to reduce the resources they must spend on them. A small business owner not using tools like these is probably deriving inferior results than (larger) competitors. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

31) While most small firms are affected by the Fair Labor Standards Act and the Occupational Safety and Health Act, only large firms need to be familiar with the Consumer Credit Protection Act. Answer: FALSE Explanation: For a typical small firm, laws that affect them include the Consumer Credit Protection Act, Employee Polygraph Protection Act, Fair Labor Standards Act, Immigration and Nationality Act, Occupational Safety and Health Act, Uniformed Services Employment and Reemployment Rights Act, and Whistleblower Acts. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 32) A small business employer who is unsure what to do when faced with a discrimination charge would most likely find useful information on the EEOC Web site. Answer: TRUE Explanation: The EEOC Web site contains important and practical information regarding EEOC matters. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 33) Since Internet job boards are limited to large firms, small business owners are forced to recruit through local newspapers. Answer: FALSE Explanation: Small business owners can post positions on Internet job boards such as Careerbuilder.com and Monster.com, on the sites of professional associations, or on the sites of local newspapers. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 34) The Wonderlic Personnel Test measures personality traits and behaviors, while the Predictive Index measures general mental ability. Answer: FALSE Explanation: The Wonderlic Personnel Test measures general mental ability, and the Predictive Index measures personality traits, drives, and behaviors. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 13 Copyright © 2020 Pearson Education, Inc.

35) Online employee testing and training programs are frequently used by small businesses because such tools save both time and money. Answer: TRUE Explanation: Online testing saves small business owners the time it takes to administer tests and are not very expensive. Similarly, online training programs allow small firms to offer employee training much like large firms do but at very low costs. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 36) In addition to offering employers courses in writing job descriptions and interviewing job candidates, the Small Business Administration also offers free job postings for small business owners looking for qualified applicants. Answer: FALSE Explanation: The federal government's Small Business Administration provides a virtual campus that offers online courses, workshops, publications, and learning tools aimed toward supporting entrepreneurs. However, the site does not post jobs for small businesses. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 37) Small business owners can contract with private vendors for training workers, testing applicants, and appraising employees. Answer: TRUE Explanation: Online training and testing is available through private vendors. Small business owners can also use online services to aid with performance appraisals and compensation. Difficulty: Easy Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

38) Appropriately compensating employees is difficult for small businesses because of the lack of access to salary surveys. Answer: FALSE Explanation: Lack of easy access to salary surveys once made it difficult and time-consuming for smaller businesses to fine-tune their pay scales. Today, sites like www.salary.com make it easy to determine local pay rates. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 39) Average accident rates are lower for small businesses than for large ones. Answer: TRUE Explanation: Safety is an important issue among small employers. Average injury rates for small businesses are somewhat lower than in big companies. However most people work for small businesses, so that's still a huge number of total accidents. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 40) For a fee, a small business can receive an on-site safety consultation with an OSHA safety expert to help improve the health and safety systems at the worksite. Answer: FALSE Explanation: OSHA provides free on-site safety and health services for small businesses. This service uses safety experts from state governments who provide consultations at the employer's workplace. Difficulty: Moderate Objective: 2 AACSB: Analytical Thinking Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

41) What risks are faced by most small business owners regarding laws, litigation, and safety? What government tools are available to assist small businesses with these risks? Answer: The smaller firm is probably not adequately addressing potential workplace litigation. Most small business owners are well aware of the threat of employment related litigation. However, their size and lack of HR expertise makes it unlikely that they'll address the problem. For example, most don't provide adequate (or any) employment discrimination or sexual harassment training. The small business owner may not be fully complying with compensation regulations and laws, such as paying compensatory time for overtime hours worked, and distinguishing between employees and independent contractors. Violations have serious consequences. Many government tools are available to small businesses. The U.S. Department of Labor's "FirstStep Employment Law Advisor" helps small employers determine which laws apply to their business. The U.S. Equal Employment Opportunity Commission (EEOC) administers Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act of 1967 (ADEA), Title I of the Americans with Disabilities Act of 1990 (ADA), and the Equal Pay Act of 1963 (EPA). Its Web site contains important information and practical advice regarding EEOC matters. The DOL's Occupational Safety and Health Administration site similarly supplies guidance for small business owners. This contains practical information for small business owners, including industry-specific safety and accident checklists. Difficulty: Hard Objective: 1, 2 AACSB: Written and Oral Communication Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 42) How has the Internet changed how small businesses compete with large businesses in regards to HR-related issues? Answer: Internet resources can make small business owners almost as effective as their large competitors at writing job descriptions and building applicant pools. For example, the Department of Labor's O*NET enables business owners to quickly create accurate and professional job descriptions and job specifications. Small business owners can use online recruiting tools like Internet job boards to post positions. For businesses with their own company Web sites, the dot-jobs domain can be effective. Although small companies can't compete with the training resources of giants like GE, Internet training can provide, at a relatively low cost, the sort of professional employee training that was formerly beyond most small employers' reach. We've seen that even small employers now have easy access to computerized and online appraisal and compensation services. For example, small employers can contract with vendors that enable them to do performance appraisals online. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

