Test Bank for Human Resource Management Essential Perspectives 7th Edition Mathis

Test Bank for Human Resource Management Essential Perspectives 7th Edition Mathis

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Chapter 1—HR’s Role, Strategy, and Planning MULTIPLE CHOICE 1. Which of the following statements is true of the functions of human resource management? a. It is a clerical operation in large companies concerned with payroll and employee records. b. It refers to a department which looks into the legal ramifications of policies and procedures that affect only the employees in an organization. c. It is a function concerned with costs, planning, and the implications of various strategies for organizations. d. It refers to a design of formal systems in an organization to manage human talent for accomplishing organizational goals.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: What is Human Resource Management?

PAGE: 02

2. A useful way to measure the productivity of a workforce is: a. to determine the total cost of people required for each unit of output. b. to determine the total cost of people required for an output of 100 units. c. to determine the total cost of people required to complete a day’s worth of work. d. to determine the total cost of people required to complete a year’s worth of work.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 04

3. _____, a method to increase employee productivity, involves eliminating layers of management and changing reporting relationships, as well as cutting staff through downsizing, layoffs, and early retirement buyout programs. a. Organizational restructuring b. Redesigning work c. Aligning human resource activity d. Outsourcing ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core Competency PAGE: 04

4. _____, a method to increase employee productivity, involves having fewer employees who perform multiple job tasks. a. Organizational restructuring b. Aligning HR activity c. Outsourcing d. Redesigning work ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core Competency PAGE: 04

5. _____, a method to increase employee productivity, includes ensuring that staffing, training and development, performance management, and compensation are not working to offset productivity. a. Outsourcing b. Redesigning work

c. Aligning human resource activity d. Organizational restructuring ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core Competency PAGE: 04

6. Which of the following is a part of the process of redesigning work? a. Reshaping jobs because of technology changes b. Revising organizational structures c. Training, developing, and evaluating employees d. Outsourcing operations internationally ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 04

7. Which of the following is a part of the process of aligning human resource activities? a. Changing workloads and combining jobs b. Revising organizational structure c. Using domestic vendors instead of employees d. Training, developing, and staffing ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 04

8. Which of the following is true of organizational culture? a. It increases the diversity of an organization. b. It decreases the diversity of an organization. c. It provides employees with rules for behavior. d. It does not take a very long time to evolve.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 05

9. Which of the following is a part of the process of outsourcing analyses? a. Revising organizational structure b. Using vendors instead of employees c. Changing workloads and combining jobs d. Attracting and retaining employees ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE:

10. Which of the following is true of the administrative role of human resource departments? a. It involves managing most human resource activities in keeping with strategies and operations that have been identified by management. b. It involves helping to define the strategy relative to human capital and its contribution to organizational results. c. It involves identifying possible strategies to attract and retain talent with a focus on organizational growth. d. It focuses on record keeping, including essential legal paperwork and policy

implementation.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 06

11. Which of the following is true of the operational role of human resource departments? a. It involves focusing on clerical administration and recordkeeping, including essential legal paperwork and policy implementation. b. It involves identifying possible strategies to attract and retain talent with a focus on organizational growth. c. It involves managing most human resource activities in keeping with the strategies that have been identified by management. d. It involves helping to define the strategy relative to human capital and its contribution to organizational results.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 06

12. Which of the following has traditionally been the dominant role for human resources? a. Operational role b. Employee advocate role c. Administrative role d. Strategic role ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Roles for Human Resource Departments PAGE: 07

13. Sara, a human resource manager at Comp Inc., is moving from an administrative role in the human resource department to an operational role. Which of the following best describes Sara’s change of role? a. Moving from processing legal paperwork to serving as a “champion” of employee concerns. b. Moving from processing legal paperwork to helping define the strategy to manage human capital c. Moving from helping define the strategy to manage human capital to serving as a “champion” of employee concerns d. Moving from helping define the strategy to manage human capital to processing legal paperwork ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

14. Bob, a human resources executive at Axis Inc., is moving from an operational role in the human resources department to a strategic role. Which of the following best describes Bob’s change of role? a. Moving from serving as a “champion” of employee concerns to helping define the strategy to manage human capital b. Moving from helping define the strategy to manage human capital to processing legal paperwork c. Moving from processing legal paperwork to serving as a “champion” of employee concerns d. Moving from processing legal paperwork to helping define the strategy to manage human

capital ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

15. David, a human resources manager at RedWall Inc., is moving from an administrative role in the human resource department to a strategic role. Which of the following best describes David’s change of role? a. Moving from serving as a “champion” of employee concerns to processing legal paperwork b. Moving from helping define the strategy to manage human capital to serving as a “champion” of employee concerns c. Moving from processing legal paperwork to helping define the strategy to manage human capital d. Moving from helping define the strategy to manage human capital to processing legal paperwork ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

16. Mike, a human resources executive at Oyster Studios, is moving from an operational role in the human resources department to an administrative role. Which of the following best describes Mike’s change of role? a. Moving from processing legal paperwork to serving as a “champion” of employee concerns b. Moving from serving as a “champion” of employee concerns to helping define the strategy to manage human capital c. Moving from processing legal paperwork to helping define the strategy to manage human capital d. Moving from serving as a “champion” of employee concerns to processing legal paperwork ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

17. Donna, a human resources manager at Loch Inc., is moving from a strategic role in the human resources department to an operational role. Which of the following best describes Donna’s change of role? a. Moving from helping define the strategy to manage human capital to serving as a “champion” of employee concerns b. Moving from helping define the strategy to manage human capital to processing legal paperwork c. Moving from processing legal paperwork to helping define the strategy to manage human capital d. Moving from serving as a “champion” of employee concerns to processing legal paperwork ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

18. Sunny, a human resources executive at FlyHi Inc. is moving from a strategic role in the human resources department to an administrative role. Which of the following best describes Sunny’s change of role? a. Moving from processing legal paperwork to serving as a “champion” of employee concerns b. Moving from serving as a “champion” of employee concerns to helping define the strategy to manage human capital c. Moving from helping define the strategy to manage human capital to serving as a “champion” of employee concerns d. Moving from helping define the strategy to manage human capital to processing legal paperwork ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

19. Which of the following is a disadvantage of an aging workforce in economically developed countries? a. Having to provide retirement benefits b. Having to decrease the span of control c. Having to provide flexible work arrangements d. Having to replace experience and talent ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Management Challenges PAGE: 09

20. Which of the following is an advantage of using a contingent workforce? a. Committed employees b. No training needed c. Lower cost d. Wider span of control ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Human Resources Management Challenges PAGE: 09

21. A person who is responsible for performing a variety of human resource activities is known as a _____. a. human resource specialist b. human resource planner c. human resource strategist d. human resource generalist ANS: D PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Management Competencies and PAGE: 11

22. Which of the following is a specialized human resource organization? a. World at Work Association b. Organization for Economic Cooperation c. Ethics Resource Center d. U.S. Small Business Association ANS: A

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

TOP: Human Resources Management Competencies and PAGE: 12

23. Josh, a human resource manager, used to handle employee recruitment and compensation for his organization. After a promotion, he was responsible for handling employee recruitment, compensation, and benefits. Which of the following is true of Josh? a. Both the roles played by Josh are generalist roles. b. Both the roles played by Josh are specialist roles. c. Josh moved from a generalist role to a specialist role. d. Josh moved from a specialist role to a generalist role.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking Careers KEY: Bloom's: Application

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 11

24. Suzie, a human resource executive, works with ZedNet Inc. She was responsible for employee recruitment and compensation. After a promotion, she was made responsible only for recruitment.

Which of the following is true of Suzie? a. Both the roles that Suzie played were generalist roles. b. Both the roles that Suzie played were specialist roles. c. Suzie moved from a specialist role to a generalist role. d. Suzie moved from a generalist role to a specialist role.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking Careers KEY: Bloom's: Application

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 11

25. Ramone, a human resource manager, works for TelVille Inc. Initially, he was responsible only for recruitment. After a promotion, he was made responsible exclusively for employee benefits. Which of the following is true of Ramone? a. Both the roles that Ramone played were generalist roles. b. Both the roles that Ramone played were specialist roles. c. Ramone moved from a specialist role to a generalist role. d. Ramone moved from a generalist role to a specialist role.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking Careers KEY: Bloom's: Application

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 11

26. Max, a human resource executive, works at Axis Inc. Initially, he was responsible only for recruitment, but after his promotion, he was responsible for recruitment, compensation, and benefits.

Which of the following best describes Max? a. Both the roles played by Max were generalist roles. b. Both the roles played by Max were specialist roles. c. Max moved from a specialist role to a generalist role. d. Max moved from a generalist role to a specialist role.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking Careers KEY: Bloom's: Application

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 11

27. Which of the following is typically the first step in the strategic planning process for organizations? a. Organizational mission b. SWOT analysis c. Formulating organizational strategy d. Establishing goals and objectives ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 12

28. Which of the following is typically the last step in the strategic planning process for organizations? a. Formulating supporting functional strategies b. Evaluating and reassessing strategy c. Establishing goals and objectives d. Stating the organizational mission ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 13

29. Ken, a brand manager at Media Labs LLC., is formulating a strategic plan for his organization. He has identified the organizational mission and formulated a SWOT analysis of the business. Which of the following is most likely to be Ken’s next step in the strategic planning process? a. Evaluate and reassess strategy b. Implement strategy c. Establish goals and objectives d. Formulate organization-level strategies ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Organizational Strategic Planning PAGE: 13

30. Which of the following is typically the first step in the HR planning process? a. Review organization’s environmental analysis/strategic plans b. Develop HR staffing plans and actions c. Compile HR planning forecasts d. Assess external and internal workforce ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Planning PAGE: 15

31. Which of the following is typically the last step in the HR planning process? a. Review organization’s environmental analysis/strategic plans b. Develop HR staffing plans and actions c. Compile HR planning forecasts d. Assess external and internal workforce ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Planning PAGE: 15

32. Mark, an HR manager, is responsible for the HR planning process in his organization. He has reviewed the organization’s strategic plans. Which of the following is most likely to be Mark’s next step in the planning process? a. Develop HR staffing plans and actions b. Compile HR planning forecasts c. Implement HR staffing plans and actions d. Assess external and internal workforce ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Human Resource Planning PAGE: 15

33. Which of the following is a factor of the external environment in an organization? a. Leadership bench strength b. Organizational culture c. Quality of talent d. Competitive forces ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Planning PAGE: 15

34. Which of the following is an effective method of managing a talent surplus? a. Outsourcing to a third party b. Using contingent workers c. Freezing hiring d. Increasing employee work hours through overtime ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Workforce Supply = Demand PAGE: 18

35. Which of the following is an effective method for managing a talent shortage? a. Reducing employee work hours b. Encouraging attrition c. Implementing voluntary separation programs d. Outsourcing to a third party ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Workforce Supply Demand PAGE: 18

36. Which of the following is true of the Consolidated Omnibus Budget Reconciliation Act? a. Displaced workers can retain their group medical coverage for up to 18 months for themselves, and up to 36 months for their dependents, if they pay the premiums themselves. b. Displaced workers can use the Medicare program sponsored by the government for up to 18 months after the termination of their employment. c. Displaced workers can use the Medicare program sponsored by the federal government for up to 36 months after the termination of their employment. d. Displaced workers can retain their group medical coverage for up to 12 months for themselves, and up to 24 months for their dependents, if they pay the premiums themselves.

ANS: A

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Workforce Supply Demand PAGE:

37. Which of the following best defines the term ‘effectiveness’? a. The degree to which operations are done in an economical manner b. The ability to produce a specific desired effort or result that can be measured c. The degree to which operations are done in the least possible time d. The ability to produce a specific desired effort or result that cannot be measured ANS: B PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resource and PAGE: 19

38. Which of the following best defines HR analytics? a. An evidence-based approach to making HR decisions on the basis of quantitative tools and models b. An assumption-based approach to making HR decisions on the basis of quantitative tools and models c. An evidence-based approach to making HR decisions on the basis of qualitative tools and models d. An assumption-based approach to making HR decisions on the basis of qualitative tools and models ANS: A PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resource and PAGE: 20

39. Which of the following is the function of compliance audits? a. Reviewing regulatory compliance, benefits administration and reporting b. Checking record keeping on state and federal paperwork requirement c. Reviewing specific HR areas such as compensation, training, and so on d. Reviewing compliance with immigration regulations and the I-9 form requirement ANS: B PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 22

40. Which of the following is a part of the strategy and planning function of human resource management? a. Diversity b. Human resource retention c. Job analysis d. Compensation ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: HR Management Functions PAGE: 06

41. Which of the following is the function of benefit programs audit? a. Reviewing regulatory compliance, benefits administration and reporting b. Checking record keeping on state and federal paperwork requirement

c. Reviewing specific HR areas such as compensation, training, and so on d. Reviewing compliance with immigration regulations and the I-9 form requirement ANS: A PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 22

42. Which of the following is the function of I-9 audit? a. Reviewing regulatory compliance, benefits administration and reporting b. Checking record keeping on state and federal paperwork requirement c. Reviewing specific HR areas such as compensation, training, and so on d. Reviewing compliance with immigration regulations ANS: D PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 22

43. Which of the following is the function of specific program audit? a. Reviewing regulatory compliance, benefits administration and reporting b. Checking record keeping on state and federal paperwork requirement c. Reviewing particular HR subareas such as compensation, training, and so on d. Reviewing compliance with immigration regulations and the I-9 form requirement ANS: C PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Comprehension

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 22

44. Which of the following is a part of the staffing function of human resource management? a. Recruiting b. Training c. Orientation d. Career planning ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: HR Management Functions PAGE: 06

45. Which of the following is a part of the human resource function of employee and labor relations? a. Human resource policies b. Health and wellness c. Human resource effectiveness d. Affirmative action ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: HR Management Functions PAGE: 06

TRUE/FALSE 1. Human resources operations in some companies have been involved with mergers, acquisitions, and outsourcing.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: What is Human Resource Management?

PAGE: 02

2. Human resource management is the design of formal systems in an organization to manage human talent for accomplishing organizational goals.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: What is Human Resource Management?

PAGE: 02

3. Intellectual property is the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: What is Human Resource Management?

PAGE: 03

4. A core competency is a unique capability that creates high value in which an organization excels.

ANS: T PTS: 1 DIF: Easy NAT: BUSPROG: Analytic TOP: What is Human Resource Management?

KEY: Bloom's: Knowledge PAGE: 03 5. A useful way to measure the productivity of a workforce is to determine the total cost of people against the annual sales of the organization.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 04

6. Some of the major ways of increasing employee productivity are organizational restructuring, redesigning work, and aligning human resource activities.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core Competency PAGE: 04

7. Organizational culture consists of the shared values and beliefs that give members of an organization meaning and provide them with rules for behavior.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core Competency PAGE: 05

8. Even if an organization does not have a history in which people have shared experiences for years, the organizational culture will stabilize.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Where Employees Can Be a Core Competency PAGE: 05

9. The operational role of human resource involves focusing on clerical administration and recordkeeping, including essential legal paperwork and policy implementation.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 06

10. The administrative role of human resource involves serving as employee “champion” for employee issues and concerns.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

11. The strategic role of human resource involves helping to define the strategy relative to human capital and its contribution to organizational results.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 07

12. Replacing the experience and talents of longer-service workers is a challenge facing employers in all industries.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Human Resources Management Challenges PAGE: 09

13. Contingent workers include temporary workers, independent contractors, leased employees, and parttimers.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Management Challenges PAGE: 09

14. By using contingent workers, employers risk facing more legal issues regarding selection, discrimination, benefits, discipline, and termination.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Challenges PAGE: 09

16. It is not necessary for human resource professionals at all levels to possess strategic knowledge and impact.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Management Competencies and PAGE: 11

15. A person who has in-depth knowledge and expertise in a limited area of human resource is known as a human resource generalist.

ANS: F

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

TOP: Human Resources Management Competencies and PAGE: 11

17. A person with the responsibility of performing a variety of human resource activities is known as a human resource specialist.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Management Competencies and PAGE: 11

18. For human resource generalists, the largest organization is the Society for Human Resource Management.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Knowledge

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 11

19. Professional in Human Resources (PHR) is sponsored by the WorldatWork Association.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 12

20. Senior Professional in Human Resources (SPHR), a human resource certification, is sponsored by the Human Resource Certification Institute.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 12

21. Global Professional in Human Resource (GPHR), a human resource certification, is sponsored by the American Society for Training and Development.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 12

22. Certified Compensation Professional (CCP), a human resource certification, is sponsored by the World at Work Association.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Competencies and PAGE: 12

23. The strategic planning process begins with an assessment of the current state of the business and the environmental forces that may be important during the planning cycle.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 12

24. The SWOT analysis helps managers in formulating a strategic plan that considers the organization’s ability to deal with the situation at hand.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Comprehension

DIF: Easy TOP: Organizational Strategic Planning PAGE: 13

25. Implementing the strategy is typically the last step in the strategic planning process.

ANS: F PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 13

26. Instead of making a choice, a good strategy will try to accommodate many different demands and interests.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Organizational Strategic Planning PAGE: 13

27. Organizational strategy is independent of Human Resource management.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Human Resources and Strategy PAGE: 13

28. The focus of HR planning is to ensure that the organization has the right number of human resources, with the right capabilities, at the right times, and in the right places.

ANS: T PTS: 1 DIF: Easy NAT: BUSPROG: Analytic TOP: Human Resource Planning KEY: Bloom's: Knowledge PAGE: 14 29. In the final part of the planning process, HR plans are developed to provide specific direction for the management of HR activities related to employee recruiting, selection, and retention.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Planning PAGE: 15

30. Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), displaced workers can retain their group medical coverage for up to 18 months for themselves, and up to 36 months for their dependents, if they pay the premium themselves.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Workforce Supply Demand PAGE:

31. The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to disclose the ages of both terminated and retained employees in layoff situations, and waiver of rights to sue for age discrimination must meet certain requirements.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Workforce Supply Demand PAGE:

32. The value for HR practices cannot be measured.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 20

33. People-related costs are typically the smallest controllable expense in organizations.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 20

34. Benchmarking is the process of comparing business processes and outcomes to an industry standard or best practice.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 21

35. The balanced scorecard is a framework organizations use to report on a diverse set of performance measures.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 21

36. Revenue per employee is a basic measure of human capital effectiveness.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 21

37. The formula for calculating the potential ROI for a new HR activity = operating cost for a new or enhanced system for a time period + one-time cost of acquisition and implementation/value of gains from productivity improvements for the time period.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 21

38. The formula for calculating human capital return on investment = Revenue +(Operating Expense +(Compensation - Benefits Cost)) / (Compensation - Benefit Cost) ANS: F PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 21

39. Human economic value added = Net profit before taxes + Cost of capital / Full-time head count ANS: F PTS: 1 NAT: BUSPROG: Analytic Human Capital KEY: Bloom's: Knowledge

DIF: Easy TOP: Measuring Effectiveness of Human Resources and PAGE: 32

SHORT ANSWER 1. Define human resource management.

ANS: Human resource management is the design of formal systems in an organization to manage human talent for accomplishing organizational goals.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: What is Human Resource Management?

PAGE: 02

2. Define human capital.

ANS: Human capital is the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 3.

DIF: Easy TOP: What is Human Resource Management?

PAGE: 03

What is core competency?

ANS: The development and implementation of specific strategies must be based on the areas of strength in an organization. Referred to as core competencies, those strengths are the foundation for creating a competitive advantage for an organization. A core competency is a unique capability that creates high value in which an organization excels.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

4. Define productivity.

ANS:

DIF: Easy TOP: What is Human Resource Management?

PAGE: 03

Productivity is defined as a measure of the quantity and quality of work done, considering the cost of the resources used.

PTS: 1 NAT: BUSPROG: Analytic Competency KEY: Bloom's: Knowledge

DIF: Easy TOP: Where Employees Can Be a Core PAGE: 04

5. List the elements of ethics programs whose existence is most likely to lead to ethical behavior.

ANS: When the following four elements of ethics programs exist, ethical behavior is more likely to occur: (1) A written code of ethics and standards of conduct (2) Training on ethical behavior for all executives, managers, and employees (3) Advice to employees on ethical situations they face, often made by human resource PTS: 1 NAT: BUSPROG: Analytic Management KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Ethics and Human Resource PAGE: 11

6. Briefly describe the role of a human resources specialist.

ANS: The human resource (HR) specialist is a person who has in-depth knowledge and expertise in a limited area of HR. The most common areas of HR specialty, in order of frequency, are benefits, employment and recruitment, and compensation.

PTS: 1 NAT: BUSPROG: Analytic Competencies and Careers KEY: Bloom's: Knowledge 7.

DIF: Easy TOP: Human Resources Management PAGE: 11

List the seven categories of human resources functions.

ANS: The seven categories of human resources functions are: (1) Strategy and Planning (2) Employee and Labor Relations (3) Risk Management and Worker Protection (4) Rewards (5) Talent Management (6) Staffing (7) Equal Employment Opportunity PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: HR Management Functions PAGE: 06

8. Define strategic planning.

ANS: Strategic planning is the process of defining a strategy, or direction, and making decisions on how to allocate the resources of the organization (capital and people) to pursue this strategy.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 12

9. Define organizational mission.

ANS: Organizational mission is the core reason for the existence of the organization and what makes it unique.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategic Planning PAGE: 12

10. Define strategic HR management.

ANS: Strategic HR management refers to the use of Human Resource management practices to gain or keep a competitive advantage.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources and Strategy PAGE: 13

11. Describe how HR professionals can contribute to the strategic planning process.

ANS: To contribute to the strategic planning process, HR professionals provide their perspective and expertise to operating managers by the following: Understand the business: Knowing the financials and key drivers of business success is important to understanding the need for certain strategies.

Focus on the key business goals: Programs that have the greatest relevance to business objectives should get priority.

Know what to measure: Metrics are a vital part of assessing success, which means picking those measures that directly relate to the business goals.

Prepare for the future: Strategic thinking requires preparing for the future, not focusing on the past— except as a predictor of the future.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Human Resources and Strategy PAGE: 13

12. Define Human Resource planning.

ANS: Human Resource planning is the process of analyzing and identifying the need for and availability of people so that the organization can meet its strategic objectives.

PTS: 1

DIF:

Easy

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Human Resource Planning PAGE: 13

13. Define forecasting.

ANS: Forecasting uses information from the past and the present to identify expected future conditions.

PTS: 1 NAT: BUSPROG: Analytic Availability KEY: Bloom's: Knowledge

DIF: Easy TOP: Planning for Internal Workforce PAGE: 17

ESSAY 1. Describe the major ways of increasing employee productivity.

ANS: The major ways to increase employee productivity are: (1) Organizational restructuring: It involves eliminating layers of management and changing reporting relationships, as well as cutting staff through downsizing, layoffs, and early retirement buyout programs.

(2) Redesigning work: This often involves having fewer employees who perform multiple job tasks. It may also involve replacing workers with capital equipment or making them more efficient by use of technology or new processes.

(3) Aligning HR activities: This means making human resource (HR) efforts consistent with organizational efforts to improve productivity. This alignment includes ensuring that staffing, training and development, performance management, compensation, and other HR activities are not working to offset productivity.

PTS: 1 NAT: BUSPROG: Analytic Competency KEY: Bloom's: Knowledge

DIF: Moderate TOP: Where Employees Can Be a Core PAGE: 04

2. Describe the different roles played by the human resource department in an organization.

ANS: If an organization has a formal human resource (HR) group there are typically three different roles that the group might play in the organization. Which of the roles predominates or whether all three roles are performed depends on what management wants HR to do and what competencies the HR staff have demonstrated. The roles are: (1) Administrative: Focusing on clerical administration and recordkeeping, including essential legal paperwork and policy implementation (2) Operational and employee advocate: Managing most HR activities in keeping with the strategies and operations that have been identified by management and serving as employee “champion ” for employee issues and concerns (3) Strategic: Helping to define the business strategy relative to human capital and its contribution to organizational results While the administrative role traditionally has been the dominant role for HR, the emphasis on the operational and employee advocate role is growing in most organizations. The strategic role requires the ability and orientation to contribute to strategic decisions and a recognition by upper management of those skills. This practice is less common but growing.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Roles for Human Resource Departments PAGE: 06-07

3. What are the two major purposes of human resource technology in organizations?

ANS: Using technology to support HR activities can increase the efficiency of the administrative HR functions and reduces costs. Managers benefit from the availability of relevant information about employees. Properly designed systems provide historical information on performance, pay, training, career progress, and disciplinary actions. On the basis of this information, managers can make better HR-related decisions. To maximize the value of technology, systems should be integrated into the overall IT plan and enterprise software of the organization.

Technology can be used to support every function within human resource management. Recruiting and selection processes have changed perhaps the most dramatically with web-based job boards, online applications, and even online interviewing. Training is now conducted with the aid of videos, podcasts, web-enabled training programs, and virtual classrooms. Employee self-service has simplified benefit enrollment and administration by allowing employees to find health care providers and file claims online. Succession planning and career development are enhanced with real-time information on all employees and their potential career progression. One of the most important ways in which technology can contribute to organizational performance is through the collection and analysis of HR-related data.

Identifying trends and modeling future conditions help managers to plan and optimize human resources.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management Challenges PAGE: 09-10

4. Describe human resource management as a career field.

ANS: A variety of jobs exists within the human resource (HR) career field, ranging from executive to clerical. As an organization grows large enough to need someone to focus primarily on HR activities, the role of the HR generalist emerges—that is, a person who has responsibility for performing a variety of HR activities. Further growth leads to the addition of HR specialists, or individuals who have in-depth knowledge and expertise in limited areas of HR. The most common areas of HR specialty, in order of frequency, are benefits, employment and recruitment, and compensation.

PTS: 1 NAT: BUSPROG: Analytic Competencies and Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management PAGE: 11

5. Describe the Human Resource Certification Institute (HRCI) certification.

ANS: The most well-known certification programs for HR generalists are administered by the Human Resource Certification Institute (HRCI), which is affiliated with SHRM. More than 100,000 professionals have an HRCI certification. The most widely known human resource certifications are the Professional in Human Resources (PHR) and the Senior Professional in Human Resources

(SPHR), both sponsored by the Human Resource Certification Institute (HRCI). Annually, thousands of individuals take the certification exams.

PTS: 1 NAT: BUSPROG: Analytic Competencies and Careers KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resources Management PAGE: 12

6. Describe the strategic planning process for organizations.

ANS: The strategic planning cycle typically covers a three- to five-year time frame, and management considers both internal and external forces when formulating the strategic plan. The guiding force behind the strategic planning process is the organizational mission, which is the core reason for the existence of the organization and what makes it unique. The mission statement is usually determined by the organizational founders or leaders and sets the general direction of the organization.

The planning process begins with an assessment of the current state of the business and the environmental forces that may be important during the planning cycle. Analysis of the strengths, weaknesses, opportunities, and threats (SWOT) is a typical starting point because it allows managers to consider both internal and external conditions. The SWOT analysis helps managers to formulate a strategic plan that considers the organization’s ability to deal with the situation at hand.

Managers then determine the objectives for the planning cycle and formulate organization-level strategies to accomplish those objectives. Each function (such as HR) within the organization then formulates strategies that will link to and support the organization-level strategies. The strategic plan is re-evaluated periodically because conditions may change and managers must react to the everchanging business environment.

Bad strategy abounds perhaps because it ignores the difficult path of focusing and making choices among alternatives. Instead of making a choice, a strategy may try to accommodate many conflicting demands and interests.

Regardless of which specific strategies are adopted for guiding an organization, having the right people will be necessary to make the overall strategies work. If a strategy requires worker skills that are currently not available in the company, it will take time to find and hire people with those skills.

Strategic HR management provides input for organizational strategic planning and develops specific HR initiatives to help achieve the organizational goals.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 7. Describe the Human Resource planning process.

ANS:

DIF: Moderate TOP: Organizational Strategic Planning PAGE: 12–13

The Human Resource planning process begins with considering the organizational plans and the environmental analysis that went into developing strategies. Strengths, weaknesses, opportunities, and threats are considered. Then the possible available workforce is evaluated by identifying both the external and internal workforce. Once those assessments are complete, forecasts must be developed to identify both the demand for and supply of human resources. Management then formulates HR staffing plans and actions to address imbalances, both short-term and long-term. Specific strategies may be developed to fill vacancies or deal with surplus employees. Finally, HR plans are developed to provide specific direction for the management of HR activities related to employee recruiting, selection, and retention. The most telling evidence of successful HR planning is a consistent alignment of the availabilities and capabilities of human resources with the needs of the organization over time.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Human Resource Planning PAGE: 15

8. Discuss current and future jobs audit and the key questions that are addressed during internal jobs assessment.

ANS: The starting point for evaluating internal workforce strengths and weaknesses is an audit of the jobs that need to be done in the organization. A comprehensive analysis of all current jobs provides a basis for forecasting what jobs will need to be done in the future. Much of the data required for the audit should be available from existing staffing and organizational databases. The following are key questions that are addressed during the internal jobs assessment: • What jobs exist now and how essential is each job?

• How many individuals are performing each job?

• What are the reporting relationships of jobs?

• What are the vital KSAs (knowledge, skills, and abilities) needed in the jobs?

• What jobs will be needed to implement future organizational strategies?

• What are the characteristics of those anticipated jobs?

PTS: 1 NAT: BUSPROG: Analytic Availability KEY: Bloom's: Knowledge

DIF: Moderate TOP: Planning for Internal Workforce PAGE: 16

9. Discuss forecasting the supply of Human Resources.

ANS: Once human resources needs have been forecast, then availability of qualified individuals must be identified. Forecasting availability considers both external and internal supplies. Although the internal supply may be somewhat easier to calculate, it is important to calculate the external supply as accurately as possible.

External Supply: The external supply of potential employees available to the organization can be identified. Government estimates of labor force populations, trends in the industry, and many more complex and interrelated factors must be considered. Such information is often available from state or regional economic development offices. The following items may be included: • Net migration into and out of the area • Individuals entering and leaving the workforce • Individuals graduating from schools and colleges • Changing workforce composition and patterns

• Economic forecasts for the next few years • Technological developments and shifts • Actions of competing employers • Government regulations and pressures • Circumstances affecting persons entering and leaving the workforce Internal Supply: Estimating internal supply considers the number of external hires and the employees who move from their current jobs into others through promotions, lateral moves, and terminations. It also considers that the internal supply is influenced by training and development programs, transfer and promotion policies, and retirement policies, among other factors. In forecasting the internal supply, data from the replacement charts and succession planning efforts are used to project potential personnel changes, identify possible backup candidates, and keep track of attrition (resignations, retirements, etc.) for each department in an organization.

PTS: 1 NAT: BUSPROG: Analytic Availability KEY: Bloom's: Knowledge

DIF: Moderate TOP: Planning for Internal Workforce PAGE: 17

10. Discuss a legal consideration for workforce reduction.

ANS: Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), displaced workers can retain their group medical coverage for up to 18 months for themselves, and for up to 36 months for their dependents, if they pay the premiums themselves.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Workforce Supply Demand PAGE:

11. Discuss balanced scorecard.

ANS: One effective approach to measuring strategic performance of organizations, including their HR departments, is to use the balanced scorecard. The balanced scorecard is a framework organizations use to report on a diverse set of performance measures. The balanced scorecard balances financial and nonfinancial measures so that managers focus on long-term drivers of performance and organizational sustainability. Organizational results in these areas determine if the organization is progressing toward its strategic objectives. For example, some firms have noticed that when survey results show a decline in employee satisfaction, several months later there are declines in customer loyalty and repeat customer sales. Further, investing money in employee leadership development training can be linked to lower employee turnover and reduced time to hire managers from outside the organization.

PTS: 1 NAT: BUSPROG: Analytic Resources and Human Capital KEY: Bloom's: Knowledge

DIF: Moderate TOP: Measuring Effectiveness of Human PAGE: 21

Chapter 2—Equal Employment Opportunity and Discrimination MULTIPLE CHOICE 1. Which of the following is a legally permissible criterion in making hiring and other employment decisions? a. Qualification b. Gender c. Age d. Religion ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

2. Which of the following is an illegal criterion for rejecting job applicants? a. Education b. Work experience c. Skill sets d. Religion ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

3. Which of the following advertisements for recruitment is most likely to be considered illegal? a. “Experienced writers required” b. “Enthusiastic radio jockeys needed” c. “Wanted: Professors with educational background in economics” d. “Young store executives needed.”

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Nature of Equal Employment Opportunity PAGE: 26

4. Equal employment opportunity is a broad-reaching concept that essentially requires employers to make: a. status-blind employment decisions. b. nepotistic employment decisions. c. egocentric employment decisions. d. dictatorial employment decisions.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

5. Affirmative action means that an employer takes proactive measures to: a. encourage the glass ceiling effect. b. reduce status-blind employment decisions. c. increase the number of women and minorities in the workforce. d. decrease instances of whistleblowing in the workplace.

ANS: C PTS: 1 NAT: BUSPROG: Analytic

DIF: Moderate TOP: Nature of Equal Employment Opportunity

KEY: Bloom's: Comprehension

PAGE: 26

6. Which of the following is true of the U.S. Department of Labor? a. The Equal Employment Opportunity Commission is a part of the Department of Labor. b. It can enforce employment laws for employers in public workplaces but private workplaces are beyond its jurisdiction. c. The employment requirements set out by Executive Orders for federal contractors and subcontractors is beyond the scope of the Department of Labor. d. It has broad enforcement power and oversees compliance with many employment-related laws.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 27

7. _____ occurs when individuals with a particular characteristic are treated differently from others. a. Disparate treatment b. Consociationalism c. Isonomy d. Diversity ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 28

8. _____ occurs when an employment practice has an adverse effect on individuals with a particular characteristic. a. Disparate treatment b. Disparate impact c. Isonomy d. Consociationalism ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 28

9. A _____ is a practice required for safe and efficient organizational operations. a. disparate treatment b. burden of proof c. business necessity d. business emergency ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29

10. Restricting workers from wearing garments, although it may be required by their religion, to ensure safety at the workplace is a _____. a. nonretaliatory practice b. burden of proof c. business necessity d. business emergency ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29

11. Which of the following best describes a bona fide occupational qualification? a. It is a template that an HR department uses in selecting, training, and orienting prospective employees. b. It provides a detailed description of routine work responsibilities for all the employees in an organization. c. It provides an exhaustive list of the desired traits and characteristics expected from prospective employees. d. It provides a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29

12. Which of the following is true of nonretaliatory practices in workplaces? a. Employers are prohibited from retaliating against individuals who file discrimination charges. b. Employees are prohibited from retaliating against organizations that practice discrimination. c. Employers are prohibited from retaliating against employees on ethical grounds. d. Employees are restricted from retaliating against employers who encourage instances of glass ceiling.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 30

13. Which of the following scenarios is considered illegal according to the Civil Rights Act of 1964? a. Segregating employees on the basis of their educational qualification b. Segregating employees on the basis of their ethnicity c. Segregating employees on the basis of their work experience d. Segregating employees on the basis of their skill sets ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 30

14. Which of the following scenarios is considered illegal according to the Civil Rights Act of 1964? a. Segregating employees on the basis of their educational qualification b. Segregating employees on the basis of their gender c. Segregating employees on the basis of their work experience d. Segregating employees on the basis of their skill sets ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 30

15. Which of the following organizations must comply with rules and regulations that specific government agencies have established to administer the Equal Employment Opportunity Act of 1972? a. Nongovernmental organizations with a minimum of 10 employees b. State and local governments c. Private organizations with a minimum of 10 employees d. Labor unions with 5 or more members

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 31

16. Which of the following is true of the Civil Rights Act of 1991? a. It requires that employers show that there are instances of glass ceiling in their organizations. b. It requires employers to discourage the occurrence of affirmative actions in the work place. c. It strengthens legal protection for employees, provides for jury trials and allows for damages payable. d. It requires employers to avoid making status-blind employment decisions.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 31

17. Which of the following is true of executive orders 11246, 11375, and 11478? a. They require all educational institutions to take affirmative actions to compensate for historical discrimination against women, minorities, and handicapped individuals. b. They require labor unions to take affirmative actions to compensate for historical discrimination against women, minorities, and handicapped individuals. c. They require state governments to take affirmative actions to compensate for historical discrimination against women, minorities, and handicapped individuals. d. They require federal contractors to take affirmative actions to compensate for historical discrimination against women, minorities, and handicapped individuals.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 31

18. Which of the following is the objective of the affirmative action program? a. To have the company’s workforce demographics reflect as closely as possible the demographics in the labor market b. To encourage organizations where minorities from the local community represent a significantly lesser proportion of the workforce c. To stop companies from making status-blind employment decisions d. To encourage organizations where instances of glass ceiling are common ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 31

19. The _____ oversees federal contractor operations and requires them to take affirmative action. a. Equal Employment Opportunity Commission b. Office of Federal Contract Compliance Programs c. Committee on Oversight and Government Reform d. Department of Justice ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 31

20. The original purpose of the Civil Rights Act of 1964 was to address _____ in the United States. a. gender discrimination b. age discrimination c. racial discrimination d. disability discrimination ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 31

21. The _____ requires that employers treat maternity leave the same as other personal or medical leaves. a. Pregnancy Discrimination Act b. Family and Medical Leave Act c. Fair Labor Standards Act d. National Labor Relations Act ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

22. Which of the following is true of the Family and Medical Leave Act? a. It does not cover cases of adoption. b. It applies only to women. c. It requires that qualified individuals be given up to 12 weeks of unpaid family leave. d. It requires that qualified individuals be given up to 20 weeks of unpaid family leave.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

23. The _____ requires that qualified individuals be given up to 12 weeks of unpaid family leave and also requires that those taking family leave be allowed to return to jobs. a. Pregnancy Discrimination Act b. Family and Medical Leave Act c. Fair Labor Standards Act d. National Labor Relations Act ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

24. Which of the following statements is true about the Equal Pay Act of 1963? a. It states that differences in pay between men and women in the same jobs are permitted if they belong to different ethnic groups. b. It requires that men and women in the same jobs, in spite of difference in seniority are given equal pay. c. It states that the existence of pay differences between the different jobs held by women and men is insufficient to prove that illegal discrimination has occurred. d. It requires employers to give similar wage rates for similar work without regard to gender.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

25. Under which of the following circumstances is a difference in pay between men and women permitted by the Equal Pay Act of 1963?

a. b. c. d.

Difference in performance Difference in life stage Difference in ethnicity Difference in religious beliefs

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

26. Under which of the following circumstances is a difference in pay between men and women permitted by the Equal Pay Act of 1963? a. Difference in seniority b. Difference in marital status c. Difference in ethnicity d. Difference in religious beliefs ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

27. The _____ eliminates the statute of limitations for employees who file pay discrimination claims under the Equal Pay Act. a. Taft-Hartley Act b. Lilly Ledbetter Fair Pay Act c. Clayton Antitrust Act d. Railway Labor Act ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

28. Which of the following is true of glass ceiling? a. It refers to the discriminatory practices that have prevented women and other minority status employees from successfully obtaining jobs. b. It refers to the preferential treatment that women and minorities receive within an organization. c. It refers to the preferential treatment that women and minorities receive within an organization when they advance to executive-level jobs. d. It refers to the discriminatory practices that have prevented women and other minority status employees from advancing to executive-level jobs.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

29. Which of the following best describes nepotism? a. It is the practice of prohibiting relatives from working for the same employer. b. It is the practice of allowing relatives to work for the same employer. c. It is the practice of allowing friends to work for the same employer. d. It is the practice of prohibiting friends from working for the same employer.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

30. Which of the following best exemplifies quid pro quo type of sexual harassment?

a. b. c. d.

A supervisor commenting on the appearance of an employee A supervisor telling jokes to an employee that are sexual in nature A supervisor giving a pay hike to an employee who performed sexual favors A supervisor allowing revealing photos of self to be displayed in a public domain

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Sexual Harassment PAGE: 35

31. Which of the following statements is true of quid pro quo harassment? a. A supervisor can be held guilty of quid pro quo harassment if he or she tells jokes that are suggestive or sexual in nature. b. For proving charges of quid pro quo harassment, a plaintiff only needs to prove that the working condition at a workplace is hostile. c. A supervisor can be held guilty of quid pro quo harassment if he or she promotes an employee in return of sexual favors. d. A company cannot be held liable for an employee’s actions in cases of quid pro quo harassment.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sexual Harassment PAGE: 35

32. The Rehabilitation Act passed in 1973 applied only to _____. a. federal contractors b. state governments c. labor unions d. nonprofit organizations ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 36

33. The _____ passed in 1973 required that federal contractors take affirmative action to employ disabled workers. a. Genetic Information Nondiscrimination Act b. Rehabilitation Act c. Civil Rights Act d. Taft-Hartley Act ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 36

34. The Americans with Disabilities Act is enforced by the _____. a. Department of Labor b. National Labor Relations Board c. Office of Federal Contract Compliance Programs d. Equal Employment Opportunity Commission ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

35. Which of the following is not covered under the Americans with Disabilities Act?

a. b. c. d.

Employees of private organizations Employment agencies State government employees Labor unions

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

36. Which of the following is typically a practice of reasonable accommodation by employers toward disabled employees? a. Establishing glass ceiling to aid the employees b. Providing modifications to a job to assist with their task c. Practicing nepotism to ensure that employees have a healthy work environment d. Providing current users of illegal drugs with better compensation ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Disability Discrimination PAGE: 37

37. The _____ prohibits the use of pre-employment medical exams, except for drug tests, until a job has been conditionally offered. a. Civil Rights Act b. Family and Medical Leave Act c. Americans with Disabilities Act d. Taft-Hartley Act ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

38. The _____ prohibits discrimination in terms, conditions, or privileges of employment against all individuals of age 40 or older working for employers having 20 or more workers. a. Older Workers Benefit Protections Act b. Rehabilitation Act c. Civil Rights Act d. Age Discrimination in Employment Act ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Age Discrimination Laws PAGE: 39

39. According to the _____, workers over the age of 40 are entitled to receive complete accurate information on the available benefits, a list of all workers impacted in a reduction, and several weeks to decide whether or not to accept severance benefits in exchange for a waiver to sue the employer. a. Older Workers Benefit Protection Act b. Age Discrimination in Employment Act c. Civil Rights Act d. Rehabilitation Act ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Age Discrimination Laws PAGE: 39

40. Which of the following is true of phased retirement? a. Employees’ workloads and pay levels are increased.

b. Employees’ workloads and pay levels are reduced. c. Employees’ workloads are reduced and pay levels are increased. d. Employees’ workloads are increased and pay levels are reduced.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Age Discrimination Laws PAGE: 40

41. The _____ requires employers to verify the employment status of all employees, while not discriminating because of national origin or ethnic background. a. Civil Rights Act b. Rehabilitation Act c. Immigration Reform and Control Act d. Older Workers Benefit Protection Act ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Other Discrimination Issues PAGE: 42

42. According to the _____, employees are required to notify their employers of military service obligations. a. Civil Rights Act b. Rehabilitation Act c. Vietnam Era Veterans Readjustment Assistance Act d. Uniformed Services Employment and Reemployment Rights Act ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Other Discrimination Issues PAGE: 43

43. Which of the following is true of the Uniformed Services Employment and Reemployment Rights Act? a. Uniformed military personnel are provided up to five years of active duty service leave during which the employer must hold their job. b. Uniformed military personnel are provided up to seven years of active duty service leave during which the employer must hold their job. c. The employer must compensate the military personnel during the time of active service for a period of five years. d. The employer must compensate the military personnel during the time of active service for a period of seven years.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Other Discrimination Issues PAGE: 43

TRUE/FALSE 1. The primary objective of affirmative action plans is to identify the scope of workplace discrimination in the future.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

2. The Equal Employment Opportunity Commission (EEOC) enforces employment laws in both private and public workplaces.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 27

3. Disparate treatment occurs when either different standards are used to judge individuals or the same standard is used but it is not related to the individuals’ jobs.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Theories of Unlawful Discrimination PAGE: 28

4. Restricting employees from wearing garments that might get caught in machinery is a form of discrimination and not a business necessity.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Theories of Unlawful Discrimination PAGE: 29

5. Employers cannot discriminate on the basis of sex, religion, or national origin even if the characteristics can be justified as a bona fide occupational qualification.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29

6. Employers are allowed to retaliate against individuals who file discrimination charges.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 30

7. Title VII of the Civil Rights Act states that it is illegal for an employer to fail or refuse to hire or discharge any individual because of such individual’s national origin.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 30

8. All educational institutions are exempted from Title VII of the Equal Employment Opportunity Act of 1972.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 30

9. Executive Orders 11246, 11375, and 11478 require federal contractors to take affirmative action to compensate for historical discrimination against women, minorities, and handicapped individuals.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 31

11. The Pregnancy Discrimination Act (PDA) requires that employers treat maternity leave the same as other personal or medical leaves.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

12. The Family and Medical Leave Act (FMLA) of 1993 is applicable only to women.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

13. Provisions of the Affordable Care Act (2010) allow for break time and a private place for nursing mothers to express breast milk for one year after the birth of a child.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 32

14. The Equal Pay Act of 1963 requires employers to pay similar wage rates for similar work without regard to gender.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

15. Differences in pay between men and women in the same jobs are permitted when there is a difference in the quality of work.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

16. Pay equity is the idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 33

17. Nepotism is the practice of preventing relatives from working for the same employer.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 34

18. Workplace romances are considered risky because they have great potential for causing conflict.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Sex/Gender Discrimination Laws and Regulations PAGE: 34

19.

A hostile environment harassment is a type of sexual harassment in which employment outcomes are typically linked to the individual granting sexual favors.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sexual Harassment PAGE: 35

20. A quid pro quo harassment exists when an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sexual Harassment PAGE: 35

21. The Rehabilitation Act was initially only applicable to federal contractors.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 36

22. The Americans with Disabilities Act (ADA) covers all state government employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

23. The Americans with Disabilities Act includes restrictions on obtaining and retaining medically related information on applicants and employees.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

24. The Older Workers Benefit Protection Act ensures that older workers are not compelled or pressured into waiving their rights under the ADEA. ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Age Discrimination Laws PAGE: 40

25. The Immigration Reform and Control Act (IRCA) requires employers to verify the employment status of all employees, while not discriminating because of national origin or ethnic background.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Other Discrimination Issues PAGE: 43

26. Under the Vietnam Era Veterans Readjustment Assistance Act, employees are required to notify their employers of military service obligations.

ANS: F PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Managing Other Discrimination Issues

KEY: Bloom's: Knowledge

PAGE: 43

27. Through cultural awareness training, organizations try to build greater understanding of the differences among people.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Diversity Training PAGE: 44

SHORT ANSWER 1. Explain protected characteristics.

ANS: Under federal, state, and local laws employers are prohibited from considering the following factors in making hiring and other employment decisions: age, color, disability, genetic information, marital status (some states), military status or experience, national origin, pregnancy, race, religion, sexual orientation (some states and cities ) These are considered protected characteristics under EEO laws and regulations. All workers are provided equal protection; the laws do not favor some groups over others.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

2. Explain the concept status-blind employment decisions.

ANS: Equal employment opportunity is a broad-reaching concept that essentially requires employers to make status-blind employment decisions. Status blind decisions are made without regard to applicants’ personal characteristics (i.e., age, sex, race, and so on).

