Test Bank for Managing Human Resources 12th Edition by Wayne Cascio ISBN 9781264069392

Test Bank for Managing Human Resources 12th Edition by Wayne Cascio ISBN Chapter 1-16 Answers are at the End of Each Chapter Chapter 1 Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The digital form of globalization in the modern era is largely confined to advanced economies with large, multinational corporations. ⊚ ⊚

true false

2) Today, as a result of the global flow of digital information, even the smallest firms can compete with the largest multinational corporations. ⊚ ⊚

true false

3) Today, in the increasingly digital era of globalization, companies can find the best person for a job anywhere in the world. ⊚ ⊚

true false

4) Managing change is an ongoing process whose objective is to enhance the ability of an organization to anticipate and respond to developments in only its external environment. ⊚ ⊚

true false

5) Changes in any single part of a human resource management system have a reverberating effect on all other parts of the system.

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true false

6) The functional areas of human resource management, such as staffing and retention, are the sole responsibility of the HR department. ⊚ ⊚

true false

7) Recognizing that you have the right people in critical leadership roles is not an HR responsibility but rather a business imperative that must be truly owned by the leaders of a firm. ⊚ ⊚

true false

8) According to a survey of chief HR officers, one of the greatest challenges for chief HR officers is creating a true sense of ownership among senior leaders regarding their roles as Chief Talent Officers. ⊚ ⊚

true false

9) One study found that a 10 percent increase in a measure of goal-setting activity at firms was associated with a 6 percent increase in industry-adjusted stock returns. ⊚ ⊚

true false

10) There is a growing fear among many people that globalization benefits big companies instead of average citizens. ⊚ ⊚

true false

11) As a result of globalization, one of the expected trends is a decrease in automated and outsourced roles and an increased focus on technical skills for successful managers.

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true false

12) Globalization is a fact of organizational life, as countries, companies, and workers are interconnected as never before. ⊚ ⊚

true false

13) Cheap labor and plentiful resources, combined with ease of travel and communication, have created global labor markets. ⊚ ⊚

true false

14) A meta-analysis of the three dimensions of human resource systems revealed that there is an indirect correlation between employee motivation and an organization's financial outcomes. ⊚ ⊚

true false

15) People tend to be more involved and committed to their jobs when they have more control and say in their work. ⊚ ⊚

true false

16) Technology combined with creativity and problem-solving skillsmakes nonstandard work less feasible for organizations and workers. ⊚ ⊚

17)

true false

Downsizing is the most common form of restructuring.

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18)

true false

The best way for a company to prosper is to downsize. ⊚ ⊚

true false

19) One of the new competitive realities faced by organizations in the 21 st century is that an employee's pay is tied less to the market value of his or her skills and more to his or her tenure in the organization. ⊚ ⊚

true false

20) A feature of employment in the 21 st century is that there are a growing number of workers who operate outside the traditional confines of regular, full-time employment. ⊚ ⊚

true false

21) A disadvantage of growing digital globalization is that technology-driven job destruction decreases overall employment. ⊚ ⊚

true false

22) When generating sustainability strategies, an organization must give primacy to the expectations and requirements of its financial stakeholders. ⊚ ⊚

true false

23) Flexibility is currently viewed by most managers and employees as a new and effective way of working to achieve business results rather than as an exception or employee accommodation.

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⊚ ⊚

24)

Widespread use of formal and informal flexibility meets business and individual needs. ⊚ ⊚

25)

true false

true false

Increased productivity impedes a high quality of work life. ⊚ ⊚

true false

26) Company X is increasing production by adding more employees to its workforce and scaling up its existing facilities. Company X is essentially increasing its productivity. ⊚ ⊚

true false

27) Quality of work life is defined in terms of an organization's perception of its employees' physical and mental well-being at work. ⊚ ⊚

true false

28) Over the past decade, organizations have become more complex, dynamic, and fastpaced. ⊚ ⊚

true false

29) How the people are selected, trained, and managed does not determine how successful an organization will be. ⊚ ⊚ Version 1

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30) According to the theory of quality of work life (QWL), the productivity of workers decreases when they are given more control over the design of their jobs and workplaces. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) Which of the following permits the workforce to enlarge or shrinkfaster when demand is volatile?

A) nonstandard work B) restructuring C) downsizing D) building flexibility

32) The ability of any individual or company to compete, connect, exchange, or collaborate with other individuals or companies around the world is known as ________.

A) productivity B) human resource management C) globalization D) virtual workforce forecasting

33) that

In the context of globalization, conventional economics in the United States has long held

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A) free trade and globalization are not good for national labor markets and should be discouraged.

B) free trade and globalization tend to cause low-skill workers to suffer long periods of unemployment.

C) workers adjust to the rapidly evolving job market very slowly and tend not to have the skills to successfully adapt.

D) workers adapt to the loss of jobs in their communities by moving into new, enriching areas of the labor market.

34) The challenge, opportunity, and frustration of creating and managing organizations frequently stem from the ________ problems that arise within them.

A) people-related B) union C) legal D) upper management

35)

________ are the most vital assets in work settings.

A) People B) Technologies C) Cultures D) Finances

36) All of the following are general categories of human resource management activities except ________.

A) managing change B) development C) outplacement D) adjustment

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37)

Staffing comprises all of the following activities except

A) identifying work requirements within an organization.

B) involving employees in business strategy.

C) recruiting, selecting, and promoting qualified candidates.

D) determining the numbers of people and the skills necessary to do the work.

38)

Retention comprises all of the following activities except

A) rewarding employees for performing their jobs effectively.

B) ensuring harmonious working relations between employees and managers.

C) maintaining a safe, healthy work environment.

D) identifying work requirements within an organization.

39) The category of human resource management responsibilities aimed at preserving and enhancing employee job competence is ________.

A) development B) staffing C) retention D) managing change

40) ________ comprises activities intended to maintain compliance with an organization's human resource policies and business strategies.

A) Staffing B) Retention C) Development D) Adjustment

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41) A broad objective of human resource management is to ________ of all workers in an organization.

A) minimize the downtime B) optimize the usefulness C) scrutinize the personnel file D) standardize the benefits

42)

Which of the following is a retention responsibility of line management?

A) compensation and benefits B) performance feedback to subordinates C) management and organizational development D) face-to-face resolution of conflict

43)

In terms of staffing, the responsibility of line management is

A) to make final decisions on entry-level hires and promotions.

B) to perform a job or competency analysis.

C) to develop legally sound performance management systems.

D) to investigate employee complaints.

44) When senior managers take true ownership of their responsibility to have the right people in critical leadership roles, they are embracing their roles as ________.

A) morale supervisors B) technical training specialists C) chief talent officers D) applied motivational strategists

45) Ron is a line manager at an avionics research and development organization. Which of the following would be part of Ron's responsibility for managing change?

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A) providing a vision of where his unit is going B) providing expertise to facilitate the overall process of managing change C) developing legally sound performance management systems D) respecting the dignity of each individual in his unit

46) There is a substantial and growing body of research evidence showing a strong connection between how firms ________ and the economic results they achieve.

A) select board members B) educate their management staff C) manage their people D) diversify their product line

47)

Which of the following is a feature of globalization?

A) cheap labor B) plentiful resources C) ease of travel D) All of these choices are correct.

48) Which of the following statements is true of how the globalization of companies has affected the global economy?

A) Open borders have allowed new ideas and technology to flow freely.

B) Accelerating productivity growth has allowed companies to become more competitive.

C) There is a growing fear that globalization only benefits big businesses.

D) All of these choices are correct.

49)

How do less-developed countries win from globalization?

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A) They can sell sophisticated technologies to emerging economies.

B) They get jobs making low-cost products for rich countries.

C) They gain the ability to buy expensive imports.

D) They can sell services to relatively underdeveloped countries.

50)

Globalization has been encouraged by

A) the ease of travel and communication.

B) a decrease in employees willing to take foreign posts.

C) the complexity of matrix organizations.

D) a lack of global resources.

51) Coca-Cola earns more than ________ percent of its revenues from outside the United States.

A) 15 B) 25 C) 75 D) 95

52)

The most important intellectual property in the creative economy is ________.

A) intellectual capital B) telemedicine C) music D) software

53) Groove Space Solutions is a Web design firm. The employees of the firm do not work at an office. Instead, they work from their homes. They collaborate with each other and report to their managers in real time through an online communications software. In the context of the new competitive realities of the modern age, this scenario illustrates a ________.

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A) virtual workplace B) downsized organization C) human resources information system D) sustainable workplace

54)

In a ________, employees operate remotely from each other and from their managers.

A) bureaucratic organization B) fluid organization C) telecommuting center D) virtual workplace

55) A(n) ________ is a modern organizational form in which teams of specialists come together through technology to work on a project and then disband when the project is finished.

A) virtual organization B) offshore organization C) modular group D) functional group

56)

In the context of flexibility in work schedules, which of the following is a true statement?

A) Firms have the flexibility to customize the skill sets they need without hiring.

B) Companies buy lines of business and alter reporting relationships.

C) Barriers often include facetime culture and manager skepticism.

D) Flexibility acts as an emergency strategy and a last resort in a downturn or crisis.

57) In the context of the responses of firms to new competitive realities, identify a true statement about downsizing.

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A) It is a popular practice because its direct and indirect costs are often very low.

B) It is utilized only by firms in advanced economies, as developing nations forbid this practice.

C) It is only used as the last resort by organizations coping with severe financial constraints.

D) It is necessary when an organization is overstaffed or if a business no longer fits into a firm's long-term strategy.

58)

Which of the following competencies are part of theinterpersonalcluster?

A) human resource expertise in people, organizations, the workplace, and strategy B) communication, relationship management, and global and cultural effectiveness C) business acumen, critical evaluation, and consultation D) leadership and navigation and ethical practice

59) How the people are selected, trained, and managed determines to a large extent how ________ an organization will be.

A) profitable B) stable C) innovative D) successful

60) In the context of human resource management competencies, the ability to understand and apply information to contribute to an organization's strategic plan is categorized under ________.

A) human resources expertise B) critical evaluation C) business acumen D) relationship management

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61) Organizations strive to retain talented workers in a hot job market by offering employees ________.

A) coordination of control B) flexible work schedules C) total quality management D) unity of command

62) The measure of the output of goods and services relative to the input of labor, capital, and equipment is known as ________.

A) quality enhancement B) profits C) productivity D) resources

63)

According to the text, quality of work life is defined in terms of

A) employees' perceptions of their well-being at work.

B) the level of productivity achieved by employees.

C) the objective indices of employee well-being at work.

D) the degree to which an organization adopts Japanese managerial principles.

64) ________ involves giving workers the opportunity to make decisions about the design of their jobs and workplaces, and what they need to make products or to deliver services most effectively.

A) International Organization for Standardization B) Reengineering C) Six Sigma D) Quality of work life

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65) According to the Society for Human Resource Management, the consultation competency of HR success is defined as the ability to

A) provide guidance to organizational stakeholders.

B) direct and contribute to initiatives and processes within the organization.

C) effectively exchange with stakeholders.

D) understand and apply information to contribute to the organization's strategic plan.

66) According to the Society for Human Resource Management, the communication competency of HR success is defined as the ability to

A) maximize the organization's profits.

B) effectively exchange with stakeholders.

C) consider the perspectives and backgrounds of all parties.

D) manage interactions to provide service and to support the organization.

67) According to the Society for Human Resource Management, the critical evaluation competency of HR success is defined as the ability to

A) effectively exchange with stakeholders.

B) understand and apply information to contribute to the organization's strategic plan.

C) direct and contribute to initiatives and processes within the organization.

D) interpret information to make business decisions and recommendations.

68) According to the Society for Human Resource Management, the leadership and navigation competency of HR success is defined as the ability to

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A) interpret information to make business decisions and recommendations.

B) direct and contribute to initiatives and processes within the organization.

C) integrate core values, integrity, and accountability throughout all organizational and business practices.

D) manage interactions to provide service and to support the organization.

69) According to the Society for Human Resource Management, the ethical practice competency of HR success is defined as the ability to

A) integrate core values, integrity, and accountability throughout all organizational and business practices.

B) interpret information to make business decisions and recommendations.

C) understand and apply information to contribute to the organization's strategic plan.

D) provide guidance to organizational stakeholders.

70) According to the Society for Human Resource Management, the global and cultural effectiveness competency of HR success is defined as the ability to

A) integrate core values, integrity, and accountability throughout all organizational and business practices.

B) value and consider the perspectives and backgrounds of all parties.

C) provide guidance to organizational stakeholders.

D) direct and contribute to initiatives and processes within the organization.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) List and describe the five broad activities encompassed by human resource management.

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72) List three ways in which sustainability affects an organization's business model, structure, and processes.

73)

Explain at least two new organizational forms.

74)

What is downsizing, and what are some advantages and downsides related to its practice?

75) Define what is meant by quality of work life, and list some aspects of successful quality of work life programs.

76) The human resource management (HRM) practices have an impact on three importantorganizational outcomes. What are the three outcomes?

77)

List the key steps that a company must take to achieve sustainability gains.

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78)

List at least two jobs ideally suited for virtual workplaces.

79)

What is productivity?

80)

What does QWL stand for?

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Answer Key Test name: chapter 1 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) TRUE 16) FALSE 17) TRUE 18) FALSE 19) FALSE 20) TRUE 21) FALSE 22) FALSE 23) FALSE 24) TRUE 25) FALSE 26) FALSE Version 1

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27) FALSE 28) TRUE 29) FALSE 30) FALSE 31) A 32) C 33) D 34) A 35) A 36) C 37) B 38) D 39) A 40) D 41) B 42) D 43) A 44) C 45) A 46) C 47) D 48) D 49) B 50) A 51) C 52) A 53) A 54) D 55) A 56) C Version 1

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57) D 58) B 59) D 60) C 61) B 62) C 63) A 64) D 65) A 66) B 67) D 68) B 69) A 70) B

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71) Human resource management systems are concerned to some degree with the following five activities: staffing, retention, development, adjustment, and managing change. Staffing comprises the activities of (1) identifying work requirements within an organization; (2) determining the numbers of people and the skills mix necessary to do the work; and (3) recruiting, selecting, and promoting qualified candidates.

Retention comprises the activities of (1) rewarding employees for performing their jobs effectively; (2) ensuring harmonious working relations between employees and managers; and (3) maintaining a safe, healthy work environment. Development is a function whose objective is to preserve and enhance employees' competence in their jobs through improving their knowledge, skills, abilities, and other characteristics; HR specialists use the term "competencies" to refer to these items.

Adjustment comprises activities intended to maintain compliance with an organization's HR policies (e.g., through discipline) and business strategies (e.g., cost leadership). Managing change is an ongoing process whose objective is to enhance the ability of an organization to anticipate and respond to developments in its external and internal environments, and to enable employees at all levels to cope with the changes.

72) Sustainability affects an organization's business model, structure, and processes in the following ways: 1. Organizations consider a wider set of stakeholders when setting strategy.

2. Stakeholders help with the implementation of such a strategy, as employers partner with external organizations.

3. Sustainability affects corporate practices, requires greater involvement and accountability of boards of directors, and requires business transparency.

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73) One example of a new organizational form that is evolving from changes is the virtual organization, where teams of specialists come together to work on a project—as in the movie industry—and then disband when the project is finished. Such organizations are already quite popular in consulting, in legal defense, and in sponsored research.

More common in the information age, however, is the virtual workplace in which employees operate remotely from each other and from managers. They work anytime, anywhere—in real space or in cyberspace. Compelling business reasons, such as reduced real estate expenses, increased productivity, higher profits, improved customer service, access to global markets, and environmental benefits drive the implementation of the virtual workplace.

74) Downsizing is the planned elimination of positions or jobs in an organization. Today, downsizing is a standard tool for doing business.

Downsizing can be helpful when an organization is overstaffed or if a particular business no longer fits into a firm's long-term strategy. It can also help organizations survive turbulent economic times that are not conducive to their areas of business. However, the direct and indirect costs of downsizing tend to be extremely high. Direct costs include items such as severance costs and benefits payouts, while indirect costs include low morale and decreased productivity among employees. An organization's reputation may also be severely damaged as a result of downsizing. Organizations tend to downsize during trying economic periods. However, downsizing leads to people becoming fearful about their jobs even if they have not been laid off. Such low morale among employees is an undesirable consequence of the practice of downsizing.

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75) Quality of work life (QWL) refers to employees' perceptions of their physical and psychological well-being at work. It involves providing employees the chance to make decisions about their jobs, the design of their workplaces, and ensuring work–life fit. Its emphasis is on workers and managers operating a business together.

76) The three organizational outcomes are productivity, quality of work life, and profit.

77) For companies that want to achieve sustainability gains, the following key steps should be taken: (1) make a public commitment, (2) the CEO should lead the way, (3) assist employees comprehend the connection between sustainable products and processes and strategic business goals, and (4) ingrain sustainable behaviors and processes throughout the business and offer incentives for line managers to deliver results.

78) Any two of the following: 1) sales, 2) marketing, 3) project engineering, 4) consulting 79) Productivity is a measure of the output of goods and services relative to the input of labor, capital, and equipment. Improving productivity simply means getting more out of what is put in. It does not mean increasing production through the addition of resources, such as time, money, materials, or people. It is doing better with what you have. It is not working harder; it is working smarter. Today's world demands that we do more with less.

80) Quality of work life

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Descriptive analytics help organizations predict the number of employees expected to quit at various levels in the future. ⊚ ⊚

true false

2) In the context of human resource information systems (HRIS), companies are moving from cloud-based software-as-a-service (SaaS) systems to on-premise systems. ⊚ ⊚

true false

3) People with high self-efficacy are most likely to experience anxiety and stress when a new technology is introduced at work. ⊚ ⊚

true false

4) The National Labor Relations Board has held that employees have a legally protected right to use an employer's e-mail system for organizing or other legally protected, concerted activity. ⊚ ⊚

5)

In the context of HR technology, biometrics reduces efficiency and increases fraud. ⊚ ⊚

6)

true false

true false

HR technology is least used in administering pay systems. ⊚ ⊚

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7) The primary purpose of assistive technology in firms is to heal stress-related illnesses of employees. ⊚ ⊚

true false

8) The percentage of training resources devoted to e-learning has decreased since the last decade. ⊚ ⊚

9)

true false

The most common use of HR technology is gamification technology. ⊚ ⊚

true false

10) Incident-management technology helps in facilitating the computation and analysis of the costs of various types of injuries in firms. ⊚ ⊚

true false

11) The purpose of e-Verify is to help the federal government monitor whether employers follow the laws set by the U.S. Equal Employment Opportunity Commission (EEOC). ⊚ ⊚

true false

12) Human resources (HR) risk refers to the uncertainty arising from changes in a wide range of workforce and people-management issues that affect a company's ability to meet its strategic and operating objectives. ⊚ ⊚ Version 1

true false

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13) Decision-support systems track where each applicant is in the recruitment process, and they generate reports that analyze the relative performance of alternative recruitment sources and strategies. ⊚ ⊚

true false

14) The first step in creating a human resource information system (HRIS) is to develop a deep understanding of top management's long-term goals and objectives in order to create buying criteria for a long-term solution. ⊚ ⊚

true false

15) In the context of strategies used for adopting HR technology, the best of breed strategy is the selection of an integrated system from a single vendor. ⊚ ⊚

true false

16) An HR dashboard is a means of providing high-level, real-time, graphically formatted data to managers. ⊚ ⊚

true false

17) When comparing alternative human resource information systems (HRIS), it is critical to assess the experiences of end users. ⊚ ⊚

true false

18) Unlike traditional human resource information systems (HRIS), cloud-based software-asa-service (SaaS) systems have multiple systems of record for HR data.

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⊚ ⊚

true false

19) When choosing a human resource information system (HRIS), a big mistake for any organization is to fail to include representatives from finance and IT in the vendor-selection process. ⊚ ⊚

true false

20) In large organizations, HR staff focus on policy decisions, complex or sensitive employee issues, and analysis of people-related business issues that have financial implications for the firm. ⊚ ⊚

21)

true false

An advantage of on-premise systems is that data can be managed on remote servers. ⊚ ⊚

true false

22) A disadvantage of using the software-as-a-service (SaaS) approach is that human resource information system (HRIS) data are lost in the event of a natural disaster. ⊚ ⊚

true false

23) The emerging general technology paradigm known as ubiquitous computing is about one technology. ⊚ ⊚

true false

24) Human resource information system (HRIS) is well suited to address the challenge of aggregating multiple data sources.