43) In a brief essay, discuss the Wonderlic Personnel Test and the Predictive Index for screening employees. What are the advantages and disadvantages of each for small businesses? Answer: For the small business, one or two hiring mistakes could wreak havoc. Some tests are so easy to use they are particularly good for smaller firms. One is the Wonderlic Personnel Test, which measures general mental ability. With questions somewhat similar to the SAT, it takes less than 15 minutes to administer the 4-page booklet. Comparing the person's score with the minimum scores recommended for various occupations shows whether the person achieved the minimally acceptable score for the type of job in question. The Predictive Index measures workrelated personality traits, drives, and behaviors–in particular dominance, extroversion, patience, and blame avoidance–on a two-sided sheet. A template makes scoring simple. The Predictive Index program includes 15 standard benchmark personality patterns. Both tests are available in online versions. Online arrangements like these have many benefits, beyond just saving the time the owners' employees might have to spend testing employees. For example, because it's available 24/7, prospective candidates can log in and apply anytime, wherever they are. That means a larger potential pool of applicants, and hopefully more likelihood of getting an outstanding employee. There are low-tech and costless things a small business can do to improve its selection process, such as work sampling tests. Difficulty: Hard Objective: 2 AACSB: Written and Oral Communication Learning Outcome: 18.2 Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort. 44) According to the text, what are the three tools that small businesses can use to improve their HR management practices? A) informality, adaptability, and reliability B) flexibility, familiarity, and informality C) creativity, flexibility, and adaptability D) familiarity, formality, and flexibility Answer: B Explanation: Smallness should translate into personal familiarity with each employee's strengths, needs, and family situation. And it should translate into the luxury of being able to be relatively flexible and informal in the human resource management policies and practices the company follows. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

45) According to research, a small business owner's familiarity with employees leads to greater ________. A) flexibility with HR policies B) financial profits and rewards C) clarification of expectations D) creativity in recruiting practices Answer: A Explanation: Because small businesses need to capitalize on their strengths, they should capitalize on their smallness when dealing with employees. Smallness should translate into personal familiarity with each employee's strengths, needs, and family situation. And it should translate into being relatively flexible and informal in the human resource management policies and practices the company follows. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 46) At a small business, what is the most likely benefit of a flexible, informal, and familiar work environment? A) gaining market share quickly B) offering extensive benefits packages C) providing regular, online training courses D) knowing employees' strengths and needs Answer: D Explanation: Being familiar with employees means that employers are aware of their workers' strengths and needs. Large firms offer more extensive benefits packages than do smaller ones. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

47) Which one of the following is a work-life benefit offered almost exclusively by small businesses? A) professional development seminars B) disability and life insurance benefits C) compressed workweeks during the summer D) job rotation and job enrichment opportunities Answer: C Explanation: Unlike large firms, small businesses can offer employees compressed workweeks or three-day weekends during the summer. Job enrichment is easier to accomplish at a small firm, but job rotation can occur at either. The other choices are offered by both small and large firms. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 48) With the Streamlined Interviewing Process, which of the following is NOT one of the four basic required factors? A) motivation B) personality C) teamwork skill D) intellectual capacity Answer: C Explanation: The four basic required factors are knowledge and experience, motivation, intellectual capacity, and personality. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 49) Approximately what percentage of small firms offer defined retirement benefits plans to employees? A) 15% B) 35% C) 50% D) 75% Answer: A Explanation: About the same percentage of small firms (93%) as large ones (98%) offer defined contribution 401(k) plans, (although 35% of large firms offer defined benefits plans, compared with 15% of small firms.) Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 19 Copyright © 2020 Pearson Education, Inc.