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Nature of Equal Employment Opportunity PAGE: 26

3. Define bona fide occupational qualification.

ANS: A bona fide occupational qualification provides a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29

4. Which are the organizations that are required to comply with the Equal Employment Opportunity Act of 1972?

ANS: Any organization meeting one of the following criteria must comply with rules and regulations that specific government agencies have established to administer the act: 1. All private employers of 15 or more employees 2. All educational institutions, public and private

3. State and local governments 4. Public and private employment agencies 5. Labor unions with 15 or more members 6. Joint labor/management committees for apprenticeships and training PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 30-31

5. List the clauses that permit a difference in pay between men and women in the same jobs.

ANS: Differences in pay between men and women in the same jobs are permitted because of: 1. differences in seniority.

2. differences in performance.

3. differences in quality and/or quantity of production.

4. factors other than sex, such as skill, effort, and working conditions.

PTS: 1 NAT: BUSPROG: Analytic Regulations KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and PAGE: 33

6. Describe the important elements of affirmative defense.

ANS: The important elements of the affirmative defense include the following: 1. Establish a sexual harassment policy.

2. Communicate the policy regularly.

3. Train employees and managers on avoiding sexual harassment.

4. Investigate and take action when complaints are voiced.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Sexual Harassment PAGE: 36

7. Define the characteristics of a disabled person in the context of the latest amendments to the Americans with Disabilities Act. ANS: The latest amendments to the Americans with Disabilities Act in 2009, has significantly broadened the definition of disabled individuals. It includes anyone with a physical or mental impairment that substantially limits one or more major life activities without regard for the ameliorative effects of mitigating measures such as medication, prosthetics, hearing aids, and so on. This establishes a very low threshold for establishing whether an individual is “disabled.”

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 37

8. Outline EEOC’s recommendations on managing religious diversity in the workplace.

ANS:

The EEOC recommends that employers consider the following reasonable accommodations for employees’ religious beliefs and practices: 1. Scheduling changes, voluntary substitutes, and shift swaps 2. Changing an employee’s job tasks or providing a lateral transfer 3. Making an exception to dress and grooming rules 4. Accommodations relating to payment of union dues or agency fees 5. Accommodating prayer, proselytizing, and other forms of religious expression PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Religion and Spirituality in the Workplace PAGE: 41

ESSAY 1. Describe the concepts of equal employment opportunity.

ANS: Court decisions and administrative rulings have helped to define several basic EEO concepts. The four key concepts are discussed below: Business Necessity and Job Relatedness: A business necessity is a practice necessary for safe and efficient organizational operations, such as restricting employees from wearing garments that might get caught in machinery although the attire may be required by an employee’s religion.

Bona Fide Occupational Qualification: Employers may discriminate on the basis of sex, religion, or national origin if the characteristic can be justified as a bona fide occupational qualification reasonably necessary to the normal operation of the particular business or enterprise. Thus, a bona fide occupational qualification provides a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration. The application of a BFOQ is very narrowly determined and an employer seeking to justify hiring on this basis is advised to obtain prior authorization from the EEOC. Burden of Proof: When a legal issue regarding unlawful discrimination is raised, the burden of proof must be satisfied to file suit against an employer and establish that unlawful discrimination has occurred. The plaintiff charging discrimination must establish a prima facie case of discrimination through either factual or statistical evidence. The prima facie case means that sufficient evidence is provided to the court to support the case and allow the plaintiff to continue with the claim. The burden then shifts to the employer who must provide a legitimate, nondiscriminatory reason for the decision.

The plaintiff then must show either that the employer’s reason was a pretext for discrimination or that there is an alternative selection technique that would not result in discrimination. The plaintiff maintains the final burden of proving that an employment decision was the result of unlawful discrimination.

Nonretaliatory Practices: Employers are prohibited from retaliating against individuals who file discrimination charges. Retaliation occurs when employers take punitive actions against individuals who exercise their legal rights.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 2. Elaborate on the Civil Rights Act of 1964.

DIF: Easy TOP: Theories of Unlawful Discrimination PAGE: 29-30

ANS: Although the very first civil rights act was passed in 1866, it was not until passage of the Civil Rights Act of 1964 that the keystone of antidiscrimination employment legislation was put into place. Title VII, the employment section of the Civil Rights Act of 1964, details the legal protections provided to applicants and employees and defines prohibited employment practices. Title VII is the foundation on which all other nondiscrimination legislation rests. Title VII of the Civil Rights Act states that it is illegal for an employer to: • fail or refuse to hire or discharge any individual, or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual’s race, color, religion, sex, or national origin, or • limit, segregate, or classify his employees or applicants for employment in any way that would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee because of such individual’s race, color, religion, sex, or national origin.

Title VII Coverage: Title VII, as amended by the Equal Employment Opportunity Act of 1972, covers most employers in the United States. Any organization meeting one of the following criteria must comply with rules and regulations that specific government agencies have established to administer the act: • All private employers of 15 or more employees • All educational institutions, public and private • State and local governments • Public and private employment agencies • Labor unions with 15 or more members • Joint labor/management committees for apprenticeships and training PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Broad-Based Discrimination Laws PAGE: 30-31

3. Describe affirmative action program (AAP). What is its primary objective?

ANS: An affirmative action program (AAP) outlines proactive steps the organization will take to attract and hire members of underrepresented groups. Federal contractors are required to develop and maintain a written affirmative action program (AAP). This data-driven program includes analysis of the composition of company’s current workforce with a comparison to the availability of workers in the labor market. The overall objective of the AAP is to have the company’s workforce demographics reflect as closely as possible the demographics in the labor market from which workers are recruited.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Broad-Based Discrimination Laws PAGE: 31

4. Discuss two acts that have been passed to control pregnancy discrimination.

ANS: The Pregnancy Discrimination Act (PDA) of 1978 amended Title VII to require that employers treat maternity leave the same as other personal or medical leaves.

Closely related to the PDA is the Family and Medical Leave Act (FMLA) of 1993, which requires that qualified individuals be given up to 12 weeks of unpaid family leave and also requires that those taking family leave be allowed to return to jobs. The FMLA applies to both men and women.

Provisions of the Affordable Care Act (2010) allow for break time and a private place for nursing mothers to express breast milk for one year after the birth of a child.

PTS: 1 NAT: BUSPROG: Analytic Regulations KEY: Bloom's: Knowledge

DIF: Easy TOP: Sex/Gender Discrimination Laws and PAGE: 32

5. What are the clauses stated in the Equal Pay Act of 1963? Why was the Lilly Ledbetter Fair Pay Act enacted in 2009?

ANS: The Equal Pay Act of 1963 requires employers to pay similar wage rates for similar work without regard to gender. A common core of tasks must be similar, but tasks performed only intermittently or infrequently do not make jobs different enough to justify significantly different wages. Differences in pay between men and women in the same jobs are permitted because of: 1. differences in seniority; 2. differences in performance; 3. differences in quality and/or quantity of production; and 4. factors other than sex, such as skill, effort, and working conditions.

In response to a procedural issue in her pursuit of a fair pay claim, Congress enacted the Lilly Ledbetter Fair Pay Act in 2009, which eliminates the statute of limitations for employees who file pay discrimination claims under the Equal Pay Act. Each paycheck is essentially considered a new act of discrimination. Lawmakers recognized that because pay information is often secret it might take months or even years for an employee to discover the inequity. The successful plaintiff can recover up to two years of back pay.

PTS: 1 NAT: BUSPROG: Analytic Regulations KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sex/Gender Discrimination Laws and PAGE: 33

6. Describe glass ceiling.

ANS: Glass ceiling refers to discriminatory practices that have prevented women and other minority status employees from advancing to executive-level jobs. Despite the fact that organizations with greater gender diversity enjoy better financial performance than those with less diversity, women still hold a small percentage of top leadership jobs in corporations. Only 41 of the Fortune 1000 companies are led by a female CEO. In organizations where diversity is seen as strategically important, a higher percentage of C-level executives are women. There are some differences around the world regarding the importance of diversity.

PTS: 1 NAT: BUSPROG: Analytic Regulations KEY: Bloom's: Comprehension

DIF: Moderate TOP: Sex/Gender Discrimination Laws and PAGE: 33

7. Discuss the types of sexual harassment at the workplace.

ANS: Two basic types of sexual harassment have been defined by EEOC regulations and a number of court cases. They are defined as follows: 1. Quid pro quo is harassment in which employment outcomes are linked to granting sexual favors.

2. Hostile environment harassment exists when an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.

Sexual harassment increasingly occurs via e-mail, social networking sites, and Internet access systems.

Cyber sexual harassment may occur when an employee forwards an e-mail joke with sexual content or accesses pornographic websites at work and then shares the content with other employees. Cyber stalking, in which a person continually e-mails an employee requesting dates and sending personal messages, is growing as instant messaging expands. Many employers have policies addressing the inappropriate use of e-mail, company computer systems, and electronic technology usage. Some have equipped their computer systems with scanners that screen for inappropriate words and images.

Offending employees receive warnings and/or disciplinary actions associated with “flagged” items. If an employee uses the company’s equipment or computer network, the employer might be liable if the situation is not properly addressed.

PTS: 1 DIF: Easy NAT: BUSPROG: Analytic TOP: Sexual Harassment KEY: Bloom's: Knowledge PAGE: 35-36 8. Describe the important laws relating to disability discrimination.

ANS: Several federal laws have been enacted to advance the employment of disabled individuals and to reduce discrimination based on disability. These laws and regulations affect employment matters as well as public accessibility for individuals with disabilities.

Rehabilitation Act The earliest law regarding disabled individuals was passed in 1973 and applied only to federal contractors. The Rehabilitation Act defined many of the terms and concepts incorporated into subsequent laws and provided for equal employment opportunity for disabled workers and applicants.

The Act went further and required that federal contractors take affirmative action to employ disabled workers. A section of the contractor’s AAP is devoted to steps taken to promote the employment of disabled persons.

Americans with Disabilities Act Two decades after passage of the first law prohibiting discrimination against disabled individuals, the Americans with Disabilities Act was enacted in 1990. This Act applies to private employers, employment agencies, and labor unions with 15 or more employees and is enforced by the EEOC. State government employees are not covered by the Americans with Disabilities Act (ADA), which means that they cannot sue in federal courts for relief and damages. However, they may still bring suits under state laws in state courts. Many of the concepts and definitions included in the ADA were based on the Rehabilitation Act. Amendment to the Americans with Disabilities Act In 2009, Congress passed amendments to the ADA, which overruled several key cases and regulations and reflected the original intent of the ADA. The effect was to significantly broaden the definition of disabled individuals to include anyone with a physical or mental impairment that substantially limits one or more major life activities without regard for the ameliorative effects of mitigating measures such as medication, prosthetics, hearing aids, and so on. This establishes a very low threshold for establishing whether an individual is “disabled.”

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disability Discrimination PAGE: 36-37

9. Discuss the important laws relating to age discrimination.

ANS: Age Discrimination in Employment Act The Age Discrimination in Employment Act (ADEA) of 1967, amended in 1978 and 1986, prohibits discrimination in terms, conditions, or privileges of employment against all individuals of age 40 or older working for employers having 20 or more workers. However, state employees may not sue state government employers in federal courts because the ADEA is a federal law. Age discrimination charges consistently represent 20% to 25% of all discrimination charges filed with the EEOC. During the last economic downturn employers, fearing lawsuits by older workers, chose instead to lay off younger workers despite their lower salaries. As with most equal employment issues, a better understanding of what constitutes age discrimination continues to be defined by the courts and the EEOC. Older Workers Benefit Protection Act This law is an amendment to the ADEA and protects employees when they sign liability waivers for age discrimination in exchange for severance packages during reductions in force. Workers over the age of 40 are entitled to receive complete accurate information on the available benefits, a list of all workers impacted in the reduction, and several weeks to decide whether or not to accept severance benefits in exchange for a waiver to sue the employer. This Act ensures that older workers are not compelled or pressured into waiving their rights under the ADEA. Procedures for laying off older workers require legal oversight and a strict protocol to ensure compliance.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Age Discrimination Laws PAGE: 39-40

10. Discuss the relevance of the Immigration Reform and Control Acts in the U.S. ANS: The United States is home to 40 million foreign-born residents, primarily from Latin America and Asia. This number includes people living in the United States both legally and illegally. Modern-day immigrants are blending in as rapidly as those from previous generations. The influx of immigrants has led to extensive political, social, and employment-related debates. The Immigration Reform and Control Act (IRCA), enacted in 1986, requires employers to verify the employment status of all employees, while not discriminating because of national origin or ethnic background. Employers may not knowingly hire unauthorized aliens for employment in the United States.

Within the first three days of employment, each employee must complete an Employment Eligibility Verification (commonly called an I-9) form and provide documents proving that he or she is legally authorized to work in the United States. The employer is obligated to inspect the documents and maintain records for all new hires.

The E-verify federal database instantly verifies the employment eligibility of employees. Federal contractors are required to use the system as are employers in a number of states where it has been mandated. Other employers may voluntarily use the system to check and verify employees’ legal status.

To discourage hiring immigrants rather than U.S. workers, an employer must file documents with the Labor Department and pay prevailing U.S. wages to the visa holders. Despite these regulations, a number of unions and other entities view such programs as ways to circumvent the limits on hiring foreign workers.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Managing Other Discrimination Issues PAGE: 42

Chapter 3—Workforce, Jobs, and Retention MULTIPLE CHOICE 1. Which of the following is true of the labor force participation rate? a. It is the percentage of the population working or seeking work. b. It is the percentage of the population that is eligible to work legally. c. It is the percentage of the population that is constantly changing jobs. d. It is the percentage of the population with graduate degrees.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Workforce Profile PAGE: 48

2. The Bureau of Labor Statistics classifies people working _____ hours per week as part-time employees. a. at least 45 b. at least 35 c. between 35 and 45 d. less than 35 ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Workforce Profile PAGE: 49

3. Which of the following is true of work? a. Work is effort directed toward accomplishing results. b. A job needs to be divided into types of work so that it can be coordinated in some logical way. c. Ideally, the work to be done in any organization should be significantly less than the amount of work that the organization needs to have done. d. Work is the output that comes from the accomplishment of tasks.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

4. Which of the following is true of a job? a. A job is the output that comes from the accomplishment of tasks. b. A job is a grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee. c. Even if the tasks, duties, and responsibilities change over time, a job should not change. d. A job needs to be divided into types of work so that it can be coordinated in some logical way.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

5. _____ is the study of the way work moves through an organization. a. Job process b. Workflow analysis c. Work process d. Transfer of responsibility

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Work and Jobs PAGE: 50

6. _____ refers to organizing tasks, duties, responsibilities, and other elements into a productive unit of work. a. Job planning b. Job analysis c. Job design d. Job redesign ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Work and Jobs PAGE: 50

7. _____ refers to changing an existing job to improve it. a. Job planning b. Job analysis c. Job design d. Job redesign ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Work and Jobs PAGE: 50

8. A _____ is composed of individuals who are separated geographically but linked by communications technology. a. vertical team b. special-purpose team c. self-directed team d. virtual team ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Work and Jobs PAGE: 52

9. Which of the following situations is an example of a compressed workweek? a. Employees working for ten hours, four days a week b. Employees working for eight hours, five days a week c. Employees working for seven hours, six days a week d. Employees working for eight hours, seven days a week ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Designing Flexible Jobs PAGE: 53

10. Part-time jobs are used when less than _____ hours per week are required to do a job. a. 40 b. 50 c. 60 d. 70 ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Designing Flexible Jobs PAGE: 53

11. Which of the following is typically the responsibility of the HR unit in job analysis? a. To provide information to outside experts b. To coordinate job analysis c. To help complete job analysis information d. To request new analyses as jobs change ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Understanding Job Analysis PAGE: 54

12. Which of the following is typically the responsibility of managers in job analysis? a. To periodically review job descriptions and specifications b. To coordinate job analysis c. To review efforts of the HR unit d. To write job descriptions and specifications ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Understanding Job Analysis PAGE: 55

13. A _____ is a distinct, identifiable work activity composed of motions. a. duty b. responsibility c. job d. task ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Understanding Job Analysis PAGE: 55

14. A(n) _____ is a larger work segment composed of several tasks that are performed by an individual. a. duty b. obligation c. job d. responsibility ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Understanding Job Analysis PAGE: 55

15. Which of the following is typically the first stage in the job analysis process? a. Preparing for and introducing job analysis b. Planning the job analysis c. Conducting the job analysis d. Developing job descriptions and job specifications ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Implementing Job Analysis KEY: Bloom's: Knowledge PAGE: 57 16. Which of the following is typically the last stage in the job analysis process? a. Developing job descriptions and job specifications b. Conducting the job analysis c. Maintaining and updating job descriptions and job specifications d. Preparing for and introducing job analysis ANS: C

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Implementing Job Analysis PAGE: 57

17. Identifying jobs and methodologies is a subtask of _____. a. developing job descriptions b. conducting the job analysis c. planning the job analysis d. preparing for and introducing the job analysis ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Implementing Job Analysis PAGE: 57

18. Gathering job analysis data is a subtask of _____. a. developing job descriptions b. conducting the job analysis c. planning the job analysis d. preparing for and introducing the job analysis ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Implementing Job Analysis PAGE: 57

19. Reviewing drafts with managers and employees is a subtask of _____. a. developing job descriptions b. conducting the job analysis c. planning the job analysis d. preparing for and introducing the job analysis ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Implementing Job Analysis KEY: Bloom's: Comprehension PAGE: 57 20. Periodically reviewing all jobs is a subtask of _____. a. developing job descriptions b. conducting the job analysis c. maintaining and updating job descriptions d. preparing for and introducing the job analysis ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Implementing Job Analysis PAGE: 57

21. Jack, who works with BluClu LLC., is responsible for performing the job analysis in his organization.

He has introduced and communicated the job analysis process to all his managers. Which of the following will typically be Jack’s next step? a. Developing job descriptions and job specifications b. Maintaining and updating job descriptions and job specifications c. Planning the job analysis d. Conducting the job analysis ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Implementing Job Analysis PAGE: 57

22. Jill, who works with SunFun LLC., is responsible for handling the job analysis in her organization.

She has developed job descriptions and job specifications. Which of the following will typically be Jill’s next step? a. Preparing for and introducing job analysis b. Maintaining and updating job descriptions and job specifications c. Planning the job analysis d. Conducting the job analysis ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Implementing Job Analysis PAGE: 57

23. Max, who works with HiFi LLC., is responsible for managing job analysis in his organization. He is currently planning the job analysis. Which of the following should typically be Max’s next step? a. Preparing for and introducing job analysis b. Conducting the job analysis c. Developing job descriptions and job specifications d. Maintaining and updating job descriptions ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Implementing Job Analysis PAGE: 57

24. Dave, who works with GoPhone LLC, is responsible for managing job analysis in his organization. He is currently gathering and reviewing data. Which of the following should typically be Dave’s next step? a. Preparing for and introducing job analysis b. Conducting the job analysis c. Developing job descriptions and job specifications d. Maintaining and updating job descriptions ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Implementing Job Analysis PAGE: 57

25. The _____ requires that organizations identify the essential job functions, which are the fundamental duties of a job. a. Americans with Disabilities Act b. Civil Rights Act c. Fair Labor Standards Act d. Disabilities Discrimination Act ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Behavioral and Legal Aspects of Job Analysis PAGE: 58

26. A _____ identifies the tasks, duties, and responsibilities of a job. a. job analysis b. job description c. job specification d. job review ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Job Descriptions and Job Specifications PAGE: 58

27. _____ list the knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily. a. Job analyses b. Job descriptions c. Job specifications d. Job reviews ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Job Descriptions and Job Specifications PAGE: 58

28. _____ is a goal-directed drive and is defined as the desire within a person causing that person to act. a. Attention b. Motivation c. Caliber d. Aptitude ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Individuals at Work PAGE: 59

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

29. A(n) _____ refers to the unwritten expectations that both employees and employers have about the nature of their work relationships. a. employment contract b. psychological contract c. non-compete agreement d. effort-performance linkage ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

30. Which of the following is an intangible item in a psychological contract? a. Wages b. Benefits c. Attendance d. Fair treatment ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

31. Which of the following is an intangible item in a psychological contract? a. Salary b. Benefits c. Attendance d. Loyalty ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

32. Which of the following is a tangible item in a psychological contract? a. Loyalty b. Nondiscriminatory treatment c. Job security d. Wages ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

33. Which of the following is used by employers to address the issue of job satisfaction among employees? a. The halo affect b. The Hawthorne effect c. A whistle-blower survey d. An attitude survey ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

34. A financial services firm conducted an attitude survey. It was found that although employees were generally satisfied with their pay, they were dissatisfied with the organization’s management style, promotion practices, and training programs. To manage these concerns, it is recommended that the director of HR: a. work toward finding the employees who had given the negative feedback and increase their salaries. b. announce the positive results of the survey, while beginning to work in private on solutions to the problems revealed in the survey. c. hold group meetings with employees to convey the positive and negative survey results and get suggestions for improvements. d. communicate the positive survey results, and argue against the negative results.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Managing Retention PAGE: 61

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

35. Which of the following is a direct cost of absenteeism? a. Replacement for absent worker b. Overstaffing c. Replacement training d. Slower work pace ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 63

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

36. In which of the following cases is an employer applying the principles of positive reinforcement to curb absenteeism?

a. He is conducting a company-wide session on the leave policy of the company. b. He is issuing a written warning to an employee for taking a lot of uninformed leaves of absence. c. He is giving cash to employees for meeting attendance standards. d. He is offering supportive guidance and personal counseling for employees who do not meet the attendance standards of the company.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Absenteeism PAGE: 64

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

37. CLASS, a newly-opened real estate agency, has twenty employees on its payroll. In June 2012, Jane and Selin, each took four days of leave of absence from work. What was the absenteeism rate of the company in June 2012? a. 3 b. 6 c. 1 d. 2 ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Absenteeism PAGE: 65

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Application

38. Which of the following cases exemplifies involuntary turnover? a. Jane worked hard on a project for four months, but when the project got shelved, she felt demotivated and quit the company. b. Lisa loved her job but quit when she noticed that a lot of employees were being laid off. c. Mary announced her retirement a day after her 40th birthday. d. Pauline was asked to leave the company due to poor performance on a project that incurred huge losses for her firm.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

39. Which of the following exemplifies voluntary turnover? a. Jake, a student intern at CL Corp., leaves the organization after his internship period is over. b. Paul, an employee of NML Corp. for five years, was fired owing to noncompliance with company policies. c. Karen is asked to resign by her manager due to her deteriorating performance. d. Gerald gets passed over for promotion twice despite being good at his job. Therefore, he decides to leave the organization.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

40. A software firm plans to reduce the number of talented designers in its workforce who leave their jobs.

In this case, the firm seeks to focus on _____ turnover among the designers. a. uncontrollable

b. positive c. functional d. voluntary ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

41. Mark was terminated by his company because of his poor client relations skills that resulted in a major client leaving the firm for a competitor. This is an example of: a. involuntary turnover. b. positive turnover. c. uncontrollable turnover. d. dysfunctional turnover.

ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Reflective Thinking STA: DISC: HRM TOP: Employee Turnover KEY: Bloom's: Application PAGE: 66 42. Which of the following statements is true about turnover? a. It is illegal for an employer to continue to hire new employees while laying off other employees. b. When key individuals leave the firm, the turnover is often functional because they no longer act as a brake on the introduction of new technology and new work processes. c. The turnover of poor performers is considered functional. d. Organizations have little control over involuntary turnover.

ANS: C PTS: 1 NAT: AACSB Analytic TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

43. Alice, an efficient waitress at a moderately-priced family restaurant, consistently gets the lowest tips from customers. She announces that she is quitting to take another job at a newly-opened casino. This best exemplifies a(n) _____ turnover. a. dysfunctional b. controllable c. involuntary d. positive ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

44. 50 employees of Glow Corp. quit the company in 2012; 35 of them quit on their own ,while the rest were asked to leave the company due to poor performance on the job and high absenteeism. The total number of employees in the corporation was 270 in January 2012. The mid-year employee count was 250, and the number became 220 at the end of the year. The turnover rate at Glow Corp. in 2012 was _____. a. 50% b. 35% c. 25%

d. 20% ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Application

45. Lumina Corporation began operations in 2011 with 4900 employees. During the first half of that year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace, and by mid-year, the employee strength of the company was 5000. However, in the second half of that year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation in 2011 was _____. a. 50% b. 25% c. 4% d. 2% ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Application

46. At Piaffe Products 15 employees had quit, and an additional 10 were fired for poor performance in the year during 2010. The mid-year employee count was 50 for that year. Piaffe’s turnover rate for the year 2010 was _____. a. 10% b. 20% c. 30% d. 50% ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

47. Jane quit Cover Corp. without completing a high-priority project that she was handling. Due to her unavailability, the four remaining members of her team had to work overtime, and they demanded adequate compensation to justify their extra hours of work. In this case, the amount subsequently paid to them best exemplifies: a. separation costs. b. vacancy costs. c. replacement costs. d. training costs.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 67

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Application

48. Which of the following is a replacement cost that is caused by turnover in a company? a. Cost of training materials b. Employee referral fees c. Overtime paid to existing employees d. Time spent in an exit interview

ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

49. Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover that generally include: a. missed project deadlines. b. co-worker coaching and salaries. c. the cost of pre-employment medical tests. d. the overtime paid to employees covering the separated employees’ jobs.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Employee Turnover PAGE: 67

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

50. Arden Insurance’s claims processing facility has been a major employer in the town of Arbor for over 20 years drawing mainly on workers with minimal skills and education. A large telemarketing firm is about to set up its business at Arbor, and it is planning to employ low-skilled workers. Which of the following statements is true in this case? a. As Arden and the marketing firm belong to different industries, the impact on Arden’s workforce will be minimal since workers rarely switch between industries. b. The trained workforce will not leave even if the telemarketing firm offers higher pay than Arden. c. If Arden cannot offer higher wages, it needs to make sure that its current employees are satisfied with the intangible aspects of their jobs in order to retain them. d. Workers in small towns tend to be loyal to their employers hence, Arden’s current employees are likely to stay with Arden.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Retention of Human Resources PAGE: 68

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Application

51. In the current year, many talented teachers have submitted their resignation notices in Sunnydale High School. The president of the school management board is in a fix at this attrition even when the school pays competitive wages to its teachers. In this case, which of the following is the best recommendation for the president to follow? a. Money is the main reason people stay in a job, so the school needs to consider how to raise salaries even higher. b. When pay is competitive, other job factors have more impact on turnover and need to be considered and improved. c. In service sector jobs, people are motivated more by the psychological aspects of the work than by tangible rewards. d. Teachers usually leave their jobs due to involuntary turnover, so pay is not a big factor in their retention.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking TOP: Retention of Human Resources PAGE: 68 52. _____ is an intangible reward for performance.

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Application

a. b. c. d.

Promotion to a new position Verbal praise from one’s supervisor A performance bonus An opportunity for training

ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 68

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

53. _____ is defined as the percentage of employees at the beginning of a period who remain at the end. a. Retention rate b. Turnover rate c. Absenteeism ratio d. Productivity rate ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Managing Retention PAGE: 69

54.

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

Which of the following is the first step in the process of managing retention? a. Measurement and assessment b. Management intervention c. Evaluation and follow up d. Tracking of intervention results ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Managing Retention PAGE: 69

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

TRUE/FALSE 1. According to the Bureau of Labor Statistics, compared to the labor force of the past, today’s workplace force is “younger and composed of more men.”

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: The Workforce Profile PAGE: 48

2. The labor force participation rate is the percentage of the population working or seeking work.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Workforce Profile PAGE: 48

3. The Bureau of Labor Statistics classifies people working between 35 and 40 hours per week as parttime workers.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Workforce Profile PAGE: 49

4. Work is effort directed toward accomplishing results.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

5. A job is a grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

6. Workflow analysis is the study of the way work moves through an organization.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

7. Job design refers to organizing tasks, duties, responsibilities, and other elements into a productive unit of work.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

8. Contingent workers are full time employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 51

9. A virtual team is composed of individuals who are separated geographically but linked by communications technology.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 52

10. Telework means that employees work via electronic, telecommunications, and Internet technology.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Designing Flexible Jobs PAGE: 52

11. Shift differential is the additional pay that employees receive for working the evening or night shifts.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Designing Flexible Jobs PAGE: 53

12. A duty is a distinct, identifiable work activity composed of motions.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Understanding Job Analysis PAGE: 55

13. Responsibilities are obligations to perform certain tasks and duties.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Understanding Job Analysis PAGE: 55

14. Competencies are individual capabilities that can be linked to performance by individuals or teams.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Understanding Job Analysis PAGE: 55

15. Drafting job descriptions and specifications is typically the first step in the job analysis process.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Implementing Job Analysis PAGE: 57

16. Reviewing existing job documentation is typically the last step in the job analysis process.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Implementing Job Analysis PAGE: 57

17. Marginal job functions are duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Behavioral and Legal Aspects of Job Analysis PAGE: 58

18. A job description identifies the tasks, duties, and responsibilities of a job.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Job Descriptions and Job Specifications PAGE: 58

19. Job specifications list the knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Job Descriptions and Job Specifications PAGE: 58

20. One of the determinants of employees’ willingness to exert effort is the degree to which they value the rewards offered by an organization.

ANS: T

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic TOP: Individuals at Work PAGE: 59

STA: DISC: HRM KEY: Bloom's: Comprehension

21. Employee productivity is a tangible aspect of psychological contracts.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

22. Employers can address job satisfaction by regularly surveying employees.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

23. Higher unemployment rates usually mean more dissatisfied employees in the workforce.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 62

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

24. Older employees tend to have lower job satisfaction than younger employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 62

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

25. A no-fault policy in organizations allows employees to manage their own attendance.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 65

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

26. Work rule violation is the most common reason for voluntary turnover.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

27. A major reason for categorizing an employee’s departure as functional rather than dysfunctional is his/her performance level.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

PAGE: 66 28. Functional turnover usually proves to be positive for organizations.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

29. Insufficient pay is one of the reasons that lead to employee turnover.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 66

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

30. Vacancy costs incurred by a company during turnover primarily include supervisory time, pay rates to prevent separations, and exit interview time.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

31. Decreased customer service is a hidden cost of turnover.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

32. Paid orientation time is a training cost involved in turnover.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

33. The reasons key people choose to stay with an employer are always the opposite of those that compel others to quit.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

34. Developing skills in employees increases the likelihood that the employees would quit an organization.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 68 35. Customer dissatisfaction is a direct cost of absenteeism.

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 64

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

36. Hiring has little to do with retention.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 68

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

SHORT ANSWER 1. Define labor force participation rate.

ANS: The labor force participation rate is the percentage of the population working or seeking work.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Workforce Profile PAGE: 48

2. Define workflow analysis.

ANS: Workflow analysis is the study of the way work moves through an organization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Work and Jobs PAGE: 50

3. Define job design and describe the three major reasons why it receives attention.

ANS: Job design refers to organizing tasks, duties, responsibilities, and other elements into a productive unit of work. Job design receives attention for three major reasons: • Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference.

• Job design can affect job satisfaction. Since people are more satisfied with certain job elements than others, identifying what makes a “good” job becomes critical. Reduced turnover and absenteeism also can be linked to effective job design.

• Job design can impact both physical and mental health. Problems such as hearing loss, backache, leg pain, stress, high blood pressure, and even heart disease sometimes can be traced directly to job design.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 4. Define contingent workers.

DIF: Challenging TOP: The Nature of Work and Jobs PAGE: 50

ANS: A contingent worker is someone who is not a full time employee, but a temporary or part-time worker for a specific period of time and type of work.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Work and Jobs PAGE: 51

5. What is telework?

ANS: Individuals who may be working at home or at other places illustrate telework, which means that employees work via electronic, telecommunications, and Internet technology.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Designing Flexible Jobs PAGE: 52

6. Define job analysis.

ANS: Job analysis is a systematic way of gathering and analyzing information about the content, context, and human requirements of jobs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Understanding Job Analysis PAGE: 54

7. What is a job description?

ANS: A job description identifies the tasks, duties, and responsibilities of a job. It describes what is done, why it is done, where it is done, and, briefly, how it is done.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Job Descriptions and Job Specifications PAGE: 54

8. What are job specifications?

ANS: The job specifications list the knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Job Descriptions and Job Specifications PAGE: 54

9. What are the three major factors that affect individual performance in organizations?

ANS: The three major factors that affect how an individual performs are (1) individual ability to do the work, (2) effort level expended, and (3) organizational support. The relationship of those factors can be stated in the following manner: Performance (P) = Ability (A) × Effort (E) × Support (S).

PTS: 1 NAT: BUSPROG: Analytic TOP: Individuals at Work PAGE: 59

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

10. What are the expectations that are usually recognized by psychological contracts?

ANS: Psychological contracts usually recognize the employee expectation that employers will provide competitive compensation and benefits, flexibility to balance work and home life, and career development opportunities. It also recognizes the employer expectation that employees, on their part, will contribute continuous skill improvement and increased productivity, stay for a reasonable time with the organization, and put in extra efforts and results when needed.

PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

11. Define organizational commitment.

ANS: The degree to which employees believe in and accept organizational goals and want to remain with the organization is called organizational commitment. Job satisfaction influences organizational commitment, which in turn affects employee retention and turnover.

PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC: HRM TOP: Individual Workers and Organizational Relationships KEY: Bloom's: Knowledge PAGE: 62 12. Describe the various types of absenteeism.

ANS: Employees can be absent from work or tardy for several reasons. Some absenteeism is inevitable because of illness, death in the family, and other personal reasons. Such unavoidable absences are called involuntary absences. However, much absenteeism is avoidable, or voluntary. Absence can also be planned (the least disruptive), unplanned, incidental (less than a week), or extended (lasting beyond a week).

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 63

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

13. Explain the no-fault policy that some companies use to address absenteeism.

ANS: With a no-fault policy, the reasons for absences do not matter, and employees must manage their own attendance unless they abuse that freedom. Once absenteeism exceeds normal limits, then disciplinary action up to and including termination of employment can occur. The advantages of the no-fault approach are that there is uniformity in the ways absence is handled and supervisors and HR staff do not have to judge whether absences count as excused or unexcused.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 65

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

14. Distinguish between functional turnover and dysfunctional turnover.

ANS: Functional turnover occurs when lower-performing, less reliable, or disruptive individuals leave an organization. Dysfunctional turnover occurs when key individuals and high performers leave.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 66

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

15. What are the hidden costs of turnover?

ANS: Hidden costs of turnover are less obvious than other costs and include reduced productivity, decreased customer service, lower quality, additional unexpected employee turnover, and missed project deadlines.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

16. Describe the main differences between engaged and disengaged employees in an organization.

ANS: Engaged employees put in extra effort and are fully involved in their job. They employ both thought and effort in their work and are active and busy. Disengaged employees, on the other hand, simply put in time but no effort into their job. They do not perform to their best, and react only to pay. They are apathetic and fulfill only the basic requirements of their job.

PTS: 1 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 62

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

ESSAY 1. Describe the important workforce profile elements.

ANS: Predictions for the workforce and changes in jobs affect all industries but in different ways. For example, it has been predicted that the retirement of baby boomers (born 1946–1964) would leave a huge talent gap. But a funny thing happened on the way to retirement—many boomers did not have enough money to retire. Health care expenses and other unknowns became a big issue for many, and they did not retire. The wave of retirements has been put off a bit as many older employees choose to continue working.

Another prediction that of “skills gaps” in certain areas, appears to be on track. Not everyone believed there would be skills shortages in education, health care, and IT while unemployment remains high.

But many of the people without jobs do not have the skills needed to fill these well-documented shortages. Generational differences in the workforce have been considered, analyzed, and addressed.

Historically, part-time positions have not been viewed favorably as people would begrudgingly accept part-time work until they could find a full-time career opportunity. Yet employers want more contingent employees for the flexibility they present, and more employees now want part-time work (also for flexibility).

Human Resources deals with that portion of the population that works at a job or is looking for work.

An overview of the workforce is a good place to begin an examination of workforce and jobs.

According to the Bureau of Labor Statistics, compared to the labor force of the past, today’s workplace force is “older, more racially and ethnically diverse, and composed of more women.” It is expected to expand at a slower rate than in previous decades because the U.S. population growth has slowed and there has been a decrease in the labor force participation rate. The labor force participation rate is the percentage of the population working or seeking work.

The Census Bureau projects the U.S. population in 2020 to be about 341 million. People aged 55 and older will comprise about 29% of the population. Flows into the population include fertility (births) and immigration. Flows out of the population include deaths and outmigration. The fertility (or birth) rate in the United States is roughly at replacement level of 2.1 children per women. Life expectancies for the population continue to increase. Immigration is volatile and difficult to predict because it depends on other countries and economics, but it is estimated that 1.4 million people are annually added to the population by immigration.

The labor force participation rate peaked at 67% before 2000 and has since declined to around 65%.

Part of the reason is that older people are still in the population, but are not as likely to be in the workforce as younger people. Put another way, the labor force participation rate for older people is less than that for younger people.

Being able to match human talent to what the business is trying to accomplish is fundamental. For example, lower energy costs, rising wages in China and India, and high international shipping costs may combine to make the United States more attractive to manufacturing again. That means more jobs requiring science, technology, engineering, and math skills (STEM). Yet there is currently a large shortage of those skills in the U.S. workforce. It is not that there are too few high school and college graduates. Rather the problem is the subjects that students are majoring in, and the level and quality of the education received.

High school seniors planning to go to college show declining SAT writing and reading scores. ACT scores suggest that only 25% of the high school graduates that took the test are ready for college.

Human Resources can deal with these shortages by planning for the specific skills needed when recruiting and hiring employees and then hiring for those skills.

The Bureau of Labor Statistics classifies people working less than 35 hours per week as part time, but employers set their own definition of part time as they see fit. Two-thirds of the part-time workforce is female, as mothers may need to lower their hours to provide for child care. But others choose part-time

work as well—for example, the number of pediatricians, obstetricians, gynecologists, and pharmacists working part-time has increased markedly.

Further, some workers move to part time schedules before they retire. Older workers who have retired may agree to come back for part-time work only. Freelancers or independent workers afford flexibility for employers for specific jobs (e.g., a freelance art director might do projects only as needed). The use of contingent workers of whatever label continues to increase because of the resulting flexibility available for both parties.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: The Workforce Profile PAGE: 47 –49

2. Explain workflow analysis.

ANS: For HR, the way work flows through the organization and how to make that work more efficient is important. Changing the way jobs are done through job redesign may make people more satisfied, and formally reviewing jobs through workflow analysis can help identify what is to be accomplished.

Workflow analysis is the study of the way work moves through an organization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: The Nature of Work and Jobs PAGE: 50

3. Explain the common approaches to job design.

ANS: Job design is organizing tasks, duties, responsibilities, and other elements into a productive unit of work. Job redesign refers to changing an existing job to improve it. Identifying the components of a given job is an integral part of job design. Job design receives attention for three major reasons: 1) Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference.

2) Job design can affect job satisfaction. Since people are more satisfied with certain job elements than others, identifying what makes a “good” job becomes critical. Reduced turnover and absenteeism also can be linked to effective job design.

3) Job design can impact both physical and mental health. Problems such as hearing loss, backache, leg pain, stress, high blood pressure, and heart disease sometimes can be traced directly to job design.

Organizations employ a variety of workers, and not just full-time workers. Depending on economic and competitive factors, the types of workers in one firm may include the following: 1) Full-time employees 2) Part-time employees 3) Independent contractors

4) Temporary workers 5) Contingent workers Jobs can be designed to use any of the different types. Although some organizations still use the traditional approach of employing full- and part-time workers, many firms are making significant use of independent, temporary, and contingent workers. These individuals are not employees but generally work at will or on limited contracts, and they may be working for other employers as well. A contingent worker is someone who is not a full time employee, but a temporary or part time worker for a specific period of time and type of work.

According to the U.S. Bureau of Labor Statistics, contingent workers are part of a group of “alternative workers” who may be on-call, working through an employment agency, or operating as independent contractors. A number of contingent workers have contracts with employers that establish their pay, hours, job requirements, limitations, and time periods. More employers are using contingent and temporary workers.

Not everyone would enjoy being an HR manager, an engineer, a nurse, or a drill-press operator. But some people like and do well at each of these jobs. The person–job fit is a simple but important concept of matching characteristics of people with characteristics of jobs.

If a person does not fit a job, either the person can be changed or replaced or the job can be redesigned.

However, though an employer can try to make a “round” person fit a “square” job, it is hard to successfully reshape people. If it is possible to redesign a job, the person-job fit may sometimes be improved more easily. For example, bank tellers talk to people all day; an individual who would rather not talk to others may perform better in a position that does not require so much interaction because that part of the bank teller job likely cannot be changed. Different people will consider some jobs “good” and others “bad.” As a result, different people will best fit different kinds of work.

Typically, a job is thought of as something done by one person. However, where appropriate, jobs may be designed for teams to take advantage of the increased productivity and commitment that may follow such a change. Organizations can assign jobs to teams of employees instead of just individuals. Some firms have gone as far as dropping such terms as workers and employees, replacing them with teammates, crew members, associates, and other titles that emphasize teamwork.

As organizations have changed, the types of teams have changed as well. Having global operations with diverse individuals and using technology have affected the nature of teams contributing to organizational projects.

The virtual team includes individuals who are separated geographically but who are linked by communications technology. The success of virtual work teams depends on a number of factors, including training of team members, planning and managing virtual tasks and projects, and using technology to enhance teamwork. However, sometimes virtual teams can lead to unresolved problems, less productivity, and miscommunications.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: The Nature of Work and Jobs PAGE: 50 –51

4. Discuss how teams are used in job design.

ANS: The virtual team is composed of individuals who are separated geographically but linked by communications technology. The success of virtual work teams depends on a number of factors, including training of team members, planning and managing virtual tasks and projects, and using technology for expansion of teamwork. However, sometimes virtual teams can lead to unresolved problems, less productivity, and miscommunications.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: The Nature of Work and Jobs PAGE: 52

5. Explain time flexibility-work scheduling.

ANS: Different work schedules can be part of designing jobs and have been developed for employees in different occupations and areas. The traditional U.S. work schedule of eight hours a day, five days a week, is in transition. Workers may work less or more than eight hours at a workplace, and may have additional work at home. The work schedules associated with jobs vary as some jobs must be performed during “normal” daily work hours and on weekdays, while others require employees to work nights, weekends, and extended hours. There are significant differences in the hours worked in different countries as well. Given the global nature of many organizations, HR must adjust to different locations. Organizations are using many work scheduling arrangements, based on industry demands, workforce needs, and other factors. These include shift work, the compressed workweek, part-time schedules, job sharing, and flextime.

Shift Work: A common work schedule design is shift work. Many organizations need 24-hour coverage and therefore may schedule three eight-hour shifts per day. Most employers provide some form of additional pay, called a shift differential, for working the evening or night shifts.

Compressed Workweek: Another type of work schedule design is the compressed workweek, in which a full week’s work is accomplished in fewer than five 8-hour days. Compression usually results in more work hours each day and fewer workdays each week, such as four 10-hour days, or a 3-day week with 12-hour shifts.

Part-Time Jobs: Part-time jobs are used when less than 40 hours per week are required to do a job.

Part-time jobs are attractive to those who may not want 40 hours per week—older employees, parents of small children, or students. Professionals may choose part-time work in some cases.

Job Sharing: Another alternative used is job sharing, in which two employees perform the work of one full-time job. For instance, a hospital allows two radiological technicians to fill one job, and each individual works every other week.

Flextime: In flextime, employees work a set number of hours a day but vary starting and ending times.

In another variation, employees may work 30 minutes longer Monday through Thursday, take short lunch breaks and leave work at 1 p.m. or 2 p.m. on Friday.

Flexible scheduling: It allows management to relax some of the traditional “time clock” control of employees, while still covering workloads. In some cases, electronic monitoring may be used. For example, in a call-service firm, home-based employees are monitored electronically on their use of phones, breaks, and production.

PTS: 1

DIF:

Challenging

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Designing Flexible Jobs PAGE: 53 –54

6. Explain the different job analysis methods.

ANS: Job analysis information about what people are doing in their jobs can be gathered in a variety of ways. Traditionally the most common methods have been (1) observation, (2) interviewing, and (3) questionnaires. However, the expansion of technology has led to computerization and web-based job analysis information resources. Sometimes a combination of these approaches is used depending on the situation and the organization.

Job Analysis and O*Net A variety of resources to help with job analysis are available from the U.S. Department of Labor (DOL). These resources have been developed and used over many years by a variety of entities. O*Net is currently the main DOL resource available and provides employers with a wide range of useful items. The O*Net database now contains data on more than 800 occupations, classified by industry.

Included in the occupational categories are the following: • Task statements of importance, relevance, and frequency • Abilities (work activities, knowledge, skills, and work content) • Training, work experiences, and education • Interests and work values, work styles, and job zones O*Net can be used in different ways. For example, one way is to see what abilities will be needed in certain jobs. More than 50 abilities are listed, including arm-hand steadiness, fluency of ideas, time sharing, visualization, written and oral comprehension, and speech clarity. Employers can use the abilities and the other components to generate data for some parts of job analysis and for developing job descriptions. O*Net also now contains the Dictionary of Occupational Titles (DOT) and has hundreds of jobs descriptions already written and available.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Job Analysis Methods PAGE: 56 –57

7. Explain the legal aspects of job analysis.

ANS: The Uniform Guidelines on Employee Selection Procedures make it clear that HR requirements must be tied to specific job-related factors if employers are to defend their actions as a business necessity.

Job descriptions are frequently the link to these job-related factors.

One result of the Americans with Disabilities Act (ADA) is increased emphasis by employers on conducting job analyses, as well as developing and maintaining current and accurate job descriptions and job specifications.

The ADA requires that organizations identify the essential job functions, which are the fundamental duties of a job. These do not include the marginal functions of the positions. Marginal job functions are duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.

Job analysis should also identify the physical demands of jobs. For example, the important physical skills and capabilities used on the job of a nurse could include being able to hear well enough to aid clients and doctors. However, hearing might be less essential for a heavy equipment operator working in a quarry.

The federal Fair Labor Standards Act (FLSA) and most state wage/hour laws indicate that the percentage of time employees spend on manual, routine, or clerical duties affects whether they must be paid overtime for hours worked in excess of 40 hours a week. To be exempt from overtime, the employees must perform their primary duties as executive, administrative, professional, or outside sales employees. “Primary” has been interpreted to mean occurring at least 50% of the time.

Other legal-compliance efforts, such as those involving workplace safety and health, can also be aided through the data provided by job analysis and job descriptions. It is difficult for an employer to have a legal staffing system without performing job analysis. Truly, job analysis is the most basic HR activity and the foundation for most other HR efforts.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Behavioral and Legal Aspects of Job Analysis PAGE: 57 –58

8. List the three major factors that influence individual performance in organizations? With suitable examples, explain how a reduction or absence in any of the factors affects performance.

ANS: The three major factors that affect how a given individual performs are (1) individual ability to do the work, (2) effort level expended, and (3) organizational support. Individual performance is enhanced to the degree that all three components are present within an individual employee.