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⊚ ⊚

true false

25) Research suggests that organizations are most likely to move from using prescriptive analytics to descriptive analytics. ⊚ ⊚

true false

26) Self-determination theory holds that self-motivation and well-being will be enhanced when innate needs for autonomy, competence, and relatedness are satisfied, and they will be diminished when these needs are thwarted. ⊚ ⊚

true false

27) Usability concerns the interface between humans and technology, and it is measured in terms of efficiency, effectiveness, and user satisfaction. ⊚ ⊚

true false

28) Self-service portals promise faster execution of employee and manager transactions, with more informed users. ⊚ ⊚

true false

29) HR technology helps in dramatically improving the time and cost per transaction as HR staff, employees, and line managers gain access to increased data to support decisions. ⊚ ⊚

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30) Predictive talent analytics help organizations move from simply describing what is to predicting important outcomes, such as the number of employees expected to quit at various levels in the coming year or over the longer term. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) Devon is visually impaired. His organization gives him a Windows-Eyes read device that enables him to complete various tasks at work. This enables Devon to meet his targets and reduce his workload. Which of the following statements is true about the scenario?

A) Devon is using a system of biometrics.

B) Devon is given a benefit support system.

C) Devon is given assistive technology.

D) Devon is using gamification.

32) When Karen, a senior employee, downloads documents from her firm's website, she deals with a series of checks for access. She has to use a username and password to enter the website.

She is required to confirm her identity on her smartphone followed by an image verification on her computer. This is an example of the use of ________.

A) biometrics B) assistive technology C) an applicant-tracking system D) a decision support system

33) Jay is analyzing his firm's current HR strategy. He develops multiple scenarios about the future and suggests action plans for each of them to the manager. He intends to know how the firm will cope with economic changes in the future. This is an example of ________.

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A) descriptive analytics B) diagnostic analytics C) prescriptive analytics D) causative analytics

34) Rodriguez is analyzing his firm's past HR recruitment strategies. He desires to know how the firm's recruitment and staffing strategy was developed and how it has changed since the firm's inception. Rodriguez is most likely using ________.

A) descriptive analytics B) predictive analytics C) prescriptive analytics D) proactive analytics

35) Jennifer and Jordan analyze their firm's HR policies. Jennifer analyzes the data of the last 10 years, while Jordan uses existing data on the firm's HR policies and also the data of the last 10 years to determine what will happen in the future. Which of the following statements is most likely true about the scenario?

A) Both Jennifer and Jordan are using predictive analytics.

B) Jennifer is using descriptive analytics, whereas Jordan is using predictive analytics.

C) Both Jennifer and Jordan are using prescriptive analytics.

D) Jennifer is using prescriptive analytics, whereas Jordan is using diagnostic analytics.

36) Moonshow Inc. is unable to provide screen readers for its visually impaired employees.

Most of the visually impaired struggle to complete their tasks. In this scenario, the organization is lacking ________.

A) a decision-support system B) assistive technology C) multifactor authentication D) a system of biometrics

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37) Robben and Jenna work at Boarhut Inc. They believe that their firm's management does not engage with its employees effectively. They desire that the management encourage interaction among employees through competitions and contests. In the context of various areas of HR technology, Robben and Jenna are most likely interested in ________.

A) decision-support systems B) assistive technology C) e-learning D) gamification

38)

Which of the following is an example of the use of biometrics in an organization?

A) a system that scans the identity cards of employees B) a system that requires employees to complete an aptitude test to gain access to restricted areas of the organization C) a system that scans employees' facial geometry D) a system that requires employees to enter a code into the HR system to gain access to restricted areas of the organization

39) A job applicant is interested in identifying job vacancies available in his region. He wants to learn about the organizational culture of his potential employers. The job applicant most likely needs ________ to accomplish his task.

A) assistive technology B) an applicant-tracking system C) a self-service portal D) the e-Verify tool

40)

The e-Verify tool is used to

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A) determine if an applicant is eligible for a loan.

B) verify if a firm has filed all documents with the revenue department for tax deductions.

C) confirm a match between an employee's name and Social Security Number.

D) determine if a firm has used the correct applicant-tracking system in its recruitment process.

41) In the context of HR risk management, the primary concern for organizations is ________.

A) operational risk B) market risk C) credit risk D) financial risk

42)

Identify an accurate statement about HR technology.

A) It is rarely used by human resources in administering benefit and incentive plans.

B) It is most commonly used in human resource information systems (HRIS).

C) It is least useful in conducting employee surveys.

D) It is widely used in managing the digital assets of vendors.

43) An IT firm uses technology to prevent fraudulent practices. Employees are required to provide fingerprints to gain access to restricted areas of the organization. In this scenario, the firm is using a(n) ________.

A) biometrics system B) teleworking system C) applicant-tracking system D) radio frequency identification tag

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44) Fifty candidates appear for the first round of interview at a firm. The manager of the firm wants to verify the status of these interviewees in the recruitment process. The manager intends to know how many interviewees have cleared the first round of interview and the second round of interview. To aid the manager in the recruitment process, the firm should use ________.

A) the e-Verify tool B) an applicant-tracking system C) a self-service portal D) multifactor authentication

45) Which of the following is an example of a collaborative media platform between vendors?

A) blogs B) file-sharing sites C) wikis D) social networking sites

46) Martha is a new employee at an automobile firm. Martha's firm encourages its employees to use wikis to develop their skills. This enables her to engage with other employees. Which of the following statements is true about the scenario?

A) This is an example of the use of a decision-support system.

B) The firm is employing assistive technology.

C) The firm is using gamification.

D) This is an example of the use of a web-based tool.

47)

The effectiveness of electronic (e-) learning primarily depends on

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A) the number of people using the micro-learning apps.

B) the learner attending the course.

C) the time spent on creating a learning module as well as the number of people employed in making the module.

D) the delivery method as well as the task being trained.

48) Trekords Inc. intends to improve the management skills of its employees at workplace. It uses an online digital training module that has brief, interactive video lessons. The lessons teach employees how to handle management conflict. The online digital training tool conducts a twominute quiz at the end of the video lesson to test the employees' understanding of the concepts taught to them. In this scenario, the organization is most likely using ________ to train its employees.

A) a simulation method B) an assessment center method C) a self-service portal D) micro-learning apps

49)

________ are software platforms housed in privately controlled data centers.

A) Software-as-a-service (SaaS) systems B) Cloud computing systems C) On-premise systems D) Subscription-based systems

50) Which of the following statements is true about a cloud-based human resource information system (HRIS)?

A) It has declined in popularity due to the prevalence of legacy systems.

B) It is also known as on-premise system.

C) It enables organizations to have multiple systems of record for HR data.

D) It enables organizations to standardize HR data across multiple geographies.

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51) In the context of vendor selection for HR technology, which of the following represents the best of breed strategy?

A) outsourcing HR technology infrastructure to the best third-party vendor B) selecting one vendor for all applications of HR technology C) choosing an integrated system from the single best vendor in the market D) selecting the best applications in each area of HR technology from multiple vendors

52) In the context of renting technological services, a disadvantage of the software-as-aservice approach of the human resource information system (HRIS) is that

A) data will be lost if a natural disaster strikes the organization.

B) the vendor cannot be held responsible for maintaining and updating the software.

C) it cannot be used for organizations that employ less than 100 people.

D) it is not customizable to the specific needs of an organization.

53) In the context of self-determination theory, ________ refers to the need to control one's actions, to be a causal agent in one's life.

A) competence B) autonomy C) relatedness D) dexterity

54) In the context of self-determination theory, ________ refers to the need to feel interpersonally connected with others.

A) thoughtfulness B) agility C) relatedness D) dexterity

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55) In the context of self-determination theory, ________ refers to the need to experience mastery and to affect one's outcomes and surroundings.

A) agreeableness B) autonomy C) affability D) competence

56) Most employees at Cubestones Inc. struggle to use some of the new HR tools. The firm allows its employees to customize the new tools as per their needs. The new tool is much quicker than the previous tool used at the firm but has a high error rate. Employees say that tool makes obvious errors as it regularly gives them incorrect results. Which of the following statements is true about the scenario?

A) The employees have low self-efficacy.

B) The tool is ineffective.

C) The tool fails to meet the autonomy needs of the employees.

D) The tool is inefficient.

57) Sunita is unable to use an HR tool that was implemented last year in her firm. The tool encourages participation and interaction between employees and the management. The tool gives complete authority to its users to customize and change the preferences. Even though the tool reduces her workload, she states that it does not give her accurate results. Identify an accurate statement about the scenario.

A) The tool does not help Sunita in meeting her autonomy needs.

B) The tool does not help Sunita in meeting her relatedness needs.

C) The tool is ineffective.

D) The tool is non-collaborative.

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58) A newly designed HR tool requires a lot of time to address issues faced by the employees of Keaila Inc. The tool has a high success rate. The tool enables to modify and customize various parts for ease of use. The tool helps the employees of Keaila Inc. to connect with its customers and the upper management. Which of the following statements is true about the scenario?

A) The tool does not help in meeting the relatedness needs of the employees.

B) The tool is non-collaborative.

C) The tool does not help in meeting the autonomy needs of the employees.

D) The tool is inefficient.

59) Jake, a new employee at a textile company, does not feel comfortable with a new tool implemented by the HR department. The tool gives information about organization policy and structure to its employees. The HR department says that the tool would promote interaction and engagement between employees and the upper management. Jake states that the tool is noninteractive. He says that the tool does not make him feel connected with his peers and the upper management of the organization. According to the self-determination theory, this tool does not help in meeting Jake's need for ________.

A) relatedness B) competence C) autonomy D) efficiency

60) At an IT firm, a new micro-learning app enables its employees to enhance and improve their programming skills. The app has a series of learning tasks and a small quiz at the end of every learning task. Jordan, a co-creator of the app, says that the content on the app is good and that it improves the learning of the employees. This app has resulted in mastery of their programming skills. According to the self-determination theory, the app is most likely trying to meet the ________ needs of its employees.

A) relatedness B) autonomy C) competence D) sociability

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61) A new decision-support system is implemented by the HR department of a firm. It saves a lot of time of its employees by aiding in their decision-making process. It enables employees to have complete control at every step in the decision-making process. Despite these benefits, Kenneth, a senior employee, feels anxious while using the new system. He lacks confidence in his own ability to learn and use the system. This affects his assessment of the system. In this scenario, Kenneth has low ________.

A) emotional intelligence B) self-regulation C) self-awareness D) self-efficacy

62)

Which of the following scenarios exemplifies the use of biometrics?

A) a system scanning the eye pupils of employees B) a system determining the cognitive ability of individuals by administering tests C) a system determining the response rate of individuals under stressful conditions D) a system scanning the magnetic code on the dress worn by employees

63) Ravi is a software vendor. His firm stores all relevant customer information on a cloudbased software system. Ravi uses his firm's website to conduct sales. He is able to execute his sales transactions without the aid of any in-house professional. In this case, Ravi is most likely using ________.

A) a self-service portal B) the e-Verify tool C) an expert system D) an on-premise system

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64) Jeff and Gary are senior engineers at an IT firm. Jeff has to confirm his identity by entering the password he receives on his smartphone whenever he calls high-priority clients. He is also required to key in his employment number and password on the firm's Website. However, Gary is only required to get his thumb scanned by a system for verification. Which of the following statements is true about the scenario?

A) Gary is undergoing a biometrics test, whereas Jeff is undergoing multifactor authentication.

B) The firm is most likely using an applicant-tracking system.

C) The firm is most likely using the e-Verify tool.

D) Gary is using a self-service portal, whereas Jeff is using an applicant tracking system.

65) Jonathan, the HR manager at an IT firm, needs immigration information about his senior employees. He is able to get the information because he knows their full names and Social Security numbers. Jonathan most likely used ________.

A) the e-Verify tool B) a system of biometrics for his employees C) prescriptive analytics D) a self-service portal

66) Jacob, a junior researcher at a pharmaceutical company, has a hearing disability. The hearing tool provided by the HR helps Jacob in the timely completion of his tasks. The tool faults on several occasions for other employees with hearing disabilities. Jacob states that the tool helps him gain control of his actions in his work. He says that the HR that tool should have helped the employees master their research and analytical skills. Which of the following statements is true about the scenario?

A) The tool is effective.

B) The tool helps in meeting the autonomy needs of Jacob.

C) The tool meets the competence needs of Jacob.

D) The tool is inefficient.

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67) Kareem, the manager of Kroienel Inc., claims that most people are able to gain access easily to the restricted areas of the firm and that the security of the firm is under threat. This had resulted in data theft on numerous occasions. He wants the HR technology at the firm to be replaced. Jeff, his subordinate, disagrees with Kareem's explanation. He says that very few people have access and authority to use the HR technology. Only those few people are responsible for the security breach and the HR technology is not faulty. Which of the following statements most likely strengthens Kareem's claim?

A) Employees have low self-efficacy when they work with new technology.

B) The data theft was done by an in-house professional.

C) The technology used at the firm is outdated and faulty.

D) The firm's competitors use a different type of HR technology.

68) John and Daren are new employees at Pixystems Inc. Their firm is implementing a new self-service portal. The portal slows down the production process, but it gives accurate results.

The portal is aimed at improving the relationship between employees and supervisors rather than enhancing their competence in their tasks. John is confident about his ability and the new portal used in the company. Daren is anxious and feels that he lacks the ability to understand the new portal. Which of the following statements is true about the scenario?

A) The portal does not address the relatedness needs of the employees at the firm.

B) The portal is efficient but not effective.

C) John has high self-efficacy.

D) Daren has a low level of emotional intelligence.

69) Alia feels that the new blog introduced by her firm helps her interact, engage, and connect with friends and peers in this firm. She feels that it keeps her motivated. According to the self-determination theory, the use of the blog most likely meets her ________ needs.

A) autonomy B) relatedness C) competence D) proficiency

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70)

Which of the following statements is true about ubiquitous computing?

A) It is an innovation that is all about social interaction.

B) It is a concept that is about one technology.

C) It involves wearable technology and mobile devices.

D) It involves the use of unsaturated data.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Discuss the benefits of decision-support systems.

72)

What is HR risk?

73) Why is it necessary to assess end user's experiences when comparing alternative human resource information systems (HRIS)?

74) What are the reasons for replacing legacy systems in human resource information systems (HRIS) with HRIS in the cloud?

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75) What considerations influence the adoption and implementation of workplace technologies?

76)

What is technology-based e-learning?

77)

What do web-based tools include?

78)

Define relational databases.

79)

What are the challenges in HR technology?

80)

Define descriptive analytics.

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Answer Key Test name: chapter 2 1) FALSE 2) FALSE 3) FALSE 4) FALSE 5) FALSE 6) FALSE 7) FALSE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE 21) FALSE 22) FALSE 23) FALSE 24) TRUE 25) FALSE 26) TRUE Version 1

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27) TRUE 28) TRUE 29) TRUE 30) TRUE 31) C 32) D 33) C 34) A 35) B 36) B 37) D 38) C 39) C 40) C 41) A 42) B 43) A 44) B 45) B 46) D 47) D 48) D 49) C 50) D 51) D 52) D 53) B 54) C 55) D 56) B Version 1

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57) C 58) D 59) A 60) C 61) D 62) A 63) A 64) A 65) A 66) B 67) C 68) C 69) B 70) C 71) Many employers use technology in benefits administration.

Decision-support systems help employees make the best choices from among an array of benefits, given their individual situations (e.g., married, single, with dependents, no dependents). Self-service websites enable employees to go online to make changes to their benefits or to record change-in-life events, such as marital status or the birth of a child.

When employees opt in, automated systems facilitate retirement contributions by making regular deductions from a worker's pay and directing each person's contributions according to his or her wishes.

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72) HR risk refers to the uncertainty arising from changes in a wide range of workforce and people-management issues that affect a company's ability to meet its strategic and operating objectives. Such risks typically fall into four main categories: strategic, compliance, operational, and financial risks. With respect to HR technology, the primary concern is operational risks that might impede a firm's ability to meet its operating and strategic objectives. Two key subareas include policies and procedures that define internal controls and vendor management and sourcing. In the digital age, a major area of internal controls is the responsibility to ensure that employees' personal information is protected. Risks run the gamut from the release of sensitive data to the wrong manager to major security breaches or hacks that expose employees' personal information to external, unknown sources.

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73) When comparing alternative human resource information systems (HRIS), it is critical to assess the experiences of end users. This is one reason a demonstration-only from different vendors is not enough.

Various types of users need to experience the HRIS features for themselves. For example, there is a big difference between HR professionals using an HRIS to automate a process and increase efficiency versus employees and managers who need to rely on it for their own purposes. If employees or managers will use the system, there are high expectations for a user-friendly, consumer-grade technology experience. For example, employee self-service modules allow employees to view and update their personal information in the HRIS and perhaps access a decision-support system to make informed choices regarding employee benefits that best match their current situations.

Managers may use the system to modify or approve time sheets or performance reviews. Inputs from all three groups can provide valuable information when choosing an HRIS that best fits an organization's needs.

74) Some of the reasons for replacing legacy systems in human resource information systems (HRIS) with HRIS in the cloud are listed below: 1) To have a single system of record for HR data 2) To ensure reliable, consistent reporting for compliance and legal obligations 3) To standardize HR data across multiple geographies or business units 4) To move away from legacy systems that were not meeting organizational needs

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75) In practice, at least four considerations influence the adoption and implementation of workplace technologies. First, are they natural and easy to use? Usability concerns the interface between humans and technology, and it can be measured in terms of efficiency (time to complete a task), effectiveness (error rate), and user satisfaction. A second consideration is self-efficacy. People who feel competent to use, or to learn to use, new technology are likely to experience less anxiety when that new technology is introduced. A third consideration is economic. Does the new technology promise a competitive advantage to an organization or to an individual in his or her personal life? If so, the organization or individual is more likely to implement it. Finally, it also is important to consider the role of social factors in the acceptance of technology. If friends, coworkers, or family members are using a particular technology—for example, a smartphone-payment system— peer pressure increases the likelihood of one's own adoption of it.

76) Technology-based electronic (e-) learning can often generate savings in time and cost over traditional, classroom-based learning. The percentage of training resources devoted to e-learning is clearly increasing, with 64 percent of organizations now using virtual classrooms. One type of e-learning is short digital learning sessions that are available at employees' convenience and delivered through microlearning apps. E-learning companies such as Grovo; Udemy Inc., and LinkedIn Learning offer micro-learning formats for corporate-skills training (e.g., how to use a piece of accounting software, how to manage conflict). Duolingo offers them for language skills. Typically, they comprise a mix of video and interactive lessons that take fewer than five minutes to complete, and they include a quiz. Users can access microlearning apps either online or via their smartphones. Evidence indicates that e-learning does work, but its effectiveness depends on the delivery method as well as the skill or task being trained.

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77) Web-based tools include blogs, wikis, and social networking sites where people mine and exchange information. These tools have been adapted for secure use by businesses, and vendors have infused many of these features into their software.

78) Relational databases store data in separate files that can be linked by common elements, such as name, Social Security number, hiring status (full- or part-time), training courses completed, job location, mailing address, or birthdate, among others. A relational database lets a user sort the data by any of the fields.

79) The emerging challenges in HR technology are (1) new skills and roles for HR staff, (2) growing expectations and demand for data, (3) more distant HR staff, (4) demand to improve the quality of decisions, and (5) enhancing the comfort level of all employees with HR technology.

80) Descriptive analytics are data-based HR analyses that help managers understand what happened in the past and why.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) In business settings, it is hard to be convincing without data. ⊚ ⊚

true false

2) If employees have employers who invest in training programs that promote job challenge and learning, autonomy, supervisor task support, a climate of respect and trust, work-life fit, and economic security, they should be highly engaged, satisfied with their jobs, and should intend to stay. ⊚ ⊚ Version 1

true false 50

3)

Talent is not a key constraint to growth in many organizations. ⊚ ⊚

true false

4) Application of the LAMP model reveals that it is a powerful tool for educating leaders outside of HR and for embedding HR measures into mental frameworks that provide the basis for meaningful people-related business decisions. ⊚ ⊚

true false

5) At the level of the individual work unit, highly engaged employees cooperate with each other and devote extra effort to innovation, but they do not adapt effectively to change. ⊚ ⊚

true false

6) The purpose of the process component of the LAMP model is to make the insights gained as a result of costing employee absenteeism actionable. ⊚ ⊚

true false

7) Total pay is synonymous with the fixed costs, variable costs, or opportunity costs of employee time. ⊚ ⊚

true false

8) The objective in costing human resources is not just to measure the relevant costs but also to develop methods and programs to reduce the costs of human resources by managing the more controllable aspects of those costs.

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⊚ ⊚

true false

9) A state bases unemployment tax rates on each company's turnover rate. Companies operating in this state will find that a lower turnover will lead to a higher unemployment tax rate. ⊚ ⊚

true false

10) All activities associated with in-processing new employees are classified under training costs related to turnover. ⊚ ⊚

true false

11) Informational literature, new-employee orientation, instruction in a formal training program, and instruction by employee assignment are the four training costs associated with turnover. ⊚ ⊚

true false

12) A major cost associated with employee turnover is reduced productivity during the learning period of replacement. ⊚ ⊚

13)

true false

The purpose of measuring turnover costs is to build a case to present to stockholders. ⊚ ⊚

true false

14) The time coworkers spend guiding a new employee does not need to be taken into account when considering the fully loaded cost of turnover.