50) Fasten-It is a small franchise with 27 employees. Because of its size, Fasten-It is more likely than a large business to ________. A) offer cafeteria insurance options B) provide long-term disability benefits C) offer flexible start and stop times, within some acceptable range, to its employees D) provide paid family leave to new parents Answer: C Explanation: However small firms offered more flexibility. For example, employees at small employers (50-99 employees) were more likely than large employers (1,000 or more employees) to (1) take time off during the workday to attend to important family or personal needs without loss of pay; (2) have control over when to take breaks; and (3) periodically change starting and quitting times within some range of hours. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 51) Fasten-It is able to maintain loyalty among its employees by ________. A) paying a higher percentage of health insurance costs B) offering more opportunities for advancement C) providing frequent performance feedback D) being sensitive to employees' strengths and weaknesses Answer: C Explanation: Some small businesses also discovered how to turn tiny into tight-knit, earning employees' trust by keeping them in the loop on company news and financials, and their loyalty by providing frequent feedback on performance. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

52) Carlos Marron owns a small business with 60 employees. Currently his business does not have a retirement plan. He wants an easy method of offering retirement benefits to his employees. Which one of the following would most likely be Charles' best option? A) SIMPLE IRA plan B) Roth IRA plan C) stock options D) 401(k) plan Answer: A Explanation: Probably the easiest way for small businesses to provide retirement benefits is through a SIMPLE IRA plan. With the SIMPLE (for Savings Incentive Match Plan for Employees) IRA, employers must (and employees may) make contributions to traditional employee IRAs. These plans are for employers or small businesses with 100 or fewer employees and no other type of retirement plan. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 53) Which one of the following is a true statement regarding SIMPLE IRAs? A) SIMPLE IRAS require employees to make contributions each month. B) Employer contributions to SIMPLE IRAS are not tax deductible. C) Employers usually handle the IRS paperwork for SIMPLE IRAs. D) SIMPLE IRAs have low administrative costs. Answer: D Explanation: The plan has very low administrative costs. Employer contributions are tax deductible. With a SIMPLE IRA, the employer must contribute and employees may contribute. The financial institution usually handles the IRS paperwork. Difficulty: Hard Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

54) All of the following are online recruitment tools used by most small firms EXCEPT ________. A) professional association Web sites B) LinkedIn C) Internet job boards D) assessment centers Answer: D Explanation: Assessment centers are costly to develop and administer and are likely to be used by large rather than small firms. Small firms rely on Internet postings, newspaper ads, and the Web sites of professional associations for recruiting applicants. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 55) Training programs at most small firms can best be described as ________. A) systematic B) nonexistent C) expensive D) informal Answer: D Explanation: Small companies typically take a more informal approach to training and development. Most small firms don't systematically monitor their managers' skill needs, but training does exist. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 56) What is generally the focus of management development in small firms? A) planning the next career move for the manager B) teaching specific firm-related competencies C) teaching managers to read financial statements D) teaching conflict-management skills Answer: B Explanation: First, small businesses focus on what the training will do for their bottom lines, rather than how employees may benefit from the training. Similarly they focus their management development on teaching specific firm-related competencies (such as how to sell the firm's products). Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 22 Copyright © 2020 Pearson Education, Inc.

57) Which one of the following is NOT an informal training method suggested for small businesses? A) provide internal sales seminars B) offer to cover the tuition for special classes C) provide subscriptions to industry-specific Internet content. D) encourage the sharing of best practices among associates Answer: A Explanation: Internal sales seminars was not suggested for small business, and such internal training is more likely to occur in large organizations. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 58) Which one of the following is NOT an employee benefit that fits better with small businesses? A) make them feel like owners B) offer consistent schedules C) make sure they have what they need to do their jobs D) constantly recognize a job well done Answer: B Explanation: Many small businesses cannot offer consistent schedules as they have small workforces that need to work as issues and customer needs arise. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 59) Training programs at most small firms tend to focus on ________. A) specific competencies needed at the firm B) long-term management skills C) strategy needs at the firm D) marketing and finance Answer: A Explanation: Research shows that smaller firms tend to focus any management development training on learning specific firm-related competencies (such as how to sell the firm's products). They generally downplayed developing longer-term management skills due to a reluctance to invest too much in managers who may then leave. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

60) All of the following are informal training methods recommended to small businesses EXCEPT ________. A) paying tuition for specialized courses B) arranging weekly classes led by paid experts C) providing a subscription to Internet content D) sending employees to association meetings Answer: B Explanation: Weekly classes for all employees would be too costly and formal for most small firms. The other choices are recommended informal training methods for small businesses. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 61) Which one of the following is a recommended method for establishing fairness at a family business? A) requiring family members to telecommute B) avoiding the hiring of family members C) eliminating privileges for family members D) promoting only non-family members Answer: C Explanation: Family members should come in earlier, work harder, and stay later than other employees do to make it clear that family members earned their promotions. Discord among family members at work is distracting, so issues should be confronted. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 62) Which one of the following is the most likely result of treating family and non-family employees at a small business differently? A) communication difficulties B) benefits discrepancies C) union involvement D) poor morale Answer: D Explanation: Treating inequitably family and nonfamily employees can undermine perceptions of fairness, as well as morale. It is less likely that fairness issues would lead to communication problems, benefits discrepancies, or union involvement. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 24 Copyright © 2020 Pearson Education, Inc.