Performance is diminished if any of these factors are reduced or absent. For instance, assume that several production workers have the ability to do their jobs and work hard, but the organization provides outmoded equipment or the management style of supervisors causes negative reactions by the workers so performance suffers. Another example is that of a customer service representative in a call center who has the required abilities to perform his job well and the employer provides excellent support. But the individual hates having to do routine tasks all day and is frequently absent because of dislike of the job even though it pays well. In both cases, individual performance is likely to be less than in situations where all three components were present.

PTS: 1 NAT: BUSPROG: Analytic TOP: Individuals at Work PAGE: 59

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

9. What is motivation? Describe some common ways by which organizations try to motivate their employees.

ANS: Motivation is the desire within a person causing that person to act. Organizations employ several methods to motivate their employees. Financial rewards are often mentioned as motivators, and indeed for some employees in some circumstances they can be motivators. A good financial reward system must differentiate among good, average, and poor performers and the financial rewards must be given for good performance if it is to be effective as a motivator. Performance management can contribute to motivation only if the process is viewed as accurate, transparent, and fair (equitable). Other key motivators are praise (when deserved), recognition, being trusted, and autonomy to do one’s job.

Performance by individuals depends on the relationship between individuals and the ways the organization has structured these and other variables.

PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy STA: DISC: HRM

TOP: Individuals at Work PAGE: 57 –60

KEY: Bloom's: Comprehension

10. What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce?

ANS: Job satisfaction is a positive emotional state resulting from evaluating one's job experiences. When expectations are met, people are satisfied with their jobs. Employees view their work, pay, promotion opportunities, supervision, and coworkers as important dimensions of job satisfaction. Organizational commitment is the degree to which employees believe in and accept organizational goals and desire to remain with the organization. Job satisfaction is linked to organizational commitment. A satisfied and committed employee is less likely to be absent or to voluntarily leave the organization.

PTS: 1 OBJ: LO: 05-03 NAT: BUSPROG: Analytic TOP: Individual Workers and Organizational Relationships PAGE: 61 –70

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

11. Describe three methods used to control absenteeism in organizations.

ANS: Methods employers use to address absenteeism can be placed into several categories. Three of the more prominent are as follows: 1. Disciplinary approach: Many employers use this approach. People who are absent the first time receive an oral warning, and subsequent absences bring written warnings, suspension, and finally dismissal.

2. Positive reinforcement: It includes actions such as giving employees cash, recognition, time off, and other rewards for meeting attendance standards. Offering rewards for consistent attendance, giving bonuses for missing fewer than a certain number of days, and “buying back” unused sick leave are all positive reinforcement methods of reducing absenteeism.

3. Combination approach: A combination approach ideally rewards desired behaviors and punishes undesired behaviors. This carrot-and-stick approach uses policies and discipline to punish offenders and various programs and rewards to recognize employees with outstanding attendance.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Absenteeism PAGE: 64 –65

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

12. Describe a few causes of voluntary turnover.

ANS: Common causes for voluntary turnover include job dissatisfaction, pay and benefits levels, supervision, geography, and personal/family reasons.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 66

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

13. What are the factors that should be considered when estimating the cost of turnover to an organization?

ANS: The impact of turnover is widespread in an organization. The main categories of costs of turnover in addition to lost productivity are as follows: 1. Separation costs include the cost of HR staff and supervisory time, pay rates to prevent separations, exit interview time, unemployment expenses, They also include legal fees for separations challenged, accrued vacation pay expenditures, continued health benefits, and others.

2. Vacancy costs include the costs of filling a position with temporary and contract workers and consulting firm usage, overtime by current employees and other costs until a permanent replacement is hired.

3. Replacement costs include all the search-related expenses, HR interviewer and staff time and salaries, employee referral fees, relocation and moving costs, supervisor and managerial time and salaries, employment testing costs, reference checking fees, pre-employment medical expenses, relocation costs, and others.

4. Training costs include orientation for the new employee, staff time for training, and coworker “coaching” time, costs of training materials, supervisor and manager time and salaries, and others.

5. Beyond these direct costs are indirect or hidden costs such as reduced productivity, and decreased customer service, lower quality, additional unexpected employee turnover, missed project deadlines, and others.

PTS: 1 NAT: BUSPROG: Analytic TOP: Employee Turnover PAGE: 67

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

14. What are the main drivers of retention? Describe each driver.

ANS: The main drivers of retention are: organizational and management factors, employee–supervisor relationships, rewards, and career training and development.

1. Many organizational/management factors influence individuals’ job satisfaction and their decisions to stay with or leave their employers. Organizations that have clearly established goals and hold managers and employees accountable for accomplishing results are viewed as better places to work.

2. Work relationships that affect employee retention include supervisory/management support and coworker relations. A supervisor or manager builds positive relationships and aids retention by being fair and nondiscriminatory, allowing work flexibility and work-family balancing, giving feedback that recognizes employee efforts and performance, and supporting career planning and development.

3. Rewards can be in the form of pay, incentives, and benefits or in the form of employee recognition.

4. Many employees in all types of jobs consistently indicate that organizational efforts to aid their career training and development can significantly affect employee retention.

PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 68 –69

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

15. Discuss a few strategies to improve retention in organizations.

ANS: There are significant actions that an employer can take to retain employees in many other circumstances.

Organizational and Management Factors: Many organizational/management factors influence individuals’ job satisfaction and their decisions to stay with or leave their employers. Organizations that have clearly established goals and hold managers and employees accountable for accomplishing results are viewed as better places to work, especially by individuals wishing to progress both financially and career-wise. Further, effective management provides the resources necessary for employees to perform their jobs well.

A factor affecting how employees view their organizations is the quality of organizational leadership.

If a firm is not effectively managed, then employees may be disappointed by the ineffective responses and inefficiencies they deal with in their jobs and may want to leave.

Work Relationships: Work relationships that affect employee retention include supervisory/management support and coworker relations. A supervisor or manager builds positive relationships and aids retention by being fair and nondiscriminatory, allowing work flexibility and work-family balancing, giving feedback that recognizes employee efforts and performance, and supporting career planning and development.

Additionally, many individuals build close relationships with coworkers. Such work-related friendships do not appear on employee records, but these relationships can be an important signal that a workplace is positive.

Rewards: The tangible rewards that people receive for working come in the form of pay, incentives, and benefits. Employees often cite better pay or benefits as the reason for leaving one employer for another. Employers do best with retention if they offer competitive pay and benefits, which means they must be close to what other employers are providing and what individuals believe to be consistent with their capabilities, experience, and performance.

Another reward is employee recognition, which can be both tangible and intangible. Tangible recognition comes in many forms, such as “employee of the month” plaques and perfect-attendance certificates. Intangible and psychological recognition includes feedback from managers and supervisors acknowledging extra effort and performance, even if monetary rewards are not given.

Training: Many employees in all types of jobs consistently indicate that organizational efforts to aid their career training and development can significantly affect employee retention. Opportunities for personal growth lead the list of reasons why individuals took their current jobs and why they stay there.

PTS: 1 NAT: BUSPROG: Analytic TOP: Retention of Human Resources PAGE: 68 –69

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

Chapter 4—Staffing: Recruiting and Selection MULTIPLE CHOICE 1. The process of generating a pool of qualified applicants for organizational jobs is called: a. requisitioning. b. pre-screening. c. recruiting. d. summoning.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Recruiting PAGE: 71

2. Bryan is the recruiting specialist for an online retailing company in Missouri. He used all types of recruiting techniques available to him to fill nineteen job openings. Using these techniques, exactly nineteen applicants with the minimum qualifications were found and all the candidates accepted the job offer. Which of the following is true about this scenario? a. The yield ratio will be 50%. b. A selection process is not necessary in the given scenario. c. The acceptance rate in this scenario is 60%. d. The labor market in this area can be described as “loose.”

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Recruiting PAGE: 71

3. The _____ includes all individuals available for selection, if all possible recruitment strategies are used. a. labor force population b. external labor market c. recruitment pool d. applicant population ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Labor Markets PAGE: 72

4. Priam Designs Inc. is recruiting fashion designers through LinkedIn. This recruiting mode typically provides direct access to the _____. a. applicant pool b. entire pool of eligible candidates c. entire labor market d. applicant population ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Labor Markets PAGE: 73

5. Stacy, the HR manager of a bank, restricts her recruiting efforts for the post of loan officer to placing advertisements on the website of the American Banking Association. This will allow Stacy to determine the _____ for the job of loan officer. a. applicant population b. labor force population

c. applicant pool d. entire labor market ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Labor Markets PAGE: 73

6. The _____ pool consists of all persons who are actually evaluated for selection. a. applicant b. selection c. labor d. talent ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Labor Markets PAGE: 73

7. Which of the following would be an advantage for the U.S. organizations that do not want to outsource their work overseas? a. Advancements in American worker productivity b. Rapidly rising labor costs in countries like India and China c. Restrictive U.S. requirements for work permits d. Large tax penalties that U.S. firms must pay if they outsource jobs ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Labor Markets PAGE: 74

8. Karl Graphics is conducting a vigorous recruiting campaign aimed at hiring 12 new employees within two weeks. This best exemplifies _____ recruiting. a. continuous b. emergency c. intensive d. crisis ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Comprehension

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 74

9. Which of the following is a defining characteristic of regular staffing? a. It uses workers who are traditional employees. b. It uses independent contractors. c. Companies can utilize the “try before you buy” approach. d. Companies can avoid litigation associated with the termination of workers.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Strategic Recruiting Decisions PAGE: 74

10. In which of the following situations would the use of temporary workers be most appropriate? a. A company that has a low rate of turnover among its regular employees b. An employer who has received a long-term contract from the Federal government for oceanic research c. A tax preparation company that mostly handles individual clients and has few business clients

d. A start-up company with a competitive strategy of continuing expert customer service ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 75

11. Angela is a self-employed graphic artist. She is usually hired by companies for special projects that lasts from a week to six months. Angela can be best described as a(n): a. independent contractor. b. undocumented worker. c. regular employee. d. full-time employee.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 75

12. Edison Inc., an electrical utility company, is moving from using only traditional sources of electricity to promoting the use of solar and wind power. It is one of the first utilities in the country to move heavily to solar and wind-generated electricity. Which of the following steps should the HR director take in order to cope with these new technologies at Edison Inc.? a. Avoid including specific designations such in the job advertisements b. Highlight terms such as “young and enthusiastic” and “ journeyman lineman” in their official websites c. Focus on training and development to generate internal candidates for all the new positions at the utility d. Plan to do more extensive external recruiting for technical and engineering positions ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 76

13. Which of the following statements is true of job boards? a. Job boards enable job seekers to submit résumés to many employers simultaneously. b. Much of the information provided by companies on job boards is intended to mislead competitors. c. Applicants hired from job boards always have worse average performance levels than applicants hired via social networking media. d. Job boards fail to offer access to numerous candidates.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Internet Recruiting PAGE: 76

14. John’s Medical is recruiting for the post of an oncology nurse practitioner. It would be most effective for John’s Medical to advertise: a. on a microblogging site like Twitter. b. online recruitment videos on a general job board such as Monster.com or CareerTV. c. on the website of the oncology nurse practitioner professional organization. d. on a social networking site such as Facebook.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Internet Recruiting PAGE: 76

15. Which of the following is an example of external sources of recruitment? a. A veterinarian selects one of her interns as her assistant. b. Jolene recommends her colleague to fill an open position as a sales representative at the company where Jolene works as a technician. c. An assistant librarian is shortlisted for the post of head librarian in the same library. d. A salon shifts from Boston to New York and employs a new cashier through Internet recruitment.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: External Recruiting Sources PAGE: 76

16. When compared to internal recruitment, an advantage of external recruiting is that: a. its selection process is more rigorous. b. it takes lesser time and resources. c. recruited employees often require more orientation efforts. d. it has the potential to generate larger applicant pools.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: External Recruiting Sources PAGE: 76

17. Which of the following statements is true of Internet recruiting? a. Twitter is rarely used by recruiters because of the 140-word limit. b. The broad reach of Internet recruiting has significantly reduced the amount of discrimination against job seekers from racial/ethnic groups because it enlarges the applicant population exponentially over traditional recruiting methods. c. An advantage of Internet recruiting is that by reaching out to so many people from diverse backgrounds, a very large pool of applicants can be generated. d. An advantage of Internet recruiting is that it streamlines EEO data gathering because everyone who accesses a job website is considered an applicant for legal purposes.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Comprehension

DIF: Challenging TOP: Internet Recruiting PAGE: 76

18. The major saving in time generated by Internet recruiting compared with traditional recruiting is the time taken: a. for conducting face-to-face interviews. b. for communication between the applicants and the employer. c. by new recruits to settle in a job. d. by HR staff members for handling blogs, tweets, and e-mail with applicants versus snail mail, faxes and phone calls.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Internet Recruiting PAGE: 77

19. Exclusive use of the Internet for recruiting can reduce the diversity of an employer’s applicant population because: a. it will only attract the attention of retirees who are interested in seeking new employment opportunities. b. individuals from lower socioeconomic groups mostly have limited access to the Internet. c. the use of terminology such as “young and enthusiastic” is restricted. d. it excludes retirees who are interested in seeking new employment opportunities.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Internet Recruiting PAGE: 77

20. Patricia, an outstanding performer, was placed at Oliver & Co. by a temporary service firm for two months. Patricia’s manager approaches Oliver & Co.’s HR Director with the request that she wants her as a regular employee. Given this scenario, which of the following statements is true? a. The temporary agency contract requires Oliver & Co. to pay a placement fee if Patricia is hired as a regular employee. b. The employers will not be liable for Patricia’s safety under OSHA regulations. c. Patricia will be less expensive as a regular employee than as a temporary employee because temporary employees typically receive a 40% wage premium to offset the lack of benefits. d. Oliver & Co. is ethically bound not to hire temporary employees provided by an agency for regular employment.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 79

21. In the building trade, unions can best benefit employers by providing: a. apprenticeship programs. b. providing interesting “employment games” online. c. pre-screening for job seekers. d. providing competitive wage scales for jobs.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: External Recruiting Sources PAGE: 79

22. Job fairs are primarily useful for: a. rapid hiring of large numbers of people. b. maintaining a continuous presence in a local labor market. c. passive recruiting. d. keeping out unemployable applicants.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: External Recruiting Sources PAGE: 79

23. Which of the following is a feature of school and college recruiting? a. Vocational colleges and technical schools often have cooperative programs with employers that funnel quality students into regular jobs. b. College recruiting is one of the least expensive recruitment methods. c. Companies who target minority students before they graduate are likely to be violating EEO laws. d. School and college recruiting is a type of internal recruitment.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: External Recruiting Sources PAGE: 80

24. Which of the following is true of internal recruitment? a. Inbreeding of employees typically results in a more diverse workforce.

b. It can aid future promotions, and career development. c. Family connections moderate the normal political maneuvering that occurs in firms. d. This process fails to motivate current employees to perform better.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Internal Recruiting Methods PAGE: 80

25. Calculating the average time from contact to hire allows a firm to most accurately: a. calculate the cost per hire. b. estimate the efficiency of recruiters. c. calculate the “float time” in the recruiting process. d. target the most time-efficient recruiting sources.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Recruiting Evaluation and Metrics PAGE: 81

26. The percentage hired from a given group of candidates is termed: a. the selection rate. b. the success base rate. c. the yield ratio. d. the acceptance rate.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Recruiting Evaluation and Metrics PAGE: 82

27. The process of choosing individuals with correct qualifications to fill jobs in an organization is called _____. a. recruitment b. selection c. job matching d. attrition ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection and Placement PAGE: 82

28. The purpose of selection is _____, fitting a person to the right job. a. placement b. orientation c. recruitment d. staffing ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection and Placement PAGE: 82

29. More than anything else, placement of human resources should be seen as a(n): a. public relations activity. b. operating management responsibility. c. matching process. d. marketing tool.

ANS: C

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Selection and Placement PAGE: 82

30. Lack of fit between a person and a job is most likely to result from: a. mistakes in evaluating the person’s KSAs. b. improper employee training. c. negligence of exit interviews. d. a lack of a positive company “brand” that attracts qualified applicants.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection and Placement PAGE:

31. Mark is unhappy with his new job as a first line supervisor at a call center. Mark finds the job boring and longs for the end of his shift every day. He wants to apply for another job either within or outside the organization. This is an example of: a. a realistic job preview. b. burnout. c. negligent hiring. d. a poor person/job fit.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection and Placement PAGE:

32. Voltra Inc. is planning to fill a number of openings for entry-level professionals. The selection process is quite extensive and includes several levels of individual interviews, panel interviews, psychological tests, and general ability tests. Much of the interview time is spent on the applicant’s philosophy of life and work. Voltra is highly concerned about: a. defining who is an applicant. b. complying with EEO and ADA requirements. c. person–environment fit. d. matching the person to the job.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection and Placement PAGE:

33. Jill graduated with an MBA during a severe economic recession. She accepted a job as a trainer for a major national bank. Jill was one of the top candidates when she was hired by the bank. Three months into her job, she feels that the individual bank customers are not valued and that the bank engages in misleading advertising. This is an example of: a. poor person–environment fit. b. a realistic job preview. c. negligent hiring. d. a snap judgment.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection and Placement PAGE:

34. Ability, intelligence, and conscientiousness are all examples of: a. elements of job performance. b. selection criteria. c. predictors of selection criteria.

d. soft skills.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection and Placement PAGE: 83

35. Measurable or visible indicators of selection criteria are called _____. a. reliable estimators b. predictors c. realistic job previews d. validators ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection and Placement PAGE: 83

36. Mary, the recruiter for Aurora Borealis Lighting Inc., decides to hire an individual who has the ability to learn on the job. The recruiters estimate it will be two years before the new hire will be fully productive. Consequently, they are looking to hire a person who will be with the company for at least four or five years. Mary suggests that they only hire applicants who have been with their previous employers for at least two years, and who have not changed their jobs too frequently. Mary’s suggestion is an example of a: a. KSA. b. soft skill. c. realistic job preview. d. predictor of selection criteria.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: Selection and Placement PAGE: 83

37. In the _____ approach for combining predictors, a minimum cutoff is set on each predictor, and each minimum level must be “passed.” a. universal predictor b. compensatory c. multiple hurdles d. matching ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection and Placement PAGE: 84

38. For the position of firefighter in Redville, the physical requirements are rigorous and the selection process involves many ability tests. Mark has a hearing impairment. This impairment alone caused him to be disqualified, even though Mark passed all the other physical tests and pencil-and-paper tests that were conducted earlier. This is an example of: a. the compensatory approach to selection. b. poor person–environment fit. c. discrimination under the ADA. d. the multiple hurdles approach of combining predictors.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: Selection and Placement PAGE: 84

39. How does the compensatory approach combine predictors? a. A minimum cutoff is set on each predictor. b. A higher score on one predictor offsets a lower score on another. c. The highest predictor scores for all test takers is used to set an average cutoff. d. Multiple hurdles are set to compensate for the different predictors. .

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection and Placement PAGE: 84

40. What is the main purpose of pre-employment screening? a. To provide a realistic job preview and discourage potential applicants who would be dissatisfied with the job b. To identify applicants with arrest records and convictions c. To determine if applicants meet the minimum qualifications for job openings d. To obtain information for EEO and affirmative action reports ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Selection Process PAGE: 85

41. A new Gulf Coast casino plans to hire over 1,000 employees for its new resort. The casino’s HR department requires applicants to complete an online questionnaire, which is later analyzed using computer software, and only those applicants who have previously worked in hotels and casinos are considered eligible for the next step in the hiring process. This is an example of a: a. compensatory approach to selection. b. realistic job preview. c. preemployment screening process. d. multiple hurdles approach to selection.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: The Selection Process PAGE: 85

42. Which of the following is a fundamental purpose of an application form? a. It forms the basis for an organization’s EEO/affirmative action plans. b. It can be used as a defense in an ADA discrimination case. c. It is a record of an employer’s desire to hire someone for an open position. d. It acts as a basic employee record for applicants who are eventually hired.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Selection Process PAGE: 85

43 Greta is the new HR manager at a small company. The previous HR manager had kept every scrap of paper that crossed his desk during the last ten years, but Greta is determined to clear out the unnecessary documents. Greta knows she should keep all applications and hiring-related documents and records _____ before they can be discarded. a. for one year b. for three years c. for five years d. for seven years ANS: B PTS: 1 NAT: BUSPROG: Analytic

DIF: Moderate TOP: The Selection Process

KEY: Bloom's: Application

PAGE: 85

44. Roger, a new HR manager at Charlemagne Tools Inc., examines the application form that the company has been using for the last two years. According to the guidelines set by the EEOC and various court decisions, which of the following is an illegal question in the application form? a. Have you ever been convicted of a felony? b. Can you perform the duties of the job with accommodation? c. What is your driver’s license number? d. Please provide details of your medical history?

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: The Selection Process PAGE: 85

45. In verifying the identities and credentials of job applicants, employers must use the revised form I-9 for each employee hired and must: a. permit annual audits of HR records by ICE agents. b. send copies of all documents submitted by employees to the Immigration and Naturalization Service within 48 hours of hiring. c. determine whether a job applicant is a U.S. citizen, registered alien, or illegal alien, within 72 hours of hiring. d. contact the Department of Homeland Security within 24 hours if an illegal alien applies for a job with a government contractor in the transportation sector.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Selection Process PAGE: 86

46. Kevin, a recent college graduate, applied for a job with a firm that provides security to high-profile individuals. During the selection process, he was given a test for visual memory. Tests such as these are classified as: a. psychomotor ability tests. b. cognitive ability tests. c. illegal tests that discriminate against the disabled. d. work sample tests.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 86

47. A(n) _____ is an exercise composed of a series of evaluative tests in which candidates are evaluated by multiple raters. a. situational judgment test b. assessment center c. panel interview d. work simulation ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 87

48. The purpose of a(n) _____ is to obtain additional information on a candidate and to clarify information gathered throughout the selection process. a. personality test

b. application form c. selection interview d. polygraph ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 88

49. Linda is the director of HR at Colette Value Inc., a large tax-preparation firm. The firm faces a dearth of tax preparers every year when the tax season approaches. Every December, Linda outsources a bulk of the recruiting process to an employment agency to recruit temporary employees before the tax season begins. However, she wants to do so without excessively limiting her final hiring decisions.

Which of the following processes of recruitment should Linda carry out first hand? a. Advertising for recruitment over the Internet b. Preliminary screening of résumés c. Designing the employment advertisements d. Face-to-face interviews with finalists ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 88

50. Which of the following is true of all structured interviews? a. All candidates meet with the same interviewer. b. A set of standardized questions are asked of all job applicants. c. Each candidate appears before a panel of interviewers. d. Questions are designed to address all of the Big Five personality traits.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 88

51. The great advantage of structured selection interviews over unstructured interviews is the: a. naturalness and ability to set the candidate at ease. b. effectiveness at organizational branding. c. consistency in evaluation of candidates. d. improvisational approach to gathering information about candidates.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Selection Testing PAGE: 88

52. A _____ interview is more reliable and valid than fact finding or counseling interview. . a. sequential b. nondirective c. stress d. structured ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 88

53. Gerard, a job applicant, was asked to appear for an interview by an organization. Gerard spent the first 15 minutes of the job interview relating details about his education and work experience to the interviewer. This is a _____ interview.

a. b. c. d.

behavioral competency biographical nondirective

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 88

54. Patrick, a job applicant, was asked by his interviewer, “In your previous job, how did you handle employees who were poor performers?” Based on this information, what type of interview did Patrick attend? a. Behavioral interview b. Biographical interview c. Nondirective interview d. Situational interview ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 88

55. In her interview for a position as a bartender at a luxury hotel bar, Megan was asked “What would you do if one of the customers started slurring her words and began making off-color jokes that other customers in the bar could hear?” Such types of questions are typically asked in _____ interviews. a. behavioral b. nondirective c. situational d. stress ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: Selection Testing PAGE: 89

56. The selection process for hiring the assistant to the mayor of a large city includes giving the finalists three hypothetical crisis scenarios. One deals with a terrorist threat at a sporting event, another deals with a plane crash at the airport, and the third deals with a major earthquake. Each candidate must describe her or his approach to handling the crisis, which will be recorded and evaluated by a panel.

This is an example of a: a. competency interview. b. behavioral interview. c. stress interview. d. situational interview.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: Selection Testing PAGE: 89

57. Gisela has just finished her interview with the managing editor of a large city newspaper. She is shaken and upset because the editor talked about her educational background in an insulting tone. He also pressured her to answer confusing questions without allowing her time to collect her thoughts.

Given this scenario, Gisela most likely attended a _____ interview. a. behavioral b. nondirective c. biographical d. stress

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 89

58. The position for the city Manager of Science River attracted many applicants. As part of the selection process, the applicants each appeared one by one before the entire Scenic River Board of Aldemen for an interview. This is an example of a _____ interview. a. panel b. mass c. biographical d. situational ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 89

59. The interior decorators, designers, and architects of WorldKraft Design work together in selfmanaging work groups. This structure is key to the organization’s culture, and it is important that new hires fit in with the work group to which they are assigned. In this case, it would be wise to use: a. multiple-hurdle interviews. b. stress interviews. c. biographical interviews. d. team interviews.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection Testing PAGE: 89

60. The problem of _____ occurs when interviewers make a decision on the job suitability of applicants within the first few minutes of the interview and spend the balance of the interview looking for evidence to support it. a. cultural noise b. snap judgment c. stereotyping d. negative emphasis ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection Testing PAGE: 89

61. Which of the following occurs when an interviewer allows a positive characteristic about a job applicant to overshadow other evidence? a. Halo effect b. Cultural noise c. Similarity bias d. Snap judgment ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 91

62. Which of the following occurs when interviewers favor or select people whom they believe to be like themselves on the basis of a variety of personal factors? a. Halo effect

b. Cultural noise c. Similarity bias d. First impression error ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 91

63. The main legal reason for performing a thorough background check of all applicants is: a. to comply with the Immigration and Naturalization Act. b. to avoid résumé fraud. c. to prevent discrimination against protected classes. d. to protect the organization against charges of negligent hiring.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Background Investigations PAGE: 91

64. A school district hired a school bus driver without conducting a multi-state criminal background check; a background check was conducted only in the state in which the school was located.

Subsequently, the school bus driver was convicted of kidnapping one of the children who traveled in his bus. The prosecution in the case revealed that the driver had been convicted ten years ago for a similar case in another state. The school district is guilty of: a. information falsification. b. stereotyping. c. compensatory hiring. d. negligent hiring.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Background Investigations PAGE: 91

65. Angus is a bus driver for a tour bus company for the last 15 years and has an excellent driving record.

Last year, Angus was on medical leave for 8 weeks due to a back injury that has left him in chronic pain. If Angus has an accident while driving one of the tour buses because of the effects of his prescription pain medication and if passengers are injured, the company might be liable for: a. failure to conduct a thorough background check on Angus. b. negligent hiring. c. criminal negligence. d. negligent retention.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Background Investigations PAGE: 91

66. Which of the following statements is true about medical examinations and inquiries? a. A company may require applicants to take a drug test even before a conditional job offer has been made. b. A preemployment health checklist can be required of applicants before a job offer is made, but physical medical exams cannot be requested until a job has been conditionally offered. c. A drug test is considered a medical exam and cannot be administered unless a conditional job offer has been made. d. Companies may ask questions about an applicant’s current medical condition but not about past medical problems, even after a conditional job offer has been made.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Challenging TOP: Background Investigations PAGE: 92

67. Morgan, the best candidate for the position of director of marketing, has tested positive for the presence of illegal drugs in a hair sample. Given this scenario, the HR manager should: a. notify Morgan that he was denied the job because of a positive drug test. b. inform Morgan that someone else has been hired. c. hire Morgan and inform him of the company’s Employee Assistance program. d. ask Morgan to submit to a second type of drug test at another laboratory.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: Background Investigations PAGE: 92

TRUE/FALSE 1. Solange Allure Inc., a cosmetics company, is moving its operations from Bogalusa, Louisiana, to Seattle, Washington. Solange Allure will be changing its occupational labor market.

ANS: F PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Labor Markets PAGE: 73

2. The term “applicant population” refers to all individuals looking for a job in a particular geographic area.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Labor Markets PAGE: 73

3. The group of applicants that an organization has available to it when using a particular recruiting approach, such as Internet job boards, is the applicant population.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Labor Markets PAGE: 73

5. Continuous efforts to recruit offer the advantage of keeping the employer in the recruiting market.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Strategic Recruiting Decisions PAGE: 74

6. Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Strategic Recruiting Decisions PAGE: 74

7. Santiago is the HR director of Illumin Media, a mid-sized organization. He notices that the proportion of minorities in his company’s managerial ranks is too low. To solve the issue, Illumin Media should consider recruiting methods that reach a larger applicant population of experienced managers, such as contacting professional associations.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Labor Markets PAGE: 76

8. Job boards can be used for internal recruitment but not for external recruitment.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Internet Recruiting PAGE: 76

10. Internet recruiting generates high numbers of applicants and increases work for HR staff far beyond traditional recruiting methods.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Internet Recruiting PAGE: 76

11. Recruiters have completely stopped using newspaper ads as a tool for external recruitment because job seekers use the Internet almost exclusively even in smaller cities and towns.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: External Recruiting Sources PAGE: 76

12. Employment agencies typically have their own workforce, which they supply by contract to employers with jobs.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Strategic Recruiting Decisions PAGE: 77

13. An organization with a strong union may have a higher probability of having less flexibility than a nonunion company in deciding who will be hired and where a newly hired person will be placed.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: External Recruiting Sources PAGE: 79

14. Résumé mining allows HR staff to use software to extract the most promising résumés from a large database.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Recruiting Evaluation and Metrics PAGE: 82

15. In selection, a predictor is a characteristic that a person must have to perform a job successfully.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection and Placement PAGE: 83

16. “Aaron might not be the sharpest person I know, since his cognitive scores are pretty low. But he showed wonderful interpersonal skills with guests in our simulations. I suggest that we hire him and give him some intense training on our desk procedures.” This is an example of the compensatory approach to combining predictors of work performance.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Selection and Placement PAGE: 84

17. Organizations can use honesty/integrity tests to communicate to applicants and employees alike that dishonesty will not be tolerated.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 86

18. The Employee Polygraph Protection Act prohibits employers, including federal, state, and local government agencies, from using polygraphs for preemployment screening purposes.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 87

19. In general, the more structured a type of selection interview, the more likely it is to be valid.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Selection Testing PAGE: 88

20. In a situational interview, applicants are required to give specific examples of how they have handled a problem in the past.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 89

21. It is legal for an employer to check a person’s Social Security number, motor vehicle records, and military records when performing a background check on an applicant.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Background Investigations PAGE: 91

22. Negligent hiring occurs when an employer becomes aware that an employee may be unfit for employment but continues to employ the person, and the person injures someone on the job.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Background Investigations PAGE: 91

23. The ADA prohibits the use of preemployment medical exams, except for drug tests, until a job has been conditionally offered.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Background Investigations PAGE: 92

24. Hard skills include interpersonal, human behavior, and leadership skills.

ANS: F PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Legal Concerns in the Selection Process KEY: Bloom's: Comprehension PAGE: 92 SHORT ANSWER 1. What is the difference between continuous and intensive recruiting?

ANS: Recruiting efforts may be viewed as either continuous or intensive. Continuous efforts to recruit offer the advantage of keeping the employer in the recruiting market. For example, with college recruiting, some organizations may find it advantageous to have a recruiter on a given campus each year.

On the other hand, intensive recruiting takes the form of a vigorous recruiting campaign aimed at hiring a given number of employees, usually within a short period of time. Sometimes such efforts are the result of unforeseeable changes in external factors, but they also can result from a failure in the HR planning system to identify needs in advance or to anticipate drastic changes in workforce needs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 74

2. Define the term “employment brand.”

ANS: The employment brand or image of an organization is the view both employees and outsiders have of the organization. Organizations that are seen as desirable employers are better able to attract qualified applicants than are those with poor reputations.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Strategic Recruiting Decisions PAGE: 74

3. Write a short note on Internet job boards.

ANS: Numerous Internet job boards, such as Monster, Yahoo!, and HotJobs, provide places for employers to post jobs or search for candidates. Job boards offer access to numerous candidates. However, many of the individuals accessing these sites are “job lookers” who are not serious about changing jobs, but are checking out compensation levels and job availability in their areas of interest. Despite such concerns, HR recruiters find general job boards useful for generating applicant responses.

PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Internet Recruiting

KEY: Bloom's: Knowledge

PAGE: 76

4. Briefly discuss six methods of making the recruiting process more effective.

ANS: Evaluation of the following recruiting activities should be done to make recruiting more effective: Résumé mining—a software approach to getting the best résumés for a fit from a big database Applicant tracking—an approach that takes an applicant all the way from a job listing to performance appraisal results Employer career website—a convenient recruiting place on an employer’s website where applicants can see what jobs are available and apply Internal mobility—a system that tracks prospects in the company and matches them with jobs as they come open Realistic job previews—a process that persons can use to get details on the employer and the jobs Responsive recruitment—whereby applicants receive timely responses PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Recruiting Evaluation and Metrics PAGE: 82

5. What purposes do application forms serve?

ANS: Application forms, which are used universally, can take on different formats. Properly prepared, the application form serves four purposes: 1. It is a record of the applicant’s desire to obtain a position.

2. It provides the interviewer with an applicant profile that can be used during the interview.

3. It is a basic employee record for applicants who are hired.

4. It can be used for research on the effectiveness of the selection process.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Selection Process PAGE: 85

6. Define situational judgment tests.

ANS: Situational judgment tests are designed to measure a person’s judgment in work settings. The candidate is given a situation and a list of possible solutions to the problem. The candidate then has to make judgments about how to deal with the situation.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection Testing PAGE: 86

7. Identify the sources of background information for job applicants.

ANS: Background information can be obtained from many sources. Some of these sources include past job records, credit history, testing records, educational and certification records, drug tests, Social Security numbers, sex offender lists, motor vehicle records, and military records.

PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Background Investigations

KEY: Bloom's: Knowledge

PAGE: 91

ESSAY 1. Define recruiting.

ANS: Recruiting is the process of generating a pool of qualified applicants for organizational jobs. If the number of available candidates equals the number of people to be hired, no real selection is required— the choice has already been made. The organization must either leave some openings unfilled or take all the candidates.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Recruiting PAGE: 71

2. What are the major components of the labor market? Define them and describe how they are related.

ANS: The labor market is the external supply pool from which employers attract employees. The labor force population consists of all the individuals who are available if all possible recruitment strategies are used. The applicant population is the group of individuals available for selection when a particular recruiting method is used. The applicant pool consists of the people who are actually evaluated by the organization for selection. The broad labor market can be subdivided into smaller labor markets by geographic area, occupation, industry, and educational and technical qualifications. Organizations recruit in multiple labor markets depending on the jobs they need to fill.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Labor Markets PAGE: 72 –73

3. Describe some of the common external recruiting sources.

ANS: The most common external recruiting sources are media sources, competitive sources, employment agencies, labor unions, job fairs and creative recruiting, and educational institutions.

Media sources such as newspapers, magazines, television, radio, and billboards have typically been widely used in external recruiting. Internet usage has led to media sources being available online, including postings, ads, videos, Webinars, and many other expanding media services.

Labor unions may be a useful source of certain types of workers. A labor pool is generally available through a union, and workers can be dispatched from the hiring hall to particular jobs to meet the needs of employers. Unions can benefit employers through apprenticeship and cooperative staffing programs, as they do in the building and printing industries.

Employers in various labor markets needing to fill a large number of jobs quickly have used job fairs and special recruiting events. Virtual job fairs with Web-based links have been used by the federal government and others for recruiting. College and university students are a significant source of entrylevel professional and technical employees.

Other sources for recruiting include professional and trade associations, trade publications, and competitors. Many professional societies and trade associations publish newsletters or magazines and have websites containing job ads that may be useful for recruiting the specialized professionals needed in an industry. Employment agencies, both public and private, are a recruiting source. Public agencies operate branch offices in cities throughout the states and do not charge fees to applicants or employers.

Private employment agencies differ considerably in the levels of service, costs, policies, and types of applicants they provide.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: External Recruiting Sources PAGE: 13 –74

4. Describe some of the flexible staffing alternatives available to employers.

ANS: Flexible staffing involves workers who are not traditional employees. Using flexible staffing arrangements allows an employer to avoid some of the cost of full-time benefits such as vacation pay, health care, and pension plans. Flexible staffing may lead to recruiting in different markets, since it includes the use of temporary workers and independent contractors.

Temporary Workers Employers that use temporary employees can hire their own temporary staff members or contract with agencies supplying temporary workers on an hourly, daily, or weekly rate.

Some employers hire temporary workers as a way to screen individuals to move into full-time, regular employment. Better-performing workers may move to regular positions when these positions become available. This “try before you buy” approach is potentially beneficial to both employers and employees.

Independent contractors are used in many areas, including building maintenance, security, advertising, and others. One major reason for the use of independent contractors is that some employers experience significant savings because benefits are not provided to those individuals. From an independent contractor perspective, a recent study also found that the motivation to enter such an agreement appears to be higher among highly skilled individuals who are either beginning their careers or fully experienced in their professions. At least for men, the motivation to perform contract work decreases as responsibilities to family become more prominent.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Strategic Recruiting Decisions PAGE: 75 –76

5. What are the advantages and disadvantages of Internet recruiting?

ANS: Compared to other recruiting methods such as newspaper advertising, employment agencies, and search firms Internet recruiting can save the company money. Another major advantage is that, by reaching out to so many people potentially representing diverse backgrounds and regions, a very large pool of applicants can be generated using Internet recruiting.

Internet recruiting can also save time. Applicants can respond quickly to job postings by sending electronic responses, rather than using snail mail. Recruiters can respond more rapidly to qualified candidates to obtain additional applicant information, request additional candidate details, and establish times for further communication, including interviews.

The positive things associated with Internet recruiting should be balanced against disadvantages, some of which have already been suggested. Because of broader exposure, Internet recruiting often creates additional work for employees internally. More online job postings must be sent; many more résumés must be reviewed; more e-mails, social media contacts need to be dealt with; and expensive specialized software may be needed to track the increased number of applicants resulting from Internet-recruiting efforts. In addition, many of the online applicants might not be qualified for open

jobs, and some companies are shying away from Internet boards in favor of social networking websites that provide better leads.

Another issue with Internet recruiting is that some applicants may have limited Internet access, especially individuals from lower socioeconomic groups and from certain racial/ethnic groups, raising issues of fairness in hiring.

PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Internet Recruiting KEY: Bloom's: Comprehension PAGE: 77 6. Define the term “rerecruiting.” Explain how a firm can utilize this form of recruitment.

ANS: Former employees and applicants represent a source for recruitment. These groups offer a time-saving advantage because something is already known about them. Seeking them out as candidates is known as rerecruiting because they were recruited previously. Former employees are considered an internal source in the sense that they have ties to the employer; sometimes they are called “boomerangers” because they left and came back.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Internal Recruiting Methods PAGE: 81

7. Why is it important to formally evaluate and measure recruiting? What are some methods that can be used to evaluate recruiting?

ANS: Organizations evaluate recruiting effectiveness to see how their recruiting efforts compare with past patterns and with the recruiting performance of other organizations. Measures of recruiting effectiveness can be used to see whether sufficient numbers of targeted population groups are being attracted.

Information about job performance, absenteeism, cost of training, and turnover by recruiting source also helps adjust future recruiting efforts. For example, some companies find that recruiting at certain colleges or universities furnishes stable, high performers, whereas recruiting at other schools provides employees who are more prone to leave the organization. General metrics for evaluating recruiting include quantity and quality of applicants.

Looking at the length of time it takes to fill openings is a common means of evaluating recruiting efforts. If openings are not filled quickly with qualified candidates, the work and productivity of the organization are likely to suffer. If it takes 45 days to fill vacant positions, managers who need those employees will be unhappy. Also, as noted earlier, unfilled positions cost money.

Generally, it is useful to calculate the average amount of time it takes from contact to hire for each source of applicants, because some sources may produce recruits faster than others.

Evaluating the Cost of Recruiting Different formulas can be used to evaluate recruiting costs. The calculation most often used to measure such costs is to divide total recruiting expenses for the year by the number of hires for the year: Total recruiting expenses Number of recruits hired The problem with this approach is accurate identification of details that should be included in the recruiting expenses. Should expenses for testing, background checks, relocations, or signing bonuses be included, or are they more properly excluded?

Once those questions are answered, the costs can be allocated to various sources to determine how much each hire from each source costs.

Another useful calculation is the selection rate, which is the percentage hired from a given group of candidates. It equals the number hired divided by the number of applicants; for example, a rate of 30% indicates that 3 out of 10 applicants were hired.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Recruiting Evaluation and Metrics PAGE: 81 –82

8. Describe the relationship among job performance, selection criteria, and predictors in the employee selection process.

ANS: Effective selection of employees involves using selection criteria and predictors of these criteria. At the heart of an effective selection system must be the knowledge of what constitutes good job performance. When one knows what good performance looks like on a particular job, one needs to identify what it takes for the employee to achieve successful performance. These are called selection criteria. A selection criterion is a characteristic that a person must possess to successfully perform work. Ability, motivation, intelligence, conscientiousness, appropriate risk, and permanence might be selection criteria for many jobs. Selection criteria that might be more specific to managerial jobs include leading and deciding, supporting and cooperating, organizing and executing, and enterprising and performing.

To determine whether candidates might possess certain selection criteria (such as ability and motivation), employers try to identify predictors of selection criteria, which are measurable or visible indicators of those positive characteristics (or criteria). If a candidate possesses appropriate amounts of any or all of these predictors, it might be assumed that the person would stay on the job longer than someone without those predictors. In addition, the information gathered about an applicant using the individual predictors included in application forms, tests, and interviews should focus on the likelihood that the person will execute the job competently once hired, so the factors need to be valid for the purposes of selection.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Selection and Placement PAGE: 83 –84

9. What are the circumstances in which an employer needs to combine predictors? What are the two ways of combining predictors?

ANS: When an employer uses predictors such as three years of experience, possesses a college degree, and acceptable aptitude test score, job applicants are evaluated on all of these requirements and the multiple predictors combined in some way. Two approaches for combining predictors are as follows: Multiple hurdles: A minimum cutoff is set on each predictor, and each minimum level must be “passed.” For example, to be hired, a candidate for a sales representative job must achieve a minimum education level, a certain score on a sales aptitude test, and a minimum score on a structured interview.

Compensatory approach: Scores from individual predictors are added and combined into an overall score, thereby allowing a higher score on one predictor to offset, or compensate for, a lower score on another. The combined index takes into consideration performance on all predictors.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Selection and Placement PAGE: 84

10. What are the purposes of an application form?

ANS: An application form is the record of the applicant’s desire to obtain a position, and it provides the interviewer with an applicant profile that can be used in the interview. If the applicant is hired, it forms a basic employee record. Application forms can also be used for research on the effectiveness of the selection process.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Selection Process PAGE: 85

11. What are the EEOC guidelines that need to be considered when planning the content of application forms?

ANS: An organization should retain all applications and hiring-related documents and records for three years. Guidelines from the EEOC and court decisions require that the data requested on application forms must be job related. Though frequently found on application forms, questions that ask for certain information are illegal.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Selection Process PAGE: 85

12. What selection tests would be appropriate to use for entry-level professional positions? Which tests would clearly not be appropriate or even illegal?

ANS: Appropriate tests for entry-level professional positions include literacy tests, skill-based tests, personality tests, and honesty tests. These can be used to assess various individual factors that are important for the work to be performed. These useful employment tests allow companies to predict which applicants will likely be the most successful before being hired. Tests that assess an individual’s ability to perform in a specific manner are called ability tests. These are sometimes further differentiated into aptitude tests and achievement tests. Companies use cognitive ability tests to measure an individual’s thinking, memory, reasoning, verbal, and mathematical abilities. They use physical ability tests to measure an individual’s abilities such as strength, endurance, and muscular movement. Many organizations use situational tests, or work sample tests, which require an applicant to perform a simulated task that is a specified part of the target job. Situational judgment tests are designed and used by organizations to measure a person’s judgment in work settings. Personality tests assess the degree to which candidates’ attributes match specific job criteria. And, honesty tests are used to assess the honesty and integrity of applicants and employees.

General mental ability testing and personality testing have generated controversies and may be considered inappropriate for selection. According to the Employee Polygraph Protection Act, the use of polygraphs for preemployment screening purposes by most employers is considered illegal. Only the federal, state, and local government agencies, as well as certain private-sector employers, are exempt from this act. In addition, the ADA prohibits the use of pre-employment medical exams, except for drug tests, until a job has been conditionally offered. The ADA also prohibits a company from rejecting an individual because of a disability and from asking job applicants any question related to his or her current or past medical history until a conditional job offer has been made.

PTS: 1

DIF:

Challenging

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Selection Testing PAGE: 86 –87

13. Discuss the usefulness of honesty and integrity tests as selection tests.

ANS: Companies are utilizing different tests to assess the honesty and integrity of applicants and employees.

Employers use these tests as a screening mechanism to prevent the hiring of dishonest employees, to reduce the frequency of lying and theft on the job, to communicate to applicants and employees alike that dishonesty will not be tolerated and to reduce accidents. Honesty/integrity tests can be valid as broad screening devices for organizations if used properly. Research also indicates that, even though honesty tests can be expensive to administer, much of these costs were justified by savings in workers’ compensation claims. The polygraph, more generally and incorrectly referred to as a lie detector, is a mechanical device that measures a person’s galvanic skin response, heart rate, and breathing rate. The idea behind the polygraph is that if a person answers a question deliberately incorrectly, the body’s physiological responses will “reveal” the falsification through the recording mechanisms of the polygraph. As a result of concerns about polygraph validity, Congress passed the Employee Polygraph Protection Act, which prohibits most employers from the use of polygraphs for preemployment screening purposes. Federal, state, and local government agencies are exempt from the act. Also exempt are certain private-sector employers such as security companies and pharmaceutical companies. The act does allow employers to use polygraphs as part of internal investigations of thefts or losses.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Selection Testing PAGE: 87

14. What are some of the problems associated with employment interviews?

ANS: Operating managers and supervisors are more likely than HR personnel to use poor interviewing techniques because they do not interview often or lack training. Several problems anyone may exhibit include the following: Snap judgments: Some interviewers decide whether an applicant is suitable within the first two to four minutes of the interview, and spend the rest of the time looking for evidence to support their judgment.

Negative emphasis: When evaluating suitability, unfavorable information about an applicant is often emphasized more than favorable information.

Halo effect: The halo effect occurs when an interviewer allows a positive characteristic, such as agreeableness, to overshadow other evidence. The phrase “devil’s horns” describes the reverse of the halo effect; this occurs when a negative characteristic, such as inappropriate dress, overshadows other traits.

Biases and stereotyping: “Similarity” bias occurs when interviewers favor or select people whom they believe to be like themselves on the basis of a variety of personal factors. Interviewers should also avoid any personal tendencies to stereotype individuals because of demographic characteristics and differences.

Cultural noise: Interviewers must learn to recognize and handle cultural noise, which stems from what applicants believe is socially acceptable rather than what is factual.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Challenging TOP: Selection Testing PAGE: 89 –91

15. What is the purpose of conducting background investigations on job applicants? What are some of the legal issues involved?