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⊚ ⊚

true false

15) The ability to develop and share insights around the globe has become an increasingly important element of competitive advantage. ⊚ ⊚

16)

true false

The letters in LAMP stand for logic, assessment, metrics, and potential. ⊚ ⊚

true false

17) The sum of two component costs—separation and replacement—represents the total cost of employee turnover for the period in question. ⊚ ⊚

18)

The most dominant cause of absenteeism in the United States is family-related issues. ⊚ ⊚

19)

true false

true false

The fully loaded cost of turnover excludes an exiting employee's lost leads and contacts. ⊚ ⊚

true false

20) From a business standpoint, absenteeism is any failure of an employee to report for or to remain at work as scheduled, regardless of reason. ⊚ ⊚

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true false

53

21) Competitors find it easier to imitate a highly skilled, committed, and fully engaged workforce than technology and processes. ⊚ ⊚

true false

22) Global competition and the rapidly changing financial environment are driving the need to innovate constantly and effectively. ⊚ ⊚

true false

23) Attitudes are internal states that focus on particular aspects of or objects in the environment. ⊚ ⊚

true false

24) The behavior-costing approach to employee attitude valuation is based on the assumption that measures of attitudes are indicators of subsequent employee behaviors. ⊚ ⊚

true false

25) The term "work-life" recognizes the fact that employees at every level in an organization face personal or family issues that can affect their performance on the job. ⊚ ⊚

true false

26) Despite the popular perception of flexibility as a powerful business tool that can improve important human capital outcomes and boost operational performance, studies have shown that flexibility has to be essentially positioned as a "perk," an employee-friendly benefit, or an advocacy cause.

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⊚ ⊚

true false

27) HR strategy refers to the decisions, processes, and choices that organizations make to position themselves for sustainable success. ⊚ ⊚

true false

28) Competitive strategy refers to the decisions, processes, and choices organizations make regarding how they manage their people. ⊚ ⊚

29)

true false

The competitive strategy and the HR strategy of a firm are interdependent. ⊚ ⊚

true false

30) A work-life program is any employer-sponsored benefit or working condition that helps an employee manage work and nonwork demands. ⊚ ⊚

31)

true false

Caregiving for elders or children can have an effect on turnover at many companies. ⊚ ⊚

true false

32) Meta-analytic results (a quantitative summary of 59 studies) show that merely offering work-life programs is related to greater perceptions of organizational support, and these perceptions improve job attitudes and performance.

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⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

33) The LAMP model includes all of the following except ________.

A) logic B) analytics C) measures D) probability

34)

Identify a true statement about big data.

A) It is the collection and analysis of the digital history created when people surf the Internet.

B) It excludes tests and measures of aptitudes, behaviors, and competencies that employers compile about applicants.

C) It is similar to the traditional approaches to analytics in terms of volume, velocity, and variety.

D) It rarely provides insights into users who seek to gain competitive advantage in the marketplace.

35) Scorecards, summits, dashboards, data mines, data warehouses, and audits are examples of the ________ component of the LAMP model.

A) analytics B) measures C) logic D) process

36) In the context of talent analytics, ________ is defined as a diagram that links investments in an HR program to financial and nonfinancial outcomes that decision makers care about.

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A) spiral diagram B) class diagram C) logic diagram D) round diagram

37)

________ transform(s) HR logic and measures into rigorous, relevant insights.

A) Process B) Benchmarks C) Analytics D) ABC costing

38) The ________ component of the LAMP model begins with the assumption that employee turnover is not equally important everywhere.

A) probability B) analytics C) process D) logic

39)

What is the purpose of the process component of the LAMP model?

A) to make the insights gained as a result of costing employee absenteeism actionable B) to measure the effectiveness of the HR department C) to show how to assess the costs and benefits of people-related business activities D) to improve management decision making

40)

________ is the process of using data to influence key decision makers.

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A) Logic B) Analytics C) Probability D) Process

41)

________ is a core element of any change process.

A) Money B) Education C) Benefits D) Measurability

42) Which of the following elements in separation costs includes removal of an employee from payroll?

A) increased unemployment tax B) separation pay C) exit interview D) administrative functions related to termination

43) In the context of the cost elements associated with replacing employees who leave an organization, accepting applications and checking references are examples of ________.

A) pre-employment administrative functions B) entrance interviews C) testing D) communicating job availability

44) Which of the following cost elements associated with replacing employees who leave an organization includes functions ranging from determining if replacements are needed to reaching final hiring decisions?

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A) entrance interview B) staff meetings C) testing D) communicating job availability

45) In the context of the training cost elements associated with replacing employees who leave an organization, on-boarding is an example of ________.

A) instruction in a formal training program B) cross-training C) new-employee orientation D) instruction by employee assignment

46)

In the context of costing employee absenteeism, ________ is an example of a direct cost.

A) sick leave B) delay C) reduced morale of coworkers D) lower productivity of replacement employees

47) cost.

In the context of costing employee absenteeism, ________ is an example of an indirect

A) sick leave B) reduced morale of coworkers C) short-term disability D) long-term disability

48) Any failure of an employee to report for or to remain at work as scheduled, regardless of reason is ________.

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A) protected under the Family and Medical Leave Act (FMLA) B) absenteeism C) turnover D) allowed in work-life programs

49) ________ is a good example where an employee is absent and is simply not available to perform his or her job; that absence will cost money.

A) Vacation B) Holiday C) Medically verified illness D) Jury duty

50)

The leading cause of absenteeism in the United States is ________.

A) entitlement mentality B) stress C) family-related issues D) personal illness

51) In the context of absenteeism, ________ includes various methodologies—for example, surveys and interviews with employees and supervisors—used to identify the causes of absenteeism and to estimate variation in absenteeism across different segments of employees.

A) 360-degree feedback B) analytics C) action programs D) process

52) The combined effect of all costs associated with turnover can easily cost ________ percent or more of the departing person's salary.

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A) 25 B) 50 C) 80 D) 150

53)

________ occurs when an employee leaves an organization permanently.

A) Transfer B) Turnover C) Temporary layoff D) Downsizing

54)

The term ________ refers to low performers who are easy to replace.

A) functional turnovers B) voluntary turnovers C) involuntary turnovers D) unconditioned turnovers

55)

What is the crucial issue in analyzing turnover?

A) the number of transfers within an organization B) the number of employees that leave the organization C) the performance and replaceability of employees who leave versus those who stay, and the criticality of their skills D) determining the total cost of all turnovers and estimating the percentage of the amount that represents controllable turnover

56) Which of the following is not one of the broad categories of costs in the basic turnover costing model?

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A) benefit costs B) separation costs C) training costs D) replacement costs

57) In the costing of employee turnover, the category of ________ costs includes the cost of the interviewer's time and the cost of the terminating employee's time.

A) training B) separation C) replacement D) vacancy

58)

Which of the following is not a cost element associated with replacing employees?

A) medical examinations B) communicating job availability C) informational literature D) travel and moving expenses

59) Activities associated with in-processing new employees pertain to which of the following replacement cost elements?

A) travel and moving expenses B) communicating job availability C) pre-employment administrative functions D) postemployment acquisition and dissemination of information

60)

According to the text, a major cost associated with employee turnover is probably

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A) reduced productivity during the learning period.

B) the per-person costs associated with replacements for those who have left.

C) the total cost of a formal orientation program.

D) reaching final hiring decisions.

61)

What is the purpose of measuring turnover costs?

A) to show how to measure the effectiveness of the HR department B) to realize the financial impact of human resource management activities C) to improve management decision making D) to show how to assess the costs and benefits of people-related business activities

62) Costs of employee absenteeism vary depending on the type of firm, the industry, and the ________.

A) distribution of corporate resources B) state unemployment tax rate C) established absenteeism baseline D) level of employee that is absent

63) The average employee in the United States has about ________ unscheduled absences per year.

A) 1.8 B) 3.2 C) 5.4 D) 10

64)

In the context of absenteeism, identify a true statement about measures.

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A) They include methodologies used to identify the causes of absenteeism.

B) They refer to formulas.

C) They focus on specific numbers.

D) They refer to surveys and interviews with employees and supervisors.

65)

Which of the following statements definesthe concept of "employee engagement"?

A) It is the assessment of the relative worth of jobs to a firm.

B) It is the extent to which a performance measure is deemed satisfactory or adequate by those who use it.

C) It is an approach that allows two employees to share a job's responsibilities, which are normally handled by only one employee.

D) It is a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.

66) ________ is an internal state that focuses on particular aspects of or objects in the environment.

A) Attitude B) Job Satisfaction C) Organizational Commitment D) Logic

67) ________ is a multidimensional attitude; it is made up of attitudes toward pay, promotions, coworkers, supervision, the work itself, and so on.

A) Attitudes B) Job satisfaction C) Organizational commitment D) Logic

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68)

________ is the emotional engagement that people feel toward an organization.

A) Local perspective B) Job satisfaction C) Organizational commitment D) Contrast effect

69)

Effective management practices drive ________.

A) employee satisfaction B) customer satisfaction C) long-term profitability D) long-term growth

70)

Engagement fuels which of the following?

A) identification with the success of one's company B) discretionary efforts C) concern for quality D) All of these choices are correct.

71)

Which of the following is not an element of attitudes?

A) satisfaction B) cognition C) action D) emotion

72) Sysco developed a work climate/employee-engagement survey built around the ________.

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A) organizational goals B) training and development C) 5-STAR principles D) organizational mission

73)

What led Sysco executives to pay attention to the human capital indices?

A) a correlation between work climate/employee-engagement scores, productivity, retention, and pretax earnings B) a causation that higher sales lead to higher employee engagement C) the LAMP model D) the downturn in the economy

74)

A work-life program spans all of the following broad areas except ________.

A) information services and HR policies B) leave options C) rigid working conditions D) child- and dependent-care benefits

75) ________ issues address the fact that employees at every organizational level face personal or family issues that can affect their performance on the job.

A) Pay and benefit B) Work-life C) Training and development D) Family-life

76) Nearly ________ percent of employees who are caregivers of an older relative also have children under the age of 18.

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A) 60 B) 25 C) 75 D) 10

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

77) Explain the four critical components of the LAMP model.

78)

People analytics is a set of quantitative approaches that answer two simple questions.

79) In the context of the components of turnover costs, list the eight cost elements associated with replacing employees who leave.

80)

What are the three broad categories of costs in the basic turnover costing model?

81) Define employee attitudes and describe the elements that make up an individual's attitude.

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82) What are the factors that influence work–life programs and the financial and nonfinancial effects of these programs?

83)

List the five broad areas covered by work-life programs.

84)

Describe the benefits of employee engagement.

85) What are the three conditions under which reducing employee turnover tends to have the largest effects on organizational success?

86) What are the three conditions under which increasing employee turnover tends to have the largest effects on organizational success?

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87)

Name at least two of the four elements in separation costs.

88)

Describe the concept of behavior costing.

89)

What is the primary purpose of measuring turnover costs?

90)

What is a work-life program?

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Answer Key Test name: chapter 3 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) FALSE 11) TRUE 12) TRUE 13) FALSE 14) FALSE 15) TRUE 16) FALSE 17) FALSE 18) FALSE 19) FALSE 20) TRUE 21) FALSE 22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) FALSE Version 1

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27) FALSE 28) FALSE 29) TRUE 30) TRUE 31) TRUE 32) TRUE 33) D 34) A 35) B 36) C 37) C 38) D 39) A 40) D 41) B 42) D 43) A 44) B 45) C 46) A 47) B 48) B 49) C 50) D 51) B 52) D 53) B 54) A 55) C 56) A Version 1

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57) B 58) C 59) D 60) A 61) C 62) D 63) C 64) C 65) D 66) A 67) B 68) C 69) A 70) D 71) A 72) C 73) A 74) C 75) B 76) C

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77) The letters in LAMP stand for logic, analytics, measures, and process, four critical components of a measurement system that drives strategic change and organizational effectiveness. Without a compelling logic, it is just not clear where to look for insights into what the numbers mean. Conversely, with well-grounded logic, it is easier to help leaders outside of HR to understand and use the measurement systems to enhance the talent-related decisions they make. Analytics transforms HR logic and measures into rigorous, relevant insights. While statistics and research design are analytical strategies for drawing correct conclusions from data, measures comprise the numbers that populate the statistical formulas. Process is the final element of the LAMP framework. The measures part of the LAMP model has received enormous attention in HR. Scorecards, summits, dashboards, data mines, data warehouses, and audits abound. Indeed, the array of HR measurement technologies is daunting. Consider the measurement of employee turnover. There is much debate about the appropriate formulas to use in estimating turnover and its costs, or the precision and frequency with which employee turnover should be calculated. Today's turnover-reporting systems can calculate turnover rates for virtually any employee group and business unit.

78) 1) "What do we need to know about our organization and workforce to run the company more effectively?"

2) "How do we turn that knowledge into action?"

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79) The eight cost elements associated with replacing employees who leave an organization are the following: 1. Communicating job availability 2. Pre-employment administrative functions—for example, accepting applications and checking references 3. Entrance interview, or perhaps multiple interviews 4. Testing and/or other types of assessment procedures 5. Staff meetings, if applicable, to determine if replacements are needed, to recheck job analyses and job specifications, to pool information on candidates, and to reach final hiring decisions 6. Travel and moving expenses—for example, travel for all applicants and travel plus moving expenses for all new hires 7. Post-employment acquisition and dissemination of information, for example, all the activities associated with in-processing new employees 8. Medical examinations, if applicable, either performed in-house or contracted out 80) The three categories are separation costs, replacement costs, and training costs.

81) Attitudes are internal states that focus on particular aspects of or objects in the environment. They include three elements: cognition, the knowledge an individual has about the focal object of an attitude; the emotion an individual feels toward the focal object; and an action tendency, a readiness to respond in a predetermined manner to the focal object.

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82) Factors consist of the range, scope, cost, and quality of the programs; backing for the programs from managers and supervisors; and the extent and quality of communications about them to employees. If these conditions are met, reduced stress, burnout, and work–life conflict among employees; increased satisfaction, commitment, and motivation to perform well; and improved financial, operational, and business outcomes can be expected. Financial and nonfinancial outcomes comprise increased performance and service, better work and career behaviors, improved staffing, better recruiting, less absence, lower turnover, reduced absenteeism costs, and reduced turnover costs.

83) Work-life recognizes the fact that employees at every level in an organization, whether parents or non-parents, face personal or family issues that can affect their performance on the job. At a general level, such programs span five broad areas: 1. Child- and dependent-care benefits (e.g., onsite or near-site child- or elder-care programs, summer and weekend programs for dependents) 2. Flexible working conditions (e.g., flextime, job sharing, teleworking, part-time work, compressed workweeks) 3. Leave options (e.g., maternity, paternity, and adoption leaves; sabbaticals; phased reentry; or retirement schemes) 4. Information services and HR policies (e.g., cafeteria benefits; lifeskill educational programs such as parenting skills, health issues, financial management, retirement, exercise facilities, professional and personal counseling) 5. Organizational cultural issues (e.g., an organizational culture that is supportive with respect to the non-work issues of employees, coworkers, and supervisors who are sensitive to family issues)

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84) Employee engagement is a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.

Engagement behaviors function at the organizational, team, and individual levels. Engagement promotes discretionary efforts and concern for quality. It encourages employees to associate with the success of their companies, to suggest them to others as good places to work, and to follow through to make sure problems get identified and solved.

85) Generally, reducing employee turnover tends to have the largest effects on organizational success under the following three conditions: 1.

Turnover costs are high and reducing turnover can save those costs.

2. Those leaving are much more valuable than their replacements.

3. There is great uncertainty about the availability or quality of replacements.

86) Increasing employee turnover tends to have the largest effects on organizational success under the following conditions: 1. Turnover costs are low and reducing turnover saves little.

2. Those leaving are much less valuable than their replacements.

3. There is certainty about the availability or quality of the replacements.

87) 1) Exit interview, 2) administrative functions related to termination, 3) separation pay, if applicable, 4) increased unemployment tax 88) Behavior costing is based on the assumption that measures of attitudes are indicators of subsequent employee behaviors. These behaviors can be assessed using cost-accounting behaviors.

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89) The purpose of measuring turnover costs is to improve management decision making. Once turnover figures are known, particularly among segments of the workforce deemed "pivotal," managers have a sound basis for choosing between current turnover costs and instituting some type of turnover-reduction strategy.

90) A work-life program includes any employer-sponsored benefit or working condition that helps an employee to balance work and nonwork demands.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) As a society, we espouse equality of opportunity, rather than equality of outcomes. ⊚ ⊚

2)

Civil rights laws precisely define the term "discrimination." ⊚ ⊚

3)

true false

true false

Unequal (disparate) treatment is based on an intention to discriminate. ⊚ ⊚

true false

4) It is okay to exclude people from selection as long as the exclusion is based on what can be demonstrated to be job-related criteria. ⊚ ⊚

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5) The Civil Rights Act of 1866 grants all citizens the right to make and enforce contracts for employment. ⊚ ⊚

true false

6) The Equal Employment Opportunity Commission was created to ensure that employers, employment agencies, and labor organizations comply with the Constitution. ⊚ ⊚

true false

7) Under Title VII of the Civil Rights Act of 1964, discrimination is permissible when a prohibited factor (e.g., gender) is a bona fide occupational qualification. ⊚ ⊚

true false

8) Under Title VII of the Civil Rights Act of 1964, preferences of the employer, coworkers, or clients are relevant and constitute bona fide occupational qualifications (BFOQs). ⊚ ⊚

true false

9) Title VII of the Civil Rights Act of 1964 explicitly permits bona fide seniority, merit, or incentive systems "provided that such differences are not the result of an intention to discriminate." ⊚ ⊚

true false

10) If someone decides to bring suit under Title VII of the Civil Rights Act of 1964, the first step is to establish a prima facie case of discrimination. ⊚ ⊚

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11) Once a court accepts prima facie evidence of discrimination, the burden of producing evidence remains with the defendant (the employer) till the trial ends. ⊚ ⊚

true false

12) One effect of the Civil Rights Act of 1991 was the expansion of the remedies in discrimination cases to include monetary damages and jury trials. ⊚ ⊚

true false

13) The Age Discrimination in Employment Act of 1967 (ADEA) permits discrimination in pay, benefits, or continued employment for employees age 40 and over. ⊚ ⊚

true false

14) The Immigration Reform and Control Act of 1986 applies to all employers in the United States with 50 or more employees. ⊚ ⊚

true false

15) According to the Immigration Reform and Control Act of 1986, employers must verify the identity and work authorization of every new employee. ⊚ ⊚

true false

16) The Americans with Disabilities Act applies to all employers, even to those with only one employee. ⊚ ⊚ Version 1

true false

79

17) Under the Americans with Disabilities Act, rehabilitated drug and alcohol abusers are protected, but current drug abusers may be fired. ⊚ ⊚

true false

18) Employers are not required to make reasonable accommodations for disabled job applicants if the cost of doing so is too high. ⊚ ⊚

true false

19) The Family and Medical Leave Act of 1993 (FMLA) covers all private-sector employers with 50 or more employees, including part-timers who work 1,250 hours over a 12-month period. ⊚ ⊚

true false

20) Under the Family and Medical Leave Act of 1993 (FMLA), an employee is responsible for designating an absence or leave as FMLA leave, according to the directions provided by the act. ⊚ ⊚

true false

21) Under the Family and Medical Leave Act of 1993 (FMLA), employers must maintain health insurance benefits and give workers their previous jobs (or comparable positions) when their leaves are over. ⊚ ⊚

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22) The Uniformed Services Employment and Reemployment Rights Act of 1994 requires both public and private employers promptly to reemploy individuals returning from uniformed service. ⊚ ⊚

true false

23) Every organization in the United States, even those with only one employee, must file an annual report (EEO-1) detailing the numbers of employees by job category. ⊚ ⊚

true false

24) According to contract compliance, contractors and subcontractors with $1,000–$50,000 in government business and with 40 or less employees must prepare and implement written affirmative action plans. ⊚ ⊚

true false

25) In jobs where women and minorities are underrepresented in the workforce relative to their availability in the labor force, employers must establish goals and timetables for hiring and promotion. ⊚ ⊚

true false

26) According to the Pregnancy Discrimination Act of 1978, an employer is always required to give pregnant employees special treatment. ⊚ ⊚

true false

27) Employers are always potentially liable for a supervisor's sexual misconduct toward an employee, even if they knew nothing about that supervisor's conduct.

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⊚ ⊚

true false

28) Title VII of the Civil Rights Act of 1964 prohibits the use of "professionally developed" ability tests. ⊚ ⊚

true false

29) Employers should be sure that there is a legitimate, job-related reason for every question raised in an employment or promotional interview. ⊚ ⊚

true false

30) Preferential selection is discrimination against whites and in favor of members of protected groups. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) In the employment context, ________ can be viewed broadly as the giving of an unfair advantage (or disadvantage) to the members of a particular group in comparison with the members of other groups.