63) Ian owns a family business and wants to avoid any appearance that family members are benefiting unfairly from the sacrifice of other workers. He can accomplish this best by ________ A) confronting family issues B) treating people fairly C) setting the ground rules D) considering family first Answer: B Explanation: Treating people fairly involves working hard to avoid "any appearance that family members are benefiting unfairly from the sacrifice of others." Difficulty: Hard Objective: 3 AACSB: Application of Knowledge Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 64) Roberto makes sure that all employees hired at his organization, whether family or not, know what their responsibilities are and their potential ability to be promoted. Roberto is engaging in the small business fairness step of ________. A) communication B) discussions and reports C) commitment D) addressing unfair decisions Answer: C Explanation: First, the family commits to the idea that all employees, family and non-family, should be treated fairly and consistently. Work hard to avoid "any appearance that family members are benefiting unfairly from the sacrifice of others." Avoid "any behavior that would lead people to the conclusion that they are demanding special treatment in terms of assignments or responsibilities. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

65) Lucien, the owner of A-Tech, a small software firm, plans to use the streamlined interview process to interview candidates for a programming position at the company. Lucien should first ________. A) ask questions about significant areas in a candidate's life B) probe specific factors during the interview C) devise a plan for the interview D) have a plan that will guide the interview Answer: D Explanation: The first step in the streamlined interview process involves preparing for the interview by considering the knowledge and experience required for the job. Difficulty: Moderate Objective: 3 AACSB: Application of Knowledge Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 66) Managers who prepare for an interview using the streamlined interview process should focus on all of the following factors about a candidate EXCEPT ________. A) personality B) age and family commitments C) work motivation D) knowledge and experience Answer: B Explanation: Personality, motivation, intellectual capacity, and knowledge/experience are factors that should be considered. It is illegal to discriminate for or against an applicant because of age. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 67) Unlike large organizations, small businesses benefit from familiarity with employees and flexibility and informality in HR management. Answer: TRUE Explanation: Small businesses need to capitalize on their strengths, so in dealing with employees they should capitalize on their smallness. Smallness should translate into personal familiarity with each employee's strengths, needs, and family situation. And it should translate into flexibility and informality in the HRM policies and practices the company follows. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

68) In order to recruit top-quality employees, the majority of small businesses offer defined benefit retirement benefits. Answer: FALSE Explanation: Access to retirement benefit plans is more prevalent in large firms than small ones. Roughly 35% of large firms offer such benefits, while about 15% of small ones do. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 69) Rudimentary human resource practices may put small business owners at a competitive disadvantage. Answer: TRUE Explanation: Small businesses cannot just attempt to deal with HR issues in the same way large organizations do. They need to leverage their unique advantages and understand the limitations that can come with their size. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 70) The simplicity of SIMPLE IRAs makes them appropriate for small businesses with 100 or fewer employees. Answer: TRUE Explanation: SIMPLE IRA plans are for employers or small businesses with 100 or fewer employees and no other type of retirement plan. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 71) Although employer contributions to SIMPLE IRAS are tax deductible, the plans have fairly high administrative costs. Answer: FALSE Explanation: SIMPLE IRAs have very low administrative costs. Employer contributions are tax deductible. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

72) Small businesses typically do not provide employee training that emphasizes long-term management skills because of concerns regarding employee turnover. Answer: TRUE Explanation: Small firms usually focus any management development training on learning specific firm-related competencies (such as how to sell the firm's products). They generally downplay developing longer-term management skills due to a reluctance to invest too much in managers who may then leave. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 73) Compressed work weeks, flexible work schedules, and occasional free meals are work-life benefits that small firms use to retain good employees. Answer: TRUE Explanation: Small firms benefit from flexibility, so they are able to offer employees compressed work weeks, flexible schedules, and free meals to show appreciation. Difficulty: Easy Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 74) What are the strengths of small businesses? How can small businesses use these strengths to improve their HRM practices? Answer: Small businesses need to capitalize on their strengths, so in dealing with employees they should capitalize on their smallness. Smallness should translate into personal familiarity with each employee's strengths, needs, and family situation. And it should translate into the luxury of being able to be relatively flexible and informal in the human resource management policies and practices the company follows. Smaller businesses often need to adapt quickly to environmental realities like competitive challenges. This often means that entrepreneurs tend to conduct matters such as raises, appraisals, and time off "on an informal, reactive basis with a short time horizon." Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