ANS: The need for background checking can be found in a wide range of positions: school teachers, janitors, bank tellers, and so on. Background information can be obtained from many sources. Some of these sources include past job records, credit history, testing records, educational and certification records, drug tests, Social Security numbers, sex offender lists, motor vehicle records, and military records.

Failure to check the backgrounds of people who are hired can lead to embarrassment and legal liability. Hiring workers who commit violent acts on the job is one example. For jobs in certain industries, such as those that provide services to children, vulnerable adults, security, in-home services, and financial services, background checks are mandated in some states. Nationally background checks are required for people with commercial drivers’ licenses who drive tractor-trailer rigs and buses interstate. Lawyers say that an employer’s liability hinges on how well it investigates an applicant’s background. Consequently, details provided on the application form should be investigated extensively, and these efforts should be documented.

Negligent hiring occurs when an employer fails to check an employee’s background and the employee later injures or harms someone while performing job duties. There is a potential negligent hiring problem when an employer hires an unfit employee, a background check is insufficient, or an employer does not research potential risk factors that would prevent a positive hire decision. Similarly, negligent retention occurs when an employer becomes aware that an employee may be unfit for employment but continues to employ the person, and the person injures someone.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Background Investigations PAGE: 91

Chapter 5—Talent Management, Training, and Development MULTIPLE CHOICE 1. _____ provides employees with specific, identifiable knowledge and skills for use in their present jobs. a. Pre-screening b. Recruiting c. Networking d. Training ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training and Human Resources PAGE: 95

2. Organizations must continually train their current employees because of: a. the need to increase the rate of attrition. b. rapid technological innovation. c. the lack of competition from businesses in low labor cost countries. d. low involuntary turnover rates of U.S. employees.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategy and Training PAGE: 96

3. Which of the following statements is true of global competitiveness? a. Globally, there is a decline in the supply of specialized skilled and technical workers signaling a worldwide crisis in education. b. For U.S. employers, the challenge related to training a globally competitive workforce has increased because of the decline in specialized skilled and technical workers. c. Despite its shortcomings, the U.S. educational system is generating an increasing supply of specialized skilled and technical workers. d. Companies that send their employees abroad should focus more on skills and technical capabilities training rather than wasting their time in preparing them for the host country’s culture.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Strategy and Training PAGE: 97

4. The planned introduction of new employees to their jobs, coworkers, and the organization is referred to as _____. a. orientation b. organizational entry c. socialization d. indoctrination ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Planning for Training PAGE: 98

5. In the _____ phase of the training process, competencies of a company, a group, or an individual are measured to determine if training can help. a. needs assessment b. implementation

c. evaluation d. design ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 99

6. The loan review department at a major regional bank has an exceptionally high turnover of both administrative assistants and analysts. Several analysts have quit within six months of taking the job.

In this scenario, a(n) _____ analysis would most accurately reveal if there is a need for training in this department that would reduce the level of turnover. a. job/task b. organizational c. individual d. productivity ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training and Assessment PAGE: 100

7. The most common approach for making individual analysis is to: a. analyze organizational outcomes. b. predict future organizational needs. c. use performance appraisal data. d. review the jobs involved.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training and Assessment PAGE: 100

8. Once training requirements have been identified using needs analyses, training objectives and priorities can be established by: a. conducting orientation programs. b. conducting exit interviews. c. conducting a “SWOT analysis.” d. conducting a “gap analysis.”

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training and Assessment PAGE: 100

9. Active practice occurs when: a. job-related tasks and duties are performed by trainees during training. b. off-the-job training is provided to new employees at a job. c. trainees are shown how to actively multitask. d. e-learning tools are used to deliver training.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Design PAGE: 101

10. At Plantsman’s Eden nursery, new workers are trained in proper techniques for planting rooted cuttings. As part of the training, each of the workers is given ten seedlings to plant. Their planting techniques are then checked by the trainer. This best exemplifies: a. active practice.

b. behavior modeling. c. cross training. d. conference training.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Design PAGE: 101

11. The fire fighters of Lake Hogan Fire Department train constantly to keep their skills honed so that they can respond quickly to sudden changes in an emergency situation. This best exemplifies: a. behavioral modeling. b. overlearning. c. reinforcement and immediate confirmation. d. spaced practice.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Design PAGE: 101

12. The most elementary way in which people learn is _____, which involves copying someone else’s behavior. a. behavioral modification b. behavioral modeling c. cognitive practice d. positive reinforcement ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Decision PAGE: 101

13. Molly, a customer service representative for an insurance company, was rude to one of her customers.

The customer immediately contacted Molly’s supervisor and lodged a complaint. Molly’s supervisor then reprimanded Molly and recorded the incident in her file. Molly has made a conscious effort ever since not to repeat the same mistake. This best exemplifies: a. the law of effect. b. delayed reinforcement. c. transfer of training. d. behavioral modeling.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Design PAGE: 102

14. One way to aid transfer of training to job situations is to ensure that: a. the trainers have high levels of self-efficacy. b. the trainees are not troubled with follow-up exercises. c. the trainers focus primarily on informal training. d. the training mirrors the job context as much as possible.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Training Design PAGE: 102

15. The most common method of delivering training at all levels in an organization is: a. on-the-job training.

b. cross training. c. web-based training. d. informal training.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

16. Which of the following is true about on-the-job training (OJT)? a. It can disrupt regular work in an organization. b. It is the least flexible of all the available employee training methods. c. It is more expensive than classroom training. d. It is typically outsourced to external firms.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

17. Which of the following is true about on-the-job training (OJT)? a. It is less disruptive to the work flow than other types of employee training methods. b. It is flexible and relevant to what employees do. c. It is more expensive than classroom training. d. It is typically outsourced to external firms.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

18. Which of the following is a disadvantage of the on-the-job training (OJT)? a. Incorrect information from the supervisor can be transferred to the trainees. b. It is the least flexible of all the available modes of employee training. c. It is more expensive than classroom training. d. External firms are typically used for training purposes.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

19. Dr. Smith, a veterinarian, has hired Carlos as an assistant. On Carlos’s first day at work, Dr. Smith shows him the technique of holding a cat for vaccination. First, Dr. Smith describes the technique and then he practically shows the process of vaccination. Later he asks Carlos to hold the cat and corrects the mistakes Carlos makes while holding the cat. This is an example of: a. cross-training. b. virtual training. c. simulation training. d. on-the-job training.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Delivery PAGE: 103

20. For employers, one of the advantages of cross training employees is: a. narrowed job jurisdictions. b. increased employee productivity without pay raises or bonuses. c. better union relations.

d. employee development.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

21. For the employer, the two major advantages of cross training employees are employee development and: a. narrowed job jurisdictions. b. increased employee productivity without pay raises or bonuses. c. better union relations. d. flexibility in assigning work.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

22. Cross training occurs when: a. people are trained to do more than one job. b. the training takes place outside the employing organization. c. e-learning is used as the primary mode for delivering the content of training. d. the training occurs through interactions and feedback among employees.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

23. Unions view cross training unfavorably primarily because: a. it threatens job jurisdiction. b. it adds supervisory roles to part-time employees’ duties. c. it reduces effective wages per hour. d. it increases worker productivity and thus threatens job security.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

24. Which of the following best exemplifies cooperative training? a. A medical school that uses simulations where the students can perform operations without harming real patients b. An e-learning program on corporate leadership in which the trainee interacts with the trainer and other trainees via a blog c. On-the-job training in an IT firm wherein a supervisor works closely and continuously with subordinates d. A community college program in solar panel installation partnering with solar panel installation companies providing internships ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Training Delivery PAGE: 104

25. Which of the following statements is true about e-learning? a. Financial service companies were among the last to use Internet training. b. E-learning is not flexible enough to be used for off-the job training. c. E-learning provides easy access to more employees than does conventional training.

d. E-learning is relatively more expensive per trainee than conventional training methods.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 104

26. Joshua, the director of training, must demonstrate to the top management the amount of financial benefits the company has realized from the expenditure on the mechanics training program. Joshua needs to prepare a(n): a. return-on-investment analysis. b. net gain calculation. c. actual versus proposed budget comparison. d. results evaluation.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Evaluation PAGE: 104

27. When using _____ to evaluate training, HR professionals in an organization, typically gather data on training and compare them to data on training at other organizations of similar size in their industry. a. the results approach b. benchmarking c. cost/benefit analysis d. return-on-investment analysis approach ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Evaluation PAGE: 105

28. If talent management is effective in a firm, it is most likely that: a. the voluntary turnover among the high potential employees will be essentially zero. b. the organization will not have to use the external labor market except in emergencies. c. the cost of labor in the firm will be lower than its direct competitors. d. the firm has a succession plan in place for all holders of critical jobs.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Talent Management in Perspective PAGE: 108

29. Which of the following is a common mistake made by organizations during succession planning? a. Including the board of directors, along with the HR in the process of CEO succession b. Focusing on the other employees apart from the top management c. Allowing the CEO to direct the planning process d. Looking externally as well as internally for succession candidates ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Succession Planning PAGE: 108

30. A(n) _____ is a sequence of work-related positions a person occupies throughout life. a. career b. job ladder c. profession d. occupation

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 109

31. Carmelo, the editor of a business department of a national news magazine, went through a sequence of jobs in the company before he achieved this position. He joined as a staff reporter, then got promoted to technology reporter, then to editor of the business department, and then to deputy managing editor before achieving his current position. This is: a. an example of a non-traditional career path. b. the result of organization-centered career planning. c. a demonstration of the cyclical nature of careers. d. a series of career transitions.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Careers and Career Planning PAGE: 109

32. The HR department at Total Utilities is planning an internal career day which will feature workshops on various careers at Total Utilities, opportunities for work in the overseas locations of Total Utilities, and presentations by HR staff on training and development opportunities available at Total Utilities.

This is an example of: a. individual-based career development. b. organization-centered career planning. c. career mapping. d. training and development outsourcing.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Careers and Career Planning PAGE: 109

33. Individual-centered career planning primarily focuses on: a. the logical progression of people through jobs in an organization. b. an organization’s long-term staffing needs. c. succession planning for key positions. d. an employee’s personal characteristics and his/her life and work goals.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 110

34. _____ are tools to help people identify their interests, what they do well, what they do not like, and their strengths and weaknesses. a. SWOT analyses b. Neuropsychological tests c. Career goal settings d. Self-assessment tests ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 110

35. Gerald is confused as to why his 28-year-old daughter is changing jobs for the third time since she graduated from college. His daughter tells him that she has learned everything she could from her current job and that it is time to move on. Gerald’s daughter is in the stage of her career where most people’s needs and concerns are:

a. to identify interests and acquire capabilities. b. to focus on making as high a salary as possible because this affects their earning potential for the rest of their lives. c. to achieve personal integrity and incorporate their values into their work life. d. to establish their political power base within their organization.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Careers and Career Planning PAGE: 110

36. Josh is 32 years old. He worked for a financial organization for seven years after graduating with a bachelor’s degree. He received three promotions during that period. Recently, he was fired by his employers and is now working part-time as a bartender while training as an X-ray technician. Josh is experiencing: a. a career plateau. b. a Protean career. c. career sequencing. d. a career transition.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Careers and Career Planning PAGE: 110

37. Margaret is a 54-year-old manager in the client support services department of a heavy equipment manufacturer. She has been with the company throughout her career and has had a steady rise in the hierarchy through promotions. She has performed well in numerous training and development programs. Margaret currently meets performance expectations. In the judgment of Margaret’s superiors, she has “topped out” and will not be qualified for further advancement. Which of the following statements is most appropriate for Margaret’s situation? a. In the future, Margaret should be considered for lateral moves. b. Margaret should receive stretch assignments to bring out her latent potential. c. Since Margaret has no potential to advance, she should be encouraged to take phased retirement. d. Margaret should receive coaching and perhaps be moved to another organization.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Careers and Career Planning PAGE: 110

38. As a development technique, the best lateral transfers: a. facilitate upward career progress in the organization. b. encourage employees to learn new skills that increase their marketability. c. encourage the redundant employee to leave the company voluntarily without being terminated. d. provide a monetary incentive for taking on new work.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Boom's: Comprehension

DIF: Moderate TOP: Careers and Career Planning PAGE: 111

39. Which of the following is true of career plateaus? a. Plateaued employees are poor candidates for training and development because they have reached the highest level for which they are suitable in their organizations. b. Career plateaus are a sign that valuable resources are not being used appropriately. c. Career plateaus are more likely to occur in a person’s early career rather than in one’s later

career. d. An employee who defines career success in terms of upward mobility would view a career plateau as a sign of failure.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Careers and Career Planning PAGE: 111

40. When is a career plateau most likely to occur? a. When an employee starts gaining new skills b. When an employee employs the strategy of job sequencing c. When an employee becomes unmotivated and quits d. When an employee cannot advance upward within an organization ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 111

41. Paul has completed two months at his first job. He is dissatisfied with his unsupportive supervisor, the lack of specific feedback, and the logistical aspects of solving problems. This best exemplifies a(n) _____. a. entry shock b. feedback on reality c. cyclical career d. premature career plateau ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Careers and Career Planning PAGE: 111

42. Which of the following statements is true of training and development? a. Training is for hourly employees; development is for managers and professionals. b. Training focuses on the long-run performance of an employee. c. Development is typically assessed with a cost-benefit analysis. d. Capabilities learned in development may not apply to the employee’s current job.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Developing Human Resources PAGE: 112

43. What impact does development have on an individual’s career? a. The employee is likely to acquire abilities to handle a variety of assignments beyond those required for his or her current position. b. The employee’s career goals will be subordinated to the organization’s goals. c. The individual’s marketability at other organizations will be reduced due to employerspecific specialization. d. The employee’s ability to learn specific behaviors is likely to be compromised.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Developing Human Resources PAGE: 112

44. When opportunities for promotion are scarce, a good way to keep employees motivated and develop their talents within the organization is: a. to send them to a corporate university.

b. to encourage practices of glass ceiling. c. to give them a sabbatical or leave of absence. d. to rotate them through lateral transfers.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Human Resources Development Approaches PAGE: 112

45. Which of the following is true of lecture-style classroom instruction? a. The technique is generally ineffective regardless of the instructor’s capabilities. b. Employees typically resist classroom instruction. c. Employees have fewer opportunities to participate than in other types of instruction. d. Its effectiveness is independent of the size of the group.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Development Approaches PAGE: 113

46. Wilderness excursions as a development tool: a. are the enjoyable segment of indoor training. b. can help revaluate an employee’s personal goals and efforts. c. act as an outdoor version of an assessment center. d. are losing popularity because of the risk of reducing an employee’s self-confidence.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resources Development Approaches PAGE: 113

47. Clarence is the Assistant Vice President of quality control for a medical equipment manufacturing firm. However, Clarence is currently teaching science in a high school in Haiti. At the end of the school semester, Clarence will resume his job duties with his employer. Clarence is: a. in phased retirement. b. an executive educator. c. rotating through a non-core function. d. on a sabbatical leave.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Human Resources Development Approaches PAGE: 113

48. Senior managers and executives are often hired from outside a firm because: a. it does not take the time to develop senior-level managers in-house. b. promoting from middle management ranks causes extreme political jockeying. c. the organization cannot control managers’ experiences, so it cannot develop the managers it needs. d. in order for useful learning to occur, managers must have positive and challenging experiences, and these are absent in-house.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Management Development PAGE: 114

49. What is the most common reason managers fail after being promoted to management? a. Lack of confidence b. Poor time management

c. Poor teamwork with subordinates and peers d. Inability to balance work and family demands ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 115

50. Managers learn by behavior modeling, which involves: a. reinforcement of the desirable behaviors spontaneously exhibited. b. imitating the behavior of their own managers. c. developing a personal model of ideal managerial behavior. d. pairing junior managers with senior managers in assistant positions.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 115

51. _____ is a relationship in which experienced managers in a company aid individuals in the earlier stages of their careers. a. Sponsorship b. Management coaching c. Management mentoring d. Modeling ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 115

52. Kelly spent four days at a training program centered on the use of improved hygiene procedures to reduce infections in long-term care facilities. Six months later, Kelly has not been able to implement these methods due to resistance from the nursing staff and the lack of interest of the medical director.

The HR term for Kelly’s experience is: a. translation failure. b. nontransference of training. c. encapsulated development. d. cultural inertia.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Management Development PAGE: 116

TRUE/FALSE 1. “Soft” skills are critical in many instances in a business environment and can be taught.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training and Human Resources PAGE: 95

2. The frequent changes to which organizations must adapt demands at present that employees be continually trained to update their capabilities.

ANS: T PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Training and Human Resources

KEY: Bloom's: Comprehension

PAGE: 96

3. Ideally, training should be viewed tactically rather than strategically.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Organizational Strategy and Training PAGE: 96

4. A strategic mind-set leads top management to understand that training is the sole answer to most employee and organizational performance problems.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Strategy and Training PAGE: 96

5. Most global firms find it is better to have expatriates as their expatriates often are well-trained in skills and technical capabilities and much better prepared for the host country culture.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Common Individual Career Problems PAGE: 97

6. Training plans allow organizations to identify what is needed for employee performance before training begins.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Planning for Training PAGE: 98

7. Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Planning for Training PAGE: 98

8. Assessing organizational training needs is the execution phase of a training plan.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 99

9. The most common approach for making individual analysis is to use performance appraisal data.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 100

10. A gap analysis identifies the difference between what an individual employee knows and what the employee should know in order to perform the job satisfactorily.

ANS: F PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Training Needs Assessment

KEY: Bloom's: Knowledge

PAGE: 100

11. Carlene, a customer executive, arrives at the training facility of the company full of enthusiasm because she is really excited about learning how to cope with difficult customers. She has encountered a number of intransigent customers and is eager to see what “tricks” the trainers can show her. This shows that Carlene has the motivation to learn.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Training Design PAGE: 101

12. Active practice occurs when trainees perform job-related tasks and duties during training.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Design PAGE: 101

13. The concept of reinforcement is based on the law of effect, which states that people tend to avoid repeating actions that give them a positive reward.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Design PAGE: 102

14. Carlene is a new usher at a performing arts center. She was paired with Joseph, an experienced usher, for her first show. Carlene observes Joseph during the show and imitates how he handles the guests in the next show. This scenario illustrates the process of behavior modeling.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Design PAGE: 101

15. A year after the equine safety program was conducted in a riding stable, the volunteers remembered that they must always cross-tie the horses while they groom and saddle them. From the given data, it can be concluded that the content of the training was successfully transferred.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Training Design PAGE: 102

16. In contrast to informal training, which is planned, on-the-job training should occur spontaneously.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

17. On-the-job training can be smoothly integrated into the regular work flow.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

18. On-the-job training will not be effective if the trainers simply allow the trainees to learn the job on their own.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Training Delivery PAGE: 103

19. For the employer, the advantages of cross training are flexibility and development.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom’s: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

20. Like apprenticeships, internships are a type of cooperative training.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 104

21. E-learning is limited in terms of accessibility compared to leadership and cultural training.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training Delivery PAGE: 104

22. The nature of a business and the environment in which it operates has a bearing on the strategies used for talent management.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Talent Management in Perspective PAGE: 106

23. Talent management is growing in importance because it is concerned with the attraction, development, and retention of human resources.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Talent Management in Perspective PAGE: 106

24. Focusing only on top management succession during succession planning is one of the most

common mistakes made.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Succession Planning PAGE: 108

25. Succession planning focuses both on emergency replacements for critical positions and making sure that other successors will be ready with some additional development.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Succession Planning PAGE: 108

26. Organization-centered career planning requires an individual employee to take charge of his/her career and chart a path of advancement through his/her organization.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 109

27. At present, employees are less mobile and organizations are more stable as long-term employers.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Careers and Career Planning PAGE: 109

28. During the late career phase, an employee is typically concerned with external rewards and acquiring capabilities.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 110

29. Career transition has been associated with organizational changes.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 110

30. An employee facing a career plateau who is capable of meeting performance expectations is a good candidate for a lateral move.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Careers and Career Planning PAGE: 111

31. Organizations that have extensive employee development programs run the risk of being training centers for other firms that hire away their employees.

ANS: T PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Developing Human Resources KEY: Bloom's: Comprehension PAGE: 111 32. Experience often contributes more to the development of senior managers because much of it

occurs in varying real-life, on-the-job situations.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Developing Human Resources PAGE: 112

33. The modeling process involves only straightforward imitation and copying.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 115

34. Encapsulated development occurs when a single work unit in an organization is used to pilot test new training programs.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 116

SHORT ANSWER 1. What are the main purposes of effective orientation?

ANS: Effective orientation achieves several key purposes: -Establishes a favorable employee impression of the organization and the job -Provides organization and job information -Enhances interpersonal acceptance by coworkers -Accelerates socialization and integration of the new employee into the organization -Ensures that employee performance and productivity begin more quickly PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Planning for Training PAGE: 98

2 Discuss how performance appraisals can be used to make individual analysis of training needs.

ANS: The most common approach for making individual analysis is to use performance appraisal data. In some instances, a good HR information system can be used to identify individuals who require training in specific areas to be eligible for promotion. To assess training needs through the performance appraisal process, a supervisor first determines an employee’s performance strengths and inadequacies in a formal review. Then the supervisor can design training to help the employee overcome the weaknesses and enhance the strengths.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 100

3. What are the objectives that need to be set in order to reduce the gap between where an organization is with its employee capabilities and where it needs to be?

ANS: Once training requirements have been identified using needs analyses, training objectives and priorities can be established by a “gap analysis,” which indicates the distance between where an organization is with its employee capabilities and where it needs to be. Training objectives and priorities are then determined to close the gap.

The success of training should be measured in terms of the objectives that were set for it. Useful objectives are measurable. For example, an objective for a new sales clerk might be to demonstrate the ability to explain the function of each product in the department within two weeks. This objective checks internalization that is whether the person really learned the training content and is able to use the training.

PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Training Needs Assessment

KEY: Bloom's: Comprehension

PAGE: 100

4. Explain the term “adult learning.”

ANS: Adult learning refers to the ways in which adults learn differently than younger people. Training design must also sometimes address special issues presented by adult learning. Certainly, the training design must consider that all the trainees are adults, but adults come with widely varying learning styles, experiences, and personal goals. For example, training older adults in technology may require greater attention to explaining the need for changes and enhancing the older trainees’ confidence and abilities when learning new technologies. In contrast, younger adults are more likely to be familiar with new technology because of their earlier exposure to computers and technology, but less able to work alone to learn skills.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Design PAGE: 101

5. What is informal training?

ANS: One source of instruction is informal training, which occurs through interactions and feedback among employees. Much of what employees know about their jobs they learn informally from asking questions and getting advice from other employees and their supervisors, rather than from formal training programs.

A great deal of learning occurs informally in work organizations, and some of it happens by design.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Delivery PAGE: 103

6. Discuss benchmarking as a measure of training evaluation.

ANS: To do benchmarking, HR professionals gather data on training in their organization and compare them with data on training at other organizations in the same industry and in companies of a similar size.

Comparison data are available through the American Society for Training and Development and its Benchmarking Service. This service has training-related data from more than 1,000 participating employers who complete detailed questionnaires annually. Training can also be benchmarked against data from the American Productivity & Quality Center and the Saratoga Institute.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Evaluation PAGE: 105

7. What are the ways in which organizations can manage the risks and rewards associated with talent management effectively?

ANS:

Companies can reduce risks and increase the rewards of talent management by adopting an approach that relies on (1) the development of current employees and hiring outside talent, (2) the creation of talent pools and broad competencies in employees, (3) the utilization of short-term talent forecasts that are likely more reliable, and (4) establishing a balance between employees’ and companies’ ownership of career development.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Talent Management as Strategy PAGE: 106 –107

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8. How do talent pools help in talent management?

ANS: Talent pools are a way to reduce the risk that the company may not need a certain specialty after developing it. The idea is to avoid developing for a narrow specialized job and instead develop a group or pool of talented people with broad general competencies that could fit a wide range of jobs. Once developed, they can be allocated to specific vacancies.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Talent Management in Perspective PAGE: 107

9. What should be the end result of succession planning?

ANS: All the work involved in the succession planning process should result in two products: (1) identification of potential emergency replacements for critical positions and (2) other successors who will be ready with some additional development. The development necessary should be made clear to the people involved.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Succession Planning PAGE: 108

10. What is meant by the term ‘entry shock’?

ANS: Starting as a new employee can be overwhelming. “Entry shock” is especially difficult for younger new hires who find the work world very different from school. Entry shock includes the following concerns: - Supervisors: The boss–employee relationship is different from the student–teacher relationship.

- Feedback: In school, feedback is frequent and measurable, but that is not true of most jobs.

- Time: School has short (quarter/semester) time cycles, whereas time horizons are longer at work.

- The work: Problems are more tightly defined at school; at work, the logistical and political aspects of solving work problems are less certain.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Careers and Career Planning PAGE: 111

11. How does development differ from training?

ANS:

Development differs from training. It is possible to train people to answer customer service questions, drive a truck, enter data in a computer system, set up a drill press, or assemble a television. However, development in areas such as judgment, responsibility, decision making, and communication presents a bigger challenge. These areas may or may not develop through ordinary life experiences of individuals. A planned system of development experiences for all employees, not just managers, can help expand the overall level of capabilities in an organization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Developing Human Resources PAGE: 111 –112

ESSAY 1. What is an orientation program? Why is it important?

ANS: Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization. It requires cooperation between individuals in the HR unit and operating managers and supervisors. In a small organization without an HR department, the new employee’s supervisor or manager usually assumes most of the responsibility for orientation. In large organizations, managers and supervisors, as well as the HR department, often work as a team to orient new employees.

Unfortunately, without good planning, new employee orientation sessions can come across as boring, irrelevant, and a waste of time to both new employees and their department supervisors and managers.

But orientation that can also be thought of as institutionalized socialization tactics can be very effective—if done well.

Among the decisions to be made when planning for new employee orientation are what to present and when to present it. Too much information on the first day leads to perceptions of ineffective onboarding. Several shorter sessions over a longer period of time, bringing in information as it is needed, are more effective. Effective orientation achieves several key purposes: 1) Establishes a favorable employee impression of the organization and the job 2) Provides organization and job information 3) Enhances interpersonal acceptance by coworkers 4) Accelerates socialization and integration of the new employee into the organization 5) Ensures that employee performance and productivity begin more quickly PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Planning for Training PAGE: 98

2. Explain how an organization can be a source for analyzing training needs.

ANS: Assessing organizational training needs is the diagnostic phase of a training plan. This assessment includes issues related to employee and organizational performance to determine if training can help.

Needs assessment measures the competencies of a company, a group, or an individual as they relate to what is required. It is necessary to find out what is happening and what should be happening before deciding if training will help, and if so what kind of training is needed.

Training needs can be diagnosed by analyzing organizational outcomes and looking at future organizational needs. A part of planning for training is the identification of the KSAs that will be needed now and in the future as both jobs and the organization change. Both internal and external forces will influence training and must be considered when doing organizational analysis.

Organizational analysis comes from various measures of organizational performance. Departments or areas with high turnover, customer complaints, high grievance rates, high absenteeism, low performance, and other deficiencies can be pinpointed. Following the identification of problems, objectives can be developed if training is a solution.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 99 –100

3. How can job/task analysis help assess training needs?

ANS: One of the levels of analyzing training needs is to review the jobs involved and the tasks performed.

By comparing the requirements of jobs with the KSAs of employees, training needs can be identified.

Another way to pinpoint training gaps in the job or task being done is to survey employees, and have them anonymously evaluate the current skill levels of themselves and their peers. This not only identifies job needs but also heightens employees’ awareness of their own learning needs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Needs Assessment PAGE: 100

4. What are the different elements that must be considered to make a training design effective?

ANS: For training to be successful, learners must be ready and able to learn. Learner readiness means that individuals have the ability to learn. However, individuals also must have the motivation to learn, have high confidence, see value in learning, and have a learning style that fits the training. Instructors and trainers must find appropriate ways to boost the confidence of trainees who are unsure of their learning abilities because people who believe strongly that they can learn perform better and are more satisfied with the training they receive.

Training design must also sometimes address special issues presented by adult learning. Certainly, the training design must consider that all the trainees are adults, but adults come with widely varying learning styles, experiences, and personal goals. For example, training older adults in technology may require greater attention to explaining the need for changes and enhancing the older trainees’ confidence and abilities when learning new technologies. In contrast, younger adults are more likely to be familiar with new technology because of their earlier exposure to computers and technology, but less able to work alone to learn skills.

An important part of designing training is to select the right mix of teaching strategies to fit learner characteristics. Practice/feedback, overlearning, behavioral modeling, error-based examples, and reinforcement are some of the prominent strategies available in designing the training experience.

Practice/Feedback: For some training, it is important that learners practice what they have learned and get feedback on how they have done so they can improve. Active practice occurs when trainees perform job-related tasks during training. It is more effective than simply reading or passively listening.

Overlearning is repeated practice even after a learner has mastered the performance. It may be best used to instill “muscle memory” for a physical activity or to reduce the amount of thinking necessary and make responses automatic. But over-learning also produces improvement in learner retention.

Even with overlearning, refreshers are still sometimes necessary to maintain proficiency.

Behavioral Modeling: The most elementary way in which people learn and one of the best is through behavioral modeling, which involves copying someone else’s behavior. It can aid in the transfer of skills and the use of trained skills.

The error-based examples method involves sharing with learners what can go wrong when they do not use the training properly. A good example is sharing with pilots what can happen when they are not aware of a situation they and their aircraft are encountering. Error-based examples have been incorporated in military, firefighting, police, and aviation training and have wide potential uses in other situations.

The concept of reinforcement is based on the law of effect, which states that people tend to repeat responses that give them a positive reward and to avoid actions associated with negative consequences.

Positively reinforcing correct learned responses while providing negative consequences at some point for wrong responses can change behavior.

Finally, trainers should design training for the best possible transfer from the classroom to the job.

Transfer occurs when trainees actually use on the job what knowledge and information they learned in training. The amount of training that effectively gets transferred to the job is estimated to be relatively low, especially given all the time and money spent on training. Not all employees apply training to their jobs immediately after training.

Offering trainees an overview of the training content and how it links to what he or she does seems to help with both short-term and longer-term training transfer. Another helpful approach is to ensure that the training mirrors the job context as much as possible. For example, training managers to be better selection interviewers could include role-playing with “applicants” who respond in the same way that real applicants would.

Supervisor support of the training, feedback from the supervisor, and supervisor involvement in training are powerful influences in transfer. Opportunity to use the training is also important. To be trained on something but never to have the opportunity to use it obviously limits transfer. Learners need the opportunity to use new skills on the job if the skills are to remain.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training Design PAGE: 100 –102

5. What does the actual delivery of training involve?

ANS: Once training has been designed, the actual delivery of training can begin. Regardless of the type of training done, many approaches and methods can be used to deliver it. The growth of training technology continues to expand the available choices.

Whatever the approach used, a variety of considerations must be balanced when selecting training delivery methods. The common variables considered are urgency of training, subject matter, number of trainees, individual versus team, self-paced versus guided, training resources/costs, e-learning versus traditional learning, geographic locations, time allotted, and completion timeline.

One source of instruction is informal training, which occurs through interactions and feedback among employees. Much of what employees know about their jobs they learn informally from asking questions and getting advice from other employees and their supervisors, rather than from formal training programs. A great deal of learning occurs informally in work organizations, and some of it happens by design.

The most common type of training at all levels in an organization is on-the-job training (OJT) because it is flexible and relevant to what employees do. Well-planned and well-executed OJT can be very effective. In contrast with informal training, which often occurs spontaneously, OJT should be planned. The employee conducting the training must be able to both teach and show the employees what to do.

However, OJT has some problems. Those doing the training may have no experience in training, no time to do it, or no desire to participate in it. Under such conditions, learners essentially are on their own, and training likely will not be effective. Another problem is that OJT can disrupt regular work.

Unfortunately, OJT can amount to no training at all sometimes, especially if the trainers simply allow the trainees to learn the job on their own. Bad habits or incorrect information from the trainer can also be transferred to the trainees.

Cross training occurs when people are trained to do more than one job—theirs and someone else’s. For the employer, the advantages of cross training are flexibility and development. Even though cross training is attractive to the employer, it is not always appreciated by employees, who may feel that it requires them to do more work for the same pay. To counteract such responses and to make it more appealing to employees, learning “bonuses” can be awarded for successfully completing cross training.

In some organizations, the culture may be such that people seek cross-training assignments to grow or prepare for a promotion, but that is not the case in all organizations. Unions typically are not in favor of cross training because it threatens job jurisdiction and broadens jobs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Training Delivery PAGE: 102 –103

6 Discuss the usefulness of cooperative training?

ANS: Cooperative training mixes classroom training and on-the-job experiences. There are several types of cooperative training: 1) School-to-work transition helps high school or community college students move into jobs while still in school or upon completion of formal schooling. Such efforts may be arranged with high schools, community colleges, or some universities. 2) Internships combine job training with classroom instruction from institutions of higher education. This gives both the intern and the employer a chance to assess their mutual fit. Internships benefit both employers and interns. Interns get real-world exposure, a line on their résumés, and a chance to closely examine a possible employer.

Employers get a cost-effective source of labor and a chance to see the intern work before making a final hiring decision. 3) Apprentice training provides on-the-job experience with the guidance of a skilled and certified worker. An apprenticeship program provides an employee with on-the-job experience under the guidance of a skilled and certified worker. Certain requirements for training, equipment, time length, and proficiency levels may be monitored by a unit of the U.S. Department of Labor.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training Delivery PAGE: 104 –105

7. Mention one disadvantage of e-learning and suggest a method of overcoming that disadvantage.

ANS:

Some employers worry that trainees will use e-learning to complete courses quickly but will not retain and use much of what they have learned on the job. Taking existing training materials, putting them on the Internet, and cutting the training budget is not the way to succeed with e-learning.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training Delivery PAGE: 104

8. How can an organization determine if its training expenditure is cost effective?

ANS: Cost–benefit analysis and return-on-investment (ROI) analysis are commonly used to measure training results, as are various benchmarking approaches. Training results can be examined through cost– benefit analysis, which is comparison of costs and benefits associated with training.

Even though some benefits (such as attitude changes) are hard to quantify, comparisons of costs and benefits associated with training remains a way to determine whether training is cost-effective.

Training is often expected to produce an ROI. Still, too often, training is justified because someone liked it, rather than on the basis of resource accountability. ROI simply divides the return produced because of the training by the cost (or investment) in the training.

In addition to evaluating training internally, some organizations use benchmark measures to compare it with training done in other organizations. To do benchmarking, HR professionals gather data on training in their organization and compare them with data on training at other organizations in the same industry and in companies of a similar size. Comparison data are available through the American Society for Training and Development and its Benchmarking Service. This service has training-related data from more than 1,000 participating employers who complete detailed questionnaires annually.

Training can also be benchmarked against data from the American Productivity & Quality Center and the Saratoga Institute.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Training Evaluation PAGE: 104 –105

9. Describe the concept of talent management.

ANS: Talent management is the process of identifying the most important jobs in a company that provide a long-term advantage, and then developing employees so that they can effectively work in these jobs.

Companies can reduce risks and increase the rewards of talent management by adopting an approach that relies on (1) the development of current employees and hiring outside talent, (2) the creation of talent pools and broad competencies in employees, (3) the use of short-term talent forecasts that are likely more reliable, and (4) establishing a balance between employees’ and companies’ ownership of career development.

Choices for dealing successfully with talent needs are to (1) emphasize stability in employment and develop talent internally, (2) develop agility as an organization and buy talent as needed, or (3) use some combination of (1) and (2). So the nature of the business and the environment in which it operates to some extent define appropriate strategies for talent management.

Talent management can be challenging because of the nature of “talent” itself. For example, a “deep bench” of talent can be thought of as inventory. But unlike boxes full of empty bottles, talent does not

necessarily remain available until needed—people will leave the company to work in more desirable employment situations. The shelf life of promising managers and specialists is short if they do not have opportunities in their current place of work.

Talent management is as a process that goes beyond simply recruiting and selection to meeting the needs of the organization with talent. Along the way, all the elements of talent management are encountered: training, succession planning, career planning, development, and performance management.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Talent Management as Strategy PAGE: 105 –106

10. What is the link between talent management efforts and “high-potential” individuals?

ANS: Some organizations focus talent management efforts primarily on “high-potential” individuals, often referred to as high-po. Attracting, retaining, and developing high-pos have become the main emphases for some talent management efforts. Firms may classify individuals as being in the top 10% and

limit participation in intensive talent management efforts to that group. Other organizations view talent management more broadly.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Talent Management in Perspective PAGE: 107

11. Why is succession planning important?

ANS: The basis for a company dealing successfully with staffing changes such as retirements, transfers, promotions, and turnover is succession planning. Succession planning encourages an organization to prepare for the inevitable movements of personnel that create holes in the hierarchy that need to be filled by other qualified individuals. “Bench strength” and the leadership pipeline are metaphors for ways to prevent the void by having replacements ready.

All the work involved in the succession planning process should result in two products: (1) identification of potential emergency replacements for critical positions and (2) other successors who will be ready with some additional development. The development necessary should be made clear to the people involved.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Succession Planning PAGE: 108

12. What is the difference between organization-centered and individual-centered career planning?

ANS: Organization-centered career planning focuses on identifying career paths that provide for a logical progression of people between jobs in an organization. Individual-centered career planning focuses on an individual’s responsibility for a career rather than on organizational needs.

In organization-centered career planning, individuals follow the identified career paths as they advance in organizations. For example, a person might enter the sales department as a sales representative, then be promoted to account director, to district sales manager, and finally to vice president of sales.

To communicate with employees about opportunities and help with planning, employers frequently use career workshops, a career “center,” newsletter, and career counseling. Individual managers often play the role of coach and counselor in their direct contact with individual employees and within an HR-designed career management system.

In individual-centered career planning, individuals who successfully manage their own careers perform several activities: Self-assessment: Individuals need to think about what interests them, what they do not like, what they do well, and their strengths and weaknesses.

Feedback on reality: Employees need feedback on how well they are doing, how their bosses see their capabilities, and where they fit in organizational plans for the future.

Setting of career goals: Deciding on a desired path, setting timetables, and writing these items down all set the stage for a person to pursue the career of choice.

Theorists in adult development describe the first half of life as the young adult’s quest for competence and for a way to make a mark in the world. The second half of life is different. Once the adult starts to measure time to the expected end of life rather than from the beginning, the need for competence and acquisition changes to the need for integrity, values, and well-being. For many people, internal values take precedence over external scorecards or accomplishments such as wealth and job title status.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Careers and Career Planning PAGE: 109 –110

13. How do off-the-job techniques help individuals? Discuss the advantages of sabbaticals.

ANS: Off-the-job development techniques give individuals opportunities to get away from their jobs and concentrate solely on what is to be learned. Contact with others who are concerned with slightly different problems and come from different organizations may provide employees with new and different perspectives.

A sabbatical is an opportunity provided by some companies for employees to take time off the job to develop and rejuvenate, as well as to participate in activities that help others. Some employers provide paid sabbaticals, while others allow employees to take unpaid sabbaticals. The length of time taken off from work varies greatly.

Companies that offer sabbaticals speak well of the results. Positive reasons for sabbaticals are to help prevent employee burnout, offer advantages in recruiting and retention, and boost individual employee morale.

PTS: 1 NAT: BUSPROG: Analytic Approaches PAGE: 113

DIF: Easy TOP: Human Resources Development KEY: Bloom's: Knowledge

14. Discuss the importance of management development and the problems associated with it.

ANS:

Although development is important for all employees, it is essential for managers. Without appropriate development, managers may lack the capabilities to best deploy and manage resources (including employees) throughout the organization. While classroom training can be helpful, experience often contributes more to the development of senior managers because much of it occurs in varying real-life, on-the-job situations. Not all companies take the time to develop their own senior-level

managers. Instead, senior managers and executives are often hired from outside, leaving the company’s middle managers behind.

Numerous approaches are used to mold and enhance the experiences that managers need to be effective. The most widely used methods are supervisor development, leadership development, management modeling, management coaching, management mentoring, and executive education.

Development efforts are subject to certain common mistakes and problems. Many of the management development problems in firms have resulted from inadequate human resources planning and a lack of coordination of HR development efforts. Common problems include the following: - Failing to conduct adequate needs analysis - Trying out fad programs or training methods - Substituting training for selecting qualified individuals Another common management problem is encapsulated development, which occurs when an individual learns new methods and ideas, but returns to a work unit that is still bound by old attitudes and methods. The development was “encapsulated” in the classroom and is essentially not used on the job. Consequently, in this situation, it is common for individuals who participate in development programs paid for by their employers to become discouraged and move to new employers who allow them to use their newly developed capabilities more effectively.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Management Development PAGE: 114 –116

Chapter 6—Performance Management and Appraisal MULTIPLE CHOICE 1. _____ is a series of activities designed to ensure that the organization gets the performance it needs from its employees. a. Performance management b. Performance appraisal c. Performance planning d. Performance improvement ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Performance Management PAGE: 118

2. Which of the following is true of performance appraisal? a. Performance management is a part of performance appraisal. b. Performance appraisal is the process of determining how well employees do their jobs relative to a standard and communicating that information to them. c. Performance appraisal is the same as performance management. d. Performance appraisal refers to the entire series of activities designed to ensure that the organization gets the performance it needs from its employees.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Performance Management PAGE: 118

3. Which of the following statements is true of organizations that practice the entitlement approach? a. Employee rewards vary little from person to person and are based on individual performance differences. b. Employee rewards vary significantly from person to person and are not much based on individual performance differences. c. Employee rewards vary little from person to person and are not much based on individual performance differences. d. Employee rewards vary significantly from person to person and are based on individual performance differences.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Performance Management PAGE: 119

4. Which of the following is true of organizations that practice a performance-driven approach? a. Employee rewards vary significantly from person to person and are not based on individual performance. b. Performance appraisal activities are seen as being primarily a “bureaucratic exercise.” c. Employee rewards vary little from person to person and are not based on individual performance. d. Performance evaluations link results to employee compensation and development.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Performance Management PAGE: 119

5. Which of the following is trait-based information?

a. b. c. d.

Verbal persuasion Dispositions Units produced Customer satisfaction

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Identifying and Measuring Employee Performance PAGE: 121

6. Which of the following is behavior-based information? a. Improved quality b. Effective communication c. Timeliness of response d. Cost reduction ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Identifying and Measuring Employee Performance PAGE: 121

7. Which of the following is an example of results-based information? a. Teamwork b. Initiative c. Customer satisfaction d. Sales volume ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Identifying and Measuring Employee Performance PAGE: 121

8. Which of the following is true of performance standards? a. Only numerical performance standards can be established. b. Performance standards should be established while the work is being performed. c. Only nonnumerical performance standards can be established. d. Performance standards should be established before the work is performed.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Identifying and Measuring Employee Performance PAGE: 121

9. Which of the following is true of the administrative and developmental roles of performance appraisals? a. The rater plays the role of a judge in an administrative role and plays the role of a coach in a developmental role. b. The rater plays the role of a coach in an administrative role and plays the role of a judge in a developmental role. c. The rater plays the role of a coach in both the administrative role and the developmental role of performance appraisals. d. The rater plays the role of a judge in both the administrative role and the developmental role of performance appraisals.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Challenging TOP: Performance Appraisals PAGE: 123

10. Which of the following is typically a responsibility of managers in performance appraisals?

a. b. c. d.