A) ethnocentrism B) discrimination C) seniority system D) race norming

32) Which of the following is not a major sub-theory of discrimination within the disparatetreatment theory?

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A) cases that rely on direct evidence B) cases that rely on circumstantial evidence C) cases that rely on a jury trial D) mixed-motive cases

33) to

The Thirteenth and Fourteenth Amendments granted to Congress the constitutional power

A) enact legislation to enforce their provisions.

B) permit public and private universities to continue to use race as a "plus factor" in evaluating potential students.

C) deny, terminate, or suspend government contracts.

D) hold an employer potentially liable for a supervisor's sexual misconduct toward an employee.

34)

The Fourteenth Amendment guarantees equal protection of the law for ________.

A) minorities only B) public employees only C) private employees only D) all citizens

35)

Which of the following statements is true of the Civil Rights Act of 1871?

A) It grants all citizens the right to make and enforce contracts for employment.

B) It extends to discriminatory conduct occurring overseas.

C) It applies only to persons within the jurisdiction of the United States.

D) It covers only small employers with fewer than 10 employees.

36) Thousands of equal-pay suits have been filed, predominantly by ________, since the Equal Pay Act of 1963 was passed.

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A) women B) African Americans C) the elderly D) Americans with disabilities

37) Title VII of the Civil Rights Act of 1964 is most relevant to the employment context because it ________ on the basis of race, color, religion, sex, or national origin in all aspects of employment.

A) encourages advancement B) prohibits discrimination C) eliminates nepotism D) prevents layoffs

38) Why is Title VII of the Civil Rights Act of 1964 considered the most important federal Equal Employment Opportunity (EEO) law?

A) because it prohibits slavery and involuntary servitude B) because it prohibits discrimination in pay, benefits, or continued employment for employees age 40 and over C) because it contains the broadest coverage, prohibitions, and remedies D) because it is the source of constitutional power from which all subsequent civil rights legislation originates

39) In 1972, the coverage of Title VII of the Civil Rights Act of 1964 was expanded to include almost all public and private employers with ________ or more employees.

A) 2 B) 15 C) 50 D) 100

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40) ________ refers to actions appropriate to overcome the effects of past or present policies, practices, or other barriers to equal employment opportunity.

A) Reparation B) Emancipation C) Desegregation D) Affirmative action

41)

Which of the following is true of a bona fide occupational qualification for employment?

A) It is an inquiry necessary to meet the reporting requirements of federal regulatory agencies.

B) It is specifically exempted from the coverage of Title VII of the Civil Rights Act of 1964.

C) It is the granting of preferential treatment to individuals or groups because of their race.

D) It is a duty to adopt a hiring procedure that maximizes hiring of minority employees.

42)

The legal standard for circumstantial evidence requires demonstrating

A) that a plaintiff belongs to a protected class.

B) that a plaintiff was disadvantaged.

C) that a plaintiff was qualified.

D) All of these choices are correct.

43) In the context of employment, which of the following provisions is granted by the Civil Rights Act of 1991?

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A) contract compliance B) monetary damages and jury trials C) affirmative action remedies D) preferential treatment

44) Which of the following is a key objective of the Age Discrimination in Employment Act of 1967 (ADEA)?

A) to take affirmative action to ensure equal employment opportunity for Vietnam-era veterans B) to give workers up to 12 weeks' unpaid leave each year for birth, adoption, or foster care of a child within a year of the child's arrival C) to have employers maintain health insurance benefits and give workers their previous jobs when the workers' leaves are over D) to prevent financially troubled companies from singling out older employees when there are cutbacks

45) All of the following are basic features of the Immigration Reform and Control Act of 1986 except that

A) employers may not hire or continue to employ those who are not legally authorized to work in the United States.

B) employers must verify the identity and work authorization of every new employee.

C) employers cannot be fined for failure to comply with verification rules.

D) employers should do a self-audit of all I-9 forms, not just those of a particular ethnic group.

46) Which of the following is true of the Americans with Disabilities Act (ADA) Amendments Act of 2008?

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A) The list of medical conditions covered under the act includes cancer, diabetes, major depression, and epilepsy.

B) The act prohibits employers from discriminating against current drug and alcohol abusers.

C) Employers are permitted to ask about past workers' compensation claims or disabilities in general.

D) Companies should lower work standards or give a disabled person a make-work job.

47) Practical implications of the Americans with Disabilities Act include all of the following except that

A) buildings open to the public must be accessible to the disabled.

B) employers can no longer test for alcohol and drug use in the workplace.

C) employers must make "reasonable accommodations" for disabled job applicants.

D) medical information on employees must be kept separate from other personnel information.

48) Which of the following is not covered under the Family and Medical Leave Act (FMLA) 12 weeks' unpaid leave?

A) foster care of a child B) care for a brother with a serious health condition C) adoption D) care for a parent with a serious health condition

49)

Which of the following is true according to the Family and Medical Leave Act (FMLA)?

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A) Enforcement provisions of the FMLA are administered by the Equal Employment Opportunity Commission (EEOC).

B) Employers cannot ask workers to provide medical certification of serious illnesses.

C) It covers all private-sector employers with 50 or more employees, including parttimers who work 1,250 hours over a 12-month period.

D) It gives workers up to 24 weeks' unpaid leave each year for providing care for a family member.

50) Identify a true statement about the provisions of the Family and Medical Leave Act (FMLA).

A) The act exempts employers with more than 50 employees from providing FMLA leave to immediate family members of soldiers of the National Guard.

B) Businesses are required to offer up to 26 weeks of unpaid leave to employees who provide care to wounded U.S. military personnel.

C) The act clearly defines "qualifying exigency," and it does not include overseas military assignments, recalls to active duty, and troop mobilizations.

D) It is not mandatory for employers to give leave takers their previous jobs (or comparable positions) when their leaves are over.

51) Once the Equal Employment Opportunity Commission (EEOC) receives a complaint of discrimination, it follows a three-step process that starts with ________.

A) investigation B) conciliation C) litigation D) None of these choices are correct.

52) Identify the final step in the Equal Employment Opportunity Commission's (EEOC's) process of dealing with a complaint of discrimination.

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A) investigation B) conciliation C) litigation D) reasonable accommodation

53) Which act requires both public and private employers promptly to reemploy individuals returning from uniformed service in the position they would have occupied and with the seniority rights they would have enjoyed had they never left?

A) the Rehabilitation Act of 1973 B) the Family and Medical Leave Act (FMLA) C) the Uniformed Services Employment and Reemployment Rights Act (USERRA) D) Title VII of the Civil Rights Act of 1964

54) The Equal Employment Opportunity Commission is an independent regulatory agency whose five commissioners are appointed by the president and confirmed by the Senate for terms of ________ years.

A) 2 B) 5 C) 10 D) 12

55) Which of the following agencies is responsible for enforcing nondiscrimination laws for both private and public nonfederal employers, unions, and employment agencies?

A) the Equal Employment Opportunity Commission (EEOC) B) Public Company Accounting Oversight Board C) the Office of Federal Contract Compliance Programs (OFCCP) D) National Labor Relations Board

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56) Under the Equal Employment Opportunity Commission (EEOC) guidelines, discrimination complaints must be filed within ________ of the alleged violation.

A) 30 days B) 90 days C) 180 days D) 1 year

57) When a compliance review by the Office of Federal Contract Compliance Programs (OFCCP) does indicate problems that cannot be resolved easily, it tries to reach ________ with the employer.

A) a collective bargaining agreement B) a conciliation agreement C) an equitable compromise D) quid pro quo

58) Which of the following is a similarity between the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP)?

A) Both determine whether there is "reasonable cause" to believe that unlawful discrimination has occurred.

B) Both have issued a number of acts under Title VII of the Civil Rights Act of 1964.

C) Both are viewed narrowly as tools for solving Reconstruction-era racial problems.

D) Both direct public and private employers to reemploy individuals returning from uniformed service.

59)

Which of the following is true of the Pregnancy Discrimination Act?

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A) An organization is required to provide disability benefits and sick leave to pregnant employees even if it does not provide these benefits to other employees.

B) An employer is never required to give pregnant employees special treatment.

C) Employers are never required to make reasonable accommodations to known limitations for pregnant applicants or employees.

D) The actual length of maternity leave should be determined by the Equal Employment Opportunity Commission (EEOC).

60)

Sexual harassment generally comes in two forms—hostile work environment and

A) e pluribus unum.

B) involuntary.

C) quid pro quo.

D) sexual favor exchange.

61)

________ exists when sexual harassment is a condition of employment.

A) Quid pro quo harassment B) Hostile-environment harassment C) Gender-based discrimination D) Reverse discrimination

62) In the context of sexual harassment, which of the following is a provision in the Civil Rights Act of 1991?

A) to collect prima facie evidence of sexual harassment from the workplace B) to establish goals for hiring and promoting victims of sexual harassment C) to establish a system in victims' workplace to resolve complaints internally D) to collect a wide range of punitive damages and attorney fees from employers

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63) The Equal Employment Opportunity Commission (EEOC) guidelines on age discrimination emphasize that in order to defend an adverse-employment action against employees age 40 and over, an employer must be able to demonstrate a ________ for doing so.

A) business necessity B) good faith attitude C) seniority-based reason D) justifiable desire

64) To establish a prima facie case of age discrimination with respect to termination, an individual must show all of the following except that

A) he or she is doing satisfactory work.

B) he or she was discharged despite satisfactory work performance.

C) he or she is within the protected age group (60 years of age and over).

D) the position was filled by a person younger than the person replaced.

65) Employers who institute "English-only" rules in the workplace need to be careful about ________ discrimination.

A) racial B) national origin C) gender D) age

66) A(n) ________ is a scheme that allots to employees ever-improving employment rights and benefits as their relative lengths of pertinent employment increase.

A) affirmative action plan B) preferential selection system C) seniority system D) discrimination avoidance plan

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67) Which of the following acts prohibits practices that may adversely impact employees in the workplace unless they are job-related?

A) the Thirteenth Amendment B) the Fourteenth Amendment C) Executive Order 11478 D) Title VII of the Civil Rights Act of 1964

68) As affirmed by the ________, when a charge of adverse impact is made, the plaintiff must identify a specific employment practice as the cause of the discrimination.

A) Civil Rights Act of 1991 B) Title VII of the Civil Rights Act of 1964 C) Age Discrimination in Employment Act of 1967 D) Uniformed Services Employment and Reemployment Rights Act of 1994

69) Discrimination against whites and in favor of members of protected groups is termed ________.

A) reverse discrimination B) adverse-impact discrimination C) discrimination D) systemic discrimination

70) According to the Equal Employment Opportunity Commission (EEOC), the vast majority of retaliation claims still generally involve actions such as ________.

A) harassment B) discrimination C) discharge D) whistle-blowing

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71) Training for supervisors and managers on the Americans with Disabilities Act (ADA) should address areas like

A) who is covered under ADA. B) how to interact with someone requesting accommodation.

C) what accommodations are reasonable.

D) All of these choices are correct.

72) Which of the following provisions is granted by the Uniformed Services Employment and Reemployment Rights Act?

A) Employees need not provide advance notice, oral or written, to employers before returning from uniformed service.

B) It requires all employers to make up the often-significant difference between military and civilian pay.

C) Employers are not required to maintain health benefits for employees while they are away.

D) It requires both public and private employers promptly to reemploy individuals returning from uniformed service.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

73) List and describe the two forms of unfair discrimination in employment.

74) William has been a company officer with Vitte Glass House for the last five years. He has never been considered for promotions even though he is qualified for it. He has decided to bring suit under Title VII of the Civil Rights Act of 1964. Describe the steps that William should take to establish a prima facie case of discrimination.

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75)

Write a short note on race-norming.

76) What is the purpose of the Americans with Disabilities Act of 1990, and to whom does it apply?

77) Briefly define sexual harassment, and discuss the steps an employer should take to protect itself against lawsuits in this area.

78) Equal Employment Opportunity implies at least two things: One is evaluation of candidates for jobs in terms of characteristics that really do make a difference between success and failure. What is the other?

79) What are the three major sub-theories of discrimination within the disparate-treatment theory?

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80)

What does the Thirteenth Amendment prohibit?

81)

In correcting any inequity under the Equal Pay Act, what must employers do?

82) What three types of employers are exempt under Title VII of the Civil Rights Act of 1964?

83) Which act broadened the definition of disability by expanding the term "major life activities"?

84)

What were the effects of the Civil Rights Act of 1991?

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85) What are the three basic features of the Immigration Reform and Control Act of 1986 that are particularly relevant to employers?

86)

Which commission enforces the Americans with Disabilities Act of 1990?

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Answer Key Test name: chapter 4 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) FALSE 15) TRUE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) TRUE 22) TRUE 23) FALSE 24) FALSE 25) TRUE 26) FALSE Version 1

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27) TRUE 28) FALSE 29) TRUE 30) FALSE 31) B 32) C 33) A 34) D 35) C 36) A 37) B 38) C 39) B 40) D 41) B 42) D 43) B 44) D 45) C 46) A 47) B 48) B 49) C 50) B 51) A 52) C 53) C 54) B 55) A 56) C Version 1

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57) B 58) A 59) B 60) C 61) A 62) D 63) A 64) C 65) B 66) C 67) D 68) A 69) A 70) C 71) D 72) D 73) Unequal (disparate) treatment is based on an intention to discriminate, including the intention to retaliate against a person who opposes discrimination, has brought charges, or has participated in an investigation or a hearing. Adverse-impact (unintentional) discrimination occurs when identical standards or procedures are applied to everyone, despite the fact that they lead to different employment outcomes (e.g., selection, promotion, layoffs) for the members of a particular group, and they are unrelated to success on a job.

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74) If William decides to bring suit under Title VII of the Civil Rights Act of 1964, the first step is to establish a prima facie case of discrimination. The legal standard for circumstantial evidence is a fourpart test first specified in the McDonnell Douglas v. Green case, wherein William must be able to demonstrate the following: 1. He belongs to a protected class, such as a racial minority or a qualified individual with a disability.

2. He was somehow harmed or disadvantaged (e.g., by not receiving a job offer or a promotion).

3. He was qualified to do the job or to perform the job in a satisfactory manner.

4. He was treated less favorably than others outside the protected class.

75) The Civil Rights Act of 1991 makes it unlawful "to adjust the scores of, use different cutoff scores for, or otherwise alter the results of employment-related tests on the basis of race, color, religion, sex, or national origin." Prior to the passage of this act, within-group percentile scoring (so-called race-norming) had been used extensively to adjust the test scores of minority candidates to make them more comparable to those of nonminority candidates. Under race-norming, each individual's percentile score on a selection test was computed relative only to others in his or her race/ethnic group and not relative to the scores of all persons who took the test. The percentile scores (high to low) were then merged into a single list, and the single list of percentiles was presented to those responsible for hiring decisions.

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76) The Americans with Disabilities Act was passed to protect people with disabilities from discrimination in employment, transportation, and public accommodation. It applies to all employers who employ 15 or more people. As a rule, the act forbids an employer from discriminating against a "qualified individual with a disability." A qualified individual is a person who can perform the essential (i.e., primary) functions of a job with or without accommodation. People are protected if they presently have an impairment and have a record of such impairment, or if the employer thinks they have an impairment. Current drug abusers may be fired; however, rehabilitated drug and alcohol abusers are protected. An alcoholic is covered and must be reasonably accommodated by being given a firm choice to rehabilitate him- or herself or face career-threatening consequences. The act also protects people who have tested positive for HIV/AIDS.

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77) According to the Equal Employment Opportunity Commission (EEOC), sexual harassment includes "unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment." According to the courts, for behavior to be treated as sexual harassment, the offender has to know that the behavior is unwelcome. If a person wants to file a grievance, therefore, it is important to be able to prove either that he or she told the perpetrator to back off or that the action was so offensive the harasser should have known it was unwelcome. An effective policy to avoid sexual harassment should include the following features: 1. A statement from the chief executive officer that states firmly that sexual harassment will not be tolerated 2. A workable definition of sexual harassment that is publicized via staff meetings, bulletin boards, handbooks, and in new-employee orientation programs 3. An effective complaint procedure that includes multiple ways to file complaints, because the more choices employees have, the less reasonable will be their failure to complain 4. A clear statement of sanctions for violators and protection for those who make charges 5. Prompt, confidential investigation of every claim of harassment, no matter how trivial 6. Preservation of all investigative information, with records of all such complaints kept in a central location 7. Regular training of all managers and supervisors, including top managers, to model appropriate behavior and to recognize and respond

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to complaints 8. Follow-up to determine if harassment has stopped 78) Fair and equal treatment of employees on the job 79) The three major sub-theories of discrimination within the disparatetreatment theory are the following: 1. Cases that rely on direct evidence 2. Cases that are proved through circumstantial evidence 3. Mixed-motive cases (a hybrid theory) 80) Slavery and involuntary servitude 81) Raise the rate of the lower-paid employees 82) Private clubs, religious organizations, and places of employment connected with an Indian reservation 83) The ADA Amendments Act of 2008 84) Key provisions included monetary and jury trials for individuals who felt they were the victims of intentional discrimination. It also clarified each party's obligation in such cases, clarified protection in foreign countries, and amended the Civil Rights Act of 1866 so that workers are protected from intentional discrimination in all aspects of employment, not just hiring and promotion.

85) The three basic features of the Immigration Reform and Control Act of 1986 are that employers may not hire or continue employing persons who are not legally authorized to work in the United States; employers should validate the identity and work authorization of every new employee; and employers with 4 to 14 employees may not discriminate based on citizenship or national origin.

86) The Equal Employment Opportunity Commission (EEOC) enforces the Americans with Disabilities Act of 1990.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The percentage of white non-Hispanics in the workforce will double by 2024. ⊚ ⊚

true false

2) While women's share of the workforce is expected to increase, men's share is projected to decline slightly over the same time-period. ⊚ ⊚

3)

Today, ethnic minorities make up less than 15 percent of the U.S. workforce. ⊚ ⊚

4)

true false

true false

Virtually all of the growth in new jobs will come from manufacturing industries. ⊚ ⊚

true false

5) Similarities in culture, dress, and language between service workers and customers create more efficient interactions between them and better business for the firm. ⊚ ⊚

6)

true false

Managing diversity is an essential part of HR strategy. ⊚ ⊚

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7) To survive, to serve, and to succeed, organizations need to accomplish goals that are defined more narrowly than ever before, which means carrying out strategies that each part of the organization can execute alone. ⊚ ⊚

true false

8) Fifty percent of U.S. managers either resign or are fired within 18 months of a foreign takeover. ⊚ ⊚

9)

true false

Culture refers to the characteristic behavior of people in a country or region. ⊚ ⊚

true false

10) "Valuing diversity and inclusion" essentially means accepting accents or language, dress or food of employees whose race, ethnicity, or gender differs from your own. ⊚ ⊚

true false

11) African Americans will make up about 50 percent of the U.S. civilian workforce by the year 2024. ⊚ ⊚

true false

12) Mexicans, Puerto Ricans, and Cubans constitute the three largest groups classified as Hispanic. ⊚ ⊚ Version 1

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13)

The average American is better educated than Asian Americans. ⊚ ⊚

true false

14) The pay gap among men and women is wider when workers are young and reduces considerably as women age. ⊚ ⊚

true false

15) Women also earn about 50 percent of all undergraduate business degrees and 55 percent of all MBAs. ⊚ ⊚

16)

true false

About 60 percent of couples are dual earners. ⊚ ⊚

true false

17) The share of the workforce comprised by Asian Americans is expected to decline drastically by 2022. ⊚ ⊚

true false

18) Today, husbands married to women in paid jobs equally share the responsibility for family care and housework. ⊚ ⊚

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19) The number of women attending college has increased in the United States since World War II. ⊚ ⊚

true false

20) Generation Y was born in a post-September 11 world and considers smartphones to be essential to their living and working. ⊚ ⊚

true false

21) At present, the U.S. workforce is populated by three different generations of workers, each with different, often conflicting values and attitudes. ⊚ ⊚

22)

Many members of the silent generation currently hold positions of power. ⊚ ⊚

23)

true false

true false

Baby-boomer generation represents approximately two-third of the American workforce. ⊚ ⊚

true false

24) Separating workers from different generations is a good way to solve intergenerational conflict. ⊚ ⊚

true false

25) Racial and ethnic minorities, women, and immigrants will account for increasingly large segments of the U.S. labor force over time.

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⊚ ⊚

true false

26) It is important for executives to use an age/experience profile to identify types of jobs where older workers can use their experience and talents most effectively. ⊚ ⊚

true false

27) More than 90 percent of working Americans have access to paid leave, and all working Americans are covered by the Family and Medical Leave Act (FMLA). ⊚ ⊚

true false

28) In the United States,full-time working women earn about 80 cents for every dollar earned by men. ⊚ ⊚

true false

29) Persons with disabilities are less likely to be working than any other demographic group under age 65. ⊚ ⊚

true false

30) In the context of mentoring given by managers to their subordinates, mentoring programs tend to make the managerial ranks much more diverse. ⊚ ⊚

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) Which of the following are included in the five main reasons diversity has become a key factor in managing an organization's human resources?