75) What work-life benefits are offered by small firms that are not available with large firms? If given a choice, would you rather work for a small or a large firm? Use specific details to support your argument. Answer: Small firms can offer employees work–life benefits that large employers usually can't match. Here are some examples: • Extra time off. For example, some small business owners offer Friday afternoons off in the summer. • Compressed workweeks. For example, in the summer, offer compressed workweeks that allow employees to take longer weekends. • Bonuses at critical times. Small business owners are more likely to know what's happening in the lives of their employees. They often use this knowledge to provide special bonuses, for instance, if an employee has a new baby. • Flexibility. Small businesses should excel at helping employees deal with the demands of personal issues like child care and elder care. • Sensitivity to employees' strengths and weaknesses. The relative intimacy of the small business should enable the owner to be better attuned to his or her employees' strengths, weaknesses, and aspirations. • Help them better themselves. For example, pay employees to take a class to help them develop their job skills. • Feed them. Provide free meals every now and then, perhaps by taking your employees to lunch. • Make them feel like owners. For example, endeavor to give your employees input into major decisions, let them work directly with clients, get them client feedback, share company performance data with them, and let them share in the company's financial success. • Make sure they have what they need to do their jobs. Having motivated employees is only half the challenge. Also ensure they have the necessary training, procedures, computers, and so on. • Constantly recognize a job well done. Capitalize on your day-to-day interactions with employees to "never miss an opportunity to give your employees the recognition they deserve." Difficulty: Hard Objective: 3 AACSB: Written and Oral Communication Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes.

76) What can small businesses do to provide job-related training without actually establishing expensive formal training programs? Answer: Some informal methods that small businesses can do include these: Offer to cover the tuition for special classes Identify online training courses Provide access to relevant content on the Internet Encourage the sharing of best practices among associates When possible, send people to special seminars and association meetings for learning and networking Create a learning ethic by having everyone teach each other what they are learning. Difficulty: Moderate Objective: 3 AACSB: Analytical Thinking Learning Outcome: 18.3 List five ways entrepreneurs can use their small size to improve their HR processes. 77) Which one of the following terms refers to an outside vendor that manages HR functions for small businesses? A) professional employer organization B) human resource outsourcer C) employee leasing firm D) all of the above Answer: D Explanation: Many small business owners look at all the issues involved with managing personnel, and decide to outsource all or most of their human resource functions to outside vendors. Such vendors are called professional employer organizations (PEOs), human resource outsourcers (HROs), or sometimes employee or staff leasing firms. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 78) A small business owner would most likely use a professional employer organization in order to ________. A) network with industry professionals B) automate succession planning C) handle HR activities like payroll D) conduct organized labor activities Answer: C Explanation: PEOs handle a firm's HR management requirements like payroll. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 30 Copyright © 2020 Pearson Education, Inc.

79) Helga owns a flower shop and employs 20 people. Helga lacks the time and knowledge to efficiently handle HR tasks like payroll and benefits management. Which one of the following would be most appropriate for Jill in this situation? A) filing with COBRA B) finding an HMO C) creating a PAQ D) hiring a PEO Answer: D Explanation: Professional employer organizations (PEOs) are outside vendors that handle a firm's HR management requirements like payroll, benefits, and tax form filing. Difficulty: Moderate Objective: 4 AACSB: Application of Knowledge Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 80) Which one of the following is a characteristic of a PEO? A) PEOs can become co-employers of record for the firm's employees. B) PEOs usually work for firms with at least 100 employees. C) Most PEOs charge 8% to 10% of a firm's total payroll. D) PEOs are legally limited to payroll tasks. Answer: A Explanation: By transferring the client firm's employees to the PEO's payroll, the PEO becomes the co-employer of record for the employer's employees. The PEO usually handles HR activities such as recruiting, hiring, payroll, and taxes. Most PEOs focus on employers with less than 100 employees and charge fees of 2% to 4% of a company's payroll. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 81) Which one of the following is NOT one of the primary reasons that small businesses use PEOs? A) managing overwhelming personnel-related paperwork B) fulfilling personnel-related legal responsibilities C) supporting the HR department temporarily D) acquiring affordable insurance and benefits Answer: C Explanation: Up to 100 or so employees, small firms typically have no dedicated HR managers or specialists, so PEOs are not hired to support an HR department temporarily. Instead, PEOS are hired to manage paperwork, stay in legal compliance, and gain affordable insurance. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 31 Copyright © 2020 Pearson Education, Inc.