Reviewing completed appraisals for consistency Tracking timely receipt of appraisals Identifying development areas Designing and maintaining appraisal systems

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Performance Appraisals PAGE: 124-125

11. _____ is the most widely used means of rating employees. a. Outsider rating of employees b. Self-rating c. Peer rating d. Supervisory rating of subordinates ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 127

12. _____ can help make a manager more responsive toward employees. a. Rating of supervisors by subordinates b. Self-rating c. Peer rating d. Rating of subordinates by supervisors ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 127

13. _____ is especially useful when supervisors do not have the opportunity to observe each employee’s performance but other work group members do. a. Outsider rating b. Self-rating c. Peer rating d. Employees rating managers ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 128

14. Employees working in isolation or possessing unique skills may be particularly suited to _____. a. outsider rating b. self-rating c. peer rating d. multisource rating ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 128

15. A panel of division managers evaluating a supervisor’s potential for advancement in an organization is an example of _____. a. outsider rating b. self-rating c. peer rating

d. multisource rating ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 128–129

16. _____ recognizes that for many jobs, employee performance is multidimensional and crosses departmental, organizational, and even national boundaries. a. Outsider rating b. Self-rating c. Peer rating d. 360-degree rating ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 129

17. The simplest methods for appraising performance are _____, which require a manager to mark an employee’s level of performance on a specific form divided into categories of performance. a. graphic rating scales b. category scaling methods c. comparative methods d. narrative methods ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 130

18. The _____ allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic. a. graphic rating scale b. category scaling method c. comparative method d. narrative method ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 130

19. Which of the following belongs to the descriptive category in graphic rating scales? a. Decision making b. Employee development c. Quantity of work d. Communication effectiveness ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 130

20. Which of the following belongs to the behavioral dimensions in graphic rating scales? a. Attendance b. Dependability c. Quantity of work d. Communication effectiveness ANS: D

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Tools for Appraising Performance PAGE: 130

21. The use of _____ can cause rater error because the form might not accurately reflect the relative importance of certain job characteristics, and some factors might need to be added to the ratings for one employee, while others might need to be dropped. a. graphic rating scales b. category scaling methods c. comparative methods d. narrative methods ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 132

22. _____ require that managers directly evaluate the performance levels of their employees against one another, and these evaluations can provide useful information for performance management. a. Graphic rating scales b. Category scaling methods c. Comparative methods d. Narrative methods ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Tools for Appraising Performance PAGE: 133

23.The _____ method lists the individuals being rated from highest to lowest based on their performance levels and relative contributions. a. ranking b. critical incident c. essay d. forced distribution ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Tools for Appraising Performance PAGE: 133

24. Which of the following is a comparative method of performance appraisals? a. Behavioral rating scales b. Critical incident c. Essay d. Forced distribution ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Tools for Appraising Performance PAGE: 133

25. _____ is a technique for distributing ratings that are generated with any of the other appraisal methods and comparing the ratings of people in a work group. a. Behavioral rating scales b. Forced distribution c. Essay method d. Critical incident ANS: B

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Tools for Appraising Performance PAGE: 133

26. If employers do not require a(n) _____, performance appraisal ratings often do not match the normal distribution of a bell-shaped curve. a. ranking method b. critical incident c. forced distribution d. essay method ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Tools for Appraising Performance PAGE: 133

27. Which of the following is a narrative method of performance appraisals? a. Behavioral rating scales b. Critical incident c. Ranking d. Forced distribution ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Tools for Appraising Performance PAGE: 134

28. In the _____ method, the manager keeps a written record of both highly favorable and unfavorable actions performed by an employee during the entire rating period. a. forced distribution b. ranking c. essay d. critical incident ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 134

29. The _____ method requires a manager to write a short write-up describing each employee’s performance during the rating period. a. forced distribution b. ranking c. essay d. critical incident ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 134

30. Which of the following is typically the first stage in implementing a guided self-appraisal system using MBO? a. Continuing performance discussions b. Development of performance standards c. Setting of objectives d. Job review and agreement ANS: D PTS: 1 NAT: BUSPROG: Analytic

DIF: Moderate TOP: Tools for Appraising Performance

KEY: Bloom's: Knowledge

PAGE: 134

31. Which of the following is typically the last stage in implementing a guided self-appraisal system using MBO? a. Continuing performance discussions b. Development of performance standards c. Setting of objectives d. Job review and agreement ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 134

32. Josh, an HR manager at RoxCom LLC, is responsible for implementing a guided self-appraisal system using management by objectives in his organization. He has reviewed the job description and the key activities that constitute the employee’s job. Which of the following is typically the next step for Josh? a. Continuing performance discussions b. Development of performance standards c. Setting of objectives d. Implementation of the standards ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Tools for Appraising Performance PAGE: 134

33. Zara, an HR manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system using management by objectives in her organization. She has developed specific standards for performance. Which of the following is typically the next step for Zara? a. Continuing performance discussions b. Implementation of the performance standards c. Setting of objectives d. Job review and agreement ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Tools for Appraising Performance PAGE: 134

34. Luke, an HR manager at Rexi LLC, is responsible for implementing a guided self-appraisal system using management by objectives in his organization. He has established objectives that are realistically attainable. Which of the following is typically the next step for Luke? a. Continuing performance discussions b. Development of performance standards c. Determining a satisfactory level of performance d. Job review and agreement ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Tools for Appraising Performance PAGE: 134

35. The _____ occurs when a rater gives greater weight to the latest events when appraising an individual’s performance. a. leniency error b. recency effect c. primacy effect d. central tendency error

ANS: B PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

36. The _____ occurs when a rater gives greater weight to information received first when appraising an individual’s performance. a. leniency error b. recency effect c. primacy effect d. central tendency error ANS: C PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

37. The _____ occurs when a rater gives all employees an average rating. a. leniency error b. recency effect c. primacy effect d. central tendency error ANS: D PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

38. The _____ occurs when ratings of all employees fall at the high end of the scale. a. leniency error b. recency effect c. primacy effect d. central tendency error ANS: A PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

39. The _____ occurs when a manager uses only the lower part of the scale to rate employees. a. leniency error b. recency effect c. primacy effect d. strictness error ANS: D PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

40. The _____ occurs when a rater scores an employee high on all job criteria because of performance in one area. a. halo effect b. horns effect

c. contrast error d. similar-to-me error ANS: A PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

41. The _____ occurs when a low rating on one characteristic leads to an overall low rating. a. halo effect b. horns effect c. contrast error d. similar-to-me error ANS: B PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

42. The _____ is the tendency to rate people relative to one another rather than against performance standards. a. halo effect b. horns effect c. contrast error d. similar-to-me error ANS: C PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

43. If the rater has seen only a small specimen of the person’s work, an appraisal may be subject to _____. a. halo effect b. horns effect c. contrast error d. sampling error ANS: D PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Easy TOP: Training Managers and Employees in Performance PAGE: 136

44. Which of the following is true of appraisal interviews? a. Managers must communicate both praise and constructive criticism. b. Managers must communicate only praise and not constructive criticism. c. Managers must communicate only constructive criticism and not praise. d. Managers must not communicate praise or constructive criticism.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge TRUE/FALSE

DIF: Moderate TOP: Appraisal Feedback PAGE: 137

1. The performance management process starts by identifying the strategic goals an organization needs to accomplish to remain competitive and profitable.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Performance Management PAGE: 117

2. Performance appraisal is the entire series of activities designed to ensure that the organization gets the performance it needs from its employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Performance Management PAGE: 118

3. In the performance-driven organizational culture, employee rewards vary little from person to person and are not much based on individual performance differences.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Performance Management PAGE: 119

4. The entitlement approach of organizational culture links performance evaluations to employee compensation and development.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Nature of Performance Management PAGE: 119

5. Employee attitude is classified as trait-based information.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Identifying and Measuring Employee Performance PAGE: 120

6. Menu up-selling by a waitperson is classified as behavior-based information.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Identifying and Measuring Employee Performance PAGE: 121

7. The number of cars sold by a car salesman is classified as a subjective measure of performance.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Identifying and Measuring Employee Performance PAGE: 121

8. Both numerical and nonnumerical performance standards can be established.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Identifying and Measuring Employee Performance PAGE: 122

10. The administrative role of performance appraisals often creates stress for managers doing the appraisals and the employees being evaluated because the rater is placed in the role of judge.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Performance Appraisals PAGE: 123

11. The developmental function of performance appraisals can identify areas in which the employee might wish to grow.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Performance Appraisals PAGE: 125

12. An informal appraisal is used when a system is in place to report managerial impressions and observations on employee performance and feature a regular time interval.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Performance Appraisals PAGE: 126

13. Peer and team ratings are especially useful only when supervisors have the opportunity to observe each employee’s performance.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 128

14. A disadvantage of the outsider rating approach is that outsiders may not know the important demands within the work group or organization.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Who Conducts Appraisals?

PAGE: 129

15. The major purpose of 360-degree feedback is to increase uniformity by soliciting like-minded views.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Who Conducts Appraisals?

PAGE: 130

16. One concern of multisource rating is that those peers who rate poor-performing coworkers tend to inflate the ratings so that the peers themselves can get higher overall evaluation results in return.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Who Conducts Appraisals?

PAGE: 130

17. Companies must only use multisource feedback primarily as an administrative tool.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Who Conducts Appraisals?

PAGE: 130

18. The category scaling method allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 130

19. When creating a BARS system, identifying important job dimensions, which are the most important performance factors in a job description, is done first.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 132

20. With the ranking method, the ratings of employees’ performance are distributed along a bell-shaped curve.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 133

21. The forced distribution method lists the individuals being rated from highest to lowest based on their performance levels and relative contributions.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 133

22. In the critical incident method, the manager keeps a written record of both highly favorable and unfavorable actions performed by an employee during the entire rating period.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 134

23. Development of performance standards is typically the first stage of management by objectives.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 134

24. The recency effect occurs when a rater gives greater weight to information received first when appraising an individual’s performance.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Challenging TOP: Training Managers and Employees in Performance PAGE: 136

25. The leniency error occurs when ratings of all employees fall at the high end of the scale.

ANS: T

PTS: 1

DIF: Challenging

NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

TOP: Training Managers and Employees in Performance PAGE: 136

26. The contrast error occurs when a rater scores an employee high on all job criteria because of performance in one area.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Challenging TOP: Training Managers and Employees in Performance PAGE: 136

27. The halo effect is the tendency to rate people relative to one another rather than against performance standards.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Appraisal KEY: Bloom's: Knowledge

DIF: Challenging TOP: Training Managers and Employees in Performance PAGE: 136

28. A major concern for managers in performance management is how to emphasize the positive aspects of the employee’s performance while still discussing ways to make needed improvements.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Appraisal Feedback PAGE: 137

SHORT ANSWER 1. Define performance management. What should a performance management system do?

ANS: Performance management is a series of activities designed to ensure that the organization gets the performance it needs from its employees. At a minimum, a performance management system should do the following: • Make clear what the organization expects.

• Provide performance information to employees.

• Identify areas of success and needed development.

• Document performance for personnel records.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Performance Management PAGE: 118–119

2. Describe the entitlement approach and the performance-driven approach.

ANS: Some corporate cultures are based on an entitlement approach, meaning that adequate performance and stability dominate the organization. Employee rewards vary little from person to person and are not much based on individual performance differences. As a result, performance appraisal activities are seen as having few ties to performance and being primarily a “bureaucratic exercise.”

At the other end of the spectrum is a performance-driven organizational culture focused on results and contributions. In this context, performance evaluations link results to employee compensation and development.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: The Nature of Performance Management PAGE: 119

3. What are the common employee performance measures?

ANS: Performance criteria vary from job to job, but common employee performance measures include the following: • Quantity of output • Quality of output • Timeliness of output • Presence/attendance on the job • Efficiency of work completed • Effectiveness of work completed PTS: 1 NAT: BUSPROG: Analytic Performance KEY: Bloom's: Knowledge

DIF: Moderate TOP: Identifying and Measuring Employee PAGE: 119

4. Define performance standards.

ANS: Performance standards define the expected levels of employee performance. Sometimes they are labeled benchmarks, goals, or targets—depending on the approach taken. Realistic, measurable, clearly understood performance standards benefit both organizations and employees.

PTS: 1 NAT: BUSPROG: Analytic Performance KEY: Bloom's: Knowledge

DIF: Moderate TOP: Identifying and Measuring Employee PAGE: 121

6. Discuss the administrative and developmental uses of performance appraisals.

ANS: Organizations generally use performance appraisals in two potentially conflicting ways. One use is to provide a measure of performance for consideration in making pay or other administrative decisions about employees. This administrative role often creates stress for managers doing the appraisals and the employees being evaluated because the rater is placed in the role of judge. The other use focuses on the development of individuals. In this role, the manager acts more as a counselor and coach than as a judge. The developmental performance appraisal emphasizes current training and development needs, as well as planning employees’ future opportunities and career directions.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 7. Discuss supervisory rating of subordinates.

DIF: Moderate TOP: Performance Appraisals PAGE: 123

ANS: The most widely used means of rating employees is based on the assumption that the immediate supervisor is the person most qualified to evaluate an employee’s performance realistically and fairly.

To help provide accurate evaluations, some supervisors keep performance logs of employees’ accomplishments so that they can reference these notes when rating performance. For instance, a sales manager might periodically observe a salesperson’s interactions with clients and make notes so that constructive performance feedback can be provided at a later date.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Who Conducts Appraisals?

PAGE: 127

8. What is multisource rating?

ANS: Multi-source feedback recognizes that for many jobs, employee performance is multidimensional and crosses departmental, organizational, and even national boundaries. Therefore, it is designed to capture evaluations of the employee’s different roles from different raters to provide richer feedback during an evaluation.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Who Conducts Appraisals?

PAGE: 129

9. Define behaviorally anchored rating scales.

ANS: Behaviorally anchored rating scales describe specific examples of job behaviors that are then measured against a scale of performance levels.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Tools for Appraising Performance PAGE: 132

10. Describe the features required in an effective performance management system.

ANS: To be effective, a performance management system, including the performance appraisal processes, should be: • beneficial as a development tool; • useful as an administrative tool; • legal and job related; • viewed as generally fair by employees; • effective in documenting employee performance; • clear about who are high, average, and low performers.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge ESSAY

DIF: Moderate TOP: Appraisal Feedback PAGE: 138

1. Describe performance-focused organizational cultures.

ANS: Organizational cultures can vary on many dimensions, and one of these differences involves the degree to which performance is emphasized. Some corporate cultures are based on an entitlement approach, meaning that adequate performance and stability dominate the organization. Employee rewards vary little from person to person and are not much based on individual performance differences. As a result, performance appraisal activities are seen as having few ties to performance and being primarily a “bureaucratic exercise.” At the other end of the spectrum is a performance-driven organizational culture focused on results and contributions. However, a pay-for-performance approach can present several challenges to organizations. Despite these issues, it appears that where possible, a performance-based-pay culture is desirable. It is sometimes argued that companies are not doing enough about poor performers, and that failure to deal with poor performance is unfair to those who work hard.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: The Nature of Performance Management PAGE: 119

2. Describe the different types of performance information.

ANS: Managers can use three different types of information about employee performance. Trait-based information identifies a character trait of the employee, such as attitude, initiative, or creativity, and may or may not be job related. For example, conscientiousness is often found to be a trait that is an important determinant of job performance. But traits tend to be ambiguous, and favoritism of raters can affect how traits are viewed, so court decisions generally have held that trait-based performance appraisals are too vague to use when making performance-based HR decisions such as promotions or terminations. Also, focusing too much on trait characteristics such as “potential” can lead managers to ignore important behaviors and outcomes. Behavior-based information focuses on specific behaviors that lead to job success. For a waitperson, the behavior “menu up-selling” can be observed and used as performance information. Additionally, an HR Director who institutes an “open-door policy” behaves in a manner that likely increases communication with employees. Behavioral information can specify the behaviors management wants to see. A potential problem arises when any of several behaviors can lead to successful performance, and employees rely on different behaviors to complete work. For example, one salesperson might successfully use one verbal persuasion strategy with customers, while another salesperson might use another successfully because no one approach can be utilized effectively by all individuals. Results-based information considers employee accomplishments. For jobs in which measurement is easy and obvious, a results-based approach works well. For instance, a professor might receive extra compensation for securing grants or publishing papers in certain academic journals, or a salesperson in a retail outlet might receive extra commission pay based on how many products are sold.

PTS: 1 NAT: BUSPROG: Analytic Performance KEY: Bloom's: Knowledge

DIF: Challenging TOP: Identifying and Measuring Employee PAGE: 120–121

3. Describe the administrative uses of performance appraisals.

ANS: Three administrative uses of appraisal impact managers and employees the most: (1) determining pay adjustments; (2) making job placement decisions on promotions, transfers, and demotions; and (3)

choosing employee disciplinary actions up to and including termination of employment. A performance appraisal system is often the link between employee job performance and the additional pay and rewards that they can receive. Performance-based compensation affirms the idea that pay raises are given for performance accomplishments rather than based on length of service (seniority), or granted automatically to all employees at the same percentage levels. In pay-for-performance compensation systems, managers have evaluated the performance of individuals and have made compensation recommendations. If any part of the appraisal process fails, better-performing employees may not receive larger pay increases, and the result is perceived inequity in compensation.

Many U.S. workers say that they see little connection between their performance and the size of their pay increases due to flaws in performance appraisals. Consequently, many people argue that performance appraisals and pay discussions should be done separately. Two major realities support this view. One is that employees often focus more on the pay received than on the developmental appraisal feedback. The other is that managers sometimes manipulate ratings to justify the pay they wish to give individuals. As a result, many employees view the appraisal process as a game, because compensation increases have been predetermined before the appraisal is completed. To address these issues, managers can first conduct performance appraisals and discuss the results with employees, and then several weeks later hold a shorter meeting to discuss pay issues. For example, one company created different performance appraisal and compensation forms that are considered separately at different times. By adopting such an approach, the results of the performance appraisal can be considered before the amount of the pay adjustment is determined. Also, the performance appraisal discussions between managers and employees can focus on issues for improvement—not just pay raises.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Performance Appraisals PAGE: 123–124

4. Describe the developmental uses of performance appraisals.

ANS: For employees, a performance appraisal can be a primary source of information and feedback. By identifying employee strengths, weaknesses, potentials, and training needs through performance appraisal feedback, supervisors can inform employees about their progress, discuss areas in which additional training may be beneficial, and outline future developmental plans. It is clear that employees do not always know where and how to perform better, and managers should not expect improvement if they are unwilling to provide developmental feedback. The purpose of giving feedback on performance is both to reinforce satisfactory employee performance and to address performance deficiencies. The developmental function of performance appraisal can also identify areas in which the employee might wish to grow. For example, in a performance appraisal interview targeted exclusively to development, an employee found out that the only factor keeping her from being considered for a management job in her firm was the lack of a working knowledge of cost accounting. Her supervisor suggested that she consider taking some night courses at the local college. The use of teams provides a different set of circumstances for developmental appraisals. The manager may not see all of an employee’s work, but the employee’s team members do. Team members can provide important feedback. However, whether teams can handle administrative appraisals is still subject to debate; clearly some cannot. When teams are allowed to design appraisal systems, they tend to “get rid of judgment” and avoid differential rewards. Thus, group appraisal may be best suited to developmental rather than administrative purposes.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Performance Appraisals PAGE: 124–125

5. Describe supervisory rating of subordinates, employee rating of managers, team/peer rating, selfrating, and outsider rating.

ANS: Supervisory rating of subordinates The most widely used means of rating employees is based on the assumption that the immediate supervisor is the person most qualified to evaluate an employee’s performance realistically and fairly.

To help provide accurate evaluations, some supervisors keep performance logs of employees’ accomplishments so that they can reference these notes when rating performance. For instance, a sales manager might periodically observe a salesperson’s interactions with clients and make notes so that constructive performance feedback can be provided at a later date.

Employee rating of managers A number of organizations ask employees to rate the performance of their immediate managers. A variation of this type of rating takes place in colleges and universities, where students evaluate the teaching effectiveness of professors in the classroom. Another example is an Indian firm, which requires employees to rate their bosses as part of a multisource review process that posts all evaluations on the intranet. These performance appraisal ratings are generally used for management development purposes. Requiring employees to rate managers provides three primary advantages.

First, in critical manager-employee relationships, employee ratings can be quite useful for identifying competent managers. The rating of leaders by combat soldiers is one example of such a use. Second, this type of rating program can help make a manager more responsive to employees. This advantage can quickly become a disadvantage if the manager focuses on being “nice” rather than on managing; people who are pleasant, but have no other qualifications may not be good managers in many situations. Finally, employee appraisals can contribute to career development efforts for managers by identifying areas for growth. A major disadvantage of asking employees rate managers is the negative reaction many have to being evaluated by employees. Also, the fear of reprisals may be too great for employees to give realistic ratings. This may prompt workers to rate their managers based only on the way they are treated rather than on critical job requirements.

Team/Peer Rating Having employees and team members rate each other is another type of appraisal with the potential to both help and hurt. Peer and team ratings are especially useful when supervisors do not have the opportunity to observe each employee’s performance but other work group members do. For instance, some of the advanced training programs in the U.S. military use peer ratings to provide candidates more extensive feedback about their leadership qualities and accomplishments. Peer evaluations are also common in collegiate schools of business where professors commonly require students to conduct peer evaluations after the completion of group-based projects. One challenge of this approach is how to obtain ratings with virtual or global teams, in which the individuals work primarily through technology, not in person (i.e., an online college class). Another challenge is obtaining ratings from and for individuals who are on many special project teams throughout the year. It is possible that any performance appraisal, including team/peer ratings, can negatively affect teamwork and participative management efforts. Although team members have good information on one another’s performance, they may not choose to share it in the interest of sparing feelings; alternatively they may unfairly attack other group members. Some organizations attempt to overcome such problems by using anonymous appraisals and/or having a consultant or HR manager interpret team/peer ratings.

Self-Rating

Self-appraisal works in certain situations. As a self-development tool, it requires employees to think about their strengths and weaknesses and set goals for improvement. Employees working in isolation or possessing unique skills may be particularly suited to self-ratings because they are the only ones qualified to rate themselves. Overall, the use of self-appraisals in organizations has increased. For instance, one organization successfully incorporated self-ratings into a traditional rating approach that did not generate enough dialogue and direction for individual development; reactions from both workers and supervisors were favorable. However, employees may use quite different standards and not rate themselves in the same manner as supervisors.

Outsider Rating People outside the immediate work group may be called in to conduct performance reviews. This “field review” approach can include someone from the HR department as a reviewer, or completely independent reviewers from outside the organization. Examples include a review team evaluating a college president or a panel of division managers evaluating a supervisor’s potential for advancement in the organization. A disadvantage of this approach is that outsiders may not know the important demands within the work group or organization. The customers or clients of an organization are good sources for outside appraisals. For sales and service jobs, customers may provide useful input on the performance behaviors of employees. For instance, many hospitality organizations such as restaurants and hotels use customer comments cards to gather feedback about the service provided by customer contact personnel, and this information is commonly used for job development purposes.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Who Conducts Appraisals?

PAGE: 127–129

6. Describe Multisource/360-degree rating.

ANS: Multisource rating, or 360-degree feedback, has grown in popularity in organizations. Multisource feedback recognizes that for many jobs, employee performance is multidimensional and crosses departmental, organizational, and even national boundaries. Therefore, information needs to be collected from many sources to adequately and fairly evaluate an incumbent’s performance in one of these jobs. The major purpose of 360-degree feedback is not to increase uniformity by soliciting likeminded views. Instead, it is designed to capture evaluations of the employee’s different roles to provide richer feedback during an evaluation. For example, an HR manager for an insurance firm deals with seven regional sales managers, HR administrators in five claims centers, and various corporate executives in finance, legal, and information technology. The Vice President of HR uses 360-degree feedback to gather data on all facets of the HR manager’s job before completing a performance appraisal on the individual. Similar examples can be cited in numerous managerial, professional, technical, operational, and administrative jobs. Significant administrative time and paperwork are required to request, obtain, and summarize feedback from multiple raters. Using electronic systems for the information can greatly reduce the administrative demands of multisource ratings and increase the effectiveness (i.e., privacy and expediency) of the process.

As originally designed and used, multisource feedback focuses on the use of appraisals for the development of individuals. Conflict resolution skills, decision-making abilities, team effectiveness, communication skills, managerial styles, and technical capabilities are just some of the developmental areas that can be examined.

The popularity of 360-degree feedback systems has led to the results being used for compensation, promotion, termination, and other administrative decisions. When using 360-degree feedback for administrative purposes, managers must anticipate the potential problems. Differences among raters can present a challenge, especially when using 360-degree ratings for discipline or pay decisions. Bias can just as easily be rooted in customers, subordinates, and peers as in a boss, and the lack of accountability of those sources can affect the ratings. “Inflation” of ratings is common when the sources know that their input will affect someone’s pay or career. Also, issues of confidentiality and anonymity have led to lawsuits. Even though multisource approaches offer possible solutions to some of the well-documented dissatisfaction associated with performance appraisals, a number of other questions have arisen as multisource appraisals have become more common.

Research on multisource/360-degree feedback has revealed both positives and negatives. More variability than expected may be seen in the ratings given by the different sources. Thus, supervisor ratings may need to carry more weight than peer or subordinate input to resolve the differences. One concern is that those peers who rate poor-performing coworkers tend to inflate the ratings so that the peers themselves can get higher overall evaluation results in return. Also, some wonder whether multisource appraisals really create sufficiently better decisions to offset the additional time and investment required. These issues appear to be less threatening when the 360-degree feedback is used only for development, so companies should consider using multisource feedback primarily as a developmental tool to enhance future job performance while minimizing the use of multisource appraisals as an administrative tool.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Who Conducts Appraisals?

PAGE: 129–130

7. Describe graphic rating scale.

ANS: The graphic rating scale allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic. Because of the straightforwardness of the process, graphic rating scales are common in performance evaluations. Three aspects of performance are appraised using graphic rating scales: descriptive categories (such as quantity of work, attendance, and dependability), job duties (taken from the job description), and behavioral dimensions (such as decision making, employee development, and communication effectiveness). Each of these types can be used for different jobs. How well employees meet established standards is often expressed either numerically (e.g., 5, 4, 3, 2, 1) or verbally (e.g., “outstanding,” “meets standards,” “below standards”).

If two or more people are involved in the rating, they may find it difficult to agree on the exact level of performance achieved relative to the standard in evaluating employee performance. Notice that each level specifies performance standards or expectations to reduce variation in interpretations of the standards by different supervisors and employees. Graphic rating scales in many forms are widely used because they are easy to develop and provide a uniform set of criteria to evaluate the job performance of different employees. However, the use of scales can cause rater error because the form might not accurately reflect the relative importance of certain job characteristics, and some factors might need to be added to the ratings for one employee, while others might need to be dropped. If they fit the person and the job, the scales work well. However, if they fit poorly, managers and employees who must use them frequently might complain about “the rating form.” A key point must be emphasized. Regardless of the scales used, the focus should be on the job duties and responsibilities identified in job descriptions. The closer the link between the scales and what people actually do, as identified in current and complete job descriptions, the stronger the relationship between the ratings and the job, as viewed by employees and managers. Also, should the performance appraisal results be challenged legally, the closer performance appraisals measure what people actually do, the more likely employers are to prevail in a lawsuit.

An additional drawback to graphic rating scales is that separate traits or factors are often grouped, and the rater is given only one box to check. For example, dependability could refer to meeting deadlines for reports, or it could refer to attendance and tardiness. If a supervisor gives an employee a rating of 3, which aspect of dependability is being rated? One supervisor might rate employees on meeting deadlines, while another rates employees on attendance.

Another drawback is that the descriptive words sometimes used in scales may have different meanings to different raters. Terms such as “initiative” and “cooperation” are subject to many interpretations, especially if used in conjunction with words such as “outstanding,” “average,” and “poor.”

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Tools for Appraising Performance PAGE: 130–132

8. Discuss management by objectives.

ANS: Management by objectives (MBO) specifies the performance goals that an individual and manager identify together. Goal setting has a long history of research in HR. Each manager sets objectives derived from the overall goals and objectives of the organization; however, MBO should not be a disguised means for a superior to dictate the objectives of individual managers or employees.

MBO Process: Implementing a guided self-appraisal system using MBO is a four-stage process. The stages are as follows: 1. Job review and agreement 2. Development of performance standards 3. Setting of objectives 4. Continuing performance discussions The MBO process seems to be most useful with managerial personnel and employees who have a fairly wide range of flexibility and control over their jobs. When imposed on a rigid and autocratic management system, MBO will often fail. Emphasizing penalties for not meeting objectives defeats the development and participative nature of MBO. PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Tools for Appraising Performance PAGE: 134–135

9. Describe the different types of rater errors.

ANS: There are many possible sources of error in the performance appraisal process. One of the major sources is the rater. Although completely eliminating errors is impossible, making raters aware of potential errors and biases helps.

Varying Standards: When appraising employees, a manager should avoid applying different standards and expectations to employees performing the same or similar jobs. Such problems often result from the use of ambiguous criteria and subjective weightings by supervisors.

Recency and Primacy Effects: The recency effect occurs when a rater gives greater weight to recent events when appraising an individual’s performance. Another time-related issue is the primacy effect, which occurs when a rater gives greater weight to information received first when appraising an individual’s performance.

Central Tendency, Leniency, and Strictness Errors: Appraisers who rate all employees within a narrow range in the middle of the scale (i.e., rate everyone as “average”) commit a central tendency error, giving even outstanding and poor performers an “average” rating. The leniency error occurs when ratings of all employees fall at the high end of the scale. The strictness error occurs when a manager uses only the lower part of the scale to rate employees.

Rater Bias: When a rater’s values or prejudices distort the rating, rater bias results. Such bias may be unconscious or quite intentional. For example, a manager’s dislike of certain ethnic groups may cause distortion in appraisal information for some people. Use of age, religion, seniority, sex, appearance, or other “classifications” may also skew appraisal ratings if the appraisal process is not properly designed. A review of appraisal ratings by higher-level managers may help correct this problem.

Halo and Horns Effects: The halo effect occurs when a rater scores an employee high on all job criteria because of performance in one area. The opposite is the horns effect, which occurs when a low rating on one characteristic leads to an overall low rating.

Contrast Error: One problem is the contrast error, which is the tendency to rate people relative to one another rather than against performance standards. Although it may be appropriate to compare people at times, the performance rating usually should reflect comparison against performance standards, not against other people.

Similar-to-Me/Different-from-Me Errors: Sometimes, raters are influenced by whether people show characteristics that are the same as or different from their own. The error comes in measuring an individual against another person rather than measuring how well the individual fulfills the expectations of the job.

Sampling Error: If the rater has seen only a small sample of the person’s work, an appraisal may be subject to sampling error. Ideally, the work being rated should be a broad and representative sample of all the work done by the employee.

PTS: 1 NAT: BUSPROG: Analytic Performance Appraisal KEY: Bloom's: Knowledge

DIF: Challenging TOP: Training Managers and Employees in PAGE: 135–136

10. Describe appraisal feedback.

ANS: After completing appraisals, managers need to communicate results to give employees a clear understanding of how they stand in the eyes of their immediate superiors and the organization.

Organizations commonly require managers to discuss appraisals with employees. The appraisal feedback interview provides an opportunity to clear up any misunderstandings on both sides. The appraisal interview presents both an opportunity and a challenge. It can be an emotional experience for the manager and the employee because the manager must communicate both praise and constructive criticism. A major concern for managers is how to emphasize the positive aspects of the employee’s performance while still discussing ways to make needed improvements.

Employees usually approach an appraisal interview with some concern. They may feel that discussions about performance are both personal and important to their continued job success. At the same time, they want to know how their managers feel about their performance. Managers who must complete appraisals of their employees often resist the appraisal process. Many feel that their role requires them to assist, encourage, coach, and counsel employees to improve their performance. However, being a judge on the one hand and a coach and a counselor on the other hand may cause internal conflict.

Knowing that appraisals may affect employees’ future careers may also cause altered or biased ratings.

This problem is even more likely when managers know that they will have to communicate and defend their ratings to the employees, their bosses, or HR specialists. Managers can simply make the employee’s ratings positive and avoid unpleasantness. But avoidance helps no one. A manager owes an employee a well-done appraisal, no matter how difficult an employee is, or how difficult the conversation about performance might be. Likewise, employees being appraised may not necessarily agree with the manager doing the appraising. However, in most cases, employees will view appraisals done well as what they are meant to be—constructive feedback. Many employees want appraisals but some may find it difficult to get honest feedback.

Regardless of the approach used, managers must understand the intended outcome of performance management. When performance management is used to develop employees as resources, it usually works. Done well, performance management can lead to higher employee motivation and satisfaction.

To be effective, a performance management system, including the performance appraisal processes, should be: • beneficial as a development tool; • useful as an administrative tool; • legal and job related; • viewed as generally fair by employees; • effective in documenting employee performance; and • clear about who are high, average, and low performers.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Challenging TOP: Appraisal Feedback PAGE: 136–138

Chapter 7—Total Rewards and Compensation MULTIPLE CHOICE 1. Which of the following is a tangible direct reward? a. Base pay b. Health care benefits c. Paid time off d. Challenging work ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 142

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

2. Which of the following is a tangible indirect reward? a. Base pay b. Health care benefits c. Challenging work d. Variable pay ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 142

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

3. _____ are payments calculated on the basis of the time worked. a. Benefits b. Commissions c. Salaries d. Wages ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 142

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

4. If a state’s minimum wage is higher than the federal minimum wage, _____. a. employers must pay this higher wage b. employers must pay whichever wage is lower c. employers are free to choose between either of the two d. employers must pay the difference as employee benefits ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 143

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

5. The child labor provisions of the FLSA set the minimum age for hazardous occupations at _____ years. a. 14 b. 16 c. 18 d. 20

ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 143

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

6. The FLSA established overtime pay requirements at _____ times the regular pay rate for all hours worked over 40 in a week. a. two b. two and one-half c. one and one-half d. three ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 144

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

7. The _____ prohibits companies from using different wage scales for men and women performing substantially the same jobs. a. Fair Employment Act b. Employment Non-Discrimination Act c. Civil Rights Act d. Equal Pay Act ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

8. The _____ essentially treats each paycheck as a new act of discrimination. a. Fair Pay Act b. Employment Non-Discrimination Act c. Civil Rights Act d. Equal Pay Act ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

9. Most federal and state entities rely on the criteria for independent contractor status identified by the _____. a. National Labor Relations Board b. Internal Revenue Service c. Department of Labor d. U.S. Treasury Department ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

10. _____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee’s wages to pay a debt owed to the creditor.

a. b. c. d.

Liquidation Sequestration Garnishment Distraint

ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

11. The _____ restricts the right of employers to terminate employees whose pay is subject to a single garnishment order. a. Davis-Bacon Act b. Walsh-Healey Public Contracts Act c. McNamara-O’Hara Service Contract Act d. Consumer Credit Protection Act ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

12. Which of the following is typical of the entitlement philosophy of compensation? a. Pay and raises based on length of service b. No raises for poor-performing employees c. Market-adjusted pay scales d. Industry comparisons of total rewards ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

13. Which of the following is typical of the performance philosophy of compensation? a. Pay and raises based on length of service b. No raises for poor-performing employees c. Across-the-board raises d. Pay scales increased annually ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

14. Average hourly rate = _____. a. total individual hourly rates of pay for all employees divided by the total output produced b. total individual hourly rates of pay for all employees divided by the number of employees c. total individual hourly rates of pay for all employees divided by the total number of hours worked d. total individual hourly rates of pay for all employees divided by the total output produced in an hour ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

PAGE: 148 15. Number of Full Time Equivalents = _____. a. total annual hours paid for all employees divided by the total output of all full-time employees b. total output of all full-time employees divided by the total annual hours paid for all employees c. total annual hours paid for all employees divided by the number of hours a full-time employee is scheduled to work d. number of hours a full-time employee is scheduled to work divided by the total annual hours paid for all employees ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 148

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

16. Average tenure = _____. a. average years of service for all employees divided by the number of full-time equivalents b. number of full-time equivalents divided by the average years of service for all employees c. number of full-time equivalents divided by the total years of service for all employees d. sum of total years of service for all employees divided by the number of Full Time Equivalents ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 148

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

17. Average comparative ratio = _____. a. average of the comparative ratio for each employee divided by the number of employees b. sum of the comparative ratio of all employees divided by the number of employees c. number of employees divided by the average of the comparative ratio for each employee d. number of employees divided by the total of the comparative ratio for each employee ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 148

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

18. Productivity = _____. a. total revenue divided by number of Full Time Equivalents b. total revenue divided by total output produced c. total output produced divided by number of Full Time Equivalents d. total output produced divided by total revenue ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 148

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

19. Average annual salary increase = _____. a. the average salary increase of all employees divided by the number of full-time equivalents b. the number of full-time equivalents divided by the total salary increase of all employees

c. the total salary increase of all employees divided by the number of Full-Time Equivalents d. the number of full-time equivalents divided by the average salary increase of all employees ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 148

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Knowledge

20. Which of the following statements is true of the expectancy theory? a. This theory emphasizes the importance of finding valued rewards for the employee. b. This theory of motivation was first introduced by John Stacey Adams in 1963. c. This theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. d. This theory is applicable only to flat organizations with little or no formal structure.

ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

21. Which of the following is classified as an input in the equity theory? a. Job security b. Praise c. Loyalty d. Recognition ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

22. Which of the following is classified as an outcome in the equity theory? a. Loyalty b. Time c. Effort d. Job security ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

23. Which of the following is an indicator of external inequity? a. Difficulty hiring new employees b. Lack of fairness in how rewards are distributed among employees c. Lower attrition levels d. Reward system based on favoritism ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Easy STA: DISC: HRM KEY: Bloom's: Comprehension

24. Which of the following is true of an employer who uses the first-quartile strategy of compensation?

a. b. c. d.

The employer pays the employees above market levels.

The employers determine the pay independent of the market scenario.

The employer pays the employees below market levels.

The employer pays the employees on par with the market levels.

ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 150

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

25. Which of the following is true of an employer who uses the third-quartile strategy of compensation? a. The employer pays the employees above market levels. b. The employers determine the pay irrespective of the market scenario. c. The employer pays the employees below market levels. d. The employer pays the employees on par with the market levels.

ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 151

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

26. Which of the following is true of an employer who uses the second-quartile strategy of compensation? a. The employer pays the employees above market levels. b. The employers determine the pay independent of the market scenario. c. The employer pays the employees below market levels. d. The employer pays the employees on par with the market levels.

ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 151

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

27. Which of the following statements is true of the home-country-based approach? a. Compensation is adjusted to maintain the expatriate’s standard of living in the country where the expatriate is sent from the headquarters. b. Compensation is adjusted to maintain the expatriate’s standard of living in the country where the MNE is headquartered. c. Compensation is adjusted to maintain the expatriate’s standard of living in the country that has the lowest cost of living index. d. Compensation is adjusted to maintain the expatriate’s standard of living in the third country.

ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Global Compensation Issues PAGE: 151

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

28. Which of the following statements is true of the host-country-based approach? a. Compensation is adjusted to maintain the expatriate’s standard of living in the country where the expatriate is sent from the headquarters. b. Compensation is adjusted to maintain the expatriate’s standard of living in the country where the MNE is headquartered. c. Compensation is adjusted to maintain the expatriate’s standard of living in the country that has the lowest cost of living index. d. Compensation is adjusted to maintain the expatriate’s standard of living in the third

country.

ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Global Compensation Issues PAGE: 152

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

29. Which of the following is true of the ranking method of job evaluation? a. In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. b. It is a complex quantitative method that combines the classification and point factor methods. c. It looks at compensable factors in a group of similar jobs and assigns weights, or points, to them. d. It is a simple system that places jobs in order, from highest to lowest, by their value to the organization.

ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Comprehension

30. Which of the following is true of the classification method of job evaluation? a. In this method, descriptions of each group of jobs are written and then each job is put into a grade according to the group it best matches. b. It is a complex quantitative method that combines the ranking and point factor methods. c. It looks at compensable factors in a group of similar jobs and assigns weights, or points, to them. d. It is a simple system that places jobs in order, from highest to lowest, by their value to the organization.

ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Comprehension

31. Which of the following is true of the factor-comparison method of job evaluation? a. In this method, descriptions of each group of jobs are written and then each job is put into a grade according to the group it best matches. b. It is time-consuming and difficult to use, which accounts for its limited popularity in organizations. c. It uses subjective judgments to develop the class descriptions and to place jobs accurately in them. d. It is a qualitative method that combines the classification and ranking methods.

ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Comprehension

32. Which of the following is true of the point factor method of job evaluation? a. In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. b. It is a complex quantitative method that combines the ranking and classification methods.

c. It looks at compensable factors in a group of similar jobs and assigns weights to them. d. It is a simple system that places jobs in order, from highest to lowest, by their value to the organization.

ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Challenging STA: DISC: HRM KEY: Bloom's: Comprehension

33. The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs. a. factor-comparison method b. ranking method c. point factor method d. market pricing method ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

34. A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations. a. pay survey b. pay analysis c. pay scale d. pay grade ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

35. Benchmark jobs are _____. a. all blue-collar jobs that require high skill and application b. jobs that are found in many other organizations c. all white-collar jobs that require high skill and application d. jobs that are not commonly found in many other organizations ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

36. _____ are used to group individual jobs having approximately the same job worth. a. Pay scales b. Pay grades c. Pay compressions d. Pay expansions ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 155

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

37. A _____ shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates. a. market grade b. market band c. market line d. market scale ANS: C PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 155

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

38. _____ groups jobs into pay grades based on similar market survey amounts. a. Market scaling b. Market pegging c. Market lining d. Market banding ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 155

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

39. Which of the following is true of red-circled employees? a. They are paid above the range set for a job. b. They are paid below the range set for a job. c. They are paid on par with the range set for the job. d. Their pay is not determined by the ranges set for a job.

ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 157

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

40. Which of the following is true of green-circled employees? a. They are paid above the range set for a job. b. They are paid below the range set for a job. c. They are paid on par with the range set for the job. d. Their pay is not determined by the ranges set for a job.

ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 157

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

41. Which of the following is true of pay compression? a. It is the process by which all employees’ pays decrease significantly in an economic downturn. b. It occurs when the employer groups employees with different pay grades together. c. It is frequently a result of labor market pay levels increasing faster than current employees’ pay adjustments. d. It occurs when pay differences among individuals with different levels of experience and performance become large.

ANS: C

PTS: 1

DIF:

Easy

NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 158

STA: DISC: HRM KEY: Bloom's: Knowledge

42. Which of the following is true of a pay adjustment matrix? a. It reflects an employee’s horizontal movement in an organization. b. It is used to determine the compensation benchmark for a particular industry. c. It is used to determine the compensation benchmark for a particular organization. d. It reflects an employee’s vertical movement in an organization.

ANS: D PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 158

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

43. The two factors that the pay adjustment matrix considers are _____. a. the employee’s performance as rated in an appraisal and the employee’s position in the pay range b. the employee’s total productivity and the employee’s position in the pay range c. the employee’s performance as rated in an appraisal and the total number of hours spent at work d. the employee’s total productivity and the total number of hours spent at work ANS: A PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 159

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

44. Compa-ratio = _____. a. total pay divided by the total number of employees b. individual’s pay rate divided by the midpoint of the pay range c. total pay divided by the midpoint of the pay range d. individual’s pay rate divided by the total number of employees ANS: B PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 159

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

TRUE/FALSE 1. The total rewards package includes all forms of compensation, the monetary and nonmonetary rewards provided by a company to attract, motivate, and retain employees.

ANS: T PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC: HRM TOP: Nature of Total Rewards and Compensation KEY: Bloom's: Knowledge PAGE: 140 2. Tangible rewards cannot be easily measured or quantified.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 141

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

3. Intangible rewards can be measured and it is possible to calculate the value of each reward.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 141

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

4. The most common indirect compensation is employee benefits.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 142

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

5. Compliance with FLSA provisions on employee compensation is enforced by the National Labor Relations Board.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 142

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

6. The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at 19 years.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 143

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

7. The Equal Pay Act of 1963 prohibits companies from using different wage scales for men and women performing substantially the same jobs.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

8. Not having to pay social security, unemployment, or workers’ compensation costs to independent contractors offers major advantages to the employer.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 145

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

9. The entitlement philosophy assumes that compensation decisions reflect performance differences.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

10. Across-the-board raises are most common in organizations that follow the pay-for-performance philosophy.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Comprehension

11. The expectancy theory says that an employee’s motivation is based on several linked concepts.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

12. The equity theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

13. Distributive justice is the perceived fairness of the process and procedures used to make decisions about employees, including their pay.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

14. Procedural justice is the perceived fairness in how rewards are distributed.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

15. An employer using the first-quartile strategy chooses to “lag the market.”

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 150

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

16. Match-the-market strategy is also called third-quartile strategy.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 151

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

17.

The home-country-based approach compensates the expatriate at the same level as workers from the country where the expatriate has been sent from the headquarter.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Global Compensation Issues PAGE: 151

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

18. The overall objective of the host-country-based approach is to maintain the expatriate’s standard of living in the country where the company is headquartered.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Global Compensation Issues PAGE: 152

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

19. The ranking method is a simple system of job evaluation that places jobs in order, from highest to lowest, by their value to the organization.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

20. A major difficulty with the factor-comparison method is that subjective judgments are needed to develop the class descriptions and to place jobs accurately in them.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

21. A pay survey is a report based on research of compensation rates for workers performing similar jobs in other organizations.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

22. Market banding groups jobs into pay grades based on similar market survey amounts.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 155

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

23. The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

PAGE: 156 24. A red-circled employee is an employee who is paid above the range for the job.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 157

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

25. An individual whose pay is above the range for a job is referred to as a green-circled employee.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 157

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

26. Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 158

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

27. A pay adjustment matrix considers two factors—the employee’s level of performance as rated in an appraisal and the employee’s position in the pay range, which is often related to experience and tenure.

ANS: T PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 158–159 28.

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

The compa-ratio is calculated by dividing the individual’s pay rate by the lowest point in the pay range.

ANS: F PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 159

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

SHORT ANSWER 1. Define base pay.

ANS: The basic compensation that an employee receives, usually as an hourly wage or a salary, is called base pay.

PTS: 1 DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 142

2. Differentiate between exempt employees and nonexempt employees.

ANS: Under the Fair Labor Standards Act, employees are classified as exempt or nonexempt. Exempt employees hold positions for which employers are not required to pay overtime. Nonexempt employees must be paid overtime.

PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 143

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

3. Describe the entitlement philosophy of employee compensation.

ANS: The entitlement philosophy assumes that individuals who have worked another year are entitled to pay increases with little regard for performance differences. When organizations give automatic increases to their employees every year, they are using the entitlement philosophy. Most employees receive the same or nearly the same percentage increase each year. These automatic increases are often referred to as cost-of-living raises, even if they are not tied specifically to economic indicators.

PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

4. Describe the pay-for-performance philosophy of employee compensation.

ANS: A pay-for-performance philosophy assumes that compensation decisions reflect performance differences. Organizations using this philosophy do not guarantee additional compensation simply for completing another year of service. Instead, pay and incentives are structured to reward performance differences among employees.

PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

5. Define offshoring.

ANS: Offshoring is the process of moving jobs to lower-wage countries.

PTS: 1 NAT: BUSPROG: Analytic TOP: Global Compensation Issues PAGE: 151 6. Define job evaluation.

ANS:

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

Job evaluation looks at pay levels within the company and uses relative comparisons to determine the worth of jobs within an organization.

PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

7. Define compensable factor.

ANS: A compensable factor identifies a dimension that is part of every job and can be rated for each job.

PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

8. Define broadbanding.

ANS: The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding. Combining many grades into these broad bands is designed to encourage horizontal movement and therefore more skill acquisition. The main advantage of broadbanding is that it is more consistent with the flattening of organizational levels and the growing use of jobs that are multidimensional.

PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 156

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

9. What is a lump-sum increase?

ANS: A lump-sum increase (LSI) is a one-time payment of all or part of a yearly pay increase.

PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 160

DIF: Easy STA: DISC: HRM KEY: Bloom's: Knowledge

ESSAY 1. Describe the various components of compensation.

ANS: Tangible rewards can be measured and it is possible to calculate the value of each reward. Employees can easily compare the tangible rewards offered by various organizations. Intangible rewards, on the other hand, cannot be as easily measured or quantified.

One tangible component of a compensation program is direct compensation, monetary rewards for work done and performance results achieved. Base pay and variable pay are the most common forms of direct compensation. The most common indirect compensation is employee benefits.

Base Pay: The basic compensation that an employee receives, usually provided as an hourly wage or a salary, is called base pay. Many organizations use two base pay categories, hourly and salaried, which are identified according to the way pay is determined and the nature of the jobs. Hourly pay is the most common means and is based on time. Employees paid by the hour receive wages, which are payments calculated on the basis of the time worked. In contrast, employees paid a salary receive the same payment each period regardless of the number of hours worked.

Variable Pay: Another type of direct pay is variable pay, compensation linked directly to individual, team, or organizational performance. The most common types of variable pay are bonuses, incentive program payments, and commissions.

Benefits: Many organizations provide indirect rewards in the form of employee benefits. With indirect compensation, employees receive financial rewards without receiving actual cash. A benefit is an indirect reward—health insurance, vacation pay, or a retirement pension—given to an employee or a group of employees for organizational membership, regardless of performance.

PTS: 1 NAT: BUSPROG: Analytic TOP: Nature of Total Rewards and Compensation PAGE: 141–142

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

2. Describe the Fair Labor Standards Act and the major areas it focuses on.

ANS: The primary federal law affecting compensation is the Fair Labor Standards Act (FLSA), which was passed in 1938. Compliance with FLSA provisions is enforced by the Wage and Hour Division of the U.S. Department of Labor (DoL). Penalties for wage and hour violations often include awards of up to two years of back pay for affected current and former employees along with a monetary penalty.

Willful violations may be penalized by up to three years of back pay. The provisions of both the original act and subsequent revisions focus on the following major areas: • Minimum wage • Limits on the use of child labor • Overtime provisions (exempt and nonexempt statuses) Minimum Wage: The FLSA sets a minimum wage to be paid to a broad spectrum of covered employees. Congressional action is the only way the minimum wage can be changed. A lower minimum wage is set for “tipped” employees, such as restaurant servers, but their compensation must equal or exceed the minimum wage when average tips are included. The current minimum wage of $7.25 an hour was set as part of the Fair Minimum Wage Act of 2007. Eight states raised their minimum wage levels by an average of 32 cents per hour. If a state’s minimum wage is higher than the federal minimum wage, employers must pay this higher wage.

Child Labor Provisions: The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at 16 years. For hazardous occupations, the minimum is 18 years of age.

Individuals 14 to 15 years old may work outside school hours with certain limitations. Many employers require age certificates for employees because the FLSA makes the employer responsible for determining an individual’s age. Age certificates are supplied by high schools.

Exempt and Nonexempt Statuses: Under the FLSA, employees are classified as exempt or nonexempt.

Exempt employees hold positions for which employers are not required to pay overtime. Nonexempt employees must be paid overtime. The current FLSA regulations used to establish whether or not a job qualifies for exempt status classify jobs into five categories. The regulations identify several factors to be considered when determining exempt status. The regulations are complex and a thorough review of each job is recommended to ensure proper classification and prevent misclassifying employees.