A) the shift from a manufacturing to a service economy B) globalization of markets C) new business strategies requiring teamwork D) All of these choices are correct.

32) Which of the following groups will most likely incur a drop in its percentage representation of the labor workforce in the United States by 2024?

A) African Americans B) Latinos C) Asian Americans D) White non-Hispanics

33)

Roughly ________ percent of U.S. employees work in service-based industries.

A) 12 B) 38 C) 53 D) 71

34) When companies discover they can communicate better with their customers through employees who are similar to their customers, those companies then realize they have increased their ________ diversity.

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A) primary B) secondary C) internal D) external

35) Firms have found that only through ________ can they execute newly adopted strategies stressing better quality, innovation, cost control, or speed.

A) affirmative action B) strategic international alliances C) globalization D) work teams

36) A key source of problems in mergers, acquisitions, and strategic international alliances is differences in ________.

A) corporate cultures B) intolerance C) discrimination D) declining productivity

37)

Which of the following statements is true about Asian Americans in the United States?

A) Asian Americans are better educated than the average American.

B) The share of Asian Americans in the workforce is expected to decrease by 2022.

C) The buying power of Asian Americans has decreased since 2000.

D) Asian American women earn lesser than Hispanic women relative to men.

38)

Which of the following statements is true about Hispanic Americans in the United States?

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A) Buying power among Hispanics accounts for approximately 11 percent of the nation’s total buying power.

B) Hispanic women, relative to men, earn more than any other ethnic minority in the United States.

C) The share of Hispanic Americans in the workforce is most likely to decrease by 2024.

D) Nebraska and Nevada account for 95 percent of the firms owned by Hispanics.

39)

Over the next 25 years, the U.S. workforce will have more ________.

A) immigrants B) people of color C) older workers D) All of these choices are correct.

40) To manage diversity and inclusion you should replace inflexibility and intolerance with ________.

A) care and concern B) fear and distance C) adaptability and acceptance D) discipline and segregation

41) A person's disposable income after taxes that allows him or her to make purchases is known as the person's ________.

A) bargaining power B) coercive power C) buying power D) legitimate power

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42)

Identify an accurate statement about the economy in the United States.

A) Manufacturing employment is projected to decline by 50 percent by 2024.

B) Nearly eight percent of U.S. employees work in service-based industries.

C) The labor force for the age group 55 and older will continue to increase by 2024.

D) The labor market is most likely to exclude immigrants in the next 25 years.

43)

Which of the following statements is true about Asian Americans in the workforce?

A) The share of the workforce comprised by Asian Americans is close to 18 percent.

B) Asian Americans as a group have witnessed a decline in purchasing power over the last decade.

C) The average American is better educated than Asian Americans.

D) 50 percent of Asian Americans aged 25 and over have a bachelor's degree or higher.

44) Which of the following are the "true digital natives" who believe that smartphones are essential to living and working?

A) the silent generation B) Generation Z C) Generation X D) the baby-boom generation

45)

Three-quarters of professional women who quit large companies did so

A) because of lack of career progress.

B) to stay at home with their children.

C) to care for an ailing parent.

D) to start their own businesses.

46)

Which of the following statements is true about women in the United States?

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A) In comparable jobs, the pay gap among men and women is about 5 percent even now.

B) Today, women constitute less than 15 percent of the U.S. workforce.

C) Working mothers in the U.S. are less committed than men to their work.

D) Women are overrepresented in agriculture and underrepresented in education and health services.

47)

Which generation was born in the middle of the Great Depression?

A) the silent generation B) Generation Y C) the baby-boom generation D) Generation X

48)

Which generation represents about one-third of the workforce?

A) the silent generation B) the swing generation C) the baby-boom generation D) Generation X

49)

The baby-boom generation

A) represents approximately 50 million Americans.

B) was born in the middle of the Great Depression.

C) does not change jobs frequently.

D) is a computer-literate generation.

50) Which of the following generations came of age in a post-September 11 world, saturated with news of terrorism, war, and economic distress?

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A) Generation Z B) Generation Y C) the silent generation D) the baby-boom generation

51) They demand interesting work assignments and thrive on open-ended projects that require sophisticated problem solving. This is a computer-literate generation.

A) the baby-boom generation B) Generation X C) Generation Y D) the silent generation

52)

Identify the generation that was born between 1946 and 1964.

A) the silent generation B) the swing generation C) the baby-boom generation D) Generation X

53)

The baby-boom generation currently accounts for ________ percent of the workforce.

A) 10 B) 29 C) 75 D) 90

54)

Identify an accurate statement about the silent generation.

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A) They were born after the baby-boom generation.

B) They have mostly retired but others hold positions of power.

C) They had more access to advanced technology than Generation X. D) They are commonly known as the "millennials."

55)

Which of the following statements is true about the baby-boom generation?

A) They were born during the Great Depression.

B) They believe in rights to privacy, due process, and freedom of speech in the workplace.

C) They make up about 80 percent of the workforce in the United States.

D) They are the "true digital natives" who rely heavily on smartphones to do their work.

56)

Which of the following statements is true about Generation X?

A) They tend to be independent and cynical.

B) They were born before the silent generation.

C) They account for about 50 percent of the workforce in the United States.

D) They are the "millennials" who have access to all the latest forms of technology.

57)

Which of the following statements is true about Generation Y?

A) They value what they do for work above all else.

B) They are commonly known as baby busters.

C) They account for about 90 percent of the workforce in the United States.

D) They were born between 1933 and 1946.

58)

Identify an accurate statement about Generation Z.

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A) They were born immediately after the silent generation.

B) They believe that jobs should have a greater meaning than just earning a paycheck.

C) They lacked the technology of the baby-boom generation.

D) They make up the highest percent of the workforce in the United States.

59) The steps undertaken by organizations to attract and retain racial and ethnic minorities include all of the following except

A) focusing on bringing in the best talent.

B) establishing mentoring programs.

C) holding minority employees accountable for meeting diversity goals.

D) promoting minorities to decision-making positions.

60)

Which of the followingstatements is true about older workers?

A) Workers 50 and older contribute 50 percent of the gross domestic product of United States.

B) 5 percent of the workers 50 and older expect to retire before age 55.

C) Programs addressing older workers' special needs must include lectures instead of self-paced programs.

D) Older workers' wisdom, experience, and institutional memories are important assets to organizations.

61) In the context of older workers, not only must a firm analyze the requirements of jobs better, there must also be improved ways of managing the ________ of workers in those jobs.

A) denigration B) hourly wage C) declining health D) performance

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62) Subconscious expectations about what people can and cannot do at particular times of their lives is termed ________.

A) ethnic segregation B) midcareer plateau C) age grading D) obsolescence

63) Performance at an acceptable but not outstanding level, coupled with little or no effort to improve one's current performance, is termed ________.

A) obsolescence B) midcareer plateau C) glass ceiling D) career bottleneck

64)

The tendency for knowledge or skills to become out of date is ________.

A) burnout B) plateauing C) age grading D) obsolescence

65)

Which of the following is an example of obsolescence?

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A) Rob is unable to solve a problem because he believes his supervisors have more experience than him to address the problem.

B) Karen is unable to fix an issue because she still hasn't learned how to identify the causes of the issue.

C) Jessica is unable to solve a problem because she believes her team members do not agree with her problem-solving methods and strategies.

D) Jeff is unable to fix an issue because the training he received when he joined the company is now outdated.

66) Poll after poll of employers demonstrate that they regard most people with disabilities as good workers, punctual, conscientious, and competent—if given ________.

A) reasonable accommodation B) good benefits C) preferential treatment D) extra time to complete their work

67) 65?

Which demographic group is less likely to be working than any other group under age

A) minorities B) women C) persons with disabilities D) migrant workers

68)

This group is growing by about 10 percent each year.

A) lesbian/gay/ bisexual/transgendered (LGBT) B) workers with disabilities C) older workers D) female workers

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69) Lesbian/gay/ bisexual/transgendered (LGBT)employees, as a group, comprise ________ percent of the population.

A) 1 B) 3 C) 4.5 D) 6

70) Which of the following corporations has been the number 1 financial supporter of gayrights groups in the United States?

A) IBM B) Nike C) Ernst & Young D) Apple

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Explain the concept of managing diversity, and what are the characteristics of diversity?

72) What are some of the practices that companies that are committed to making diversity a competitive advantage do?

73)

What is age grading?

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74)

Write a short note on intergenerational conflict.

75) What steps can employers take to accommodate problems faced by workers with disabilities?

76) List at least three reasons why diversity has become a dominant activity in managing an organization's human resources.

77)

What is the first step in attaining the advantages of diversity?

78) Give at least three suggestions on how you can handle questions about diversity and inclusion.

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79)

Why do many Asian Americans tend to hold top jobs in the United States?

80) Give at least one reason why women have raised their expectations and levels of aspiration sharply higher in the past 30 years.

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Answer Key Test name: chapter 5 1) FALSE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) FALSE 12) TRUE 13) FALSE 14) FALSE 15) TRUE 16) TRUE 17) FALSE 18) FALSE 19) TRUE 20) FALSE 21) FALSE 22) FALSE 23) FALSE 24) FALSE 25) TRUE 26) TRUE Version 1

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27) FALSE 28) TRUE 29) TRUE 30) TRUE 31) D 32) D 33) D 34) C 35) D 36) A 37) A 38) A 39) D 40) C 41) C 42) C 43) D 44) B 45) A 46) A 47) A 48) D 49) C 50) A 51) B 52) C 53) B 54) B 55) B 56) A Version 1

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57) A 58) B 59) C 60) D 61) D 62) C 63) B 64) D 65) D 66) A 67) C 68) A 69) C 70) A 71) Managing diversity means establishing a heterogeneous workforce (including white men) to perform to its potential in an equitable work environment where no member or group of members has an advantage or a disadvantage. This is a pragmatic business strategy that focuses on maximizing the productivity, creativity, and commitment of the workforce while meeting the needs of diverse consumer groups. Visible characteristics are the most obvious dimensions of diversity, but there are many more, including those that are visible or invisible (e.g., veteran status, sexual orientation, religion, or language). Finally, there are invisible dimensions that complete the full mosaic of diversity. These include characteristics like education, life experiences, functional area at work (accounting, information technology, finance, marketing, sales, HR), family status, and perspectives.

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72) Companies that are committed to making diversity a competitive advantage do many things to gain a competitive advantage. Some of the points are listed below.

1. Hiring only search firms with a solid track record for providing diverse slates of candidates for positions at all levels 2. Forging links with colleges and universities with significant numbers of minority students, and bringing real jobs to the recruiting table 3. Considering labeling résumés by number and deleting names from them 4. Starting formal mentoring and succession programs to make sure that minorities are in the leadership pipeline 5. Including progress on diversity and inclusion (D&I) issues in compensation and management performance reviews 6. Setting career plans for employees as part of performance reviews 7. Promoting racial and ethnic minorities not just to staff jobs but to decision-making positions as well 8. Providing all employees with confidential outlets to air and settle grievances—for instance, telephone and e-mail hot lines 73) The subconscious expectations about what people can and cannot do at particular times of their lives is known as age grading. This is a form of age bias. Contrary to common belief, most mature workers are still interested in self-improvement. Like other workers, they want feedback on how they could do their jobs better or extend their careers.

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74) Overall, the majority of employees in different generations work well together. At the same time, many myths exist about generational differences. When conflict does occur, it seems to stem from three primary causes: work ethic, organizational hierarchy, and management of change. In terms of solutions to intergenerational conflict, it appears that separating workers from different generations does not work. What does work is communicating information in multiple ways, thereby addressing different generations' learning styles. Two other solutions are collaborative decision making, or "co-creation", and training managers to handle generational differences. At the same time, it is important to recognize that all generations want to be treated with respect. They want leaders whom they can trust. Most people are uncomfortable with change, everyone wants to learn, and everyone likes feedback.

75) According to the Job Accommodation Network, about a third of the accommodations needed by employees and job applicants with disabilities cost absolutely nothing. The remaining two-thirds cost under $500, and tax incentives are available to help businesses offset those costs. Consider several possible modifications: 1. Placing a desk on blocks, lowering shelves, and using a carousel for files are all inexpensive accommodations that enable people in wheelchairs to be employed.

2. Installing telephone amplifiers for hearing-impaired individuals or computer-screen readers that provide speech and Braille output for visually impaired individuals. Hearing aids with Bluetooth connectivity can be connected to smartphones to make it easier to hear phone conversation.

3. Using flextime, job sharing, and other modifications to the work schedule to help persons with disabilities to continue to work.

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76) There are five reasons why diversity has become a dominant activity in managing an organization's human resources: 1) the shift from a manufacturing to a service economy. 2) globalization of markets. 3) new business strategies that require more teamwork. 4) mergers and alliances that require different corporate cultures to work together. 5) the changing labor market.

77) The first step to attaining the advantages of diversity is to teach all employees to understand and value different races, ethnic groups, cultures, languages, religions, sexual orientations, level of physical ability, and family structures.

78) Suggestions could include any three of the following: 1. Inquire. 2.

Show empathy. 3. State your needs or expectations. 4. Educate. 5. Do not polarize people or groups.

79) The share of the workforce comprised by Asian Americans was 5.3 percent in 2012 and is expected to reach an estimated 6.3 percent by 2022, largely due to immigration. Buying power among Asian Americans exceeded $1 trillion in 2018 and it is expected to reach $1.3 trillion by 2023. It is propelled by the fact that Asian Americans are better educated than the average American. Fully 50 percent of them ages 25 and over have a bachelor's degree or higher, compared with 28 percent of the total population. Thus, many hold top jobs, and the increasing number of successful Asian entrepreneurs also helps to increase the group's buying power.

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80) Over the past 30 years, women have raised their expectations and levels of aspiration sharply higher largely because of the following: 1.

The women's movements 2. Landmark civil rights legislation 3. Well-publicized judgments against large companies for gender discrimination in hiring, promotion, and pay

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) A vision statement differs from a mission statement in that it includes both the purpose of the company as well as the basis of competition and competitive advantage. ⊚ ⊚

true false

2) The danger of strategic planning is that it may lock companies into a particular vision of the future—one that may not come to pass. ⊚ ⊚

true false

3) HR metrics should reflect the key drivers of individual, team, and organizational performance. ⊚ ⊚

true false

4) The most important audience for a mission statement is employees, for it helps build a common understanding of an organization's purpose and the basis of its intended competitive advantage in the marketplace. ⊚ ⊚

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5) Human resource (HR) strategy parallels and facilitates implementation of strategic business plan. ⊚ ⊚

true false

6) Strategic workforce plans must be consistent with the broader human resource (HR) strategy of an organization. ⊚ ⊚

7)

true false

Job design examines how work is structured, organized, experienced, and enacted. ⊚ ⊚

true false

8) Hacker hunters face off against increasingly sophisticated hackers to protect critical financial and security information. ⊚ ⊚

true false

9) Under the Americans with Disabilities Act (ADA) of 1990, it is imperative to distinguish "essential" from "nonessential" functions prior to announcing a job or interviewing applicants. ⊚ ⊚

true false

10) A competency model attempts to identify variables related to overall organizational fit and to identify personality characteristics consistent with the organization's vision and mission. ⊚ ⊚

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11)

As currently practiced, competency modeling can be a substitute for job analysis. ⊚ ⊚

12)

true false

Structured questionnaires list tasks, behaviors, or both. ⊚ ⊚

true false

13) Job-performance method of job analysis is most appropriate for job evaluation and career-path planning. ⊚ ⊚

true false

14) Competency modeling is a singular approach to studying work because there is little to no variability in the way it is implemented in actual practice. ⊚ ⊚

true false

15) In terms of the types of data actually collected, the most popular method of job analysis today is critical incidents. ⊚ ⊚

true false

16) The formal process that connects business strategy to human resource strategy and practices and ensures that a company has the right people in the right place, at the right time, and at the right cost is known as strategic workforce planning. ⊚ ⊚

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17) Ideally, strategic workforce planning becomes an input to business strategy, not simply driven by business strategy, and provides data, analytics, and insights to inform executive decision making. ⊚ ⊚

true false

18) HR concerns become business concerns and are dealt with only when they affect a line manager's ability to function effectively. ⊚ ⊚

true false

19) A workforce forecast predicts future people requirements based on an analysis of the future availability of labor and future labor requirements. Each of these is tempered by an analysis of external conditions. ⊚ ⊚

true false

20) An inventory of present talent is not particularly useful for planning purposes unless it can be analyzed in terms of future workforce requirements. ⊚ ⊚

true false

21) The Occupational Outlook Handbook, published by the U.S. Department of Education, focuses on macro forecasts of aggregate demand for various occupations. ⊚ ⊚

true false

22) The recruiting and hiring of new employees are essential activities for virtually all firms, at least over the long run.

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⊚ ⊚

23)

Succession plans are developed only for management employees. ⊚ ⊚

24)

true false

true false

Forecasts of workforce demand are often more subjective than quantitative. ⊚ ⊚

true false

25) Accuracy in forecasting the demand for labor varies considerably by firm and by industry type, roughly from a 5 to 35 percent error factor. ⊚ ⊚

true false

26) When it comes to forecasting the demand for labor, it is often better to underestimate the numbers of people needed because overestimationis very costly. ⊚ ⊚

true false

27) Quantitative objectives make the control and evaluation process more objective and measure deviations from desired performance more precisely. ⊚ ⊚

true false

28) In newly instituted strategic workforce-planning (SWP) systems, evaluation is likely to be more quantitative than qualitative, with more emphasis placed on control. ⊚ ⊚ Version 1

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

29) ________ answers the basic question "How will we compete?" and typically considers the external environment, customer trends, competitive positioning, and internal strengths and weaknesses of an organization.

A) Strategy analysis B) Strategy formulation C) A mission statement D) A vision statement

30)

Which of the following statements is a definition of business strategy?

A) It consists of the decisions, processes, and choices that firms make about how to manage their people.

B) It focuses on firm-level responses to people-related business issues over multiple planning horizons.

C) It involves organizing existing skills, abilities, career interests, and experience of the current workforce to achieve success.

D) It consists of the decisions, processes, and choices that firms make to position themselves for sustainable success.

31) ________ is the final step in the process of strategic planning and makes the intended strategy real.

A) Strategy execution B) Strategy facilitation C) Strategy evaluation D) Strategy summary

32) How firms compete with each other and how they attain and sustain competitive advantage are the essence of ________.

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A) operations management B) financial management C) strategic management D) data management

33)

"To be the world's best quick-service restaurant" is an example of a(n) ________.

A) organizational charter B) mission statement C) code of ethics D) vision statement

34)

How does a mission statement differ from a vision statement?

A) The mission statement typically includes a fairly substantial effort to establish some direct line-of-sight between individual competency requirements and the broader goals of an organization.

B) The mission statement includes the purpose of a company as well as the basis of competition and competitive advantage.

C) The mission statement is an effort to anticipate future business and environmental demands on an organization and to provide qualified people to fulfill that business and satisfy those demands.

D) The mission statement includes the result of an analysis of the future availability of labor and future labor requirements.

35)

Which of the following is a high-performance work practice?

A) flat organizational structures B) use of contingent workers C) rigorous staffing and performance management practices D) All of these choices are correct.

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36)

Which of the following is not a feature of high-performance work practices?

A) managers being responsible for organizational goals B) worker empowerment, participation, and autonomy C) the use of self-managed and cross-functional teams D) flexible work design characterized by customer satisfaction

37) Strategic workforce planning focuses on firm-level responses to ________ business issues over multiple time horizons.

A) corporate B) people-related C) global D) community-related

38)

________ examines how work is structured, organized, experienced, and enacted.

A) Operational planning B) Forecasting requirement C) Job design D) Action plan

39)

Which of the following statements defines the term "job specification"?

A) It is a written summary of worker requirements for a particular job.

B) It is an approach that allows two employees to share the job responsibilities normally handled by only one person.

C) It is the advertising of available jobs internally through bulletin boards.

D) It is the processes and outcomes that describe how work is structured, organized, experienced, and enacted.

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40) Jacob is a newly appointed supervisor in a bottle manufacturing company. In order to understand the physical, social, and environmental demands of making a bottle, he inspects the machinery and tries to get a firsthand experience of how to make a bottle. Which of the following job analysis methods is exemplified in this scenario?

A) structured questionnaires B) job performance C) observation D) critical incidents

41) Harry is a supervisor in a company that manufactures float glass. He notes that the productivity has been dipping and the company has not been able to deliver products to customers on time. In order to understand why this is happening, he decides to watch the whole process of manufacturing float glass. He does not interfere, but records the what, why, and how of the various parts of the job. Harry ensures that he records this information in a standard format. Which of the following job analysis methods is exemplified in this scenario?