82) A ________ can help a small business eliminate extensive HR-related paperwork, stay in compliance with Title VII, OSHA, and pension plan rules, and attain low-cost insurance. A) professional employer organization B) human resource information system C) management information system D) transaction-processing system Answer: A Explanation: PEOs handle the HR-related paperwork of small firms and also ensure that firms stay in compliance with various federal and state laws. PEOs also help small firms acquire insurance at a lower rate than they could attain on their own. Information systems help eliminate paperwork, but they are not involved in attaining low-cost insurance. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 83) Damon owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. Damon is in the process of investigating Assure Group, a PEO. Which one of the following best supports the argument that Damon should use Assure Group? A) The Assure representative explains that the PEO has been in business for one year. B) The Assure representative does not ask Damon about his company's current HR policies. C) The Assure representative promises Damon that his company will see substantial savings. D) The Assure representative asks Damon many questions about his company's current HR policies. Answer: D Explanation: A reputable PEO will question an owner extensively about the firm's workplace safety and human resource policies and practice because the two will be sharing liability. Promises of big savings, short time doing business, and disinterest in HR policies signal problems. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization.

84) Damon owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. Damon is in the process of investigating Assure Group, a PEO. Which one of the following undermines the argument that Damon should use Assure Group? A) Assure lacks a clear credit history because Assure has been in business less than one year. B) Assure's Web site indicates that customers experience only modest savings. C) Assure requires business owners to complete questionnaires about workplace safety. D) Assure provides payroll, recruiting, and screening services to customers. Answer: A Explanation: An unclear credit history suggests that the PEO may have had problems in the past. A reputable PEO will question an owner extensively about the firm's workplace safety and human resource policies and practice because the two will be sharing liability. Reputable PEOs will acknowledge that savings will be minimal and will belong to a national association. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 85) David owns a small architecture firm with 75 employees. He wants to use a PEO to handle his firm's HR activities. David is in the process of investigating Assure Group, a PEO. Which one of the following questions is LEAST relevant to David's decision regarding whether or not to hire Assure? A) Will employee benefits be fully insured or partially self-funded by Assure? B) What HR and legal expertise is available from the Assure staff? C) What is the process that Assure uses to handle HR-related legal issues? D) How does Assure effectively communicate HR needs with its employees? Answer: D Explanation: The manner in which Assure communicates with its own employees is least relevant to David's decision. David needs to ask how benefits are funded and about Assure's expertise and processes before he can make a sound decision. Difficulty: Hard Objective: 4 AACSB: Application of Knowledge Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization.

86) All of the following are recommended activities for small business managers who are in the process of selecting a professional employer organization EXCEPT ________. A) analyzing how the employee benefits are funded B) checking the professional rating assigned to the PEO C) assessing the PEO's staff for experience and depth D) asking how the PEO will provide its services Answer: B Explanation: No rating system exists for PEOs, although there are professional organizations. Firms should check how benefits are funded, assess the staff, and ask how the PEO will provide services. Difficulty: Hard Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 87) Human resource outsourcers handle a firm's HR functions on an administrative level, so the client firm's employees are not added to the HROs payroll. Answer: TRUE Explanation: By transferring the client firm's employees to the PEO's payroll, PEOs become coemployers of record for the employer's employees. In contrast, HROs usually handle HR functions on an "administrative services only"–they're a client's "HR office." A client's employees still work for the client rather than for the HRO. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 88) A PEO handles a client's payroll, Social Security payments, and unemployment insurance, but recruiting and hiring remain the responsibility of the client. Answer: FALSE Explanation: The PEO usually handles employee-related activities such as recruiting, hiring (with client firms' supervisors' approvals), and payroll and taxes (Social Security payments, unemployment insurance, and so on). Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization.

89) Small businesses frequently use PEOs because they lack dedicated HR managers. Answer: TRUE Explanation: Up to 100 or so employees, small firms typically have no dedicated HR managers, and even larger ones may have few specialists. That means the owner has all or most of the human resource management burden on his or her shoulders and needs the help of a PEO. Difficulty: Easy Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 90) In most cases, a PEO shares liability with its clients, which encourages the PEO to ensure that its clients comply with COBRA, Title VII, and OSHA. Answer: TRUE Explanation: Staying in compliance with pension plan rules, Title VII, OSHA, COBRA, the Fair Labor Standards Act, and other personnel-related laws can be distracting. PEOs generally share liability with clients and have a vested interest in preventing workplace injuries and employee lawsuits. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 91) PEOs enable small businesses to attain insurance and other benefits at lower costs because the PEO absorbs the small company's employees into a larger insurable group. Answer: TRUE Explanation: The PEO becomes the legal employer of a small firm's employees, and the employees are absorbed into a much larger insurable group. As a result, a small business owner may be able to get insurance (as well as benefits like 401(k)) for its people that it couldn't otherwise. Difficulty: Moderate Objective: 4 AACSB: Analytical Thinking Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization.