When designing base pay, employers often categorize jobs into groupings that tie the FLSA status with the method of payment. Employers are required to pay overtime for hourly jobs to comply with the FLSA. Employees in positions classified as salaried nonexempt are also entitled to overtime pay.

Salaried nonexempt positions sometimes include secretarial, clerical, and salaried blue-collar positions (like shift supervisor). A common mistake made by employers is to avoid paying overtime to all salaried employees, even though some may qualify for nonexempt status. Exempt status is not necessarily granted to all salaried jobs; each job must be evaluated on a case by case basis. The FLSA does not require employers to pay overtime for salaried exempt jobs.

Overtime The FLSA established overtime pay requirements at one and one-half times the regular pay rate for all hours worked over 40 in a week, except for exempt employees. There are other exceptions to the overtime requirements, such as farm workers, but these exceptions are rare. The workweek is defined as a consecutive period of 168 hours (24 hours × 7 days), which does not have to be a calendar week. Hospitals and nursing homes are allowed a special definition of the workweek to accommodate their 24/7 scheduling demands. No daily number of hours requiring overtime is set, except for special provisions relating to hospitals and other specially designated organizations.

PTS: 1 NAT: BUSPROG: Analytic TOP: Laws Governing Compensation PAGE: 142–144

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

3. Describe the two different compensation philosophies.

ANS: There are two basic compensation philosophies that lie on opposite ends of a continuum. At one end of the continuum is the entitlement philosophy; at the other end is the performance philosophy. Most compensation systems fall somewhere in between these two extremes.

Entitlement Philosophy: The entitlement philosophy assumes that individuals who have worked another year are entitled to pay increases with little regard for performance differences. When organizations give automatic increases to their employees every year, they are using the entitlement philosophy. Most employees receive the same or nearly the same percentage increase. These automatic increases are often referred to as cost-of-living raises, even if they are not tied specifically to economic indicators.

Performance Philosophy: A pay-for-performance philosophy assumes that compensation decisions reflect performance differences. Organizations using this philosophy do not guarantee additional compensation simply for completing another year of service. Instead, pay and incentives are structured to reward performance differences (quantity, quality, speed of work, customer satisfaction, and so forth) among employees.

PTS: 1 NAT: BUSPROG: Analytic TOP: Strategic Compensation Decisions PAGE: 146

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

4. Describe two motivation theories and their relationship with compensation.

ANS: Expectancy theory and equity theory are especially relevant to the perceptions employees have of the total rewards provided by the organization.

Expectancy Theory: Expectancy theory says that an employee’s motivation is based on several linked concepts. This theory emphasizes the importance of finding valued rewards for the employee. Rewards that are not appreciated by the employee have little power to motivate performance. Additionally, a break between the promise and delivery of the reward will decrease motivation. Managers who understand the key linkages in these expectations can better monitor employee motivation and adjust reward systems accordingly.

Equity Theory: The equity theory of motivation states that individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. These referent others are workers that the individual uses as a reference point to make these comparisons. Inputs include time, effort, loyalty, commitment, skill, and enthusiasm. Outcomes include pay, job security, benefits, praise, recognition, and thanks. Individuals who believe that they are not being treated fairly attempt to restore equity by adjusting inputs or changing outcomes.

PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 148–149

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

5. Discuss compensation fairness and equity.

ANS: Most people work for monetary rewards. Whether they receive base pay or variable pay, the extent to which employees perceive their compensation to be fair often affects their performance and how they view their jobs and their employers.

External Equity: If an employer’s rewards are not viewed as equitable compared to other organizations, the employer is likely to experience higher turnover. This also creates greater difficulty in recruiting qualified and high-demand individuals.

Internal Equity: Internal Equity means that employees are compensated fairly with regard to the knowledge, skills, and abilities (KSAs) they use in their jobs, as well as their responsibilities, accomplishments, and job performance. Employees continually assess their effort/reward ratio in comparison to coworkers. Two key issues—procedural justice and distributive justice—are particularly important to internal equity. Procedural justice is the perceived fairness of the process and procedures used to make decisions about employees, including their pay. A related issue is distributive justice, the perceived fairness in how rewards are distributed. To address concerns about both types of justice, some organizations establish compensation appeals procedures.

Pay Secrecy: Another equity issue concerns the degree of secrecy organizations have regarding their pay systems. Pay information that may be kept secret in “closed” systems relates to information about individual pay amounts, pay raises, and incentive payouts. Some firms have policies that prohibit employees from discussing their pay with other employees, and violations of these policies can lead to disciplinary action.

PTS: 1

DIF:

Moderate

NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 149

STA: DISC: HRM KEY: Bloom's: Knowledge

6. Describe market competitive compensation.

ANS:

Some basic statistical analysis is needed to determine the competitiveness of a company’s reward practices. Whether an organization’s total reward practices are competitive has a significant impact on employees’ views of compensation fairness. Providing competitive compensation to employees is a concern for all employers. Organizations face the challenge of whether to adopt

practices common in an industry or to differentiate the firm by using novel or distinct compensation practices. Many organizations establish policies about where they wish to be positioned in the labor market using a quartile strategy. The quartile strategy reflects the overall market position where the organization sets its compensation levels.

Lag-the-Market Strategy: An employer using a first-quartile strategy chooses to “lag the market” by paying below market levels for several reasons. If the employer is experiencing financial

difficulties it may be unable to pay more. Also, when an abundance of workers is available, particularly those with lower skills, a below-market approach can be used to attract sufficient workers at a lower cost. The downside of this strategy is that it increases the likelihood of higher worker turnover and lower employee morale.

Lead-the-Market Strategy: A third-quartile strategy uses an aggressive approach to “lead the market.”

This strategy generally enables a company to attract and retain sufficient workers with the required capabilities and be more selective when hiring. Because it is a higher-cost approach, organizations often look for ways to increase the productivity of employees receiving above-market wages.

Match-the-Market Strategy: Most employers position themselves in the second quartile (median), the middle of the market, as determined by pay data from surveys of other employers’ compensation plans. Choosing this level attempts to balance employer cost pressures and the need to attract and retain employees by providing compensation levels that “meet the market” for the employer’s jobs.

PTS: 1 NAT: BUSPROG: Analytic TOP: Compensation System Design Issues PAGE: 150–151

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

7. Describe the different methods of job evaluation.

ANS: Job evaluation looks at pay levels within the company, and it uses relative comparisons to determine the worth of jobs in an organization. Employers can adopt one of several alternate methods.

The ranking method is a simple system that places jobs in order, from highest to lowest, by their value to the organization. This is a qualitative method in which the entire job is considered rather than individual components. The ranking method generally is more appropriate in a small organization having relatively few jobs. For example, the ranking method might be used at a small family owned dry cleaning shop with only two or three distinct job titles.

The classification method is often used in public-sector organizations. Descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. A major difficulty with this method is that subjective judgments are needed to develop the class descriptions and to place jobs accurately in them.

The factor-comparison method is a complex quantitative method that combines the ranking and point factor methods. Organizations that use this method must develop their own key jobs and factors. The factor-comparison method is time-consuming and difficult to use, which accounts for its limited popularity in organizations.

The most widely used job evaluation method is the point factor method that looks at compensable factors in a group of similar jobs and assigns weights, or points, to them. A compensable factor identifies a dimension that is part of every job and can be rated for each job. The point factor method is the most popular because it is relatively simple to use and it considers the components of a job rather than the total job. However, point factor systems have been criticized for reinforcing traditional organizational structures and job rigidity. Although not perfect, the point factor method is generally better than the ranking and classification methods because it quantifies job elements. Compensable factors are derived from job analysis and reflect the nature of different types of work performed in the organization.

While the point factor method has served employers well for many years, the trend is moving to a more externally focused approach. More companies are moving to market pricing, which uses market pay data to identify the relative value of jobs based on what other employers pay for similar jobs. Key to market pricing is identifying relevant market pay data for jobs that are good “matches” with the employer’s jobs, geographic considerations, and company strategies and philosophies about desired market competitiveness levels. The switch to market pricing as part of strategic compensation decisions can ensure market competitiveness of compensation levels and practices.

PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 152–153

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

8. Describe Internet-based pay information and pay surveys.

ANS: Internet-Based Pay Information: HR professionals can access a wide range of pay data online.

Employment-related website such as salary.com and glassdoor.com provide data gathered from companies and employees. Use of these sources requires caution because their accuracy and completeness may not be verifiable or may not be applicable to individual firms and employees.

Employees have also discovered online salary information and may bring Internet data to HR professionals or their managers and to determine their current pay is different from the pay reported on these websites. Responding to employee questions requires addressing many areas. Salary.com includes sample explanations on its website including the following: • Job titles and responsibilities: Compare the full job description, not just job titles and brief job summaries on the web sites.

• Experience, KSAs, and performance: Most pay survey data on the Internet are averages of multiple companies and of multiple employees in those companies with varying experience, KSA levels, and performance.

• Geographic differences: Many pay survey sites on the Internet use geographic index numbers, not actual data from employers in a particular area.

• Company size and industry: Pay levels may vary significantly by company size, with smaller firms often having lower pay. Also, pay levels may be lower in certain industries, such as retail and nonprofits.

• Base pay versus total compensation: Employers have different benefits and incentive compensation programs. However, Internet data usually reflect only base pay amounts.

Using Pay Surveys: The proper use of pay surveys requires evaluating many factors to determine if the data are relevant and valid. The following questions should be answered for each survey: • Participants: Does the survey cover a realistic sample of the employers with whom the organization competes for employees?

• Broad-based: Does the survey include data from employers of different sizes, industries, and locales?

• Timeliness: How current are the data (when was the survey conducted)?

• Methodology: How established is the survey, and how qualified are those who conducted it?

• Job matches: Does the survey contain job summaries so that appropriate matches to job descriptions can be made?

• Details provided: Does the survey report on base pay, incentive pay, and other elements of compensation separately for comparison of the reward mix?

PTS: 1 NAT: BUSPROG: Analytic TOP: Developing a Base Pay System PAGE: 153–154

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

9. Discuss individual pay.

ANS: Once pay grades and pay ranges have been established, pay can be set for each individual employee.

Setting a range for each pay grade gives flexibility by allowing individuals to progress within a grade instead of having to move to a new grade each time they receive a raise. A pay range also allows managers to reward employees based on performance while maintaining the integrity of the pay system. Regardless of how well a pay structure is constructed, there can be occasions when an employee is paid outside of the range because of past pay practices, different levels of experience, or performance. There are risks in allowing these situations to persist as they are evidence of poor pay administration and might lead to claims of pay inequities.

Red-Circled Employees: A red-circled employee is an employee who is paid above the range for the job. The person would be red-circled and proper administration of the pay system would make the employee ineligible for a pay increase. Several approaches can be used to bring a red-circled employee’s pay into line. Although the fastest way would be to cut the employee’s pay, that

approach is not recommended and is seldom used. Instead, the employee’s pay may be frozen until the pay range is adjusted upward. Another approach is to give the employee a small lump-sum payment but not adjust the pay rate when others are given raises. Of course, an employee being paid above the maximum range is an indicator that either the pay ranges are not keeping pace or the employee should be directed to development opportunities that will lead to a promotion to a job in a higher pay grade.

Green-Circled Employees: An individual whose pay is below the range for a job is a green-circled employee. Promotion is a major contributor to this situation. Green-circled problems might also result from opportunistic hiring when employees are earning below-market pay at their former employer.

Generally, it is recommended that the satisfactory green-circled individual receive fairly rapid pay increases to reach the pay grade minimum. More frequent increases can be used if the minimum is a great deal above the incumbent’s current pay.

Pay Compression: One major problem many employers face is pay compression, which occurs when pay differences among individuals with different levels of experience and performance become small.

Pay compression is frequently a result of labor market pay levels increasing faster than current employees’ pay adjustments. Another challenge is that, in response to shortages of particular job skills in a highly competitive labor market, companies may have to pay higher amounts to hire people with those scarce skills.

PTS: 1 NAT: BUSPROG: Analytic TOP: Pay Structures PAGE: 157–158

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

10. Describe performance-based pay increases.

ANS: Some employers have shifted to more pay-for-performance philosophies and strategies. Consequently, they have adopted the following means to provide employees with performance-based increases.

Targeting High Performers: This approach focuses on providing the top-performing employees with significantly higher pay raises. Some organizations target the top 10% of employees for significantly greater increases while providing standard increases to the remaining satisfactory performers.

The primary reason for having such differentials is to reward and retain critical high-performing individuals. Key to rewarding exceptional performers is identifying how much their performance exceeds normal work expectations. Standard increases for average performers are usually aligned with labor market pay adjustments, keeping those individuals at a competitive level. Lower performers are given less because of their performance issues, which “encourages” them to either improve their deficiencies or leave the organization.

Integrating performance appraisal ratings with pay changes is done through the development of a pay adjustment matrix, or merit-based performance matrix. A pay adjustment matrix reflects an employee’s upward movement in an organization. The matrix considers two factors—the employee’s level of performance as rated in an appraisal and the employee’s position in the pay range (their current pay level quartile), which is often related to experience and tenure. An employee’s placement on the chart determines his or her recommended pay increase. Matrices can be constructed to reflect the specific pay-for-performance policies and philosophy in an organization and are typically revised based on the budgeted increase level. The general objective is for all employees to be paid at approximately the pay range midpoint. To determine each individual employee’s standing in relationship to the midpoint, many organizations use a value called the compa-ratio. The compa-ratio is calculated by dividing the individual’s pay rate by the midpoint of the pay range.

PTS: 1 NAT: BUSPROG: Analytic TOP: Determining Pay Increases PAGE: 158–159

DIF: Moderate STA: DISC: HRM KEY: Bloom's: Knowledge

Chapter 8—Variable Pay, Executive Compensation, and Benefits MULTIPLE CHOICE 1. Variable pay is _____. a. compensation that is tied to the employee’s performance b. compensation that is tied to the employee’s seniority c. compensation that is tied to the employee’s ethnicity d. compensation that is tied to the employee’s qualification ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 163

2. Which of the following is the best example of variable pay? a. Basic pay b. Conveyance allowance c. Severance pay d. Incentive ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 163

3. In a straight piece-rate system, wages are determined by: a. dividing the number of units produced by the piece rate for one unit. b. multiplying the number of units produced by the piece rate for one unit. c. adding the piece rate for one unit by the number of units produced. d. dividing the piece rate for one unit by the number of units produced.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Individual Incentives PAGE: 165

4. A differential piece-rate system pays employees: a. one piece-rate wage for all units produced irrespective of employee productivity or work output. b. one piece-rate wage for units produced up to a standard output and the employee is not paid for units produced over the standard. c. one piece-rate wage for units produced up to a standard output and the employee is compensated through nonmonetary incentives for units produced over the standard. d. one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Individual Incentives PAGE: 165

5. Which of the following is an example of massive kinked bonus? a. A sponsor rewarding an athlete only in the case of victory at an event b. An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity c. A sponsor rewarding an athlete for participation in an event d. An organization rewarding an employee for referring someone who is later hired

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Individual Incentives PAGE: 165

6. Which of the following best exemplifies spot bonus? a. An organization giving a one piece-rate wage for all units produced irrespective of employee productivity b. An organization rewarding an employee for installing a software upgrade, which was a very demanding task c. A sponsor rewarding an athlete for participation in an event d. An organization rewarding an employee for referring someone who is later hired ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Individual Incentives PAGE: 165

7. Which of the following is true of spot bonuses? a. They are only given in the form of nonmonetary incentives. b. They can be awarded only during appraisals. c. They can be given for extra time worked. d. They are given to a team and not to individual employees.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Individual Incentives PAGE: 165

8. Which of the following is the most commonly used frequency of distributing team/group incentives? a. Monthly b. Semiannually c. Annually d. Quarterly ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 166

9. Gainsharing is the system of _____. a. treating all employees as equals irrespective of their productivity and the gains they bring b. sharing with employees the gains in profits and productivity equally c. rating employees on the basis of their productivity and the profits they bring d. sharing with employees greater-than-expected gains in profits and productivity ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 167

10. The focus of gainsharing is to _____. a. decrease discretionary efforts b. decrease pay variances c. increase discretionary efforts d. increase pay variances ANS: C PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Group/Team Incentives

KEY: Bloom's: Knowledge

PAGE: 167

11. Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system.

Which of the following is true of Team Spark LLC? a. It provided group incentives; now it provides individual incentives. b. It provided individual incentives; now it provides group incentives. c. It provided group incentives; now it provides organizational incentives. d. It provided individual incentives; now it provides organizational incentives.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 165, 167

12. Which of the following is typically classified as an organizational incentive? a. Commissions b. Group team results c. Employee stock plans d. Cost reductions ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 167

13. AirCar LLC, a producer of consumer electronics, provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC? a. It provided group incentives; now it provides organizational incentives. b. It provided individual incentives; now it provides group incentives. c. It provided individual incentives; now it provides organizational incentives. d. It provided organizational incentives; now it provides individual incentives.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 165, 167

14. Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC? a. It provided individual incentives; now it provides group incentives. b. It provided individual incentives; now it provides organizational incentives. c. It provided group incentives; now it provides individual incentives. d. It provided organizational incentives; now it provides individual incentives.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Variable Pay: Incentives for Performance PAGE: 164, 167

15. RedCat LLC, a footwear manufacturing company, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing with profit sharing. Which of the following is true of RedCat LLC? a. It provided individual incentives; now it provides group incentives. b. It provided organizational incentives; now it provides individual incentives. c. It provided individual incentives; now it provides organizational incentives. d. It provided group incentives; now it provides organizational incentives.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 166–167

16. Which of the following statements is true of discretionary efforts? a. It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired. b. It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. c. It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job. d. It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 167

17. Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC? a. It provided organizational incentives; now it provides individual incentives. b. It provided organizational incentives; now it provides group incentives. c. It provided organizational incentives; now also it provides the same. d. It provided individual incentives; now also it provides the same.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 167–168

18. Which of the following is a disadvantage of profit sharing plans? a. Employees must trust that management will accurately disclose financial and profit information. b. Employees are taxed heavily on the income that they generate from profit sharing plans. c. Employees cannot access the funds that they receive from profit sharing plans for up to three years. d. Employers get little or no rebate on income tax for choosing profit sharing plans.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 168

19. Stock option plans give employees the right to purchase: a. an unlimited number of shares of company stock at a specified exercise price for a limited period of time. b. an unlimited number of shares of company stock at a specified exercise price for an unlimited period of time. c. a fixed number of shares of company stock at a specified exercise price for a limited period of time. d. a fixed number of shares of company stock at a specified exercise price for an unlimited period of time.

ANS: C PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Organizational Incentives

KEY: Bloom's: Knowledge

PAGE: 168

20. In a stock option plan, if the market price of the stock exceeds the exercise price, _____. a. employees can then exercise the option and buy the stock b. employees have to purchase the stock at the new price c. employees have to forfeit their claims to the company shares d. employees will make a loss through stock ownership ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 168

21. Which of the following is an advantage of establishing employee stock ownership plans? a. Employees are not dependent on the employers for their retirement benefits. b. Firms can receive favorable tax treatment. c. Firms have lesser control over organizational productivity. d. The employees can purchase shares of company stock for an unlimited period of time.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 168

22. Which of the following is a metric of sales programs in variable pay plans? a. Return on investment b. Turnover costs c. Accident rates d. Increase in market share ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Organizational Incentives PAGE: 168

23. Which of the following is a metric of human resources in variable pay plans? a. Revenue growth b. Employee satisfaction c. Customer satisfaction d. Return on investment ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Comprehension

DIF: Challenging TOP: Organizational Incentives PAGE: 168

24. According to the provisions of the _____, publicly listed companies now must allow shareholders to vote on executive compensation. a. Sarbanes-Oxley Act b. Dodds-Frank Act c. Lilly Ledbetter Fair Pay Act d. Walsh-Healy Public Contracts Act ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

25. The “clawbacks” provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements. a. Sarbanes-Oxley Act b. Dodds-Frank Act c. Lilly Ledbetter Fair Pay Act d. Walsh-Healy Public Contracts Act ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

26. _____ are special benefits—usually noncash items—for executives. a. Executive Salaries b. Base Salaries c. Perquisites d. Golden Parachutes ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

27. _____ refer to the compensation given to an executive if he or she is forced to leave an organization. a. Perquisites b. Golden parachutes c. Commissions d. Short-term incentives ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 170

28. Employee benefits can be constructively viewed as a(n): a. intangible plan that does not affect the costs borne by a company. b. government-mandated instrument. c. cultural necessity. d. tool for competitive advantage.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

29. In developed countries, _____ are far more likely to provide compulsory health plans for people, regardless of employment status. a. privately owned organizations b. governments c. non-governmental organizations d. unions ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

30. A flexible benefits plan typically: a. allows employees to contribute a percentage of their basic pay to buy benefits in addition

to the employer’s basic package. b. continuously updates the benefit options provided by an employer according to the demands and requirements of employees. c. provides flexibility in choosing the time of the year when employees would like to make use of the benefits provided to them. d. allows employees to select the benefits they prefer from options established by the employer.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Benefits PAGE: 171

31. A situation in which only higher-risk employees choose and use certain benefits under a flexible benefits plan provided by employers is referred to as _____. a. concentration of risk b. perceived vulnerability c. adverse selection d. skewed distribution effect ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Benefits PAGE: 171

32. Which of the following is a disadvantage of providing flexibility in benefit choice? a. The flexible benefits plans do not cover higher-risk employees. b. There is a risk that employees may choose an inappropriate benefits package. c. The flexible benefits plans are typically discriminatory in nature. d. There is a risk that these plans would increase the attrition rate.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Managing Benefits PAGE: 171

33. Which of the following statements is true of part-time employees? a. Anti-discrimination laws enable part-time employees to receive the same benefits as fulltime employees are offered. b. Most employers do not provide any part-time employee benefits, except some paid time off. c. Part-time employees typically make no effort to attain benefits because they are covered by their spouse’s or parents’ insurance policies. d. Most employers provide part-time employees medical benefits, but no time-off benefits because these employees already work on a short schedule.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Managing Benefits PAGE: 171

34. A problem with providing flexibility in benefit choice is that: a. it does not cover higher-risk employees. b. it increases the risk of adverse selection by employees. c. it is typically discriminatory in nature. d. it increases attrition rates.

ANS: B PTS: 1 NAT: BUSPROG: Analytic

DIF: Moderate TOP: Managing Benefits

KEY: Bloom's: Comprehension

PAGE: 171

35. A vendor that provides administrative services to an organization is referred to as _____. a. part-time employee. b. whistle-blower. c. mediator. d. third-party administrator ANS: D PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 172

36. Dennis, the HR head of a company, is trying to convince the top management of the company to approve a wellness program. Which of the following, if true, would be a strong argument in favor of the program? a. The program would exempt the company from other employee benefits. b. The program would help in employee retention. c. The program would be a contribution to the society. d. The program would reduce the number of existing lawsuits against the company.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Family Oriented Benefits PAGE: 172

37. Cost sharing plans: a. involve employers sharing the costs of government-mandated health insurance plans with the government. b. require employees to pay a larger proportion of their health benefits costs. c. require insurance firms to share profits with employers who purchase insurance plans. d. allow employees to track their benefits balances as and when required.

ANS: B PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 172

38. Medicare is the health insurance program that was implemented by the government in 1965 to provide medical care primarily for: a. disabled workers. b. government employees. c. people over the age of 65. d. cancer patients.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legally Required Benefits PAGE: 174

39. Which of the following is a legally-required employee benefit that employers must provide? a. Wellness programs b. Unemployment compensation c. Education assistance d. Public-service leave ANS: B

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge

TOP: Benefits Administration, Technology, and PAGE: 175

40. Which of the following best describes workers' compensation? a. Compensation provided to workers after retirement b. Benefits provided to persons injured on the job c. Benefits provided to workers who survive terminal diseases d. Total pay package that includes both basic wages and benefits ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legally Required Benefits PAGE: 175

41. Jim, a 23 years old factory worker, was seriously injured when a hammer fell on his head while he was at his work station. Jim hadn’t worn his safety helmet at the time of the accident even though the safety rules of the company necessitate the use of safety helmets at all times. Which of the following is true? a. Jim can claim Social Security benefits. b. Jim will not receive workers’ compensation because he is responsible for the injury. c. Jim will receive severance payment when he returns to work after his injuries are healed. d. Jim will receive workers’ compensation even though he is responsible for the injury.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Legally Required Benefits PAGE: 175

42. Workers' compensation programs are typically funded: a. at the expense of the employer. b. at the expense of all the stake holders. c. by the value-added taxes levied by the federal government on specific goods. d. by the contributions made to state governments by both employees and employers.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legally Required Benefits PAGE: 174–175

43. During times of widespread economic hardship: a. employees who are not actively seeking employment become ineligible for unemployment compensation. b. the government might increase the number of weeks during which workers receive unemployment compensation. c. employers stop contributing to unemployment compensation funds. d. weekly payments as part of the unemployment compensation are reduced by half.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legally Required Benefits PAGE: 175

44. Every company is required to pay an unemployment tax that is based on the: a. type of industry and its seasonal fluctuations in employment. b. total number of employees covered under workers’ compensation. c. employer’s total payroll cost. d. number of claims filed by ex-employees.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legally Required Benefits PAGE: 175

45. Claudia, a legal assistant, has been vested by her employer after having worked with the employer for ten years. This implies that: a. she will receive the amounts contributed by both the employer and herself when she retires. b. she can transfer her entire pension fund balances to a new employer’s plan if she moves to a new company. c. she will receive the maximum amount of pension available under her company’s retirement plan when she retires. d. she will receive the funds her employer has contributed to the retirement plan only if she is a member of the company while retiring.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Retirement Benefits PAGE: 176

46. Which of the following is true of defined benefit pension plans? a. The investment risk is borne by the employee. b. The amount of benefit paid at retirement is pre-determined. c. They are most common in private sector and nonunionized workforces. d. They typically do not guarantee benefits.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Retirement Benefits PAGE: 176

47. A pension plan in which retirement benefits are based on the accumulation of annual company contributions plus interest credited each year is called a(n) _____ plan. a. auto-enrollment b. defined benefit c. cash balance d. defined contribution ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Retirement Benefits PAGE: 176

48. What is the minimum retirement age for employees to receive maximum Social Security benefits? a. 64 b. 65 c. 66 d. 67 ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legally Required Benefits PAGE: 177

49. According to the 1986 amendment to the Age Discrimination in Employment Act (ADEA): a. most employees cannot be forced to retire at a specific age. b. workers should contribute to the defined benefit plans. c. equal treatment should be given to older workers in severance situations. d. employers can be sued by employees for age discrimination.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Regulation of Retirement Benefits PAGE: 177

50. Which of the following is true about the Older Workers Benefit Protection Act (OWBPA)? a. It has set the maximum retirement age for employees to be eligible for retirements benefits at 60 years. b. The Age Discrimination in Employment Act was enacted in 1990 as an amendment to the OWBPA. c. It sets forth certain conditions that must be met when older workers are offered early retirement. d. The Older Workers Benefit Protection Act did not cover employees in the government sector.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Regulation of Retirement Benefits PAGE: 177

51. Which of the following is a provision of the Affordable Care Act? a. Requires firms with 30 or more employees to provide health care coverage b. Requires only employers to contribute and maintain a minimum essential coverage c. Extends dependent coverage up to age 26 d. Eliminates coverage for preventive services ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 178

52. Meredith, the general manager of an IT firm, is planning to introduce certain new strategies to control and reduce the health care benefit costs to her company. Which of the following is most likely to be included in her list of strategies? a. Decreasing copayments b. Eliminating high-deductible plans c. Switching to consumer-driven health plans d. Avoiding managed care ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Health Care Benefits PAGE: 179–180

53. Linda works in a company that pays for the medical insurance of all its employees. However, every time she visits her physician, she is charged $25. Her medical insurance covers the rest of the fee. This is an example of: a. managed care. b. consumer-driven health plan. c. a copayment. d. an HMO. ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Health Care Benefits PAGE: 179

54. Which of the following is one of the approaches taken by employers offering health care benefits to control and reduce their costs?

a. b. c. d.

Decreasing deductibles and copayments Decreasing high-deductible plans Increasing employee contributions Providing unlimited family coverage

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Health Care Benefits PAGE: 179

55. _____ typically consists of approaches that monitor and reduce medical costs through restrictions and market system alternatives. a. Utilization review b. Managed care c. A medical review program d. A medical option plan ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 179

56. Preferred provider organizations (PPO) and health maintenance organizations (HMO) _____. a. primarily aim at reducing health care costs paid by employees by putting the burden on the employers b. does not provide health care services to the private sector organizations c. increase the cost borne by companies providing health care benefits d. are the most common forms of managed care ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 179–180

57. In a _____, an employer makes contributions to help employees cover their health-related expenses. a. consumer-driven health plan b. cash balance plan c. self-directed health plan d. managed care plan ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 180

58. What are the requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA) with respect to health care? a. Employers with more than 50 employees must provide medical insurance for all full-time employees. b. Most employers with 20 or more employees must offer extended health care coverage to certain groups of plan participants. c. Widowed or divorced spouses and dependent children of former or current employees need not be offered health care coverage. d. Employees who are terminated need not be offered health care coverage.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Health Care Benefits PAGE: 180

59. The Health Insurance Portability and Accountability Act (HIPAA): a. requires employers with more than 50 employees to provide medical insurance for all fulltime employees. b. requires employers to offer health coverage to contingent workers if the workers pay 50% of the employer’s cost. c. states that employers must offer extended health care coverage to employees even after they leave the organization. d. allows employees to switch health insurance from one company to another to get new health coverage, regardless of preexisting conditions.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Health Care Benefits PAGE: 181

60. _____ is the federal law that ensures the privacy of employee medical records. a. HIPAA b. ADEA c. ERISA d. FMLA ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 181

61. Karen, a diabetic patient, has quit her job as an internal auditor with a bank and has joined another company as the assistant CFO. Which of the following laws would enable Karen to switch her health insurance plan from her former employer to her new employer? a. ERISA b. FMLA c. ADEA d. HIPAA ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Health Care Benefits PAGE: 181

62. How do insurance plans offered by employers benefit employees even when employers do not pay any of the costs? a. Companies that do not contribute to insurance costs must offer special benefits instead. b. Employees are offered insurance plans at lower rates through group programs. c. Employers, though they appear to have no costs, make some indirect legal contribution. d. The amount paid by employees are tax-free only when employers make no contribution.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Financial Benefits PAGE: 181

63. Glen, a line manager, is informed that his company would be introducing a stock purchase plan for employees. This implies that: a. the employer will provide company stocks to employees as incentives. b. Glen will be given a few company stocks for free, which he can later sell at the market rate. c. Glen can buy shares in the company at a discount. d. Glen would be provided financial counseling on the purchase and sale of stocks.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Financial Benefits PAGE: 182

64. Which of the following is a voluntary employee benefit that employers may provide in addition to legally required benefits? a. Medical plans b. Workers’ compensation c. Education assistance d. Social security ANS: C PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge 65.

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 182

The Worker Adjustment and Retraining Notification Act (WARN) of 1988: a. requires employers to give 20 days’ notice of mass layoff or plant closings. b. requires employers to give 30 days’ notice of mass layoff or plant closings. c. mandates the payment of severance pay to employees. d. does not mandate the payment of severance pay to employees.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Financial Benefits PAGE: 182

66. Which of the following statements is true of the Family and Medical Leave Act? a. It requires that employers allow employees to take a maximum of 12 weeks of paid leave for caring for a spouse, child, or parent with a serious health condition. b. It requires that employers allow employees to take a maximum of 12 weeks of unpaid, job-protected leave for foster care placement of a child. c. It requires that employers allow employees to take a maximum of 12 weeks of unpaid leave during the birth of a child but not for the adoption of a child. d. It requires that employers allow employees to take a maximum of 12 weeks of paid, jobprotected leave babysitting their 5–7 year old children during their vacations.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension 67.

DIF: Moderate TOP: Family Oriented Benefits PAGE: 183

The Family and Medical Leave Act of 1993 requires that employers allow eligible employees to take a maximum of _____ during any 12-month period. a. 12 weeks of paid leave b. 24 weeks of paid leave c. 12 weeks of unpaid leave d. 24 weeks of unpaid leave ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Family Oriented Benefits PAGE: 183

68. The Family and Medical Leave Act (FMLA) defines a _____ as one requiring in-patient care or continuing treatment by a health care provider, for medical problems that exist beyond three

days. a. medical leave event

b. serious health condition c. life-threatening illness d. qualifying event ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Family Oriented Benefits PAGE: 183

69. Why do a relatively low percentage of men take paternity leave? a. Men who are not single parents are not covered in the Family and Medical Leave Act. b. Employers can deny FMLA leave if the employee is not replaceable, and men tend to hold jobs that are more critical than women do. c. It is not considered socially acceptable for men to stay home for child-related reasons. d. Only one parent per family can take FMLA leave and they are usually taken by the mother.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Paid Time-off Benefits PAGE: 185

70. Clara, a receptionist, goes to work despite being sick to earn extra pay for not taking any sick leave.

The extra pay she’ll receive is called: a. sick leave rebate. b. benefit pay. c. well pay. d. sick-leave pay.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Paid Time-off Benefits PAGE: 185

71. A program that combines sick leave, vacations, and holidays into a total number of hours or days that employees can take off with pay is called a(n) _____ plan. a. consolidated time off b. flexible benefits c. accumulated leave d. paid time-off ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Paid Time-off Benefits PAGE: 186

TRUE/FALSE 1. Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 163

2. Nonfinancial rewards cannot be used as incentives in pay-for-performance plans.

ANS: F

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Variable Pay: Incentive for Performance PAGE: 164

3. The most common means of providing individual variable pay are profit sharing plans and employee stock plans.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 164

4. Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Individual Incentives PAGE: 165

5. A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Individual Incentives PAGE: 165

6. The focus of gainsharing is to increase “discretionary efforts.”

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 167

7. Profit sharing distributes some portion of organizational profits to employees.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Incentives PAGE: 167

8. The most prevalent forms of organization-wide incentives are piece-rate systems, sales commissions, and individual bonuses.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 165

9. A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 168

10. Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Incentives PAGE: 168

11. According to the Dodds-Frank Act, publicly listed companies now must allow shareholders to vote on executive compensation.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

12. The “clawbacks” provision in Dodds-Frank Act allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Executive Compensation PAGE: 169

13. Supplemental benefit plans are plans that are available to nonexecutive employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

14. Perquisites (Perks) are special benefits, usually noncash items, for executives.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169

15. Compensation given to an executive if he or she is forced to leave an organization is called golden parachute.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 170

16. Most benefits, except for paid time off, are taxed as income to employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

17. Developed nations are far more likely to provide compulsory, government-sponsored health plans for all citizens.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

18. The United States is the only major developed nation that does not guarantee workers paid sick leave.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

19. In the U.S., part-time employees are most likely to receive health and life insurance benefits and paid time off and least likely to receive retirement benefits.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Benefits PAGE: 171

20. Organizations rarely view benefits as an effective retention tool because employees generally have very little understanding of the benefits provided by their employers.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits and HR Strategy PAGE: 172

21. Legally required benefits make up more than half of the total cost of benefits.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 173–174

22. Workers cannot be asked to make financial contributions for coverage under workers’ compensation programs.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legally Required Benefits PAGE: 174–175

23. An employee who is out of work and actively looking for employment can receive up to 26 weeks of pay through unemployment compensation.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legally Required Benefits PAGE: 175

24. In companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Retirement Benefits PAGE: 176

25. Defined contribution pension plans offer employees retirement benefits that are more secure and predictable.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Retirement Benefits PAGE: 176

26. Employees find 401(k) plans unattractive because these plans require employees to pay higher income taxes during working years.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Retirement Benefits PAGE: 176

27. The Employee Retirement Income Security Act (ERISA) gives participants the right to file lawsuits for violations of the law.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Regulation of Retirement Benefits PAGE: 177

28. Increasing the retirement age for employees is a strategy to keep the Social Security program insolvent.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legally Required Benefits PAGE: 177

29. Increases in employer expenditures for health benefits are growing faster than increases in wages for employees.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Knowledge

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 178

30. Copayments are costs that an insured pays for medical treatment.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 179

31. Copayments are paid by insured individuals to cover their entire medical expenses.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Health Care Benefits PAGE: 179

32. An employee would have limited access to a company’s health plan if the employee’s spouse works for another company that offers health insurance.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Health Care Benefits PAGE: 180

33. Divorced spouses and dependent children of former or current employees should be offered extended health care coverage under the COBRA. ANS: T

PTS: 1

DIF: Easy

NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

TOP: Health Care Benefits PAGE: 180

34. The federal government mandates a minimum of two weeks’ severance pay for older employees who are asked to retire early.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Financial Benefits PAGE: 182

35. Only employees who have worked at least 12 months and 1,250 hours in the previous year are eligible for leave under the FMLA. ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Family Oriented Benefits PAGE: 182–183

36. FMLA leave is typically paid and employers are also required to cover the workload for employees on family leave.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Family Oriented Benefits PAGE: 185

37. Employees are more likely to stay with employers who provide child-care and elder-care benefits.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension 38.

DIF: Easy TOP: Family Oriented Benefits PAGE: 184

Union contracts have an impact on the number of paid holidays offered by organizations.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Paid Time-Off Benefits PAGE: 185

39. Unpaid leaves of absence generally do not cost the firm much beyond continued benefits for the employee on leave.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Paid Time-Off Benefits PAGE: 185

40. Research has shown that absenteeism because of illness is lower when employees are not paid for sick time.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Paid Time-Off Benefits PAGE: 185

SHORT ANSWER 1. List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

ANS: The philosophical foundation of variable pay rests on three basic assumptions: 1. Some people or groups contribute more to organizational success than others.

2. Some people perform better and are more productive than others.

3. Employees or groups who perform better or contribute more should receive more compensation.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 163

2. Why do employers use variable pay?

ANS: Employers use variable pay for many reasons. Some of these reasons include the following: 1. Link strategic business goals and employee performance 2. Enhance organizational results and reward employees financially for their contributions 3. Recognize different levels of employee performance through different rewards 4. Achieve HR objectives, such as increasing retention, reducing turnover, recognizing succession training, and rewarding safety 5. Reduce fixed costs PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Variable Pay: Incentive for Performance PAGE: 164

3. List the conditions necessary for the use of individual incentives.

ANS: Individual incentive systems tie personal effort to additional rewards for the individual employee.

Conditions necessary to use individual incentive plans are as follows: 1. Individual performance must be identifiable. 2. Individual competitiveness must be desirable. 3.

Individualism must be stressed in the organizational culture.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Individual Incentives PAGE: 165

4. Describe the two primary ways of distributing group/team incentives.

ANS: The two primary ways for distributing group/team rewards are as follows: 1. Same-size reward for each member: All members receive the same payout, regardless of job level, current pay, seniority, or individual performance differences. This is the most common approach.

2. Different-size reward for each member: Employers vary rewards given to team members depending on such factors as individual contribution to group/team results, current pay, years of experience, or skill levels of jobs performed.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Group/Team Incentives PAGE: 166

5. Define gainsharing.

ANS: The system of sharing with employees greater-than-expected gains in profits and/or productivity is gainsharing. Also called teamsharing or goalsharing, the focus is to increase “discretionary efforts,” which are the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 167

6. Describe the primary objectives of profit sharing plans.

ANS: The primary objectives of profit sharing plans are to increase organizational performance, attract or retain employees, improve product/service quality, enhance employee morale, and focus employees on organizational goals and objectives.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 167

7. What are employee stock ownership plans?

ANS: Employee stock ownership plans are designed to give employees significant stock ownership in their employers.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Organizational Incentives PAGE: 168

8. Explain perquisites.

ANS: Perquisites (Perks) are special benefits—usually noncash items—for executives. In addition, senior managers and executives can receive annual bonuses and certain long-term incentives.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Executive Compensation PAGE: 169–170

9. How is the provision of benefits rather than wages advantageous for employees?

ANS: Providing employees benefits rather than wages can be advantageous for employees because most benefits are not taxed as income to employees. Tax-favored status means that a dollar in employee benefits is actually worth much more to an employee.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Benefits and HR Strategy PAGE: 170

10. John is a part-time employee in a publishing company. Is he eligible to receive benefits?

ANS: John is eligible to receive benefits. Some employers provide benefits to part-time employees. Some other employers do not provide part-time employee benefits, except some paid time-off. Part-time employees are most likely to receive paid time off and retirement benefits and least likely to receive health and life insurance benefits. Part-time employees who receive benefits usually do so in proportion to the percentage of full-time work they provide.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Easy TOP: Managing Benefits PAGE: 171

11. Why do companies outsource benefits administration?

ANS: With the myriad of benefits, many organizations need to make coordinated efforts to administer benefits programs, which is why it is necessary to outsource benefits administration. Third-party administrators (TPA) are vendors that provide enrollment, recordkeeping, and other administrative services to companies. Outsourcing is on the rise and many organizations use TPAs to help manage costs and to provide expertise and efficiency in plan administration.

PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Comprehension

DIF: Easy TOP: Benefits Administration, Technology, and PAGE: 172

12. George is unemployed and is actively searching for a job. Is there any legal provision regarding benefits that can help George?

ANS: George is eligible for receiving unemployment compensation. Unemployment compensation was established as part of the Social Security Act of 1935 to provide a minimum level of benefits for workers who are out of work. Each U.S. state operates its own unemployment compensation system and benefit levels and job-search provisions differ significantly from state to state. Each company pays an unemployment tax that is based on an “experience rate,” which reflects the number of claims filed by workers who leave. Under normal circumstances, an employee who is out of work and actively looking for employment can receive up to 26 weeks of pay at the rate of 50% to 80% of normal pay.

Most employees are eligible. However, workers fired for misconduct or those not actively seeking employment are generally ineligible. During times of widespread economic hardship, the government might increase the number of weeks during which eligible workers receive benefits. In recent years, unemployed workers collected benefits for up to 99 weeks.

PTS: 1

DIF: Challenging

NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

TOP: Legally Required Benefits PAGE: 175

13. Define the concepts of vesting and portability.

ANS: Vesting is a right associated with retirement plans. It means that an employee has a benefit that cannot be taken away. If employees resign or are terminated before they have been employed long enough to be vested, no pension rights accrue to them except the funds they have contributed. If employees work for the required number of years to be fully vested, they retain their pension rights and receive the amounts contributed by both the employer and themselves.

Another feature of some retirement plans is portability. In a portable plan, employees can move their retirement benefits from one employer to another. Instead of requiring workers to wait until they retire to move their retirement plan benefits, once workers have vested in a plan they can transfer their fund balances to other retirement plans if they change jobs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Retirement Benefits PAGE: 175–176

14. What are the legal regulations regarding early retirement in U.S. companies?

ANS: Many pension plans include provisions for early retirement to allow workers to retire before the normal retirement age. Phased retirements are alternatives being used by individuals and firms.

Historically, employees either worked full time or were retired full time. Phased retirement allows employees to bridge between these two states while offering the company a chance to retain important knowledge and skills. Buyout programs often include incentives such as outplacement services, health care benefits, and a severance payment.

The Older Workers Benefit Protection Act (OWBPA) was enacted in 1990 as an amendment to the ADEA. It requires equal treatment for older workers in early retirement or severance situations. It also sets specific criteria that must be met if older workers are asked to sign waivers promising not to sue for age discrimination in exchange for severance benefits during layoffs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Regulation of Retirement Benefits PAGE: 177

15. Why are employee contributions to health plans in companies increasing?

ANS: For several decades, the costs of health care have escalated at rates well above those of inflation and increases in workers’ earnings. Consequently, many employers find that dealing with health care benefits is time consuming and expensive. Landmark legislation enacted in 2010 changed health

care in the United States, making insurance available to an additional 32 million people.

Employers offering health care benefits are taking a number of approaches to control and reduce their costs. The most prominent strategies are changing copayments and employee contributions, using managed care, switching to consumer-driven health plans, and increasing health preventive and wellness efforts.

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Health Care Benefits PAGE: 178, 179

16. What are the family oriented benefits offered by employers? Which of these are mandated by the federal government?

ANS: FMLA mandates that employers allow a maximum of up to 12 weeks unpaid job-protected leave for eligible employees during any 12-month period for certain situations. These include: the birth of a child and care for the newborn within one year of birth; adoption or foster care placement of a child; caring for a spouse, child, or parent with a serious health conditions; serious health condition of the employee; military family members who must handle the affairs for military members called to active duty; and 26 weeks leave to care for a military service member injured while on active duty.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Family Oriented Benefits PAGE: 183

17. George, a travel agent, shares some of his unused vacation time with his colleague Sam. Is such an arrangement legal in the U.S.?

ANS: Yes, such an arrangement is legal in the U.S. Some companies have a “use it or lose it” policy whereby employees forfeit any vacation not used during the year. Other companies have policies to “buy back” unused vacation time or they allow employees to donate unused vacation days to a pool that can be used by other workers.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Paid Time-Off Benefits PAGE: 185

18. What are employee-paid group benefits?

ANS: To combat the high cost of benefit programs, some companies offer employees the opportunity to purchase benefits through payroll deductions. The cost for these benefits is typically less than the employee could purchase on his or her own because the buying power of the group reduces the cost.

Adding employee-paid voluntary benefits is becoming a popular cost-effective strategy for many companies. It is part of a trend that gives employees choices but also makes them responsible for selecting and funding the benefits they find valuable.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Paid Time-Off Benefits PAGE: 186

ESSAY 1. Describe the categories of variable pay.

ANS: In designing group/team variable pay, organizations must consider several issues. The main concerns are how and when to distribute the incentives, and who will make decisions about the incentive amounts.

Distribution of Group/Team Incentives: The two primary ways for distributing rewards are 1) the same-size reward for each member or 2) a different-size reward for each member. Employers can vary rewards given to team members depending on factors such as individual contribution to group/team results, current pay, years of experience, or skill levels of jobs performed. The size of the group/team incentive can be determined either by using a percentage of base pay for the individuals or the group/team as a whole, or by offering a specific dollar amount.

Timing of Group/Team Incentives: Firms may specify pay outs to be monthly, quarterly, semiannually, or annually, although the most common period used is annually. Shorter time periods increase the likelihood that employees will see a link between their efforts and the performance results that trigger award payouts. The nature of the teamwork, measurement criteria, and organizational results must all be considered when determining the appropriate time period.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Variable Pay: Incentive for Performance PAGE: 166

2. Describe piece-rate systems.

ANS: The most basic individual incentive systems are piece-rate systems. Under a straight piece-rate system, wages are determined by multiplying the number of units produced (such as garments sewn or service calls handled) by the piece rate for one unit. The wage for each employee is easy to figure, and labor costs can be accurately predicted.

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Individual Incentives PAGE: 165

3. Explain bonuses.

ANS: Individual employees may receive additional compensation in the form of a bonus, which is a one-time payment that does not become part of the employee’s base pay.