A) interview B) critical incidents C) observation D) structured questionnaires

42) Kevin is the chief architect of a construction company. In order to maintain efficiency, he talks to the workers to understand what they do, why, and how. He ensures that he uses a standard format to record his observations. This technique helps him restrict all questions and responses to job-related topics. More importantly, this technique allows him to compare what different people are saying about the job in question. Which of the following job analysis methods is exemplified in this scenario?

A) observation B) critical incidents C) job performance D) interview

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43) In the context of job analysis methods, which of the following statements is true about job performance?

A) This method is inappropriate for jobs that require extensive training or are hazardous to perform.

B) This method provides information about standard as well as nonstandard and mental work.

C) This method is generally cheaper and quicker to administer than other methods.

D) This method provides information that can be used for most possible applications of job analysis.

44) In the context of job analysis methods, which of the following statements is true about observation?

A) This method provides information that might be unavailable from any other source.

B) This method is unlikely to reveal any useful information if the work in question is primarily mental.

C) This method is inappropriate for jobs that are hazardous to perform.

D) This method is appropriate for jobs that can be learned in a relatively short period of time.

45) Which of the following job analysis methods allows analysts to survey large numbers of geographically dispersed job incumbents, in English as well as in other languages?

A) interviews B) observation C) structured questionnaires D) critical incidents

46) In the context of strategic workforce-planning (SWP) systems, which of the following statements is true about talent inventory?

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A) It is used to provide feedback on the overall effectiveness of the SWP system by monitoring the degree of attainment of human relations (HR) objectives.

B) It is used to enlarge the pool of people qualified to fill projected vacancies through recruitment.

C) It is used to predict future people requirements based on an analysis of supply and demand, tempered by an analysis of external conditions.

D) It is used to identify the skill, abilities, and potential of the current workforce.

47) In the context of strategic workforce-planning (SWP) systems, which of the following activities is used to enlarge the pool of people qualified to fill projected vacancies through such actions as recruitment, selection, training, placement, transfer, promotion, development, and compensation?

A) an action plan B) a workforce forecast C) a talent inventory D) control and evaluation

48)

Which of the following occurs when strategic workforce planning (SWP) matures?

A) SWP loses support and ownership.

B) SWP incorporates tools from other functions and frameworks.

C) It ceases to be data driven.

D) Organizational boundaries become increasingly evident.

49) Which of the following job analysis methods can be used for most possible applications of job analysis because the behaviors in question are observable and measurable?

A) job performance B) structured questionnaire C) interview D) critical incidents

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50)

________ is an overall written summary of task requirements.

A) Job description B) Job analysis C) Job design D) Job evaluation

51) Which of the following examines how work is structured, organized, experienced, and enacted?

A) job design B) job analysis C) job description D) job specification

52)

Which of the following statements is true about job specifications?

A) They should reflect a profile of the ideal job incumbent.

B) They should reflect minimally acceptable qualifications for job incumbents.

C) They are an overall written summary of task requirements.

D) They are the extent to which a job requires the employee to use a number of different skills and abilities and to draw on a range of knowledge.

53) All of the following are examples that the Americans with Disabilities Act (ADA) of 1990 defines as "reasonable" accommodation efforts except

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A) reassigning a worker who becomes disabled to a vacant position.

B) acquiring or modifying equipment or devices.

C) restructuring a job so that someone else does the essential tasks a person with a disability cannot do.

D) modifying work hours so that a person with a disability can commute during offpeak periods.

54)

All of the following statements about competency models are true except that

A) they attempt to identify variables related to overall organizational fit.

B) their level of rigor and documentation are more likely to enable them to withstand the close scrutiny of a legal challenge.

C) they attempt to identify personality characteristics consistent with an organization's vision.

D) their focus is on the full range of knowledge, skills, abilities, and other characteristics that are needed for effective performance on a job and that characterize exceptional performers.

55) Which of the following is a method of job analysis in which an analyst actually performs the job under study to get firsthand exposure to what it demands?

A) job performance B) observation C) interview D) critical incidents

56) Which method of job analysis uses vignettes comprising brief actual reports that illustrate particularly effective or ineffective worker behaviors?

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A) interview B) observation C) job performance D) critical incidents

57)

Identify a true statement about structured questionnaires.

A) They use vignettes comprising brief actual reports that illustrate particularly effective or ineffective worker behaviors.

B) Tasks focus on how a job is done.

C) They can use a job-oriented approach, a worker-oriented approach, or both.

D) Behaviors focus on what gets done.

58) Which of the following methods of job analysis is generally cheaper and quicker to administer than other methods?

A) structured questionnaires B) relationships with other persons C) job context D) critical incidents

59)

Identify an advantage of using job performance as a job analysis method.

A) This method can provide information about standard as well as nonstandard and mental work.

B) This method is generally cheaper and quicker to administer than other methods.

C) This method is appropriate for jobs that can be learned in a relatively short period of time.

D) This method focuses directly on what people do in their jobs, and thus it provides insight into job dynamics.

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60) Which of the following is a job analysis method in which the worker is also his or her own observer and can report on activities that would not be observed often?

A) critical incidents B) interview C) observation D) job performance

61) Which of the following is a method of job analysis in which distortion of information, either as a result of honest misunderstanding or as a result of purposeful misrepresentation, is a real possibility?

A) job performance B) observation C) critical incidents D) interview

62) Which of the following methods of job analysis focuses directly on what people do in their jobs, and thus it provides insight into job dynamics?

A) critical incidents B) structured questionnaires C) interviews D) job performance

63) Which of the following is a disadvantage of using critical incidents as a job analysis method?

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A) Because the incidents describe particularly effective or ineffective behavior, it may be difficult to develop a profile of average job behavior.

B) This method is inappropriate for jobs hazardous to perform.

C) It is inappropriate for jobs that can be learned in a short period of time.

D) Rapport between analyst and respondent is not possible unless the analyst is present to explain items and clarify misunderstandings.

64) Which of the following methods of job analysis is often time consuming and expensive to develop and may have adverse effects on respondent cooperation and motivation?

A) critical incidents B) observation C) job performance D) structured questionnaires

65) ________ is the formal process that connects business strategy to human resource strategy and practices, ensuring the right people are in the right place at the right time and cost.

A) Job analysis B) Job design C) Job endangerment D) Strategic workforce planning

66)

Strategic workforce planning becomes an input to business strategy by

A) uncovering significant differences among business units or locations.

B) providing metrics and other tools to support business decisions.

C) enabling leaders to compare the long-term implications of alternative business scenarios and HR options.

D) All of these choices are correct.

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67) Which of the following predicts future people requirements based on an analysis of the future availability of labor and future labor requirements, tempered by an analysis of external conditions?

A) a workforce forecast B) control and evaluation C) strategic unemployment D) a talent inventory

68) Which of the following activities of a strategic workforce-planning (SWP) system is used to provide feedback on the overall effectiveness of the SWP system by monitoring the degree of attainment of HR objectives?

A) action plans B) talent inventory C) control and evaluation D) workforce forecast

69)

The purpose of workforce forecasting is to estimate ________ at some future time period.

A) production costs B) the need for talent inventories C) labor requirements D) the need for tactical planning

70) Both internal and external ________ forecasts depend primarily on the behavior of some business factor to which human resource needs can be related.

A) demand B) supply C) resource D) market

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71)

Perhaps the simplest type of internal supply forecast is the ________.

A) Delphi technique B) succession plan C) talent inventory D) business strategy

72) Accuracy in forecasting the demand for labor varies considerably by firm and by industry type, roughly from a ________ percent error factor.

A) 1 to 3 B) 2 to 10 C) 5 to 35 D) 10 to 40

73) All of the following are key steps to take to avoid a future crisis in leadership succession in an organization except

A) focus on the organization's future needs, not past accomplishments.

B) ensure that the CEO understands the importance of the task and makes it a priority.

C) provide broad exposure.

D) discourage differences of opinion.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

74) At a general level, what are the features that should be included in high-performance work practices?

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75)

List three methods of job analysis, and discuss the pros and cons of each mothd.

76) Discuss some of the reasons why sound professional practice suggests that job analyses be done, even though they are not required under the Americans with Disabilities Act (ADA) of 1990.

77)

How does competency modeling differ from job analysis?

78)

How are job specifications set?

79)

How does strategic workforce planning (SWP) deliver value in global organizations?

80)

What is a talent inventory, and how is it useful in human resource planning?

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81)

What are the problems associated with demand forecasting?

82)

Compare and contrast the two types of workforce forecasting.

83) What are the four interrelated activities that together comprise a strategic workforceplanning (SWP) system?

84)

List at least five common uses of a talent inventory.

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Answer Key Test name: chapter 6 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) TRUE 20) TRUE 21) FALSE 22) TRUE 23) FALSE 24) TRUE 25) TRUE 26) TRUE Version 1

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27) TRUE 28) FALSE 29) B 30) D 31) A 32) C 33) D 34) B 35) D 36) A 37) B 38) C 39) A 40) B 41) C 42) D 43) A 44) B 45) C 46) D 47) A 48) B 49) D 50) A 51) A 52) B 53) C 54) B 55) A 56) D Version 1

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57) C 58) A 59) C 60) B 61) D 62) A 63) A 64) D 65) D 66) D 67) A 68) C 69) C 70) A 71) B 72) C 73) D 74) At a general level, high-performance work practices include the following: 1. Worker empowerment, participation, and autonomy 2. The use of self-managed and cross-functional teams 3. Flat organizational structures 4. Use of contingent workers 5. Flexible design of work defined by roles, processes, output requirements, and customer satisfaction, rather than by rigidly prescribed, job-specific requirements.

6. Rigorous staffing and performance management practices 7. Various worker- and family-friendly HR policies that reward employee development, continuous learning, and support work-life fit

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75) Five common methods of job analysis and their pros and cons are as follows: 1. Job performance. With this method there is exposure to actual job tasks as well as to the physical, social, and environmental demands of the job. It is appropriate for jobs that can be learned in a relatively short period of time. This method is inappropriate for jobs hazardous to perform. 2. Observation. Direct exposure to jobs can provide a richer and deeper understanding of job requirements than workers' descriptions of what they do. If the work in question is primarily mental, observations alone may reveal little useful information. Critical, yet rare, job requirements may not be observed. 3.

Interview. This method can provide information about nonstandard as well as standard and mental work. Workers can report on activities that would not be observed often and that might not be available from any other source. Workers may be suspicious of interviewers and their motives, or interviewers may ask ambiguous questions. Workers may be distrustful of interviewers and their motives; interviewers may ask confusing questions. Thus, distortion of information is a possibility.

Therefore, the interview should not be used as the only job-analysis method. 4. Critical incidents. This method focuses directly on what people do in their jobs, and thus it gives insight into job dynamics.

Because the behaviors in question are observable and measurable, information derived from this method can be used for most applications of job analysis. It takes considerable time to gather, abstract, and categorize incidents. Also, because the incidents describe particularly effective or ineffective behavior, it may be hard to develop a profile of average job behavior—the main objective in job analysis. 5. Structured questionnaires. This method is generally cheaper and quicker to administer than other methods. Questionnaires can be completed off the job, thus avoiding lost productive time. Web-based questionnaires allow analysts to survey geographically dispersed job incumbents, in English Version 1

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as well as in other languages, thus providing a breadth of coverage and a speed of analysis and feedback that are impossible to obtain otherwise.

Questionnaires are often time consuming and expensive to develop.

Rapport between respondent and analyst is not possible unless the analyst is present to explain items and clarify misunderstandings. Such an impersonal approach may have adverse effects on respondent cooperation and motivation.

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76) Job analyses are not legally required under the Americans with Disabilities Act (ADA), but sound professional practice suggests that they be done for three reasons: 1. The law makes it clear that job applicants must be able to understand what the essential functions of a job are before they can respond to the question "Can you perform the essential functions of the job for which you are applying?" A function may be essential because the reason the position exists at all is to perform that function (e.g., a baggage handler at an airport must be able to lift bags weighing up to 70 pounds repeatedly throughout an 8-hour shift). Alternatively, the function may be so highly specialized that it cannot be shifted to others (e.g., a licensed pharmacist must dispense doctors’ prescriptions). Job analysis is a systematic procedure that can help to identify essential job functions. 2. Existing job analyses may need to be updated to reflect additional dimensions of jobs—namely, the physical demands, environmental demands, and mental abilities required to perform essential functions. 3. Once job analyses are updated as described, a summary of the results is normally prepared in writing in the form of a job description. What may work even better under the ADA, however, is a video job description that illustrates the physical, environmental (e.g., temperatures, noise level, working space), or mental (e.g., irate customers calling with complaints) demands of jobs.

Candidates who are unable to perform a job because of a physical or mental disability may self-select out, thereby minimizing the likelihood of a legal challenge.

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77) A rigorous comparison concluded that competency approaches typically begin with an organization's business context and competitive strategy and to establish some direct line-of-sight between individual competency requirements and the broader goals of an organization. Job analyses, on the other hand, typically do not make this connection, but their level of rigor and documentation are more likely to enable them to withstand the close scrutiny of a legal challenge. As currently practiced, therefore, competency modeling is not a substitute for job analysis.

Neither job analysis nor competency modeling is a singular approach to studying work, and there is much variability in the ways they are implemented in actual practice. Moreover, no single type of description of work content (competencies, work activities, performance standards, knowledge, skills, abilities, and other characteristics) is appropriate for all purposes, and purpose is a key consideration in choosing any particular approach to the study of work.

78) Job specifications should reflect minimally acceptable qualifications for job incumbents. Frequently, they do not, reflecting instead a profile of the ideal job incumbent. Typically, they are set by consensus among experts—immediate supervisors, job incumbents, and job analysts. Such a procedure is professionally acceptable, but care must be taken to distinguish between required and desirable qualifications. The term "required" assumes that without this qualification, an individual absolutely would be unable to do the job (e.g., certification or licensure).

"Desirable" is "nice to have," but it is not a "need to have" (e.g., for some jobs, education or experience requirements). To be sure, required qualifications will exist in almost all jobs, but care must be exercised in establishing them, for such requirements must meet a higher standard.

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79) SWP becomes an input to business strategy, providing data, analytics, and insights to inform, and at times challenge, executive decision making. In global organizations, SWP delivers value in the following four ways: 1. It uncovers significant differences among business units or locations, such as which countries' workforces will shrink or grow, and by how much. It also shows how the regional supply of talent compares to the demand and where the company derives the highest return from its investments in human capital. 2. It provides metrics and various other tools to support business decisions. For example, 3M uses productivity metrics to help determine which countries receive additional resources and which ones receive fewer.

UBS used scenario planning—the anticipated future, a bear market, and a bull market—and financial indicators to signal when the bank needs to switch its workforce plans. 3. It helps leaders to compare the long-term implications of alternative business scenarios and HR options. At UBS, for example, planners developed a cost model to illustrate the short-term trade-offs between various staffing options, as well as the long-term costs of failing to develop a coherent, regional talent strategy. 4. It favors different kinds of planning at different levels of an organization.

SWP raises the discussion from a tactical to a strategic level and incorporates long-term considerations such as regulatory changes, labor supply, infrastructure, and costs.

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80) A talent inventory is a fundamental requirement of an effective strategic workforce planning (SWP system). It is an organized database of the existing abilities, skills, career interests, and experience of the current workforce. When a talent inventory is linked to other databases, the set of such information facilitates an optimal workforce strategy and an integrated talent supply chain. Some common uses of a talent inventory include identification of candidates for promotion, leadership succession, assignments to special projects, training, transfer, planning for recruitment, compensation, and careers. Talent inventories and workforce forecasts must complement each other; an inventory of present talent is not particularly useful for planning purposes unless it can be analyzed in terms of future workforce requirements. On the other hand, a forecast of workforce requirements is useless unless it can be evaluated relative to the current and projected future supply of workers available internally.

81) Demand forecasting is beset with multiple uncertainties—changes in technology; consumer attitudes and patterns of buying behavior; local, national, and international economies; number, size, and types of contracts won or lost; and government regulations that might open new markets or close off old ones, just to name a few. Consequently, forecasts of workforce demand are often more subjective than quantitative, although in practice a combination of the two is often used.

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82) The two types of workforce forecasting are the external and internal supply of talent and the aggregate external and internal demand for that talent. Internal supply forecasts pertain to conditions inside the organization. For example, the age distribution of the workforce, retirements, terminations, and new hires within job classes. On the other hand, internal and external demand forecasts rely primarily on the behavior of some business factor (e.g., projected number of retail outlets, projected sales, product volume) to which human resource needs can be related. Unlike internal and external supply forecasts, demand forecasts are subject to many uncertainties such as domestic or worldwide economic conditions, technology, and consumer behavior, etc. The Occupational Outlook Handbook, published by the U.S. Department of Labor, focuses on forecasting the aggregate demand for different occupations.

83) The four interrelated activities that together comprise a strategic workforce-planning (SWP) system are a talent inventory, a workforce forecast, action plans, and control and evaluation.

84) Some common uses of a talent inventory include the following: 1.

Identification of candidates for promotion 2. Leadership succession 3. Assignment to special projects 4. Transfer 5. Training 6. Planning for recruitment 7. Compensation planning 8. Career planning

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Recruitment is an important component of the staffing supply chain. ⊚ ⊚

true false

2) A supply chain for talent acquisition ends with a potential labor pool of individuals who might eventually become applicants. ⊚ ⊚

true false

3) In a supply chain for talent acquisition, an available labor pool develops into a potential labor pool once individuals acquire maximum qualifications for jobs. ⊚ ⊚

true false

4) Recruitment policies ultimately depend on what is happening in the internal and external economy. ⊚ ⊚

true false

5) In a tight labor market, demand by employers exceeds the available supply of workers, which tends to exert upward pressure on wages. ⊚ ⊚

true false

6) It is possible to define the geographical boundaries of a labor market in a clear-cut manner. ⊚ ⊚

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7) In an open internal labor market, every available job is advertised throughout the organization via job postings, and anyone can apply. ⊚ ⊚

true false

8) Employers do not face a series of discontinuous, segmented labor markets but, rather, a single, homogeneous market for labor over which supply-and-demand conditions remain constant. ⊚ ⊚

true false

9) A zoo wants to hire four veterinarians. It should limit its search to a localarea because the market is local in scope. ⊚ ⊚

true false

10) Recruitment begins with a clear specification of the number of people needed and when they are needed. ⊚ ⊚

true false

11) Longitudinal research indicates that delays in the timing of recruitment events are perceived positively by candidates, especially high-quality ones, and often result in job acceptances. ⊚ ⊚

true false

12) The first thing to note about internal recruitment is that organizational culture becomes more important, while employer brand and reputation become less important.

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⊚ ⊚

true false

13) One of the thorniest issues confronting internal recruitment is the reluctance of managers to grant permission for their subordinates to be interviewed for potential transfer or promotion. ⊚ ⊚

true false

14) Advertising available jobs internally began as a way to provide equal opportunity for women and minorities to compete. ⊚ ⊚

true false

15) Workers provided by temporary agencies work directly for the hiring organization and they receive benefits, depending on the numberof scheduled hours worked per week. ⊚ ⊚

true false

16) Considerable research evidence indicates that employee referrals result in consistently higher quit rates than other recruitment sources. ⊚ ⊚

true false

17) Alumni networks follow the principle that personal connections transcend corporate boundaries. ⊚ ⊚

18)

true false

The recruitment practices of large and small firms are highly similar.

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⊚ ⊚

true false

19) Fully loaded costs of the recruiting staff, the time of the hiring manager, and the costs of recruitmentsoftware are examples of internal costs. ⊚ ⊚

true false

20) If an organization hires a candidate on its own prior to the completion of a search by an executive search firm, it is not required to pay the search firm's fee. ⊚ ⊚

true false

21) A temporary staffing agency bears no responsibility if it participates in a discriminatory staffing request from a client company. ⊚ ⊚

true false

22) Most temporary employment agencies operate with the employer paying the fee for placement. ⊚ ⊚

true false

23) Corporate home pages on the Internet are often designed with potential recruits in mind as they are frequently the first place job seekers look when they begin to evaluate companies. ⊚ ⊚

true false

24) Firms are finding that many managers and professionals, men and women alike, are willing to relocate even if their spouse is not guaranteed suitable employment in the new location.

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⊚ ⊚

true false

25) Originally used in the sports world, signing bonuses are now common among executives, professionals, and middle-level executives. ⊚ ⊚

true false

26) Diverse candidates consider limited factors in their decisions to apply or to remain with organizations. ⊚ ⊚

true false

27) Research reveals that many job applicants have an incomplete and/or inaccurate understanding of what a job opening involves. ⊚ ⊚

true false

28) A realistic job preview requires recruiters to tell applicants about the unpleasant aspects of the job but prevents them from telling applicants about the nice things the job has to offer. ⊚ ⊚

true false

29) Realistic job previews administered after hire help reduce turnover, help new hires cope with work demands, and signal that the employer is concerned about the well-being of its new hires. ⊚ ⊚

30)

true false

Realistic job previews are appropriate for all types of jobs.