92) What types of HR-related risks are faced by most small businesses? How can PEOs help small firms with these risks? Answer: A lack of attention and expertise regarding HR means that most small businesses face certain risks. First, small business owners run the risk that their relatively rudimentary human resource practices will put them at a competitive disadvantage. Second, there is a lack of specialized HR expertise. In most small businesses, there are at most one or two dedicated human resource management people responsible for the full range of HR functions, from recruitment to compensation and safety. This makes it more likely that they'll miss problems in specific areas. Third, the smaller firm is probably not adequately addressing potential workplace litigation. Fourth, the small business owner may not be fully complying with compensation regulations and laws. Fifth, duplication in paperwork leads to inefficiencies and data entry errors. A professional employer organization (PEO) can minimize risks for small firms. These vendors range from payroll companies to those that handle all an employer's human resource management requirements, such as paperwork, benefits, and legal compliance. Difficulty: Hard Objective: 1, 4 AACSB: Written and Oral Communication Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization. 93) You are the owner of a small business and feel overwhelmed by the paperwork. You have decided to use a PEO. What are the issues you must address to determine which PEO is best for your company? Answer: Small business managers need to choose and manage the PEO relationship carefully. You should conduct a needs analysis so that you'll know ahead of time exactly what human resource and risk management concerns your company wants to address. You should review the services of all PEO firms you're considering and determine if the PEO is accredited. Check the provider's bank, credit, and professional references. Make sure to demand specifics on things like insurance providers and creditors. Understand how the employee benefits are funded. Is it fully insured or partially self-funded? Who is the third-party administrator or carrier? Confirm the participating employers will receive first-day coverage. See if the provider contract assumes the employment law compliance liabilities in the applicable states. Review the service agreement carefully. Investigate how long the PEO has been in business. The vendor should show a history of staying power to show that it's well-managed. Check out the prospective PEO's staff. Periodically get proof that payroll taxes and insurance premiums are being paid properly and that any legal issues are handled correctly. Difficulty: Hard Objective: 4 AACSB: Written and Oral Communication Learning Outcome: 18.4 Discuss how you would choose and deal with a professional employer organization.

94) Which one of the following risks commonly associated with small businesses can most likely be minimized by an HR information system? A) data entry errors B) personality testing C) college recruiting D) discrimination lawsuits Answer: A Explanation: For small businesses that don't use human resource information systems, any change to employee data requires manually changing all forms. This is not only time-consuming and inefficient, but can precipitate errors. HRISs automatically update an employee's information on all forms when a change is made to one form. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 95) Elizabeta recently opened an embroidery business and has four employees who work fulltime for her. Which one of the following will Elizabeta most likely use to manage her company's human resources tasks? A) manual HR system B) automated HR system C) HR outsourcer system D) HR scorecard system Answer: A Explanation: Very small employers (with 10 employees or less) will probably start with a manual human resource management system. Difficulty: Easy Objective: 5 AACSB: Application of Knowledge Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.

96) Juliette has a small accounting firm with only six employees, so she handles HR tasks manually. Juliette recently hired a new employee. Which one of the following forms will Juliette most likely need on the worker's first day of employment? A) reference check form B) employment agreement form C) vacation request form D) absence report form Answer: B Explanation: Juliette will most likely need an employment agreement form on the first day. Prior to hire, she would have needed the reference check form. When the employee requests vacation or is absent, Juliette will need to acquire those forms. Difficulty: Moderate Objective: 5 AACSB: Application of Knowledge Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 97) All of the following tasks can be managed with most HR software programs EXCEPT ________. A) payroll B) attendance C) outplacement D) benefits management Answer: C Explanation: Most HR software packages are capable of handling tasks associated with payroll, attendance, and benefits. Outplacement counseling for laid off employees would not likely be managed by an HR software program. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.

98) Which one of the following terms refers to the interrelated people, data, technology, and organizational procedures a firm uses to collect, process, store, and disseminate information? A) talent management system B) human resources information system C) competency model D) strategy map Answer: B Explanation: The term human resources information system (HRIS) refers to the interrelated people, data, technology, and organizational procedures a company uses to collect, process, store, and disseminate information. Information systems may or may not be computerized. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 99) A(n) ________ system provides a firm's managers with trend graphs and reports, such as compensation and turnover. A) transaction-processing B) executive support C) management information D) employee assistance Answer: A Explanation: By interacting with the company's employee database, transaction processing packages also produce employment data-related trend graphs and reports on personnel metrics such as turnover and compensation costs. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 100) A human resources information system helps managers by ________. A) providing detailed information about tax liabilities B) automatically updating employee records and data C) unifying HR management processes D) providing data about a firm's customer orders and returns Answer: C Explanation: A Human Resource Information System HRIS (HRIS) is human resource software which unifies HR management processes such as applicant tracking, hiring, training, performance management, benefits administration, and payroll into one automated system. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 39 Copyright © 2020 Pearson Education, Inc.