A bonus can recognize performance by an employee, a team, or the organization as a whole. A very large all or nothing bonus is called a massive kinked bonus. Another type of bonus that can be awarded at any time is a spot bonus. Spot bonuses are given for extra time worked, extra efforts, or an especially demanding project, and they are often given in cash, gift cards, travel vouchers, or other noncash rewards.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Individual Incentives PAGE: 165

4. Describe the challenges faced by group/team incentives.

ANS:

The difference between rewarding team members equally and rewarding them equitably triggers many of the problems associated with group/team incentives. Rewards distributed in equal amounts to all members may be perceived as unfair by employees who work harder, have more capabilities, or perform more difficult jobs. This problem is compounded when an individual who is performing poorly prevents the group/team from meeting the goals needed to trigger the incentive payment.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Group/Team Incentives PAGE: 166

5 Describe the different types of group/team incentives.

ANS: Group/team reward systems can use different ways of compensating the group. The two most common types of group/team incentives are team results and gainsharing.

Group/Team Results: Results to be measured may include group production, cost savings, or quality improvement. Those results may be rewarded with cash bonuses, group awards, or some other incentive. The results chosen may be part of a balanced scorecard that includes several pertinent results in a combination approach.

Gainsharing: The system of sharing with employees greater-than-expected gains in profits and/or productivity is gainsharing. Also called teamsharing or goalsharing, the focus is to increase “discretionary efforts,” which are the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. To develop and implement a gainsharing or goalsharing plan, management identifies the ways in which increased productivity, quality, and/or financial performance can occur and decide how some of the resulting gains should be shared with employees. Both organizational measures and departmental measures may be targeted, with the weights for gainsharing split between the two categories.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Group/Team Incentives PAGE: 167

6. Explain profit sharing.

ANS: As the name implies, profit sharing distributes some portion of organizational profits to employees.

The primary objectives of profit sharing plans can include the following: 1) 2) 3) 4) 5)

Increase organizational performance Attract or retain employees Improve product/service quality Enhance employee morale Focus employees on organizational goals and objectives

Typically, the percentage of the profits distributed to employees is set by the end of the year before distribution, although both timing and payment levels are considerations that might be determined later. In some profit sharing plans, employees receive their portions of the profits at the end of the year. In others, the payouts are deferred, placed in a fund, and made available to employees at retirement or on their departure from the organization.

Drawbacks of Profit Sharing Plans: There are a number of drawbacks associated with profit sharing plans. First, employees must trust that management will accurately disclose financial and profit information. Second, profits may vary a great deal from year to year, resulting in windfalls or losses beyond the employees’ control. Third, payoffs are generally far removed by time from employees’ individual efforts; therefore, higher rewards may not be obviously linked to better performance.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 167–168

7. Explain employee stock plans.

ANS: Organizational incentive plans can use stock ownership in the organization to reward employees. The goal of these plans is to get employees to think and act like “owners.”

A stock option plan gives employees the right to purchase a fixed number of shares of company stock at a specified exercise price for a limited period of time. If the market price of the stock exceeds the exercise price, employees can then exercise the option and buy the stock.

Firms in many industries have an employee stock ownership plan (ESOP), which is designed to give employees significant stock ownership in their employers. One advantage of establishing an ESOP is that the firm can receive favorable tax treatment on the earnings earmarked for use in the ESOP. Another is that an ESOP gives employees a “piece of the action” so that they can share in the growth and profitability of their firm.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Organizational Incentives PAGE: 168

8. Describe the elements of executive compensation.

ANS: Executives’ total compensation packages consist of much more than just base pay. In addition to salary, many executives are covered by regular benefits plans that are also available to nonexecutive employees, and some may receive supplemental benefits that other employees do not receive.

Perquisites (Perks) are often provided, which are special benefits—usually noncash items—for executives. In addition, senior managers and executives can receive annual bonuses and certain longterm incentives. A stock option gives executives the right to buy stock in a company, usually at an advantageous price. Finally, a golden parachute may be offered, which involves compensation given to an executive if he or she is forced to leave the organization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Executive Compensation PAGE: 169–170

9. How do employee benefits provide competitive advantage to employers?

ANS: A benefit is a tangible indirect reward provided to an employee or group of employees for organizational membership. Benefits often include retirement plans, paid time off, health insurance, life and disability insurance, and many more.

. Benefits can be used to create and maintain a competitive advantage for the organization. While they represent a significant cost, benefits are an important factor in employee commitment and retention.

Attracting and retaining employees and increasing productivity are business objectives that can be enhanced through effective design of benefit programs. Providing employees benefits rather than wages can be advantageous for employees. Most benefits (except for paid time off) are not taxed as income to employees. The tax-favored status means that a dollar in employee benefits is actually worth much more to an employee.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Benefits and HR Strategy PAGE: 170

10. Arexa, a toy manufacturing company, allows its employees to select the benefits that they would like to attain from a list of options established by the company. What are such benefit plans called? What are the disadvantages of using such benefit plans?

ANS: The company is offering flexible benefit plans to its employees. A flexible benefits plan allows employees to select the benefits they prefer from options established by the employer.

A problem with flexibility in benefit choice is that employees may choose an inappropriate benefits package. Another problem can be adverse selection by employees, whereby only higher-risk employees select and use certain benefits. Since many flexible plans have become so complex, they require more administrative time and information systems to track the different choices made by employees. Despite the disadvantages, flex plans will likely continue to grow in popularity.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Managing Benefits PAGE: 171

11. Why is the communication of benefits important for the efficient functioning of a company?

ANS: Employees generally do not know much about the values and costs associated with the benefits that they receive from employers. This is in large measure due to ineffective communication by the company. That means the investment many companies make in employee benefits may not be helping them attract and retain workers.

Consequently, many employers develop special benefits communication systems to inform employees about the monetary value of the benefits they provide. Some companies give individual employees a personal statement that translates benefits into dollar amounts. These statements give employees a snapshot of the total compensation they receive. They help employees to see the “hidden paycheck”— the value of their benefits.

PTS: 1 NAT: BUSPROG: Analytic Communication KEY: Bloom's: Comprehension 12. What is workers’ compensation? Explain.

ANS:

DIF: Moderate TOP: Benefits Administration, Technology, and PAGE: 173

Workers’ compensation provides security benefits to workers who are injured on the job. State laws require most employers to provide workers’ compensation coverage by purchasing insurance from a private carrier, state insurance fund, or self-insurance. Workers’ compensation regulations require employers to give cash benefits, medical care, and rehabilitation services to employees for injuries or illnesses occurring within the scope of their employment. In exchange, employees give up the right to pursue legal actions and awards.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legally Required Benefits PAGE: 174–175

13. Elaborate on the two main types of retirement benefits?

ANS: There are two broad categories of retirement plans: defined benefit plans and defined contribution plans. A traditional pension plan is one in which the employer makes required contributions and the employee receives a defined amount each month upon retirement. Through a defined benefit (DB) plan, employees are promised a pension amount based on age and years of service. Contributions are based on actuarial calculations of the benefits to be paid to employees after retirement and the formula used to determine such benefits. A defined benefit plan gives employees greater assurance of benefits and greater predictability in the amount of benefits that will be available for retirement. These plans reward long service.

In a defined contribution (DC) plan, contributions are made to the plan by the employer and/or employee to fund an account for the employee’s retirement. The key to this plan is the contribution rate; employee retirement benefits depend on fixed contributions and investment earnings. Profitsharing plans, employee stock ownership plans (ESOPs), and 401(k) plans are common defined contribution plans. Because these plans hinge on the investment returns on previous contributions, employees’ retirement benefits are somewhat less secure and predictable. But because of their portability and other plan features, these plans are sometimes preferred by younger, shorter-term employees.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Retirement Benefits PAGE: 176

14. Explain any three laws that affect the retirement plans of employees.

ANS: Employee Retirement Income Security Act (ERISA): This law was enacted in 1974 following widespread criticism of many pension plans. The purpose of this law is to insure that private pension plans meet minimum standards. ERISA requires plans to periodically provide participants with information about the plan features (such as vesting) and funding, benefit accrual amounts, and gives participants the right to file lawsuits for violations of the law.

Age Discrimination in Employment Act (ADEA): This law states that most employees cannot be forced to retire at a specific age. In many employer pension plans, “normal retirement” is the age at which employees can retire and receive full pension benefits. Employers must decide whether individuals who continue to work past normal retirement age (typically 65) are eligible for the standard benefits package provided to active employees under age 65. Changes in Social Security regulations have increased the age for full benefits past age 65, so modifications in policies may occur.

Older Workers Benefit Protection Act: The Older Workers Benefit Protection Act (OWBPA) was enacted in 1990 as an amendment to the ADEA. It requires equal treatment for older workers in early retirement or severance situations. It also sets specific criteria that must be met if older workers are asked to sign waivers promising not to sue for age discrimination in exchange for severance benefits during layoffs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Regulation of Retirement Benefits PAGE: 177

15. Which are the two important U.S. laws that govern issues related to the protection of the health of former workers?

ANS:

Several laws have been enacted to provide protection for employees who leave their employers, either voluntarily or involuntarily. The two most important laws passed that govern issues related to the protection of former workers are COBRA and HIPAA. COBRA Provisions: The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires that most employers with 20 or more full-time and/or part-time employees offer extended health care coverage to certain groups of plan participants. The different groups include employees who voluntarily quit or are terminated, widowed or divorced spouses and dependent children of former or current employees, retirees and their spouses and dependent children whose health care coverage ends, any child who is born or adopted by a covered employee, and other individuals involved in the plan such as independent contractors and agents or directors.

A qualifying event is an event that causes a plan participant to lose group health benefits. Typically, reduction in work hours or loss of employment constitutes a qualifying event for employees. Divorce or death of an employee constitutes a qualifying event for covered family members. When a qualifying event occurs, a complex notification process begins. There are several deadlines that the company and the employee must meet to comply with COBRA requirements. The individual no longer employed by the organization must pay the premiums, but the employer may charge the individual up to 102% of the premium costs. The 2% premium addition generally falls well short of the true cost of providing this coverage.

HIPAA Provisions: The Health Insurance Portability and Accountability Act (HIPAA) of 1996 allows employees to switch their health insurance plans when they change employers and to enroll in health coverage with the new company regardless of preexisting health conditions. The legislation also prohibits group insurance plans from dropping coverage for a sick employee and requires them to make individual coverage available to people who leave group plans. One of the greatest impacts of HIPAA comes from its provisions regarding the privacy of employee medical records. These provisions require employers to provide privacy notices to employees. They also regulate the disclosure of protected health information without authorization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Health Care Benefits PAGE: 180–181

16. Discuss the financial benefits that companies commonly offer their employees?

ANS: Companies may offer employees a wide range of special benefits that provide financial support.

Employers find that such benefits can be useful in attracting and retaining employees. Workers like receiving these benefits, which often are not taxed as income. The following are a few such benefits:

Insurance Benefits: In addition to health care insurance, some companies provide other types of insurance. These benefits offer major advantages for employees because many employers pay some or all of the costs. Even when employers do not pay any of the costs, employees still benefit because of the lower rates available through group programs. The most common types of insurance benefits are life insurance, disability insurance, long-term care insurance, and legal insurance.

Financial Services: Benefits also include credit unions sponsored by employers that provide saving and lending services for employees. Purchase discounts allow employees to buy goods or services from their employers at reduced rates; often in a company store. Discount programs and club memberships may also be offered to allow employees to purchase goods from local vendors or “club” stores at lower rates. Employee thrift plans, savings plans, or stock purchase plans may also be available. To illustrate, in a stock purchase plan, employees may buy shares in the company at a discount, or the company pays the brokerage fees. Financial planning and counseling are especially valuable services for executives, many of whom may need information on investments and tax shelters, as well as comprehensive financial counseling, because of their higher levels of compensation.

Education Assistance: Another benefit that is popular with employees is education assistance and tuition aid, which pays some or all of the costs associated with formal education courses and degree programs. Unless the education paid for by the employer meets certain conditions, the cost of educational aid must be counted as taxable income by employees.

Severance Pay: Companies may provide severance pay to individuals whose jobs are eliminated or who leave the company by mutual agreement. While the Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires employers to give 60 days’ notice of mass layoff or plant closings, it does not mandate severance pay. The amount of severance pay is often determined by an employee’s level within the organization and years of service with the company. Some employers provide continued health insurance or outplacement assistance as part of the package.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Financial Benefits PAGE: 181–182

17. What are the different conditions under which employers grant “leaves of absence” to their employees?

ANS: Employers grant leaves of absence, taken as time off with or without pay, for a variety of reasons.

Most leaves add to employer costs even if unpaid because the missing employee’s work must be covered, either by other employees working additionally or by temporary employees working under contract.

Leaves are given for a variety of purposes. Some, such as military leave, election leave, and jury leave, are required by various state and federal laws. Funeral leave or bereavement leave is another common type of leave offered.

FMLA guarantees unpaid leave for certain family and medical reasons. Even though paternity leave for male workers is available under the FMLA, a relatively low percentage of men take it. The primary reason for the low usage is a perception that it is not as socially acceptable for men to stay home for child-related reasons. That view has begun changing as Gen X fathers are participating more actively in childrearing duties.

Many employers allow employees to miss a limited number of days because of illness without losing pay. Some employers allow employees to accumulate unused sick leave, which may be used in case of catastrophic illnesses. Others pay their employees for unused sick leave. Some companies have shifted the emphasis to reward people who do not use sick leave by giving them well pay, which is extra pay for not taking sick leave. Another approach is to use a paid-time-off plan.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Paid Time-Off Benefits PAGE: 185

18. What are the advantages of using paid-time-off (PTO) plans?

ANS: A growing number of employers have made use of a paid-time-off (PTO) plan, which combines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay.. Many employers have found PTO plans to be more effective than other means of reducing absenteeism, scheduling time off, increasing employee understanding of leave policies, and assisting with recruiting and retention.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Paid Time-Off Benefits PAGE: 186

Chapter 9— Risk Management, Worker Protection, and Employee Relations MULTIPLE CHOICE 1. _____ typically provide the funds necessary for workers' compensation. a. Employers b. Employees c. Federal government agents d. State governments ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Legal Requirements for Safety and Health PAGE: 182

2. Which of the following statements is true of workers’ compensation laws? a. Employers across all industries are required to pay a standard amount as insurance premium. b. Workers’ compensation laws do not require employers to make payments for covering medical bills. c. Employees who work from home are generally not covered under workers’ compensation laws. d. Under the workers’ compensation laws, employers need to contribute to an insurance fund that compensates employees for injuries received while on the job.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 182

3. Employers who provide injured employees with light-duty work, typically: a. increase the workers' compensation premiums till the workers are completely cured. b. are violating FMLA regulations by not providing leave to injured employees. c. can be held liable by law for any accidents caused by the injured employee at work. d. give them less physically demanding work to reduce workers’ compensation costs.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Requirements for Safety and Health PAGE: 183

4. Child labor laws, found in the Fair Labor Standards Act (FLSA), set the minimum age for most employment at _____ years. a. 14 b. 15 c. 16 d. 17 ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 183

5. Employers should have at least _____ to be covered by the OSHA. a. one employee b. ten employees c. five employees

d. twenty employees ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Occupational Safety and Health Act PAGE: 184

6. Who among the following is not covered under the Occupational Safety and Health Act of 1970? a. A farmer with eight employees working for him b. A bakery with 50 employees working for it c. A construction company with 100 employees working for it d. A steel-manufacturing company with 2000 employees working for it ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Occupational Safety and Health Act PAGE: 184

7. Alex, a graphic designer, suffers from a terrible headache while at work. He approaches the company nurse, who gives him aspirins. He gets back to work in an hour when his headache subsides. OSHA would categorize Alex’s illness as a(n): a. lost-time injury. b. medical care injury. c. minor injury. d. disability injury.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Occupational Safety and Health Act PAGE: 184

8. An OSHA compliance inspector arrives at a meat processing unit and presents his credentials to the unit manager. The manager, however, refuses to allow the inspector to carry out the inspection process. In this case, what should the inspector do next? a. Refusing to allow an inspector to enter a factory is a crime for which the unit manager can be sued. b. The unit manager has the right to appeal to the regional OSHA office and reschedule the inspection. c. The OSHA inspector can enter the unit forcefully with the help of his officials. d. The OSHA inspector must produce a search warrant to enter the unit.

ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Occupational Safety and Health Act PAGE: 185

9. The ____ approach to safety management focuses on designing safer jobs and creating policies that encourage safety. a. engineering b. systems c. organizational d. individual ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Safety Management PAGE: 186

10. Which of the following is typically a part of the organizational approach to safety management? a. Applying ergonomic principles b. Implementing safety policies

c. Designing work settings and equipment d. Providing employee safety training ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Safety Management PAGE: 186

11. Sam, a product development manager, and his team are in the process of designing ergonomic desks that would help the employees in their organization work effectively without any discomfort or physical ailments. Which of the following approaches is being used by Sam’s organization for safety management? a. The systems approach b. The engineering approach c. The organizational approach d. The individual approach ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Safety Management PAGE: 187

12. Who among the following is considered disabled under the ADA? a. A person addicted to prescription drugs b. A person addicted to an illegal drug c. A person who is prone to developing an addiction to alcohol d. A person who is prone to developing an addiction to illegal drugs ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Employee Health PAGE: 188

13. Who among the following is considered disabled under the ADA? a. A person addicted to alcohol b. A person addicted to an illegal drug c. A person who is prone to developing an addiction to nicotine d. A person who is prone to developing an addiction to illegal drugs ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Employee Health PAGE: 188

14. Which of the following statements is true of the Americans with Disabilities Act? a. Those addicted to legal prescription drugs are not considered disabled. b. Recovering substance abusers are considered disabled. c. Illegal drug users are considered disabled. d. Addiction to alcohol is not considered a disability.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Employee Health PAGE: 188

15. ReNaPro Inc., a multinational marketing agency, offers a curriculum in health education for its employees. It provides health promotions on a regular basis and offers incentives to employees for joining the company’s wellness and fitness programs. The company’s health insurance also pays for smoking cessation and substance abuse services. ReNaPro is: a. engaged in health promotion at the highest level of organizational commitment.

b. violating the ADA by indirectly forcing employees to join wellness programs. c. violating the Genetic Information Nondiscrimination Act. d. working to curb cumulative trauma disorders.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Employee Health PAGE: 189

16. Which of the following is typically a characteristic of potentially violent employees? a. Tendency to be the centre of attention b. Interest in several activities rather than treating work as a sole major activity c. Absence of any strain or distress d. Involvement in telephone harassment ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension 17.

DIF: Easy TOP: Security Concerns at Work PAGE: 190

Which of the following is typically a characteristic of potentially violent employees? a. Tendency to be the centre of attention b. Interest in several activities rather than treating work as a sole major activity c. Absence of any strain or distress d. Tendency to hold obsessive grudges ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Security Concerns at Work PAGE: 190

18. A security audit is also referred to as a(n) _____. a. vulnerability analysis b. risk analysis c. independent review d. risk assessment ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Security Concerns at Work PAGE: 190

19. Which of the following is a part of security audits? a. Identification of mentally-ill employees b. Identification of the whistle-blowers in a company c. Validation of employee screening and selection d. Review of disaster plans of an organization ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Security Concerns at Work PAGE: 191

20. A security audit typically begins with: a. a discussion with selected employees in an organization. b. a background check of all the security personnel of a company. c. a review of the disaster plans of a company. d. a survey of the area around a company.

ANS: D PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Security Concerns at Work

KEY: Bloom's: Knowledge

PAGE: 190

21. Which of the following statements is true of disaster planning? a. Conducting simulations is a mandatory part of organizational assessment in disaster planning. b. Disaster training is usually conducted by the OSHA’s compliance inspectors. c. Having backup databases is a key consideration of human impact planning. d. Terrorism is generally not considered in disaster plans since it is not a natural calamity.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Disaster Preparation and Recovery Planning PAGE: 192

22. During disaster planning, organizational assessment includes the: a. development of a disaster recovery plan. b. creation of backup databases for storing employee contact details. c. development of training modules in consultation with disaster experts. d. creation of simulations for employees and managers.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Disaster Preparation and Recovery Planning PAGE: 191

23. Which of the following is true of the rights of an employee? a. For the rights of an employee to exist, they must be contained in a formal employment contract that the employee has signed. b. For the rights of an employee to exist, they must be spelled out at the time of appointment. c. Moral rights of the employees are typically the result of specific laws or statutes passed by federal, state, or local governments. d. An employee’s contractual rights are based on a specific contract with an employer.

ANS: D PTS: 1 NAT: BUSPROG: Analytic Responsibilities KEY: Bloom's: Comprehension

DIF: Moderate TOP: Employer and Employee Rights and PAGE: 193

24. Jeff is a private investigator. According to an agreement with one of his clients, Jeff is required to perform background checks on all the applicants for managerial level vacancies in the company for a year, for a fixed fee payable every month. He has complete access to all employee-related documents in the company. These provisions made in the agreement are _____. a. implied obligations b. responsibilities with few rights c. contractual rights d. social responsibilities ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking Responsibilities KEY: Bloom's: Application

DIF: Moderate TOP: Employer and Employee Rights and PAGE: 193

25. Roger is hired by an international HR consulting firm as its outplacement counselor. Prior to receiving extensive training on the company’s copyrighted techniques and programs, Roger is asked to agree in his employment contract that he will not work as a trainer for a rival outplacement company in a specified list of states for a period of one year, if he quits or is terminated. This best exemplifies the _____ agreement

a. b. c. d.

nonpiracy noncompete nonsolicitation unenforceable

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking Responsibilities KEY: Bloom's: Application

DIF: Moderate TOP: Employer and Employee Rights and PAGE: 193

26. Matt accepts a job offer as a chemical engineer in the R&D department of Tulip Inc., paint manufacturing company. After accepting the job offer, he signs an employment contract stating that the results of his research would be the sole property of the company. Matt comes up with an innovative paint formula which could withstand extreme temperatures. He receives a promotion and a handsome package for his work. However, he is annoyed that the formula was not patented in his name. In the context of the given scenario, which of the following statements is true? a. The advances made by Matt on the job fall under the management and control of his organization. b. Matt’s formula is his own intellectual property and he has the right to use it as he sees fit. c. Since the formula can be patented only by Matt, the company is legally required to pay him 30% of the total profits gained. d. The company can receive a fine up to $ 5 million for drawing a contract that is unenforceable.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking Responsibilities KEY: Bloom's: Application

DIF: Challenging TOP: Employer and Employee Rights and PAGE: 193

27. Claudia, when selected as a senior engineer by her company, is promised that she would start working on live projects within three months from her joining date. She signs a contract stating that she would give three months’ notice before quitting the job. Which of the following statements is true of the given scenario? a. Claudia is an at-will employee. b. The supervisor has violated an employment law by making a promise. c. Claudia has an implied contract with the company. d. The supervisor cannot be challenged in a court.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking Responsibilities KEY: Bloom's: Application

DIF: Moderate TOP: Employer and Employee Rights and PAGE: 193

28. Employment-at-will is a common-law doctrine holding that: a. an employee must provide a minimum of two weeks’ notice before quitting a job. b. employees can be asked to leave a company only if they are willing to do so. c. employees are free agents, but employers must have a just cause for terminating them. d. an employer has the right to hire, fire, demote, or promote whomever it chooses.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 184

29. Which of the following rights does the EAW provide employers with? a. The right to confidentiality

b. The right to demote c. The right to establish new rules and regulations d. The right to discriminate against minorities ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 194

30. Grace is asked by her employer to quit her job on the grounds that she is not punctual. Considering that the law of employment-at-will holds in the given scenario, which of the following statements is true? a. Grace can get her job back using the “implied contract” exception to employment-at-will. b. Grace has to give in to her employer’s demands and quit her job. c. Grace can get her job back using the “public policy” exception to employment-at-will. d. Grace’s employer is committing a very commonly seen federal crime.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Rights Affecting the Employment Relationship PAGE: 194

31. Emily is an attorney who has been fired by her employer after she accidentally witnesses a senior attorney, who is also a close friend of the manager, accepting bribe from a client. Emily: a. has no recourse because she is an at-will employee. b. can seek legal recourse because attorneys are not bound by the EAW. c. can sue her employer because the reason for her firing is a violation of public policy. d. should be granted compensatory salary for two months for being fired at a short notice.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 194

32. An employer is guilty of _____ if an employee is terminated for reasons that are illegal or improper. a. wrongful discharge b. dysfunctional turnover c. voluntary turnover d. deconstructive discharge ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 194

33. The process of deliberately making conditions intolerable to get an employee to quit is referred to as _____. a. whistle-blowing b. due process c. constructive discharge d. voluntary turnover ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 194

34. After a personality conflict with his manager, Will is asked by the manager to work for extra hours every day. Will is given the toughest assignments and is often ignored and even insulted during team meetings and discussions. Will considers quitting the job owing to the intolerable work conditions.

Will’s manager can be held responsible for _____. a. whistle-blowing b. due process c. constructive discharge d. involuntary turnover ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 194

35. Having a “just cause” for employment-related action is necessary primarily for ensuring that: a. statutory law is not implemented. b. whistle-blowing activities are checked. c. the employer steers clear of due process. d. fairness is taken into consideration.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 195

36. Amber is working as a sales associate in a department store. When a few high-priced products are found missing from the store, Amber is accused of theft and fired from the job. Neither an investigation is conducted nor is Amber allowed to explain herself. Which of the following is true of the given scenario? a. Amber’s right to arbitration has been violated. b. Due process has not been followed by the employer. c. Amber’s statutory rights are upheld. d. Amber is not given the option of involuntary turnover.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 195

37. Individuals outside the normal chain of command who act as problem solvers for both management and employees are called: a. ombuds. b. whistle-blowers. c. union-stewards. d. peer review panelists.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 196

38. In the context of the Americans with Disabilities Act, which of the following statements is true about medical-related information? a. It should be maintained separately from all other confidential files, to protect the privacy of employee medical records. b. It should be given to the employee and no copies should be made or kept by the employer. c. It should be used only by the safety committee when deciding what accommodations can be made for an affected employee. d. It should be filed with all other confidential information about an employee, with access

restricted to the employee and certain company officials.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 197

39. Ken works in a pharmaceutical company that sells antibiotics at a low cost to several African countries. He later gets to know that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his company’s illegal activities. Which of the following statements is true of the given scenario? a. The Sarbanes-Oxley Act would protect Ken from retaliation by his employer. b. Ken’s constitutional right to freedom of speech would protect him from any form of retaliation by his employer. c. Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech. d. The Data Protection Act would give the company the power to terminate Ken and the company may or may not face legal action.

ANS: A PTS: 1 NAT: BUSPROG: Reflective Thinking Rights Issues KEY: Bloom's: Analysis

DIF: Challenging TOP: Managing Individual Employee and Employer PAGE: 198

40. Employees cannot be disciplined for including work-related comments in their blogs if the: a. blog content is harmless and positive. b. statements in the blog are negative, but accurate and verifiable. c. employees work for private companies. d. employees work for federal agencies.

ANS: A PTS: 1 NAT: BUSPROG: Analytic Rights Issues KEY: Bloom's: Comprehension

DIF: Moderate TOP: Managing Individual Employee and Employer PAGE: 198

41. In the United States, the right of protection from unreasonable search and seizure: a. protects an individual only against search and seizure by agents of the government. b. has been eliminated by the USA Patriot Act. c. protects all employees from unreasonable searches and seizures by employers in the workplace. d. protects only those individuals employed in the private sector.

ANS: A PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Knowledge

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

42. The monitoring of an employee’s activities on company systems is primarily required for: a. keeping track of all employee interactions to obtain information on their feelings and perceptions regarding the workplace. b. controlling employee access to illegal Web sites that could create problems with law enforcement agencies. c. identifying the whistle-blowers among the employees to keep track of their activities. d. reading through employee mails for signs of dissatisfaction among employees that could lead to high attrition rates.

ANS: B PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Comprehension

DIF: Moderate TOP: Balancing Employer Security and Employee PAGE: 199

43. Which of the following employer actions would most likely be a violation of employee privacy? a. Reading an employee’s business e-mails b. Recording the phone conversations of customer care employees c. Placing video cameras in rest rooms d. Monitoring employee blogs ANS: C PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Knowledge

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

44. The Drug-Free Workplace Act of 1988: a. covers all intoxicating substances, including alcohol. b. requires government contractors to take steps to eliminate employee drug use. c. covers the use of illegal substances both on the job and off the job. d. applies only to private sector employers.

ANS: B PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Knowledge

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

45. Which of the following is a major drug testing policy that most employers follow when testing current employees? a. Random testing of male employees at periodic intervals b. Testing only when there is probable cause c. Testing employees only when they are not on duty d. Testing only after getting consent from immediate family members ANS: B PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Comprehension

DIF: Moderate TOP: Balancing Employer Security and Employee PAGE: 199

46. _____ typically provide specific customary methods to employers for handling activities. a. Procedures b. Policies c. Code of conduct d. Yellow-dog contracts ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Human Resource Policies, Procedures, and Rules PAGE: 200

47. The employee contract of Uranus Inc. clearly states that, “Every employee in the company must avoid smoking within the company premises.” This best exemplifies a: a. policy. b. procedure. c. rule. d. request.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Human Resource Policies, Procedures, and Rules PAGE: 200

48. Discipline is most constructively viewed as _____ that enforces organizational rules. a. persistent persuasion b. negative reinforcement c. punishment d. training ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 200

49. The _____ approach to discipline builds on the philosophy that violations of procedures and rules by employees are actions that usually can be constructively corrected without penalty. a. authoritative discipline b. positive discipline c. progressive discipline d. dictatorial discipline ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 201

50. _____ typically incorporates a sequence of steps, each becoming more stringent, that are designed to change an employee's inappropriate behavior. a. Progressive discipline b. Self-discipline c. Peer review d. Positive discipline ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 201

51. The final stage of both the progressive and the positive approaches to discipline is: a. suspension. b. counseling. c. termination. d. mediation.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 201

TRUE/FALSE 1. Medium-sized companies have the highest reported rates of workplace injuries and illnesses.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Current State of Health, Safety, and Security PAGE: 181

2. Self-employed people are less vulnerable to accidents than those who work for others.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Current State of Health, Safety, and Security PAGE: 181

3. Under workers' compensation laws, employers contribute to an insurance fund that would compensate employees for injuries received while on a job.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 182

4. Julie, a legal assistant in a company, injures her back while lifting a box of trial documents onto her desk when working from home. Julie can depend on her company’s workers’ compensation coverage for treating her injury.

ANS: T PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Legal Requirements for Safety and Health PAGE: 182

5. The provision of light-duty work to disabled people is an attempt by the ADA to increase the rate of employment among the disabled in the United States.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 183

6. Federal child labor laws have set the minimum age as 21 for all hazardous occupations.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 183

7. The Occupational Safety and Health Act provides for on-the-spot inspections by OSHA representatives.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Occupational Safety and Health Act PAGE: 185

8. The last phase of accident investigation involves preparing a report on the accident.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge 9.

DIF: Easy TOP: Safety Management PAGE: 187

The individual approach to safety is based on the assumption that if work settings and equipment are designed well, the number of accidents in a company can be brought down.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Safety Management PAGE: 188

10. Recovering substance abusers are not considered disabled under the ADA. ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Health PAGE: 11

11. The dependency on illegal drugs is not a disability under the American with Disabilities Act. ANS: T PTS: 1 NAT: BUSPROG: Analytic Rights PAGE: 188

DIF: Easy TOP: Balancing Employer Security and Employee KEY: Bloom's: Knowledge

12. Firms that do not screen employees adequately can be subject to liability if an employee commits crimes later.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Security Concerns at Work PAGE: 191

13. Organizational assessment during disaster planning includes the establishment of a disaster planning team.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Disaster Preparation and Recovery Planning PAGE: 191

14. It is primarily the duty of the HR unit in a company to implement disaster and recovery plans.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Safety Management PAGE: 191

15. Statutory rights are the result of specific laws or statutes passed by federal, state, or local governments.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Responsibilities KEY: Bloom's: Knowledge

DIF: Easy TOP: Employer and Employee Rights and PAGE: 192

16. The use of employment contracts is restricted to the hiring of executives and senior managers.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Responsibilities KEY: Bloom's: Knowledge

DIF: Easy TOP: Employer and Employee Rights and PAGE: 193

17. An employee has rights and responsibilities beyond those spelled out in the job description, employment contract, HR policies, and the employee handbook.

ANS: T PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Employer and Employee Rights and

Responsibilities KEY: Bloom's: Knowledge

PAGE: 193

18. Mere employer expectations about acceptable behavior and performance cannot legally be considered an implied contract.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Responsibilities KEY: Bloom's: Knowledge

DIF: Easy TOP: Employer and Employee Rights and PAGE: 193

19. If an employer deliberately makes conditions intolerable for an employee as an attempt to force an employee to resign, the employer is guilty of wrongful discharge. .

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 194

20. The use of arbitration in employment-related situations can be considered unfair because it is the employers who often select the arbitrators.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 196

21. One of the advantages of using a peer review panel for dispute resolution is the provision of a due process.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 196

22. One of the disadvantages of using transformative mediation for dispute resolution is that it is less exploratory in nature than other methods.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 196

23. A citizen’s right of individuals to freedom of speech granted by the U.S. Constitution is an unrestricted one in the workplace.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Rights Issues KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Individual Employee and Employer PAGE: 197

24. Several comprehensive whistle-blowing laws fully protect the right to free speech of both public and private employees.

ANS: F PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Managing Individual Employee and Employer

Rights Issues KEY: Bloom's: Knowledge

PAGE: 197

25. It is illegal for an employer to review an employee’s unusual behavior off the job.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Rights Issues KEY: Bloom's: Knowledge

DIF: Easy TOP: Managing Individual Employee and Employer PAGE: 198

26. The right of U.S. citizens to be protected from search and seizure does not apply to employees of private employers.

ANS: T PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Knowledge

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

27. Employers should avoid informing employees if employee activities are being monitored so as to attain undiluted results.

ANS: F PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Comprehension

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

28. Discipline is a form of training that enforces organizational rules.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 200

29. Counseling is the last step before the termination of an employee in the positive approach to discipline.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Employee Discipline PAGE: 201

SHORT ANSWER 1. What are the costs incurred by a company due to accidents at the workplace?

ANS: Accidents can be costly for firms. Each year, millions of nonfatal job-related injuries and illnesses are recorded by private-sector companies. More than 50% of the injuries and illnesses that were

reported in the United States were severe and called for employee time off, job changes, and and/or restrictions. First passed in the early 1900s, workers’ compensation laws require employers to contribute to an insurance fund that compensates employees for injuries received while on the job.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Current State of Health, Safety, and Security PAGE: 181-182

2. What are the conditions under which individuals under the age of 18 can be employed in the United States as per child labor laws?

ANS: Safety concerns have resulted in restrictions affecting younger workers, especially those under the age of 18. Child labor laws found in the Fair Labor Standards Act (FLSA),have set the minimum age for most employment at 16 years.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Legal Requirements for Safety and Health PAGE: 183

3. How does the ADA affect recordkeeping practices of an organization?

ANS: Health and safety recordkeeping practices have been affected by an ADA provision that requires all medical-related information to be maintained separately from all other confidential files.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Requirements for Safety and Health PAGE: 183

4. What are the four types of injuries or illnesses that are defined by the Occupational Safety and Health Act? ANS: Four types of injuries or illnesses are defined by the Occupational Safety and Health Act. They are as follows: 1. Injury- or illness-related deaths, which are fatalities at workplaces or caused by work-related actions must be reported within 8 hours 2. Lost-time or disability injuries, which are job-related injuries or disabling occurrences that cause an employee to miss regularly scheduled work on the day following the accident 3. Medical care injuries, which are injuries that require treatment by a physician but do not cause an employee to miss a regularly scheduled work turn 4. Minor injuries, which are injuries that require first aid treatment and do not cause an employee to miss the next regularly scheduled work turn PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Occupational Safety and Health Act PAGE: 184

5. Discuss the criticisms against OSHA. ANS: OSHA has been criticized on several fronts. Because the agency has so many worksites to inspect, employers have only a relatively small chance of being inspected. Some suggest that employers pay little attention to OSHA enforcement efforts for this reason. Employers, especially smaller ones, continue to complain about the complexity of complying with OSHA standards and the costs associated with penalties and with making changes required to remedy problem areas.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Occupational Safety and Health Act PAGE: 185

6. How can organizations monitor and evaluate their safety efforts?

ANS: Designing safety policies and rules and disciplining violators are important components of safety efforts. Frequently reinforcing the need for safe behavior and frequently supplying feedback on positive safety practices are also effective ways of improving worker safety. Such safety-conscious efforts must involve employees, supervisors, managers, safety specialists, and HR staff members.

For policies about safety to be effective, good recordkeeping about accidents, causes, and other details is necessary. Without records, an employer cannot track its safety performance, compare benchmarks against other employers, and may not realize the extent of its safety problems.

It is not necessary to wait for an OSHA inspector to check the work area for safety hazards. Regular inspections may be done by a safety committee or by a company safety coordinator. Problem areas should be addressed immediately to prevent accidents and keep work productivity at the highest possible levels.

Organizations should monitor and evaluate their safety efforts. This analysis should be designed to measure progress in safety management. Common metrics are workers’ compensation costs per injury/illness, percentage of injuries/illnesses by department, work shifts, and job categories, and incident rate comparisons with industry and benchmark targets.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Safety Management PAGE: 186

7. How can organizations contribute to the health and well-being of older employees?

ANS: There is an abundance of older workers in the current workforce, and many work beyond age 65.

There is a diminishing pool of successful younger workers to replace them. Data show that older workers have fewer injuries, but are out of work longer when they do, and these injuries cost more to fix.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Employee Health PAGE: 189

8. Carol, an HR executive, rarely conducts a thorough background check on the employees she hires.

How could this practice affect her company?

ANS: Screening job applicants is a key facet of providing security to the employees of an organization. HR

management is somewhat limited by legal constraints on what can be done, particularly regarding the use of psychological tests and checking of references. Firms that do not screen employees adequately may be subject to liability if an employee commits crimes later.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Security Concerns at Work PAGE: 191

9. What are the consequences that employers may face if they fail to follow up on implied promises?

ANS: When the employer fails to follow up on the implied promises, the employee may pursue remedies in court.

PTS: 1 DIF: Easy NAT: BUSPROG: Analytic TOP: Employer and Employee Rights and Responsibilities KEY: Bloom's: Knowledge PAGE: 193 10. How does the concept of “just cause” affect employment-related action?

ANS: Just cause is reasonable justification for taking employment-related action. The need for a “good reason” for disciplinary actions such as dismissal usually can be found in union contracts, but not in atwill situations. Even though definitions of just cause vary, the overall concern is fairness. To be viewed by others as just, any disciplinary action must be based on facts in the individual case.

Violations of these requirements can result in legal action.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 195

11. How do ombuds contribute to dispute resolution in organizations?

ANS: Some organizations ensure process fairness through ombuds—employers outside the normal chain of command who act as independent problem solvers for both management and employees. Ombuds address employees’ complaints and operate with a high degree of confidentiality. Mediation Ombuds, as well as other individuals and groups who oversee dispute cases, will sometimes use mediation as a tool for developing appropriate and fair outcomes for all parties involved. Facilitative and directive forms of mediation rely on an approach that ultimately helps identify resolutions to the problems collectively explored. Transformative mediation is more exploratory in nature, with participants identifying their own problems, fixing damaged relationships, and developing realistic solutions. The focus of transformative mediation is to settle disputes and figure out how employees can more effectively interact with each other on the job.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 196

12. What are the limits that employers have imposed on dress and body appearances at workplaces?

ANS: Employers have put limits on employees’ dress and appearance in some situations, including items such as visible tattoos, certain clothing and accessories, and body piercings. An additional employee rights issue concerns personal behavior off the job, particularly when misconduct causes negative jobrelated consequences.

PTS: 1 NAT: BUSPROG: Analytic Rights Issues KEY: Bloom's: Comprehension

DIF: Easy TOP: Managing Individual Employee and Employer PAGE: 198

13. Explain the Drug-Free Workplace Act of 1988.

ANS: Employee substance abuse and drug testing have received a great deal of attention. The U.S. Supreme Court has ruled that certain drug-testing plans do not violate the Constitution. Private-employer programs are governed mainly by state laws, which can be a confusing hodgepodge. The Drug-Free Workplace Act of 1988 requires government contractors to take steps to eliminate employee drug use.

PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Knowledge

DIF: Easy TOP: Balancing Employer Security and Employee PAGE: 199

14. Differentiate between upward and downward communication in workplaces.

ANS: Downward communication flows from top management to the rest of the organization, informing employees about what is and will be happening in the organization, and what the expectations and goals of top management are. Upward communication enables managers to learn about the ideas, concerns, and information needs of employees. Companies use surveys and employee-suggestion programs to encourage the upward communication of good ideas.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Human Resource Policies, Procedures, and Rules PAGE: 200

15. What is the final step in the disciplinary process?

ANS: Regardless of the word used, discharge is when an employee is removed from a job at an employer.

Both the positive and the progressive approaches to discipline clearly provide employees with warnings about the seriousness of their performance problems before dismissal occurs. At face value, terminating workers because they do not keep their promises would seem equitable and defensible in many courts. However, employers need to follow appropriate HR processes and disciplinary procedures, as well as consistently document reasons for termination, to win wrongful termination lawsuits.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Employee Discipline PAGE: 201

ESSAY 1. Why do health and safety issues at workplaces concern employers? Do employers have a legal responsibility to provide its employees a healthy workplace?

ANS: Accidents can be costly for organizations and can generate financial and operational setbacks for companies. Each year, millions of nonfatal job-related injuries and illnesses are recorded by privatesector companies, so the management of these issues is important. More than 50% of the injuries and illnesses that were reported in the United States were severe and called for employee time off, job changes, and and/or restrictions.

Employers must comply with a variety of federal and state laws when developing and maintaining healthy, safe, and secure working environments.

Workers’ Compensation: First passed in the early 1900s, workers’ compensation laws in some form are on the books in all states today. Under these laws employers contribute to an insurance fund that compensates employees for injuries received while on the job. Depending on the amount of lost time and the wage level in question, these laws often require payments be made to an employee for the time away from work because of an injury, payments to cover medical bills, and for retraining if a new job is required as a result of the incident.

Workers’ compensation coverage has been expanded in many states to include emotional impairment that may have resulted from physical injury, as well as job-related strain, stress, anxiety, and pressure.

Some cases of suicide have also been ruled to be job related in some states, with payments due under workers’ compensation. Another aspect of workers’ compensation coverage relates to the use of telecommuting by employees. In most situations, while working at home for employers, individuals are covered under workers’ compensation laws.

The Family and Medical Leave Act (FMLA): This law affects workers’ compensation as well.

Because the FMLA allows eligible employees to take up to 12 weeks of leave for their serious health conditions, injured employees may ask to use that leave time in addition to the leave time allowed under workers’ compensation, even if it is unpaid. Some employers have policies that state that FMLA leave runs concurrently with any workers’ compensation leave.

Americans with Disabilities Act and Safety Issues: Employers sometimes try to return injured workers to light-duty work to reduce workers’ compensation costs. However, under the Americans with Disabilities Act (ADA), when making accommodations for injured employees through light-duty work, employers may undercut what are really essential job functions. Making such accommodations for injured employees for a period of time may require employers to make similar accommodations for job applicants with disabilities. Health and safety recordkeeping practices have been affected by an ADA provision that requires all medical-related information to be maintained separately from other confidential files.

Child Labor Laws: Risk management includes dealing with safety concerns that have resulted in restrictions affecting younger workers, especially those under the age of 18. Child labor laws, found in the Fair Labor Standards Act (FLSA), set the minimum age for most employment at 16 years. For hazardous occupations, 18 is the minimum age of employment.i Figure 9-1 lists some occupations that the federal government considers hazardous for children who work while attending school. In addition to complying with workers’ compensation, ADA, and child labor laws, most employers must comply with the Occupational Safety and Health Act of 1970. This act has had a tremendous impact on the workplace. The act is administered by the Occupational Safety and Health Administration.

The Occupational Safety and Health Act: This act provides several standards for workplace safety and health. In addition, OSHA places the responsibility on the employer of a “general duty” to provide safe and healthy working conditions even in areas where OSHA standards have not been set. Employers are required to inform their employees of safety and health standards established by OSHA. Also, OSHA posters must be displayed in prominent locations in workplaces.

PTS: 1 NAT: BUSPROG: Analytic Requirements for Safety and Health KEY: Bloom's: Comprehension

DIF: Moderate TOP: Current State of Health, Safety, and Security Legal PAGE: 181-185

2. Explain the various implications that workers’ compensation laws have on U.S. employees and employers.

ANS: First passed in the early 1900s, workers’ compensation laws in some form are on the books in all states today. Under these laws, employers contribute to an insurance fund that compensates employees for injuries received while on the job. Premiums paid are experience-rated to reflect the accident rates of the employers, with employers that have higher incident rates being assessed higher premiums.

Depending on the amount of lost time and the wage level in question, these laws often require payments be made to an employee for the time away from work because of an injury, payments to cover medical bills, and for retraining if a new job is required as a result of the incident. Most state laws also set a maximum weekly amount for determining workers’ compensation benefits.

Workers’ compensation coverage has been expanded in many states to include emotional impairment that may have resulted from physical injury, as well as job-related strain, stress, anxiety, and pressure.

Some cases of suicide have also been ruled to be job related in some states, with payments due under workers’ compensation. Another aspect of workers’ compensation coverage relates to the use of telecommuting by employees. Some cases of suicide have also been ruled to be job related in some states, with payments due under workers’ compensation. Another aspect of workers’ compensation coverage relates to the use of telecommuting by employees. In most situations, while working at home for employers, individuals are covered under workers’ compensation laws.

Workers’ compensation costs have become a major issue for many employers, and can represent from 2% to 10% of payroll for most employers. Workers’ compensation fraud is an expensive problem.

Efforts to reduce workplace injuries, illnesses, and fraud can reduce workers’ compensation premiums and claims costs.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Legal Requirements for Safety and Health PAGE: 182

3. Which organizations are covered under the OSHA? Describe the OSHA enforcement standards that were established to implement OSHA regulations in companies.

ANS: OSHA covers all employers engaged in commerce who have one or more employees. Farmers with fewer than 10 employees are exempt. Employers in specific industries, such as railroads and mining, are covered under other health and safety acts. Federal, state, and local governments are covered by separate statutes and provisions.

The Occupational Safety and Health Act of 1970 established the Occupational Safety and Health Administration, known as OSHA, to administer its provisions. By making employers and employees more aware of safety and health considerations, OSHA has significantly affected organizations. OSHA regulations and on-site presence appear to have contributed to reductions in the number of accidents and injuries in some cases. But in other industries, OSHA has had little or no effect.

To implement OSHA regulations, specific standards were established to regulate equipment and working environments. Two provisions have been recognized as key to employers’ responsibility to comply with OSHA.

The act requires that the employer has a general duty to provide safe and healthy working conditions, even in areas where OSHA standards have not been set. Employers that know or reasonably should know of unsafe or unhealthy conditions can be cited for violating the general duty clause. Employers are required to inform their employees of safety and health standards established by OSHA. Also, OSHA posters must be displayed in prominent locations in workplaces.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Moderate TOP: Occupational Safety and Health Act PAGE: 184

4. N&N Corp. provides safety training to all its employees. Every six months, experienced personnel conduct simulation exercises and several experiments to ensure that all the employees are well-aware of the various safety procedures they need to know. Which of the following approaches for effective safety management is N&N following? What are the other approaches that can be used to manage safety in organizations?