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⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) In a supply chain for talent acquisition, which of the following identifies a small pool of candidates who receive offers?

A) applicants B) available labor pool C) potential labor pool D) screening and selection

32)

How does a supply chain for talent acquisition begin?

A) It begins with a potential labor pool of individuals who might eventually become applicants.

B) It begins with an available labor pool that develops into a potential labor pool once individuals acquire minimum qualifications for jobs.

C) It begins with recruiters who filter an applicant pool to identify candidates for further evaluation.

D) It begins with screening and selection of applicants to identify smaller pools of candidates who receive offers.

33)

Once individuals acquire minimum qualifications for jobs they develop into ________.

A) applicants B) an available labor pool C) a potential labor pool D) screening and selection

34)

Some individuals will actually apply for jobs and become ________.

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A) applicants B) an available labor pool C) a potential labor pool D) screening and selection

35) Which of the following statements about a company using a passive nondiscrimination posture is true?

A) It is a concerted effort by the organization to actively expand its pool of applicants so that no one is excluded because of past or present discrimination.

B) This posture recognizes that discriminatory practices in the past may block prospective applicants from seeking present job opportunities.

C) No attempt is made by the company to recruit actively among prospective minority applicants.

D) It systematically favors women and minorities in hiring and promotion decisions.

36) Which of the following is a concerted effort by an organization to actively expand its pool of applicants so that no one is excluded because of past or present discrimination?

A) hard quotas B) pure diversity-based recruitment C) diversity-based recruitment with preferential hiring D) passive nondiscrimination

37)

A "soft-quota" system

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A) fails to recognize that discriminatory practices in the past may block prospective applicants from seeking present job opportunities.

B) represents a mandate to hire specific numbers of women or minority group members.

C) is a commitment to treat all races and both sexes equally in all decisions about hiring, promotion, and pay.

D) systematically favors members of protected groups in hiring and promotion decisions.

38)

Hard quotas

A) represent a mandate to hire or promote specific numbers or proportions of members of protected groups.

B) systematically favor members of protected groups in hiring and promotion decisions.

C) are a concerted effort by an organization to actively expand its pool of applicants so that no one is excluded because of past or present discrimination.

D) are a commitment to treat all races and both sexes equally in all decisions about hiring, promotion, and pay.

39) Recruitment policies ultimately depend on the structure and functioning of internal and external ________.

A) customers B) stakeholders C) labor markets D) markets for goods

40)

Which of the following statements best defines a labor market?

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A) It is a geographical area where employers attempt to integrate their products (job opportunities) with all consumers (job applicants).

B) It is a geographical area within which the forces of supply (job aspirants) interact with the forces of demand (employers).

C) It is a system that firms use to compete for business in the marketplace and to gain competitive advantage.

D) It is a system that uses a direct market-pricing approach for all of a firm's jobs.

41)

Which of the following statements about a tight labor market is true?

A) The labor markets for word processors and telemarketers have been fairly tight.

B) There is downward pressure on wages in such a market.

C) The demand by employers exceeds the available supply of workers.

D) There is reducing pressure for wage increases for sewing machine operators.

42)

Which of the following statements is true of a loose labor market?

A) The demand by employers exceeds the available supply of workers.

B) The labor markets for data scientists, financial advisors, and medical assistants are examples of this market.

C) There is a downward pressure on wages.

D) It is a single, homogeneous market for labor.

43) ________ affect recruitment policies because firms often give preference to current employees in promotions, transfers, and other career-enhancing opportunities.

A) Union employee percentages B) Labor market characteristics C) EEOC guidelines D) Internal labor markets

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44) In a(n) ________, every available job is advertised throughout the organization via "job posting," and anyone can apply.

A) market-based pay system B) closed external labor market C) external labor market D) open internal labor market

45)

Which of the following statements is a key assumption in the recruitment pipeline?

A) Time to fill an open requisition is insignificant in pivotal jobs for an organization.

B) Intervals between events in the pipeline proceed as planned.

C) Delays in the timing of recruitment pipeline are perceived positively by candidates.

D) A relatively small portion of applicants is truly outstanding, and a relatively small portion is unsatisfactory.

46)

________ can be an excellent source of new hires at all levels.

A) Previous employees B) Job boards C) Wanted ads D) Employee referrals

47) Promotion-from-within policies must ________, coupled with a company philosophy that permits employees to consider available opportunities within the organization.

A) comply with all state laws B) respect seniority position C) receive strong top-management support D) anticipate training needs

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48) Today ________ is an established practice in many organizations, especially for filling jobs up to the lower executive level.

A) creating temporary work pools B) employee referral C) using headhunters D) job posting

49)

Respectful communication and ________ are essential if job posting is to work properly.

A) follow-up feedback B) manager empathy C) honest disclosure D) cash bonuses

50)

Benefits of employee referral programs include

A) a source of passive job candidates.

B) assistance in filling specialized positions.

C) both a source of passive job candidates and assistance in filling specialized positions.

D) None of these choices are correct.

51)

Which of the following is a disadvantage of employee referrals for job candidates?

A) Hiring managers are required to hire referrals over more qualified candidates.

B) Referrals tend to perpetuate the perspective and the belief systems of the current workforce.

C) Referrals are more likely to have high expectations about jobs and overall performance of the organizations.

D) Higher quit rates of referrals than of applicants from other sources adversely impact a business and increase legal risks.

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52) Organizations periodically turn to ________ to meet demands for talent brought about by business growth, a desire for fresh ideas, or to replace employees who leave.

A) their subsidiaries B) entry-level employees C) outside labor markets D) former employees

53) Which of the following is not a way in which companies have broadened the scope of their interactions with universities for the purposes of recruiting?

A) gifts and grants to institutions B) summer employment for faculty C) placement officer invitations to visit company plants and offices D) no-cost consulting from experienced company engineers

54) Which of the following is a reason for retaining executive search firms to recruit for senior-level positions?

A) There is a need to maintain confidentiality from an incumbent or a competitor.

B) There are plenty of local resources with a client company to recruit executive-level individuals.

C) There is great variability in size and quality across search firms.

D) They participate in a discriminatory staffing request from a client company.

55) In using an executive search firm, an employer evaluating the search firm should carefully consider all of the following indications that the firm can do competent work except

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A) the firm is performance oriented and compensates a search salesperson substantially on the basis of assignment completion.

B) the firm understands how the employer functions within the industries served.

C) the firm has defined its market position by industries rather than by disciplines.

D) the firm combines the research and recruiting responsibilities into one function.

56) Most major temporary agencies also act as ________, usually with the employer paying the fees.

A) advertisers B) employment agencies C) government agencies D) university relations

57) In terms of the total fees paid to executive search firms, which of the following statements is false?

A) A retainer is paid as soon as a search is commissioned.

B) A retainer amounts to one-third the total fee.

C) One-third is paid 90 days into an assignment.

D) The last third is paid upon completion, plus expenses.

58)

Identify a true statement about employment agencies.

A) They are the most expensive recruitment sources.

B) Even if an organization hires a candidate on its own prior to the completion of the search by an employment agency, it still must pay all of the agency's fee.

C) Fees vary from 10 percent of the starting salary for support staff to 40 to 50 percent of the starting salary for professional, executive-level hires.

D) They find people to fill temporary and full-time jobs in several different career fields.

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59) ________ have the ability to use video, voice, and text to connect job seekers with recruiters, and to span time zones and continents in the process.

A) University relations B) Executive search firms C) Virtual career fairs D) Recruitment advertisements

60) According to the text, ________, originally used in the sports world, are now common among executives, professionals, and middle-level executives, as companies seek to buttress the eroding bonds between them and their employees.

A) referral bonuses B) signing bonuses C) retention bonuses D) lump-sum bonuses

61) true?

In terms of recruitment sources among employers, which of the following observations is

A) Formal contacts are used widely and effectively at all occupational levels.

B) Use of public employment services increases as required skills levels increase.

C) The internal market is a major recruitment source except for skilled workers.

D) Larger firms are the most frequent users of walk-ins, write-ins, and the internal market.

62)

The most important effects on interview outcomes are candidates' ________.

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A) impression of a recruiter B) perceived qualifications C) hobbies and other activities D) salary requirements

63) When the unrealistically positive expectations of job applicants are lowered to match the reality of the actual work setting ________, job acceptance rates may be lower, but job performance, job satisfaction, and survival are higher for those who receive a realistic job preview.

A) prior to hire B) during orientation C) after a few days on the job D) before salary requirements are discussed

64)

Which of the following statements about a realistic job preview (RJP) is true?

A) Job performance rates are lower for those who receive an RJP. B) Meta-analysis shows that RJPs improve retention rates, on average, by 5 percent.

C) It requires that recruiters tell applicants the pleasant and unpleasant aspects of the job.

D) Job acceptance rates are higher for those who receive an RJP.

65)

Realistic job previews (RJPs) administered after hire

A) lead to increased turnover.

B) only have negative effects.

C) signal that the employer is not concerned about the well-being of its new hires.

D) help new hires cope with work demands.

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66) Research-based criteria for deciding what information to include in a realistic job preview (RJP) include all of the following except

A) it is important to most recruits.

B) it is widely known outside the organization.

C) it is a reason that leads newcomers to quit.

D) it is related to successful job performance after being hired.

67)

Realistic job previews (RJPs) seem to work best when ________.

A) used with entry-level positions B) the selection ratio is high C) many applicants are actually hired D) unemployment is high

68)

Identify a true statement about realistic job previews (RJPs).

A) They should be administered only after hire as part of newcomer socialization.

B) They should enhance overly pessimistic expectations.

C) They are expected to enhance high positive expectations of job applicants to boost their morale.

D) They are administered to increase the job acceptance rate among applicants.

69)

Which of the following statements is true of a job search?

A) Few people land jobs through personal contacts.

B) All companies have developed policies about the use of social media for job posting.

C) Only few recruiters use or plan to use social media in recruiting talent.

D) Social professional networks contribute the most to job search, especially among the young generations.

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70) The top five social-media risks to business identified in a recent study include all of the following except ________.

A) malware B) brand hijacking C) air gap D) noncompliance with rules over record keeping

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) List some factors that are important for defining the limits of a labor market.

72)

What is the recruitment "pipeline"?

73)

What are the five most popular external recruitment sources?

74) What are the four research-based criteria for deciding what information to include in a realistic job preview (RJP)?

75)

List the important elements that should be part of any successful recruitment program.

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76)

Explain the four types of social media.

77)

What are the three elements that constitute an internal labor market?

78) What explanation do economists give for wage differences among occupations and among geographical areas?

79) List at least two ways in which employers may change their recruitment policies in response to changes in market conditions.

80)

Give at least one reason why companies retain executive search firms.

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81)

What does the term "relationship recruiting" mean?

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Answer Key Test name: chapter 7 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) FALSE 22) TRUE 23) TRUE 24) FALSE 25) TRUE 26) FALSE Version 1

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27) TRUE 28) FALSE 29) TRUE 30) FALSE 31) D 32) A 33) B 34) A 35) C 36) B 37) D 38) A 39) C 40) B 41) C 42) C 43) D 44) D 45) B 46) D 47) C 48) D 49) A 50) C 51) B 52) C 53) D 54) A 55) D 56) B Version 1

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57) C 58) D 59) C 60) B 61) D 62) B 63) A 64) C 65) D 66) B 67) A 68) B 69) D 70) C 71) Following are the important factors for defining the limits of a labor market: 1. Geography 2. Education and/or technical background required to perform a job 3. Industry 4. Licensing or certification requirements 5. Union membership 72) Recruitment begins with a clear specification of (1) the number of people needed (e.g., through workforce forecasts) and (2) when they are needed. Implicit in the latter is a time frame—the duration between the receipt of a résumé and the time a new hire starts work. This time frame is sometimes referred to as the recruitment pipeline.

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73) Five of the most popular recruitment sources are university relations, executive search firms, virtual career fairs, employment agencies, and recruitment advertising.

1. University relations: What used to be known as "college recruiting" is now considerably broader in many companies. Companies have targeted certain schools that best meet their needs and have broadened the scope of their interactions with them. Such activities may now include—in addition to recruitment—gifts and grants to the institutions, summer employment and consulting projects for faculty, and invitations to placement officers to visit company plants and offices.

2. Virtual career fairs: Virtual career fairs may utilize video, voice, and text to connect job seekers with recruiters and to span time zones and continents in the process. At a virtual job fair, online visitors witness a setup that is very similar to a physical setup. They can listen to presentations, visit booths, leave résumés and business cards, participate in live chats, and get contact information from recruiters, HR managers, and hiring managers. A third party—a college, a publication, or an association—that brings together companies runs most such job fairs.

3. Executive search firms: Organizations typically retain executive search firms to recruit for senior-level positions. The reasons for doing so may include a need to maintain confidentiality from an incumbent or a competitor, a lack of local resources to recruit executive-level individuals, or insufficient time. To use an executive search consultant most effectively requires time and commitment from the hiring organization. It must allow the consultant to become a company "insider" and to develop knowledge and familiarity with the business, its strategic plans, and its key players. Compared with other recruitment sources, executive search firms are quite expensive.

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career fields. To achieve the best results from this channel, organizations should cultivate a small number of firms and thoroughly describe the education, training, experience of the candidates needed, the fee structure, and the method of resolving disputes. Most major temporary agencies act also as employment agencies, usually with the employer paying the fees. Firms have direct-hire (fee paid by employer) or temporary-to-hire fee arrangements. With the latter, either a temporary employee must stay on the payroll for temporaries a certain number of weeks or the employer must pay a fee, depending on the salary range of the new hire.

5. Recruitment advertising: Corporate home pages on the Internet are often designed with potential recruits in mind because they are frequently the first place job seekers look when they begin to evaluate companies. On their home pages, many companies highlight links to information about diversity and inclusion, employee benefits, and flexible work schedules.

74) Following are the four research-based criteria for deciding what information to include in an RJP: 1. It is important to most recruits.

2. It is not widely known outside the organization.

3. It is a reason that leads newcomers to quit.

4. It is related to successful job performance after being hired.

75) Following are the important elements that should be part of any successful recruitment program: 1. Always view recruitment as a longterm strategy.

2. Offer a consumer-grade recruiting experience to job seekers.

3. Develop a total-rewards package that genuinely appeal to the employees being hired.

4. Audit the recruitment programs in place.

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76) Social networking sites, blogs and microblogs, virtual worlds, and video-sharing Websites 77) Following are the three elements that constitute an internal labor market: 1. Formal and informal practices that determine how jobs are organized and described 2. Procedures for identifying potential candidates 3. Methods for choosing among candidates In an open internal labor market, every available job is advertised throughout the organization via "job posting," and anyone can apply. Preference is given to internal candidates by withholding outside advertising until the job has been on the internal market for several days. Finally, each candidate for a job receives an interview.

78) Employers do not face a single, homogeneous market for labor; rather, they operate in many labor markets, each with unique demand and supply.

79) As labor becomes increasingly scarce, employers may change their policies in the following ways: 1. Improving the characteristics of vacant positions 2. Reducing hiring standards 3. Using more expensive recruiting methods 4. Extending searches over a wider geographical area 80) Executive search firms are typically retained to recruit for seniorlevel positions. The reasons for doing so may include a need to maintain confidentiality from an incumbent or a competitor, a lack of local resources to recruit executive-level individuals, or insufficient time.

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81) When employers need to establish reliable contacts in the groups targeted for recruitment, it is called relationship recruiting. It is important to recognize that it takes time to establish a credible, workable diversity-oriented recruitment program and there is no payoff from passive nondiscrimination.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The most progressive companies live their cultures every day, and they go out of their way to communicate it to both current employees and to prospective new hires. ⊚ ⊚

true false

2) There should be a fit between the intended strategy of an enterprise and the characteristics of the people who are expected to implement it. ⊚ ⊚

true false

3) Organizations in the high-growth stage are concerned with market share and cost reduction. ⊚ ⊚

true false

4) Organizations in the high-growth stage are concerned with fighting for market share and building excellence in their management teams. ⊚ ⊚

true false

5) Job descriptions should be broadened into role descriptions that reflect the broader and more changeable strategic requirements of an organization.

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⊚ ⊚

true false

6) Biographical information has been used as one basis for staffingdecisions extensively and effectively. ⊚ ⊚

true false

7) By linking staffing decisions to pay rates, companies try to ensure that their employees have internalized the strategic intent and core values of the enterprise. ⊚ ⊚

8)

true false

As jobs become more complex, individual differences in output also increase. ⊚ ⊚

true false

9) The goal of any performance review is to identify applicants who score high on measures that purport to assess knowledge, skills, abilities, or other characteristics that are critical for job performance. ⊚ ⊚

true false

10) Under the Americans with Disabilities Act of 1990, an employer may not ask a general question about disabilities on an application form. ⊚ ⊚

true false

11) There is much consistency among state and national laws for the use of criminal records in hiring.

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⊚ ⊚

12)

true false

The bargain between validity and cost should almost always be solved in favorof validity. ⊚ ⊚

true false

13) More and more companies are supporting efforts to hire ex-offenders to ensure that there is no discrimination on the basis of criminal records. ⊚ ⊚

true false

14) Evidence shows that written recommendations and referrals are very valuable in the employee selection process. ⊚ ⊚

true false

15) An employer has the legal duty or obligation to provide information to the prospective employers of former employees. ⊚ ⊚

true false

16) Most employers (98 percent) verify dates of employment for current or former employees, but 68 percent of employers do not discuss work performance. ⊚ ⊚

true false

17) Absenteeism and voluntary turnover are the outcomes that drug testing forecasts most accurately.

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⊚ ⊚

true false

18) Employers have legal grounds for conducting drug tests because every employer has a legal right to ensure that employees perform their jobs competently and that no employee endangers the safety of other workers. ⊚ ⊚

true false

19) Employees who are more sensitive to job-safety issues are more likely to perceive drug screening as unfair. ⊚ ⊚

true false

20) A traditional belief of testing experts is that the validity of findings in one study can be generalized across similar samples elsewhere. ⊚ ⊚

true false

21) Because thousands of studies have been conducted, validity generalization allows the use of this database to establish reliable values for the average validity of most predictors. ⊚ ⊚

true false

22) A practical strategy to control the effects of faking is to warn job applicants in advance that distortions can and will be detected. ⊚ ⊚

true false

23) Among employers, the most prevalent reasons for using personality tests are their contribution to improving employee fit and to reducing turnover.

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⊚ ⊚

true false

24) Employers are likely to achieve nonbiased hiring decisions if they concentrate on shaping interviewer behavior. ⊚ ⊚

true false

25) Even though work samples are miniature replicas of actual job requirements, they are easy to fake and may lead to charges of discrimination or invasion of privacy. ⊚ ⊚

true false

26) Because each candidate must be tested individually, work-sample tests are probably not cost effective when large numbers of people must be evaluated. ⊚ ⊚

true false

27) Decades of research on the peer assessment test indicate that it validly forecasts subsequent job behavior and promotion. ⊚ ⊚

true false

28) Situational-judgment tests consist of a series of job-related situations presented in written, verbal, or visual form. ⊚ ⊚

29)

true false

Studies have shown that the use of assessment centers is not cost effective.

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⊚ ⊚

true false

30) Individuals who choose jobs with organizations that are consistent with their own values, beliefs, and attitudes are more likely to be productive, satisfied employees. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) According to the text, which of the following is the key priority of the most admired companies as compared with average companies?

A) customer focus B) minimizing risk C) respecting the chain of command D) making budget

32) Organizations that are in the start-up stage are characterized by all of the following except ________.

A) high growth rates B) basic product lines C) significant customer loyalty D) heavy emphasis on product engineering

33)

Organizations in the high-growth stage focus on

A) extreme cost control.

B) refining and extending product lines.

C) cost reductions through economies of scale.

D) maintaining their market share.

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34)

Mature organizations emphasize

A) fighting for market share.

B) building excellence in their management teams.

C) holding market share in a declining market.

D) more rigid management controls over workers' actions.

35)

Which of the following statements is true of an aging organization?

A) It demands extreme cost control through consistency and centralized procedures.

B) It emphasizes the generation of cash to develop new product lines.

C) It is concerned with building excellence in its management teams.

D) It is characterized by a heavy emphasis on product engineering.

36) In the context of the assessment methods used in selection, the most common method of selecting managers, or executives, in an organization is

A) a merit-based system that reviews the college-entrance exam scores of all the potential candidates within the organization.

B) a performance/potential review process by higher-level executives and the board of directors.

C) a personality test conducted a personality test conducted in the organization by external specialists.

D) a democratic system where employees nominate coworkers to executive positions.

37) Organizations in the ________ stage are concerned with fighting for market share and building excellence.