101) ________ processing allows for employees to self-enroll in all their desired benefits program over the Internet at a secured site. A) Improved-Transaction B) Improved Reporting C) HR system integration D) Self Answer: D Explanation: As a company grows, a more comprehensive system becomes necessary. There are several reasons for installing an HRIS. Online Self Processing lets employees self-enroll in all their desired benefits programs over the Internet at a secure site. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 102) Which one of the following terms refers to interrelated components working together to collect, process, store, and disseminate information to support a firm's human resource management activities? A) transaction-processing system B) high-performance work system C) human resource information system D) electronic performance support system Answer: C Explanation: As companies grow, they also often turn to integrated human resource information systems (HRIS). We can define an HRIS as interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization's HRM activities. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.

103) All of the following are reasons that firms install human resource information systems EXCEPT ________. A) worker performance monitoring B) online self-processing C) transaction processing D) system integration Answer: A Explanation: HRIS enables firms to improve transaction processing, offer self-processing options, integrate HR functions, and generate reports. An HRIS is not used to monitor the performance of employees. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 104) Which one of the following makes it possible for employees to self-enroll in a firm's benefits program through a secure Internet site? A) executive support system B) management information system C) human resources information system D) electronic performance support system Answer: C Explanation: HR information systems make it possible to make the company's employees part of the HRIS. Employees can self-enroll in all their desired benefits programs over the Internet at a secure site with firms that have HRISs. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 105) An HRIS improves the reporting capabilities of managers because an HRIS ________. A) allows a firm to plan its HR activities B) integrates separate HR tasks C) processes a firm's payroll D) works on a firm's intranet Answer: B Explanation: Because the HRIS integrates numerous individual HR tasks (training records, appraisals, employee personal data), installing an HRIS boosts HR's reporting capabilities. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.

106) Which one of the following is NOT a benefit of cloud-based human resource management systems? A) Employees can easily access the information from wherever they are. B) Company information is kept internally. C) The owners can easily access the information from wherever they are. D) Vendors can more easily update them with the latest features. Answer: B Explanation: Cloud-based HRM systems offer many benefits, but they require some company information to be stored on the cloud rather than secure internal servers. This can be problematic if there are data breaches on the cloud server. Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 107) A small firm usually begins with a manual human resource management system before shifting to an automated system. Answer: TRUE Explanation: Most small firms with less than ten employees can manage their HR manually. However, once a firm grows, manual systems are usually replaced by automated systems. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 108) An integrated human resource information system (HRIS) is interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization's human resource management activities. Answer: TRUE Explanation: An integrated human resource information system (HRIS) is interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization's human resource management activities. Difficulty: Easy Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.

109) One of the disadvantages of an HRIS is the loss of ability to generate reports. Answer: FALSE Explanation: By integrating numerous individual HR tasks (training records, appraisals, employee personal data, and so on), the HRIS improves HR's reporting capabilities. For example, reports might be available (company-wide and by department) for health-care cost per employee, pay and benefits as a percent of operating expense, cost per hire, report on training, volunteer turnover rates, turnover costs, time to fill jobs, and return on human capital invested (in terms of training and education fees, for instance). Difficulty: Moderate Objective: 5 AACSB: Analytical Thinking Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business. 110) What are the basic elements and steps involved in a manual HR system? What are the benefits of using an automated HR system? Answer: Very small employers (say, with ten employees or less) will probably start with a manual human resource management system. From a practical point of view, this generally means obtaining and organizing a set of standardized personnel forms covering each important aspect of HR–recruitment, selection, training, appraisal, compensation, safety process–as well as some means for organizing all this information for each of your employees. As the small business grows, it becomes increasingly unwieldy and uncompetitive to rely on manual HR systems. For a company with 40 or 50 employees or more, the amount of management time devoted to things like attendance history and performance appraisals can multiply into weeks. It is therefore at about this point that most small- to medium-sized firms begin computerizing individual human resource management tasks. An integrated human resource information system (HRIS) has interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization's human resource management activities. Packaged systems provide software solutions for virtually all personnel tasks, ranging from benefits management to compensation, compliance, employee relations, payroll, and time and attendance systems. Software is available for controlling attendance, employee record keeping, writing job descriptions, writing employee handbooks, and conducting computerized employee appraisals. Most systems enable management to produce standard reports on matters such as attendance, benefits, and ethnic information. Difficulty: Hard Objective: 5 AACSB: Written and Oral Communication Learning Outcome: 18.5 Describe how you would create a start-up human resource system for a new small business.