ANS: N&N Corp. is using the individual approach for effective safety management. This approach addresses the proper match of individuals to jobs and emphasizes employee training in safety methods, fatigue reduction, and health awareness. Efforts focus on reducing risky behavior, increasing safe actions, and considering work schedule problems.

Another approach to safety management is the organizational approach, wherein companies can effectively manage safety by designing safer jobs and by creating policies that encourage safety.

Safety committees can be used to increase awareness of important safety issues, and guidelines for accident investigations can help managers identify the causes of safety violations.

A third approach to safety management is the engineering approach, wherein employers prevent accidents by designing machines, equipment, and work areas so that workers who perform potentially dangerous jobs cannot injure themselves and others. Providing safety equipment and guards on machinery, installing emergency switches, installing safety rails, keeping aisles clear, and installing adequate ventilation, lighting, heating, and air conditioning can all help to make work environments safer.

PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Safety Management PAGE: 186-188

5. Why are employers concerned about substance abuse? State the guidelines that should be followed while managing drug testing in the workplace.

ANS: Use of illicit substances or misuse of controlled substances, alcohol, or other drugs is called substance abuse. Employers’ concerns about substance abuse stem from the ways it alters work behaviors, causing increased tardiness and absenteeism, a slower work pace, a higher rate of mistakes and accidents, and less time spent at work. It can also cause an increase in withdrawal (physical and psychological), antagonistic behaviors, and workplace violence. Consequently, alcohol testing and drug testing are often used by employers.

There are several types of tests to detect drug use. These tests can identify individuals under the influence of alcohol or prescription drugs to the extent that their abilities to perform their jobs are impaired. Some firms use fitness-for-duty tests to detect work performance safety problems before permitting an employee to operate dangerous equipment.

The Americans with Disabilities Act (ADA) affects how management can handle substance abuse cases. Currently, users of illegal drugs are specifically excluded from the definition of disabled under the act. However, those addicted to legal substances (e.g., alcohol and prescription drugs) are considered disabled under the ADA. Also, recovering substance abusers are considered disabled under the ADA. To encourage employees to seek help for their substance abuse problems, a firm-choice option is usually recommended and has been endorsed legally. A supervisor or a manager confronts the employee privately about unsatisfactory work-related behaviors and a choice between help and discipline is offered.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Employee Health PAGE: 188

6. Define the term "security" with respect to a workplace. What actions can employers take to minimize the risk and impact of workplace violence?

ANS: Traditionally, when employers have addressed worker risk management, they have been concerned about reducing workplace accidents, improving safety practices, and reducing health hazards at work.

However, providing security for employees has become important. Heading the list of security concerns is workplace violence.

Workplace Violence: Workplace violence involves violent acts directed at someone at work or on duty. There are warning signs and characteristics of potentially violent persons at work that should be recognized by employees.

Dealing with Workplace Violence: The increase in workplace violence has led many employers to develop policies and practices for trying to prevent and respond to it. Policies can identify how workplace violence is to be dealt with in conjunction with disciplinary actions and referrals to EAPs. Training of managers and others is an important part of successful practice.

Security Management: A comprehensive approach to security management is needed to address a wide range of issues, including workplace violence. HR managers may have responsibility for security programs or may work closely with security managers or consultants.

Security Audit: A security audit can be conducted by the HR staff where a comprehensive review of an organization's security is conducted. Sometimes called a vulnerability analysis, such an audit uses managers inside the organization (e.g., the HR manager and the facilities manager) and outsiders (e.g., security consultants, police officers, fire officials, and computer security experts) to assess security issues. Typically, a security audit begins with a survey of the area around the facility. Factors such as lighting in parking lots, traffic flow, location of emergency response services, crime in the surrounding neighborhood, and the layout of the buildings and grounds are evaluated.

Controlled Access: A key part of security involves controlling access to the physical and electronic facilities of the organization. Many workplace homicides occur during robberies. Therefore, employees who are most vulnerable, such as taxi drivers and convenience store clerks, can be provided bulletproof partitions and restricted access areas. Many organizations limit access to facilities and work areas by using electronic access or keycard systems. Controlling computer access is an important part of securing IT resources. Coordination with information technology resources to change passwords, access codes, and otherwise protect company information is important.

Employee Screening and Selection: A key facet of providing security is screening job applicants. HR management is somewhat limited by legal constraints on what can be done, particularly regarding the use of psychological tests and checking of references. However, firms that do not screen employees adequately may be subject to liability if an employee commits crimes later.

Security Personnel: Providing adequately trained security personnel in sufficient numbers is a part of security management. Many employers contract with firms specializing in security. If security is handled in-house, security personnel must be selected and trained to handle a variety of workplace security problems, ranging from dealing with violent behavior by an employee to taking charge in natural disasters.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Security Concerns at Work PAGE: 189-191

7. Describe the three components of disaster planning?

ANS: For disaster planning to occur properly, three components must be addressed by the HR unit of a company. The three components of disaster planning are: organizational assessment, human impact planning, and disaster training.

Organizational Assessment: Organizational assessment includes establishing a disaster planning team, often composed of representatives from HR, security, information technology, operations, and other areas. The purpose of this team is to conduct an organizational assessment of how various disasters might affect the organization and its employees. Then a disaster-recovery plan is developed to identify how the organization will respond to different situations.

Human Impact Planning: Certain areas are part of human impact planning (the impact of events on people). Issues, such as having backup databases along with employee contact information, are key considerations of such planning. Who will take responsibilities for various duties and how these efforts will be coordinated must also be identified.

Disaster Training: All of the planning efforts may be wasted if managers and employees are not trained on what to do when disasters occur. This training covers a wide range of topics, including the following: first aid/CPR, hazardous materials containment, disaster escape means, employer contact methods, and organizational restoration efforts. Regular testing and training exercises should be conducted to make sure training works.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Disaster Preparation and Recovery Planning PAGE: 191

8. What is an employment contract? Discuss the provisions that are typically included in an employment contract.

ANS: Traditionally, employment contracts have been used for executives and senior managers, but the use of employment contracts is filtering down in the organization to include highly specialized professional and technical employees who have scarce skills. An employment contract is a formal agreement that outlines the details of employment. Depending on the organization and individuals involved, employment agreements often contain many provisions that detail the nature of the exchanges that are expected to occur between companies and employees.

PTS: 1 NAT: BUSPROG: Analytic Responsibilities KEY: Bloom's: Knowledge

DIF: Moderate TOP: Employer and Employee Rights and PAGE: 193

9. Sam, the CEO of a multinational IT firm, wants to prohibit the employees in his company from working with competitors within a year or two after leaving his company, so as to prevent employees from sharing confidential information with competitors. What should Sam do to ensure this? Explain.

ANS: Sam should include a noncompete agreement in the employment contracts with his employees.

Noncompete agreements prohibit individuals who leave an organization from working with an employer in the same line of business for a specified period of time. A noncompete agreement may be presented as a separate contract or as a clause in an employment contract. Though primarily used with newly hired employees, some firms have required existing employees to sign noncompete agreements.

PTS: 1 NAT: BUSPROG: Reflective Thinking Responsibilities KEY: Bloom's: Application

DIF: Challenging TOP: Employer and Employee Rights and PAGE: 193

10. Explain the doctrine of employment-at-will. What is the relationship between this doctrine and the employment agreement?

ANS: Employment-at-will (EAW) is a common-law doctrine stating that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or a contract to the contrary.

Conversely, employees can quit whenever they want and go to another job.

Employers that run afoul of EAW restrictions may be guilty of wrongful discharge, which is the termination of an individual’s employment for reasons that are illegal or improper. Employers can take several precautions to reduce wrongful-discharge liabilities. Having a well-written employee handbook, training managers, and maintaining adequate documentation are key. Closely related to wrongful discharge is constructive discharge, which is deliberately making conditions intolerable to get an employee to quit. Under normal circumstances, an employee who resigns rather than being dismissed cannot later collect damages for violation of legal rights. An exception to this rule occurs when the courts find that the working conditions were made so intolerable as to force a reasonable employee to resign.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Rights Affecting the Employment Relationship PAGE: 194-195

11. Describe three alternative dispute resolution (ADR) processes that are commonly used.

ANS:

Disputes between management and employees over work issues are normal and inevitable, but how the parties resolve their disputes are important. Open-door policies, formal grievance procedures, and lawsuits provide several resolution methods. However, companies are looking to alternative means of settlement. Dissatisfaction with expenses, delays in the court system when lawsuits are filed, and damages to employer–employee relationships have prompted growth in alternative dispute resolution (ADR) methods such as arbitration, peer review panels, ombuds, and mediation.

Arbitration is a process that uses a neutral third party to make a binding decision, thereby eliminating the necessity of using the court system. Some firms use compulsory arbitration, which requires employees to sign a pre-employment agreement stating that all disputes will be submitted to arbitration, and that employees waive their rights to pursue legal action until the completion of the arbitration process. Requiring arbitration as a condition of employment is legal, but employers must follow it rather than try to waive its use. However, a legal check of compulsory arbitration as part

of ADR should be done before adopting the practice.

Some employers allow their employees to appeal disciplinary actions to an internal committee of employees. This panel reviews the actions and makes recommendations or decisions. Peer review panels use fellow employees and perhaps a few managers to resolve employment disputes. Panel members are specially trained volunteers who sign confidentiality agreements, after which the company assigns them to hear appeals.

Some organizations ensure process fairness through ombuds—employees outside the normal chain of command who act as independent problem solvers for both management and employees. Ombuds address employees’ complaints and operate with a high degree of confidentiality. Ombuds, as well as other individuals and groups who oversee dispute cases, will sometimes use mediation as a tool for developing appropriate and fair outcomes for all parties involved. Facilitative and directive forms of mediation rely more on an approach that ultimately helps identify resolutions to the problems collectively explored. Transformative mediation is more exploratory in nature, with participants identifying their own problems, fixing damaged relationships, and developing realistic solutions. The focus of transformative mediation is to settle disputes and figure out how employees can more effectively interact with each other on the job.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Rights Affecting the Employment Relationship PAGE: 195-196

12. Several individuals have reported the wrongdoings committed by their employers to the outside world.

What are such individuals called? Do laws protect such individuals from retaliation by their employers?

ANS: Individuals who report real or perceived wrongs committed by their employers are called whistleblowers. No comprehensive whistle-blowing law fully protects the right to free speech of both public and private employees. There are laws that protect whistle-blowers in the corporate setting such as the Sarbanes-Oxley Act and Dodd-Frank Wall Street Reform and Consumer Protection Act. PTS: 1 NAT: BUSPROG: Analytic Rights Issues PAGE: 198

DIF: Challenging TOP: Managing Individual Employee and Employer KEY: Bloom's: Comprehension

13. Explain how the personal behavior of employees at workplaces can create issues in organizations.

ANS:

Employers may decide to review unusual behavior by employees both on and off the job.

Organizations and HR must also deal with employees and/or managers being inappropriately angry, insulting, or extremely rude to customers, suppliers, and employees at different levels. Employers have put limits on employees’ dress and appearance in some situations, including items such as visible tattoos, certain clothing and accessories, and body piercings. An additional employee rights issue concerns personal behavior off the job, particularly when misconduct causes negative job-related consequences.

PTS: 1 NAT: BUSPROG: Analytic Rights Issues KEY: Bloom's: Comprehension

DIF: Moderate TOP: Managing Individual Employee and Employer PAGE: 198

14. What are the consequences of substance abuse in workplaces? What rights do employees have with regards to drug testing?

ANS: Employee substance abuse and drug testing have received a great deal of attention lately. The U.S. Supreme Court has ruled that certain drug-testing plans do not violate the Constitution. Privateemployer programs are governed mainly by state laws, which can be a confusing hodgepodge. The Drug-Free Workplace Act of 1988 requires government contractors to take steps to eliminate employee drug use.

Unless federal, state, or local law prohibits testing, employers have a right to require applicants or employees to submit to a drug test. Preemployment drug testing is widely used.

When employers conduct drug testing of current employees, they generally use one of three policies: (1) random testing of everyone at periodic intervals, (2) testing only in cases of probable cause, or (3) testing after accidents. If testing is done for probable cause, it needs to be based on performancerelated behaviors, such as excessive absenteeism or poor performance, and not just the substance usage itself. From a policy standpoint, it is most appropriate to test for drugs when the following conditions exist: 1) Job-related consequences of the abuse are severe enough that they outweigh privacy concerns.

2) Accurate test procedures are available.

3) Written consent of the employee is obtained.

4) Results are treated confidentially, as are any medical records.

5) Employer offers a complete drug rehabilitation program, including an employee assistance program.

PTS: 1 NAT: BUSPROG: Analytic Rights KEY: Bloom's: Comprehension

DIF: Moderate TOP: Balancing Employer Security and Employee PAGE: 199

15. Describe an employee handbook.

ANS: An employee handbook can be an essential tool for communicating information about workplace culture, benefits, attendance, pay practices, safety issues, and discipline. When preparing handbooks, management should consider legal issues, readability, and use. Handbooks may contain many areas, but some policies commonly covered in them include at-will prerogatives, harassment, electronic communication, pay and benefits, discipline, and hours worked.

A growing number of firms are distributing employee handbooks electronically using an intranet, which enables employees to access policies in employee handbooks at any time. It also allows changes in policies to be made electronically rather than distributed as paper copies.

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Human Resource Policies, Procedures, and Rules PAGE: 200

16. How does the positive approach to discipline and the progressive approach to discipline differ from each other?

ANS: The positive discipline approach builds on the philosophy that violations are actions that usually can be corrected constructively without penalty. In this approach, managers focus on using fact finding and guidance to encourage desirable behaviors, rather than using penalties to discourage undesirable behaviors.

Progressive discipline incorporates steps that become progressively more stringent and are designed to change the employee’s inappropriate behavior. A typical progressive discipline process includes verbal caution, then a written reprimand, then suspension, which finally leads to employee discharge.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Employee Discipline PAGE: 201

Chapter 10— Union/Management Relations and Grievances MULTIPLE CHOICE 1. A(n) _____ is a formal association of workers that promotes the interests of its members primarily through collective action. a. employment contract b. union c. trade fair d. cartel ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Perspectives on Unionization PAGE: 204

2. Which of the following is true of unions in the United States? a. They typically try to improve working conditions. b. They typically avoid interfering with workplace rules. c. They typically try to decrease compensation. d. They typically avoid taking decisions through collective action.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Perspectives on Unionization PAGE: 204

3. Which of the following is an advantage of union representation in organizations? a. High productivity due to increasing compensation b. Consistent increase in profitability of organizations c. Efficient allocation of organizational resources d. Opportunity to provide feedback to employers ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Perspectives on Unionization PAGE: 205

4. One of the primary reasons for the unionization of employees in the United States is the: a. dissatisfaction with how they are treated by their employers. b. lack of performance-linked bonuses in organizations. c. economic cycles that determine the profitability in an organization. d. promotion of unionization by the federal government.

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Perspectives on Unionization PAGE: 224

5. Which of the following statements is true of the wages of employees in the United States? a. Union members always receive more benefits than nonunion employees. b. The wages paid to union and nonunion members differ in the private sector. c. Union wages equaled nonunion wages only after the global recession of 2009. d. Union workers frequently get compensated better in terms of pay than do nonunion workers.

ANS: D PTS: 1 NAT: BUSPROG: Analytic

DIF: Moderate TOP: Perspectives on Unionization

KEY: Bloom's: Comprehension

PAGE: 206

6. In an organization, which of the following strategies can be employed to prevent unionization? a. Warning those employees who talk to union officials b. Providing incentives to dissuade employees from forming unions c. HR professionals and operating managers being attentive and responsive to employees d. Monitoring the interactions of employees with union representatives and acting accordingly ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Perspectives on Unionization PAGE: 206

7. _____ deal with unionized employees in organizations where human resource professionals have limited involvement with labor relations. a. Top managements b. Board of directors c. Operating managers d. Labor-law consulting firms ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Perspectives on Unionization PAGE: 206

8. Union membership, as a percentage of the U.S. civilian workforce, has: a. remained constant over the years. b. decreased over the years. c. mostly remained steady with slight increases during certain time periods. d. steadily decreased till the mid-90’s and then increased considerably.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union Membership in the United States PAGE: 207

9. The long-term decline in the U.S. union membership has been attributed to the: a. shift in jobs from service industries to manufacturing industries. b. perception by firms that dealing with unions is expensive. c. increase in blue-collar jobs in manufacturing. d. increase in economic prosperity.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Union Membership in the United States PAGE: 208

10. Why are unions considered to be victims of their own successes? a. Unions have managed to earn several benefits for workers but this has resulted in a general perception by firms that dealing with unions is expensive. b. Workers are strongly intimidated by union activities despite the efforts unions have put in for the benefit of workers. c. Unions have succeeded in passing several laws successfully for the welfare of workers, but mostly through illegal means. d. Unions have passed most of the important issues that affect workers into law and are no longer considered necessary.

ANS: D

PTS: 1

DIF: Challenging

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Union Membership in the United States PAGE: 208

11. How has the North American Free Trade Agreement affected U.S. unions? a. Mexican organizations have increased wages so that U.S. firms no longer have a cost advantage while moving low-skill jobs to Mexico. b. Mexico has moved several manufacturing industries to the United States, thus providing employment opportunities to unionized workers. c. U.S. firms with unionized workforces have moved low-skill jobs to Mexico, thus reducing union membership. d. Low tariffs and restrictions have allowed U.S. firms to sell more products to Mexico, thus increasing employment for union members.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Challenging TOP: Union Membership in the United States PAGE: 208

12. The most highly unionized part of the U.S. workforce is the: a. agricultural sector. b. manufacturing sector. c. government sector. d. mining sector.

ANS: C PTS: 1 DIF: Easy NAT: BUSPROG: Analytic TOP: Union Membership in the United States KEY: Bloom's: Knowledge PAGE: 209 13.

Which of the following is true of the view that white-collar workers have about unions? a. Most union members belong to minority groups. b. Unions prefer women in low-skill jobs as members. c. Union members frequently encounter unfair and inequitable treatment. d. Unions are not in touch with the concerns of the more educated workers.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Union Membership in the United States PAGE: 209

14. Which of the following U.S. unions founded in 1938 focused on semiskilled and unskilled workers? a. The American Federation of Labor b. The AFL-CIO c. The Congress of Industrial Organizations d. The Change to Win association ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union History and Structure in the United States PAGE: 210

15. A(n) _____ is a union in which all members do the same type of work, often using specialized skills and training. a. craft union b. federation c. industrial union d. international union ANS: A PTS: 1 NAT: BUSPROG: Analytic

DIF: Easy TOP: Union History and Structure in the United States

KEY: Bloom's: Knowledge

PAGE: 210

16. Which of the following is an example of an industrial union? a. The American Federation of State, County, and Municipal Employees b. The American Federation of Television and Radio Artists c. International Association of Bridge, Structural, Ornamental, and Reinforcing Iron Workers d. National Labor Relations ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union History and Structure in the United States PAGE: 211

17. Which of the following represents a group of autonomous unions? a. Craft unions b. Industrial unions c. Congresses d. Federations ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union History and Structure in the United States PAGE: 211

18. Gloria, an active member of a local union and an employee of Bargello Inc., is elected as the first-line representative of Bargello’s unionized workers. She discusses the grievances of the employees with their supervisors and represents employees at the workplace. Gloria plays the role of an elected _____. a. b. c. d.

union leader union officer union steward business agent

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Union History and Structure in the United States PAGE: 211

19. Monica, an active member of a local union, runs the local headquarters and provides assistance to all union members. She helps employees negotiate contracts with their managements and actively works toward increasing the union’s strength. Monica plays the role of a(n) _____. a. b. c. d.

business agent administrative consultant union steward lobbyist

ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Union History and Structure in the United States PAGE: 211

20. The Railway Labor Act (RLA) of 1926 was the result of a joint effort between railroad management and unions to: a. regulate the wages and benefits of railroad workers. b. reduce the number of transportation strikes. c. break the monopoly of railroad “barons” who controlled the railway industry. d. allow the President to federalize railroads in case of emergencies.

ANS: B

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: U.S. Labor Laws PAGE: 212

21. In 1936 in the United States, airlines and their employees were added to those covered by the: a. Wagner Act. b. Taft-Hartley Act c. Airline Employment Act. d. Railway Labor Act. ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: U.S. Labor Laws PAGE: 212

22. In 1932, the U.S. Congress passed the _____ which guaranteed workers some rights to organize and restricted the issuance of court injunctions in labor disputes. a. Landrum-Griffin Act b. Railway Labor Act c. Norris-LaGuardia Act d. Wagner Act ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 212

23. Which of the following laws has been called the Magna Carta of labor and was pro-union? a. The Wagner Act b. The Landrum-Griffin Act c. The Railway Labor Act d. The Taft-Hartley Act ANS: A PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 212

24. The _____, which prohibited employers from using unfair labor practices, declared that the official policy of the U.S. government was to encourage collective bargaining. a. Railway Labor Act b. Landrum-Griffin Act c. Wagner Act d. Taft-Hartley Act ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 213

25. Which of the following laws passed in 1947 is considered to be pro-management? a. The Norris-LaGuardia Act b. The Railway Labor Act c. The Taft-Hartley Act d. The Wagner Act ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: U.S. Labor Laws PAGE: 213

26. Right-to-work laws: a. promote full-employment in unionized industries. b. restrict compulsory union membership. c. require that all union members have legal visas. d. prohibit unions’ organizing efforts during work hours.

ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: U.S. Labor Laws KEY: Bloom's: Comprehension PAGE: 213 27.

The Landrum-Griffin Act was passed in 1959 to: a. give workers the right to engage in union activities at any time except work hours. b. reduce strikes by developing third-party arbitration and mediation tools. c. prohibit unfair labor practices by employers and union officials. d. ensure that the federal government protects the democratic rights of union members.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: U.S. Labor Laws PAGE: 214

28. Which of the following is a result of the Civil Service Reform Act of 1978? a. Federal contractors cannot hire replacement workers during a strike. b. Pension funds of federal unions have been guaranteed by the government. c. Federal employees in all agencies are guaranteed the right to strike. d. It established the Federal Labor Relations Authority (FLRA).

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: U.S. Labor Laws PAGE: 215

29. Before a union election can be called, _____ of the employees in the targeted employee group must sign authorization cards of the union. a. a majority b. two-thirds c. more than 40 percent d. at least 30 percent ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 218

30. Which of the following is true in the context of a union representation election? a. The Railway Labor Act places certain restrictions on the activities of the unions and managements before an election. b. Supervisors cannot be included in bargaining units for unionization purposes, except in industries covered by the Railway Labor Act. c. A union should gain 50% of the votes to be named as the representative of all the employees. d. The larger is the number of employees in a bargaining unit, the higher is the likelihood that the union will win.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Challenging TOP: The Unionization Process PAGE: 217

31. A union is removed as the representative of a group of employees by the process of:

a. b. c. d.

union busting. delisting. deunionization. decertification.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 218

32. The process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment is called: a. joint decision making. b. collective bargaining. c. contract arbitration. d. bipartite negotiation.

ANS: B PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 218

33. Which of the following can be considered as a union security provision? a. Closed union shops b. Right-to-work laws c. No-solicitation policy d. No-layoff policy ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Easy TOP: Collective Bargaining Issues PAGE: 219

34. During a contract negotiation, the negotiator for a union brings up the issue of changing the manner in which work is scheduled. Which of the following is true of this situation? a. The management need not negotiate on this issue because it is a permissive issue. b. The management needs to negotiate on this issue as it is a mandatory issue. c. This is a non-negotiable issue because scheduling is part of the management’s rights. d. This is an illegal issue and the management may refuse to negotiate.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Collective Bargaining Issues PAGE: 219

35. The process by which union members vote to accept the terms of a negotiated labor agreement is called: a. authorization. b. certification. c. acceptance. d. ratification.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Collective Bargaining Process PAGE: 221

36. During a contract negotiation, the management of RMS, Inc. and its employee union fail to reach an agreement on an issue related to night shift pay scales. A neutral third party is called in to actively work with both sides and help them reach a settlement. This party suggests several ideas that could help in solving the issue. The process used by the third party in the given scenario is referred to as: a. arbitration. b. mediation. c. fact finding. d. conciliation.

ANS: B PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Collective Bargaining Process PAGE: 221

37. During a contract negotiation, the management of Wild Mist Inc. and its employee union fail to reach an agreement on an issue related to retirement benefits. A neutral third party is called in to come up with a solution, make the necessary decisions, and reach a settlement. The process used by the third party in the given scenario is referred to as: a. fact finding. b. conciliation. c. arbitration. d. mediation.

ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Challenging TOP: Collective Bargaining Process PAGE: 222

38. After a series of failed negotiations with its union, Sinclair Processing Inc. shuts down its manufacturing unit in order to prevent union members from working. Sinclair Processing is using a _____ to put pressure on the union. a. pre-emptive strike b. counter strike c. vandalism d. lockout ANS: D PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Collective Bargaining Process PAGE: 222

39. The responsibilities of a human resources unit while handling grievances in a unionized company include: a. operating within provisions of the grievance procedure. b. documenting grievance cases for grievance procedures. c. engaging in grievance prevention efforts. d. monitoring the trends in grievance rates.

ANS: D PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Grievance Management PAGE: 225

40. Amanda is suspended by her manager for refusing to work on night shifts. She decides to file a grievance with the human resources unit in her company. Which of the following should be Amanda’s first step? a. Contacting the grievance division of the company’s national union b. Filing a written complaint with the national union of the company c. Discussing the grievance with her union steward and supervisor

d. Applying for arbitration to settle the grievance ANS: C PTS: 1 NAT: BUSPROG: Reflective Thinking KEY: Bloom's: Application

DIF: Moderate TOP: Grievance Management PAGE: 225

41. _____ is a means by which a third party settles disputes arising from different interpretations of a labor contract. a. Interest arbitration b. Grievance mediation c. Grievance arbitration d. Contract mediation ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Grievance Management PAGE: 225

42. Which of the following is true regarding international union membership? a. In Europe, workers use technology to reform the way work gets done in factories. b. Child labor is one of the major labor concerns in the Unites States. c. The highest percentage of union membership is in the Scandinavian countries. d. Codetermination is increasingly being practiced in developing countries.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Unions in the Global Arena PAGE: 226

43. The practice whereby union or worker representatives are given positions on a company’s board of directors is called: a. collusion. b. cooperation. c. codetermination. d. tripartite negotiation.

ANS: C PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Unions in the Global Arena PAGE: 226

TRUE/FALSE 1. A major reason for employee unionization in the United States is the hiring of immigrant workers for low wages by employers.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Perspectives on Unionization PAGE: 205

2. In the United States, employees in the public sector are more likely to be union members than employees in the private sector.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Perspectives on Unionization PAGE: 209

3. The retirement of union members in older manufacturing firms has led to union membership decline.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union Membership in the United States PAGE: 208

4. A union steward is a full-time union official who operates the union office and assists union members.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union History and Structure in the United States PAGE: 211

7. The Wagner Act established the National Labor Relations Board as an independent entity to

enforce the provisions of the act.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 213

8. The Taft-Hartley Act allows the U.S. Senate to declare that a strike presents a national emergency.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 213

9. Right-to-work laws allow a person the right to work without having to join a union.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 214

10. The Landrum-Griffin Act appointed the U.S. Secretary of Labor to act as a watchdog of union conduct.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 214

11. The Postal Reorganization Act of 1970 prohibits postal workers from striking and has

established a dispute-resolution process for them to follow.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 215

12. Mailing antiunion letters to employees’ homes is an illegal union prevention method.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 216

13. Hiring “union busters” during the organizing campaign of a union is an unfair labor practice.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 216

14. It is illegal for employers to forbid distribution of union literature during work hours in work areas.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 216

15. Presenting employees with information about unions is an unfair labor practice.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 216

16. At least two-thirds of the employees in the targeted group in a company must sign

authorization cards before an election can be called.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 216

17. Issues pertaining to safety rules and profit-sharing plans are mandatory subjects for bargaining.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Collective Bargaining Issues PAGE: 220

18. It is common for wages and benefits to be higher in unionized firms.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Collective Bargaining Process PAGE: 221

19. The process of conciliation is intended to resolve collective bargaining impasses by proposing potential solutions to the involved parties.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Collective Bargaining Process PAGE: 221

20. “Interest” arbitration is used extensively in the private sector in the United States.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Collective Bargaining Process PAGE: 222

21. The Wagner Act does not contain prohibitions against employer-dominated labor organizations.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union/Management Cooperation PAGE: 223

22. Unions in some situations have encouraged workers to become partial or complete owners of

the companies that employ them.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union/Management Cooperation PAGE: 224

23. It is the responsibility of an operating manager, and not the human resources unit, to engage in grievance prevention efforts in a company.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Grievance Management PAGE: 225

24. In most European countries, employee wages are set by government negotiations with employers rather than through collective bargaining between unions and management.

ANS: F PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Unions in the Global Arena PAGE: 226

25. Codetermination refers to the practice whereby union or worker representatives are given

positions on a company’s board of directors.

ANS: T PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Unions in the Global Arena PAGE: 226

SHORT ANSWER 1. Explain a few strategies that employers use to prevent unionization from occurring in their organizations.

ANS: To prevent unionization, as well as to work effectively with unions already representing employees, both HR professionals and operating managers must be attentive and responsive to employees. The pattern of dealing with unionization varies among organizations. In some firms, management handles labor relations and HR has limited involvement. In other organizations, the HR unit takes primary responsibility for resisting unionization or dealing with unionized employees.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Perspectives on Unionization PAGE: 206

2. How have unions attempted to counteract the overall decline in the U.S. union membership?

ANS: The continuing losses have led to disagreements among unions about how to fight the decline. Rather than remaining a part of the traditional AFL-CIO labor organization, seven unions split into a new group in 2005. The AFL-CIO is a federation of individual unions that has been the main force in organized labor. Calling itself Change to Win, this association has a goal of taking a more aggressive approach to adding union members and affecting U.S. political legislation.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union Membership in the United States PAGE: 210

3. Describe the two basic types of unions that have developed over time in the United States.

ANS: The two basic types of unions have developed over time. In a craft union, members do one type of work, often using specialized skills and training. The American Federation of Television and Radio Artists is an example of a craft union. An industrial union includes many persons working in the same industry or company, regardless of jobs held. The United Food and Commercial Workers is an example of an industrial union.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: Union History and Structure in the United States PAGE: 210

4. What was the significance of the Railway Labor Act of 1926?

ANS: The Railway Labor Act (RLA) of 1926 represented a shift in government regulation of unions. The result of a joint effort between railroad management and unions to reduce transportation strikes, this act gave railroad employees “the right to organize and bargain collectively through representatives of their own choosing.” In 1936, airlines and their employees were added to those covered by the RLA. In 1932, Congress passed the Norris-LaGuardia Act, which guaranteed workers some rights to organize and restricted the issuance of court injunctions in labor disputes.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: U.S. Labor Laws PAGE: 212

5. What is a "community of interest"? What are the different areas in which employees should have mutual interests in so as to constitute a bargaining unit?

ANS: Before any election, the appropriate bargaining unit must be determined. A bargaining unit is composed of all employees eligible to select a single union to represent and bargain collectively for them. A major criterion in deciding the composition of a bargaining unit is what the National Labor Relations Board calls a “community of interest.” Employees who constitute a bargaining unit have mutual interests in the following areas: wages, hours, and working conditions, traditional industry groupings for bargaining purposes, physical location and amount of interaction and working relationships between employee groups, and supervision by similar levels of management.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Knowledge

DIF: Easy TOP: The Unionization Process PAGE: 217

6. Describe two union security provisions that organizations commonly provide.

ANS: A major concern of union representatives when bargaining is the negotiation of union security provisions, which are contract clauses to help the union obtain and retain members. One type of union

security clause in labor contracts is the no-layoff policy, or job security guarantee. Such a provision is especially important to many union workers because of all the mergers, downsizings, and job reductions taking place in many industrial, textile, and manufacturing firms. Another common union security provision is the dues checkoff clause, which provides for the automatic deduction of union dues from the payroll checks of union members. The dues checkoff provision makes it much easier for the union to collect its funds, and without it, the union must collect dues by billing each member separately.

However, unions’ ability to use such checkoff clauses for contributions to political and congressional candidates has been challenged in federal court. A U.S. Supreme Court case supported the constitutionality of state laws that require labor unions to get written consent before using nonmember fees for political purposes. The court noted that agency shop agreements were acceptable, and that public-sector unions could levy fees on nonmember employees. However, it was also noted that unions need to obtain authorization from nonmembers when agency fees are being used to support political campaigns.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Collective Bargaining Issues PAGE: 219

7. What is codetermination?

ANS: Some countries require that firms have union or worker representatives on their boards of directors.

This practice is called codetermination. It is common in European countries.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Unions in the Global Arena PAGE: 226

ESSAY 1. Describe why employees want to unionize.

ANS: Whether a union targets a group of employees for organization, or the employees

request union assistance, the union must win support from the employees to become their legal representative. Over the years, employees have joined unions for two general reasons: (1) they are dissatisfied with how they are treated by their employers, and (2) they believe that unions can improve their work situations. If employees believe they are being treated unfairly by their companies, they may turn to unions to get assistance with their concerns.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Perspectives on Unionization PAGE: 205

2. What is the current state of labor union activity in the United States?

ANS: The statistics on union membership over the past several decades tell a disheartening story for organized labor in the United States. Union membership covered more than 30% of the workforce from 1945 to 1960. But most recently, union membership in the U.S. represented only 11.8% of wage and salary workers in 2011 and 11.3% in 2012. In the public section, membership in unions was 35.9%

of the workforce in 2012, and membership was only 6.6% of the workforce in the private sector. The actual number of members has declined in most years.

However, it’s not all bad news for unions, with some unions prospering. In the past several years, unions have organized thousands of janitors, health care workers, cleaners, and other low-paid workers using publicity, pickets, boycotts, and strikes. In some states, membership in unions functioning under the AFL-CIO has steadily increased over the last several years, which is attributed to the economy turndown and concerns about poor work opportunities. The Bureau of Labor Statistics disclosed that union membership among employees working in the private sector had recently increased by approximately 50,000, for a total of almost 15 million individuals.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Union Membership in the United States PAGE: 206-207

3. How do national and international unions differ from local unions in their structures and functions?

ANS: National and international unions are not governed by a federation even if they are affiliated with it. They collect dues and have their own boards, specialized publications, and separate constitutions and bylaws. Like companies, unions find strength in size. In the past several years, about 40 mergers of unions have occurred, and some other unions have considered merging. For smaller unions, these mergers provide financial and organizing resources. Larger unions can add new members to cover managerial and administrative costs rather than having to recruit more members.

Local unions typically have business agents and union stewards. A business agent is a full-time union official who operates the union office and assists union members. The agent runs the local headquarters, helps negotiate contracts with management, and becomes involved in attempts to unionize employees in other organizations. A union steward is an employee who is elected to serve as the first-line representative of unionized workers. Stewards address grievances with supervisors and generally represent employees at the worksite.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Union History and Structure in the United States PAGE: 211

4. Describe the major national laws of the United States. What has been their impact on labormanagement relations?

ANS: The three major national labor laws include: The Wagner Act (1935), the Taft-Hartley Act (1947), and the Landrum-Griffin Act (1959). Each act was passed to focus on some facet of the relations

between unions and management. Two other pieces of legislation, the Civil Service Reform Act and the Postal Reorganization Act, also have affected only the governmental aspects of union/management relations. The Wagner Act has been called the Magna Carta of labor and was, by anyone’s standards, prounion. With employers having to close or cut back their operations, workers were left with little job security. Unions stepped in to provide a feeling of solidarity and strength for many workers. The Wagner Act declared, in effect, that the official policy of the U.S. government was to encourage collective bargaining. Specifically, it established the right of workers to organize, unhampered by management interference, through unfair labor practices.

To protect union rights, the Wagner Act prohibited employers from using unfair labor practices. Five of those practices were: Interfering with, restraining, or coercing employees in the exercise of their right to organize or to bargain collectively, dominating or interfering with the formation or administration of any labor organization, encouraging or discouraging membership in any labor

organization by discriminating with regard to hiring, tenure, or conditions of employment, discharging or otherwise discriminating against an employee because the employee filed charges or gave testimony under the act, refusing to bargain collectively with representatives of the employees.

The Wagner Act established the National Labor Relations Board as an independent entity to enforce the provisions of the act. The NLRB administers all provisions of the Wagner Act and of subsequent labor relations acts. The primary functions of the NLRB include conducting unionization elections, investigating complaints by employers or unions through its fact-finding process, issuing opinions on its findings, and prosecuting violations in court. The five members of the NLRB are appointed by the President of the United States and confirmed by the U.S. Senate.

The passage in 1947 of the Labor Management Relations Act, better known as the Taft-Hartley Act, was accomplished as a means to offset the pro-union Wagner Act by limiting union actions. It was considered to be pro-management and became the second of the major labor laws.

The new law amended or qualified in some respect all the major provisions of the Wagner Act and established an entirely new code of conduct for unions. The Taft-Hartley Act allows the President of the United States to declare that a strike presents a national emergency. A national emergency strike is one that would impact an industry or a major part of it in such a way that the national economy would be significantly affected. The act allows the U.S. President to declare an 80-day cooling-off period during which union and management continue negotiations. Only after that period can a strike occur if settlements have not been reached.

One provision of the Taft-Hartley Act, section 14(b), deserves special explanation. This section allows states to pass laws that restrict compulsory union membership. Accordingly, several states have passed right-to-work laws, which prohibit requiring employees to join unions as a condition of obtaining or continuing employment. The laws were so named because they allow a person the right to work without having to join a union.

The third of the major labor laws in the United States, the Landrum-Griffin Act, was passed in 1959.

Since a union is supposed to be a democratic institution in which union members freely vote, elect officers, and approve labor contracts, the Landrum-Griffin Act was passed in part to ensure that the federal government protects the democratic rights of the members. Under the Landrum-Griffin Act, unions are required to establish bylaws, make financial reports, and provide union members with a bill of rights. The law appointed the U.S. Secretary of Labor to act as a watchdog of union conduct.

There is a need for such legislative oversight to protect individual union members. For instance, in some situations union officers have been known to physically harass individuals who didn’t like them.

In other cases, officials have seized union resources and used them for their own personal gain.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: U.S. Labor Laws PAGE: 212-215

5. An employee is given a union leaflet that asks employees to sign a card while leaving the company premises after work. Discuss the significance of the card that the employee has been asked to sign. Is the distribution of such leaflets by a union is legal?

ANS: This leaflet is probably a request to sign an authorization card. A union authorization card is signed by employees to designate a union as their collective bargaining agent . At least 30% of the employees in the targeted group must sign authorization cards before an election can be called.

Union advocates have lobbied for changing laws so that elections are not needed if more than 50% of the eligible employees sign authorization cards. As mentioned earlier, the proposed Employee Free Choice Act would eliminate the secret ballot for electing union representation and make it so that the union would automatically represent all workers if more than 50% of the employees signed authorization cards. Some states have enacted such laws for public-sector unionization. Also, some employers have taken a neutral approach and agreed to recognize unions if a majority of workers sign authorization cards. Some employers’ agreements allow for authorization card checks to be done by a neutral outside party to verify union membership.

However, the fact that an employee signs an authorization card does not necessarily mean that the employee is in favor of a union. It means only that the employee would like the opportunity to vote on having a union. Employees who do not want a union might sign authorization cards because they want management to know they are disgruntled or because they want to avoid upsetting coworkers who are advocating unionization.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Challenging TOP: The Unionization Process PAGE: 216-217

6. The National Labor Relations Board has defined collective bargaining issues by dividing them into three categories. Explain these three categories.

ANS: The National Labor Relations Board has defined collective bargaining issues in three ways. The categories it has used are mandatory, permissive, and illegal.

Issues identified specifically by labor laws or court decisions as subject to bargaining are mandatory issues. If either party demands that issues in this category be subject to bargaining, then that must occur. Generally, mandatory issues relate to wages, benefits, nature of jobs, and other work-related subjects. Mandatory subjects for bargaining include discharge of employees, grievances, work schedules, union security and dues checkoff, retirement and pension coverage, vacations and time off, rest and lunch break rules, safety rules, profit-sharing plans, and required physical exam.

Issues that are not mandatory and that relate to certain jobs are permissive issues. For example, the following issues can be bargained over if both parties agree: benefits for retired employees, product prices for employees, and performance bonds.

A final category, illegal issues, includes those issues that would require either party to take illegal action. Examples would be giving preference to union members when hiring employees or demanding a closed-shop provision in the contract. If one side wants to bargain over an illegal issue, the other side can refuse.

PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic TOP: Collective Bargaining Issues KEY: Bloom's: Comprehension PAGE: 220 7. What is the role of collective bargaining in union/management relations? Describe the collective bargaining process.

ANS: The collective bargaining process involved in negotiating a contract consists of four possible stages: preparation and initial demands, negotiations, settlement or impasse, and strikes and lockouts.

Throughout the process, management and labor deal with the terms of their relationship.

Negotiations require representatives from management and labor to prepare extensively. Employer and industry data concerning wages, benefits, working conditions, management and union rights, productivity, and absenteeism are gathered. If the organization argues that it cannot afford to pay what the union is asking, the employer’s financial situation and accompanying data become relevant to the process. However, the union must request such information before the employer is obligated to provide it. Typical bargaining includes initial proposals of expectations by both sides. The amount of rancor or calmness exhibited may set the tone for future negotiations between the parties.

The primary focus of bargaining for both union and management is on the core areas of wages, benefits, and working hours and conditions. The importance of this emphasis is seen in several ways.

Union wages and benefits generally are higher in unionized firms than in non-unionized firms.

After taking initial positions, each side attempts to determine what the other side values highly so that the best bargain can be struck. Provisions in federal law require that both employers and union bargaining representatives negotiate in good faith. In good-faith negotiations, the parties agree to send negotiators who can bargain and make decisions, rather than people who do not have the authority to commit either group to a decision. To be more effective, meetings between the parties should be conducted professionally and address issues, rather than being confrontational. Refusing to bargain, scheduling meetings at absurdly inconvenient hours, and using other conflicting tactics may lead to employers or unions filing complaints with the NLRB. After reaching an initial agreement, the bargaining parties usually return to their respective constituencies to determine if the informal agreement is acceptable. A particularly crucial stage is ratification of the labor agreement, which occurs when union members vote to accept the terms of a negotiated labor agreement. Before ratification, the union negotiating team explains the agreement to the union members and presents it for a vote. If the members approve the agreement, it is then formalized into a contract.

Regardless of the structure of the bargaining process, labor and management do not always reach agreement on the issues. If they reach an impasse, then the disputes can be taken to conciliation, mediation, or arbitration. When an impasse occurs, an outside party such as the Federal Mediation and Conciliation Service may help the two deadlocked parties to continue negotiations and arrive at a solution. In conciliation, the third party assists union and management negotiators to reach a voluntary settlement, but makes no proposals for solutions. In mediation, the third party may suggest ideas for solutions to help the negotiators reach a settlement.

In conciliation and mediation, the third party does not attempt to impose a solution. Sometimes fact finding helps to clarify the issues of disagreement as an intermediate step between mediation and arbitration. In arbitration, a neutral third party makes a decision. Arbitration can be conducted by an individual or a panel of individuals. “Interest” arbitration attempts to solve bargaining impasses, primarily in the public sector. This type of arbitration is not frequently used in the private sector because companies generally do not want an outside party making decisions about their rights, wages, benefits, and other issues. However, grievance or “rights” arbitration is used extensively in the private sector. Fortunately, in many situations, agreements are reached through negotiations without the need for arbitration. When disagreements continue, strikes or lockouts may occur. If a deadlock cannot be resolved, an employer may revert to a lockout—or a union may revert to a strike. During a strike, union members refuse to work to put pressure on an employer. Often, the striking union members picket or demonstrate against the employer outside the place of business by carrying placards and signs.

In a lockout, management shuts down company operations to prevent union members from working.

This action may avert possible damage or sabotage to company facilities or injury to employees who continue to work. It also gives management leverage in negotiations. As a result of the decline in union power, work stoppages due to strikes and lockouts are relatively rare.

PTS: 1

DIF: Moderate

NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

TOP: Collective Bargaining Process PAGE: 220-222

8. How have employee involvement programs affected organizations over time? What are the advantages and disadvantages of employee ownership programs?

ANS: Some decisions by the National Labor Relations Board (NLRB) to improve union/management cooperation or to involve employees in making suggestions and decisions in a company have been proved bad. When the Wagner Act was written, certain employers would form sham company unions, coercing workers into joining them to keep legitimate unions from organizing the employees. As a result, the Wagner Act contained prohibitions against employer-dominated labor organizations. These prohibitions were enforced, and company unions disappeared. But the use of employee involvement programs in organizations today has raised new concerns along these lines.

Because of the Wagner Act, many employee-involvement programs set up in past years may be illegal.

Companies have used teams of employees to solicit other employees’ views about such issues as wages and working conditions. The NLRB labeled these teams labor organizations, in line with requirements of the Wagner Act. It further found that the teams were dominated by management, which had formed them, set their goals, and decided how they would operate. The results of this and other decisions have forced many employers to rethink and restructure their employee-involvement efforts.

Federal court decisions have upheld the NLRB position in some cases and reversed it in others. One key to decisions allowing employee involvement committees and programs seems to be that these entities should not deal directly with traditional collective bargaining issues such as wages, hours, and working conditions. Other keys are that the committees should be composed primarily of workers and that they have broad authority to make operational suggestions and decisions.

Unions in some situations have encouraged workers to become partial or complete owners of the companies that employ them. These efforts were spurred by concerns that firms were preparing to shut down, merge, or be bought out. Such results were likely to cut the number of union jobs and workers.

Employee stock ownership plans for union members have been successful in some situations because members have purchased all or part of an organization. However, such programs might undermine union support by creating a closer identification with the concerns and goals of employers, instead of union solidarity.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Comprehension

DIF: Moderate TOP: Union/Management Cooperation PAGE: 223-224

9. George, a unionized employee, is suspended from work after a conflict with his supervisor. George decides to file a grievance complaint. Whom should George approach with his problem? Who handles the responsibilities of grievance management in an organization? What are the different steps that George is likely to undergo in the grievance management procedure?

ANS: George should first approach his union steward and supervisor for a discussion. The next step would be for the union steward discusses the grievance with the supervisor’s manager and/or the HR manager. This would be followed by a committee of union officers discussing the grievance with appropriate company managers. Next, the representative of the national union discusses the grievance with designated company executives or the corporate industrial relations officer. If the grievance is not solved at this stage, it goes to arbitration. An impartial third party may ultimately dispose of the grievance.

Grievance arbitration is a means by which a third party settles disputes arising from different interpretations of a labor contract. This process is different from contract or issues arbitration in which arbitration is used to determine how a contract will be written. The U.S. Supreme Court has ruled that grievance-arbitration decisions issued under labor contract provisions are enforceable and generally may not go to court to be changed. Grievance arbitration includes many topic areas, with discipline and discharge, safety and health, and security being common concerns.

PTS: 1 NAT: BUSPROG: Analytic KEY: Bloom's: Application

DIF: Moderate TOP: Grievance Management PAGE: 225-226