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A) autocratic B) democratic C) high-growth D) laissez-faire

38) ________ is defined as the way that the values and actions of managers and employees create a unique business environment.

A) Corporate social responsibility B) Integrity C) Organizational culture D) Conscientiousness

39) Which of the following terms refers to the degree to which an individual is insecure, anxious, depressed, and emotional?

A) neuroticism B) extroversion C) agreeableness D) conscientiousness

40) ________ are standardized measures of behavior whose primary objective is to assess the ability to do rather than the ability to know.

A) Cognitive-ability tests B) Job-knowledge tests C) Integrity tests D) Work-sample tests

41)

Identify a true statement about the impact of organizational culture on staffing decisions.

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A) Prospective employees generally do not consider an organization's culture when applying for a position and tend to focus on factors such as wages and benefits.

B) Employees whose values are consistent with their organization's values are more likely to be productive than employees whose values are inconsistent with the organization's values.

C) Hiring has been proven to be most productive when managers select employees who fit a specific profile or their organization's cultural values.

D) Research shows that employees last longer in organizations that emphasize worktask values over organizations that emphasize interpersonal relationship values.

42) The degree to which evidence supports inferences that are drawn from scores or ratings on a selection procedure is ________.

A) validity B) reliability C) specificity D) sensitivity

43) In the context of the Big Five personality dimensions, the degree to which an individual is gregarious, assertive, and sociable versus reserved, timid, and quiet is known as ________.

A) conscientiousness B) agreeableness C) extroversion D) openness to experience

44) In the context of the Big Five personality dimensions, ________ concerns the degree to which an individual is creative, curious, and cultured versus practical with narrow interests.

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A) extroversion B) agreeableness C) conscientiousness D) openness to experience

45) In the context of the Big Five personality dimensions, the degree to which an individual is hard-working and dependable versus lazy and unreliable is known as ________.

A) conscientiousness B) agreeableness C) extroversion D) openness to experience

46) Which law gives students the legal right to see all letters of recommendation written about them and also permits release of information about a student only to people approved by the student at the time of the request?

A) the Equal Educational Opportunities Act B) the Protection of Pupil Rights Amendment Act C) the Family Educational Rights and Privacy Act D) the Freedom of Information and Protection of Privacy Act

47) Which act requires third-party investigators to secure an applicant's written consent prior to doing a background check?

A) the Fair Labor Standards Act B) the Equal Credit Opportunity Act C) the Gramm-Leach-Bliley Act D) the Fair Credit Reporting Act

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48) In the context of the Big Five personality dimensions, agreeableness is the degree to which an individual is

A) organized and dependable.

B) calm and self-confident.

C) creative and cultured.

D) cooperative and warm.

49) If employers fail to check closely enough on a prospective employee who then commits a crime in the course of performing his or her job duties, they can be held liable for

A) quid pro quo.

B) negligent hiring.

C) loss of consortium.

D) hostile environment.

50) In the context of the assessment methods used in selection, which of the following is an outcome that drug testing most accurately forecasts?

A) absenteeism B) loyalty C) career path D) leadership

51)

Which of the following tests is an example of cognitive-ability test?

A) clear-purpose tests B) perceptual speed test C) disguised-purpose test D) work-sample test

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52) In the context of assessment methods, a(n) ________ is a situational test where a group of participants is given a job-related topic and is asked to carry on a discussion about it for a period of time, after which observers rate the performance of each participant.

A) leaderless group discussion B) in-basket test C) brainstorming discussion D) situational-judgment test

53) ________ is an industry term for losses due to employee theft, shoplifting, vendor fraud, and administrative errors.

A) Negligence B) Arbitrage C) Obsolescence D) Shrinkage

54) In the context of the assessment methods used in selection, ________ are designed to assess directly a person's attitudes toward dishonest behaviors.

A) personality-based measures B) cognitive-ability tests C) overt integrity tests D) leaderless group discussions

55) Employers representing retail stores, nuclear plants, law enforcement, and child-care facilities regularly use ________ tests.

A) personality B) reliability C) integrity D) attitude

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56) ________ is the set of characteristics of a person that account for the consistent way he or she responds to situations.

A) Attitude B) Personality C) Reliability D) Validity

57) In the context of the assessment methods used in selection, ________ is defined as the ability to perceive, appraise, and express emotion.

A) emotional intelligence B) conscientiousness C) openness to experience D) extraversion

58) ________ have been shown to make the prediction of job performance more accurate while showing less adverse impact based on ethnicity than general cognitive-ability tests.

A) Leaderless group discussions B) In-basket tests C) Situational-judgment tests D) Reference checks

59) In the context of the assessment methods used in selection, identify a true statement about assessment centers.

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A) Assessment centers were first developed in England for gathering medical data from soldiers.

B) Assessment centers are inflexible and suitable for analyzing only the technical skills of candidates.

C) Data from assessment centers do not need to be analyzed further.

D) Developing and running a high-fidelity assessment center is complex and expensive.

60) ________ are a tendency among interviewers to evaluate a current candidate's interview performance relative to those that immediately preceded it.

A) Projective measures B) Contrast effects C) Validity generalizations D) Shrinkages

61) In the context of the assessment methods used in selection, employers are likely to achieve nonbiased hiring decisions if they

A) avoid evaluating the past performance of applicants.

B) limit the size of the applicant pool.

C) screen applicants with criminal records.

D) concentrate on shaping interviewer behavior.

62) In the context of the organizational considerations in staffing decisions, one of the characteristics of organizations in the start-up stage is

A) little or no customer loyalty.

B) a heavy emphasis on research.

C) a focus on refining production lines.

D) cost reductions through economies of scale.

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63) The managers at Star Holdings decide to assess the management potential of certain employees in the organization. They gather the employees in a group and ask them to hold a 30minute discussion about a certain production procedure used by the organization. The managers observe the employees and rate them on their communication skills and problem-solving abilities. In the context of assessment methods, this is an example of a(n) ________.

A) group ideation discussion B) situational-judgment test C) in-basket test D) leaderless group discussion

64) ________ have forecast managerial performance accurately in virtually all the functional areas of business.

A) Leaderless group discussion ratings B) In-basket tests C) Polygraph tests D) Employment interviews

65) The ________ is a situational test designed to simulate important aspects of a position and assesses an individual's ability to work independently.

A) situational-judgment test B) leaderless group discussion C) in-basket test D) polygraph test

66) ________ have been shown to make the prediction of job performance more accurate above and beyond job knowledge, cognitive ability, job experience, and conscientiousness while showing less adverse impact based on ethnicity as compared with general cognitive-ability tests.

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A) Leaderless group discussions B) Situational-judgment tests C) Polygraph tests D) In-basket tests

67) The ________ is a process that evaluates a candidate's potential for management on the basis of multiple assessment techniques, standardized methods of making inferences from such techniques, and pooled judgments from multiple assessors.

A) in-basket test B) assessment-center method C) validity generalization method D) emotional intelligence test

68) At Hamm and Dastz Designs, Lisa is assessed for her leadership potential. She is told that she is being considered for taking up an executive manager's role and has to deal with all the issues that the executive manager usually deals with. She is told to behave like she really is the executive manager, and she is given an hour to complete as many of the executive manager's tasks as she can. In the context of assessment methods, Lisa is subjected to a(n) ________.

A) personality test B) integrity test C) situational-judgment test D) in-basket test

69)

Which of the following is an advantage of using the assessment-center method?

A) flexibility of form and content B) adequate feedback to participants C) total control over the information generated during assessment D) rating general exercise effectiveness and performance relative to individual behavioral dimensions

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70)

Which of the following defines reliability?

A) the meaningfulness of inferences drawn from a measurement procedure B) the flexibility of assessors at an assessment center C) the consistency or stability of a measurement procedure D) the ability of an employee to perform consistently

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Describe the situational-judgment test and some of its advantages.

72)

List some examples of proper and improper interview questions.

73) What procedures can employers follow to avoid legal challenges in conducting drug screening?

74)

Describe the guidelines for providing reference check information.

75)

What is the assessment-center method, and what are its advantages?

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76)

What is the primary motivation of an aging organization?

77)

When is a measurement considered to be reliable?

78)

Why is the context in which work-sample tests are administered important?

79)

Who first used the assessment-center approach, when, and why?

80)

If two predictors are roughly equal in estimated validity, which one should be used?

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Answer Key Test name: chapter 8 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) FALSE 20) FALSE 21) TRUE 22) TRUE 23) TRUE 24) TRUE 25) FALSE 26) TRUE Version 1

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27) FALSE 28) TRUE 29) FALSE 30) TRUE 31) A 32) C 33) B 34) D 35) A 36) B 37) C 38) C 39) A 40) D 41) B 42) A 43) C 44) D 45) A 46) C 47) D 48) D 49) B 50) A 51) B 52) A 53) D 54) C 55) C 56) B Version 1

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57) A 58) C 59) D 60) B 61) D 62) A 63) D 64) A 65) C 66) B 67) B 68) D 69) A 70) C 71) Situational-judgment tests (SJTs) consist of a series of job-related situations presented in written, verbal, or visual form. In many SJTs, job applicants are asked to choose best and worst options among several choices available. SJTs are inexpensive to develop, administer, and score compared with other types of work samples. A major distinction in SJT response instructions is behavioral tendency ("what would you do?") versus knowledge ("what should you do" or "rate the best/worst option"). "What would you do" elicits responses that more closely resemble future behavior on a job, rather than mere knowledge of the best response. More importantly, SJTs make the prediction of job performance more accurate above and beyond cognitive ability, job experience, and conscientiousness while showing less adverse impact based on ethnicity, as compared with general cognitive-ability tests.

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72) Examples of proper interview question include the following: 1. Do you have a legal right to work in the United States?

2. How do you plan to keep up with current developments in your field?

3. How do you measure your customers' satisfaction with your product or services?

4. If you were a product, how would you position yourself?

Examples of proper interview question include the following: 1. Have you ever been arrested?

2. Are you married?

3. Where were you born?

4. Do you have any health problems?

5. With whom do you live?

6. Are you a U.S. citizen?

73) To avoid legal challenges, consider instituting the following commonsense procedures: 1. Inform all employees and job applicants, in writing, of the company's policy regarding drug use.

2. Include the policy in all employment contracts.

3. Stress that drug screening will help ensure a safer workplace.

4. Forbid employees from reporting to work or working while under the influence of alcohol or drugs.

5. If drug testing will be used with employees as well as job applicants, tell employees in advance that it will be a routine part of their employment.

6. Employees who are more sensitive to job-safety issues are more likely to perceive drug screening as fair.

7. If drug testing is done, it should be uniform—that is, it should apply to managers as well as non-managers.

8. Continue to comply with federal regulations.

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74) Useful guidelines to provide reference check information are as follows: 1. Develop a written policy outlining procedures for checking references, and then follow it.

2. One person alone, typically a trained HR professional, should be allowed to provide references. That person should be aware of the state laws where the employee resides and where the employer is located.

3. Ask each applicant to provide at least three professional references.

4. Obtain the applicant's written consent to contact former employers.

5. Try to contact at least two of the references via telephone or e-mail.

6. Document attempts to contact references, and note their responses.

7. Offer only factual information and refrain from giving opinions about the employee's suitability for a new job.

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75) The assessment-center method is a process that evaluates a candidate's potential for management based on three sources: (1) multiple assessment techniques, such as situational tests, tests of cognitive abilities, and interest inventories; (2) standardized methods of making inferences from such techniques because assessors are trained to distinguish between effective and ineffective behaviors by the candidates; and (3) pooled judgments from multiple assessors to rate each candidate's behavior. In addition to evaluating and selecting managers, the method is being used to train and upgrade management skills, to encourage creativity among research and engineering professionals, to resolve interpersonal and interdepartmental conflicts, to assist individuals in career planning, to train managers in performance management, and to provide information for workforce planning and organization design. The assessment-center method offers great flexibility. These features of the assessment-center method—flexibility of form and content, the use of multiple assessment techniques, standardized methods of interpreting behavior, and pooled assessor judgments—account for the successful track record of this approach over the past six decades.

76) Economic survival.

77) When the measurement is consistent or stable over time, across different samples of items, and across different raters or judges working independently.

78) When used as stand-alone tests, work samples are designed to simulate actual job tasks. When used in the context of managerial selection, however, there is a de-emphasis on current knowledge and skill in a specific domain and a strong focus on the assessment of future potential.

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79) The assessment-center approach was first used by German military psychologists during World War II to select officers. They felt that paper-and-pencil tests took too narrow a view of human nature; therefore, they chose to observe each candidate's behavior in a complex situation in order to develop a broader appraisal of his reactions.

80) The less costly procedure.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Training consists of planned programs designed to improve performance at the individual, group, and/or organizational levels. ⊚ ⊚

true false

2) Organizations sometimes place too much emphasis on the techniques and methods of training and not enough on first defining what the employee should learn in relation to desired job behaviors. ⊚ ⊚

true false

3) Fewer than half of all organizations even try to measure the value of training, and fewer still calculate the return in monetary terms. ⊚ ⊚

true false

4) Organizations that provide online training have a distinct advantage when competing for talented employees. ⊚ ⊚

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208

5)

Organizations with most effective training practices discourage risk taking. ⊚ ⊚

true false

6) Training success is determined by not only the quality of training but also an individual's readiness for the training and the degree of organizational support for the training. ⊚ ⊚

7)

true false

One way to demonstrate competence is by accumulating stackable credentials. ⊚ ⊚

true false

8) Hypothesis testing has demonstrated repeatedly that training has an overall positive effect on job-related behaviors or performance. ⊚ ⊚

9)

true false

At the level of society, training improves the quality of the labor force. ⊚ ⊚

true false

10) If training is ill-conceived, poorly planned, or inadequately executed, then it is likely to be ineffective and a waste of precious resources. ⊚ ⊚

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209

11) To be most effective, skill learning should include four essential ingredients: (1) planning, (2) implementation, (3) monitoring, and (4) feedback. ⊚ ⊚

true false

12) The most effective way to raise a trainee's motivation is by providing an interesting training environment. ⊚ ⊚

true false

13) Goal theory is founded on the premise that an individual's conscious goals or intentions regulate her or his behavior. ⊚ ⊚

true false

14) Behavior modeling tends to increase when the model is rewarded for behavior and when the rewards are things the model would like to have. ⊚ ⊚

15)

true false

It is easier to learn and remember factual material when it is meaningful to the trainee. ⊚ ⊚

true false

16) During the early stages of learning, the trainer should be available to oversee the trainee's practice directly. ⊚ ⊚

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210

17) Evidence indicates that for the same amount of practice, learning is better when practice is repetitive rather than massed. ⊚ ⊚

true false

18) Transfer of training refers to the extent to which competencies learned in training can be applied on a job. ⊚ ⊚

19)

true false

Feedback affects individual but not group performance. ⊚ ⊚

true false

20) If team members have opposite or conflicting goals, the efficiency of the total unit is likely to be energized. ⊚ ⊚

true false

21) Individual skills are a necessity, but they are not a sufficient condition for effective team performance. ⊚ ⊚

true false

22) Managers of effective work groups tend to monitor the performance of their team members regularly, and they provide frequent feedback to them. ⊚ ⊚

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23) To choose the training method that best fits a given situation, first, carefully define the resources you have available. ⊚ ⊚

true false

24) To evaluate training, you must systematically document the outcomes of the training in terms of how trainees actually behave back on their jobs and the relevance of that behavior to the objectives of the organization. ⊚ ⊚

true false

25) The post-training appraisal of performance should not be done sooner than one year following the training so that the trainees have an opportunity to put into practice what they have learned. ⊚ ⊚

true false

26) At a general level, it is important to analyze training needs on the basis of organizational objectives and strategies. ⊚ ⊚

true false

27) Increasing the specificity of feedback benefits the learning of responses for poor performance, but it may be detrimental to the learning of responses for good performance. ⊚ ⊚

true false

28) When structuring training material to maximize its meaningfulness, trainers should teach complex skills before the simpler ones. ⊚ ⊚ Version 1

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29) Orientation is often just a superficial indoctrination into company philosophy, policies, and rules; sometimes it includes the presentation of an employee handbook and a quick tour of the office or plant. ⊚ ⊚

true false

30) The careful matching of company and employee expectations during the first year can result in positive job attitudes and high standards, which then can be reinforced in new and more demanding jobs. ⊚ ⊚

31)

true false

The worst mistake a company can make is to layoff a new employee after orientation. ⊚ ⊚

true false

32) To improve orientation, you need candid, comprehensive feedback from everyone involved in the program. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

33) The presentation of text, graphics, video, audio, or animation in digitized form for the purpose of building job-relevant knowledge and skill is ________.

A) TDI B) PET C) IDP D) FPO

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34) In the context of examining the training enterprise as a whole, which of the following training issues is examined at a macro level?

A) What is the economic impact of training?

B) How should the need for training be identified?

C) What type of training best fits the needs that have been identified?

D) How should the outcomes of training efforts be evaluated?

35)

In the context of employee training, identify an issue that is examined at a micro level.

A) Who should receive training?

B) How should the delivery of training programs be structured?

C) Are there incentives for providing training?

D) What is the degree of cooperation among the training providers?

36) At the ________ level, we may choose to examine issues such as what types of training yield positive outcomes for organizations and trainees (i.e., what works).

A) resource B) structure C) macro D) micro

37) Which of the following characteristics distinguishes companies with most effective training practices?

A) Training is rarely linked to bottom-line results.

B) Training is tied to business strategies and objectives.

C) Training is evaluated by checking participants' reactions.

D) Little time is spent assessing training needs.

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38) Increasing an individual's employability outside the company simultaneously increases his or her job security and desire to stay with the current employer. This concept is known as the

A) training paradox.

B) Pygmalion effect.

C) distributed practice.

D) massed practice.

39) The three phases of the training process include all of the following, except the ________.

A) evaluation phase B) assessment phase C) generalization phase D) training and development phase

40)

What is the purpose of the assessment phase of training?

A) to design the environment to achieve the objectives of the training program B) to define what it is the employee should learn in relation to desired job behaviors C) to choose methods and techniques carefully and deliver them systematically D) to establish indicators of success in training as well as on the job

41) Which of the following levels of training needs analysis focuses on whether managers, peers, and employees support training activity?

A) individual analysis B) demographic analysis C) operations analysis D) organization analysis

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42) ________ analysis is helpful in determining the special needs of a particular group, such as older workers, women, or managers at different levels.

A) Individual B) Operations C) Demographic D) Organization

43) Which of the following levels of training needs analysis identifies what an employee must do in order to perform competently?

A) operations analysis B) individual analysis C) demographic analysis D) organizational analysis

44)

Skill learning and learning facts contain the following ingredients, except ________.

A) goal setting B) behavior modeling C) practice D) feedback

45) Which theory is founded on the premise that an individual's intentions regulate his or her behavior?

A) attribution theory B) grounded theory C) correspondent inference theory D) goal theory

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46)

The phenomenon of the self-fulfilling prophecy is known as the ________.

A) butterfly effect B) Hawthorne effect C) Pygmalion effect D) goal-setting effect

47) In the context of training, research suggests that we do all of the following as an attempt to maximize traineesidentification with a model, except

A) let trainees articulate the behaviors in language that is most comfortable for them.

B) rank the behaviors to be modeled in a sequence from most to least difficult.

C) ensure trainees observe several repetitions of the behaviors being modeled.

D) have several models portray the behaviors and not just one.

48) ________ refers to the material that is rich in association for the trainees and is therefore easily understood by them.

A) Meaningfulness B) The Pygmalion effect C) Orientation D) The training paradox

49) An employee must have an opportunity to practice what he or she is learning when developing a(n)

A) new skill.

B) organizational program.

C) job analysis.

D) training objective.

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50) When trainees are given the opportunity to practice far beyond the point where they have performed a task correctly several times, the task becomes "second nature" and is ________.

A) repetitive B) overlearned C) boring D) irrelevant

51) Most of the research evidence on the length of a practice session indicates that for the same amount of practice, learning is better when practice is ________.

A) accumulated B) massed C) aggregated D) distributed

52)

A systematic approach to team training should include

A) conducting a team training analysis.

B) developing objectives that address task-work and teamwork skills.

C) design exercises and events based on objectives.

D) All of these choices are correct.

53) ________ focuses on teamwork skills that facilitate information exchange, cooperation, and coordination of job-related behaviors.

A) Cross-training B) Team-coordination training C) Demographic analysis D) Guided team self-correction

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54) ________ provides exposure to and practice with other teammates' tasks, roles, and responsibilities in an effort to increase shared understanding and knowledge among team members.

A) Team-coordination training B) Evaluation training C) Cross-training D) Guided team self-correction

55) Which of the following is not provided to team members by guided team selfcorrection?

A) a review of team events B) error identification and feedback exchange C) an opportunity to develop plans for the future D) an analysis of master coordination of team tasks

56) Which of the following levels of training needs analysis focuses on identifying employees who need training and the types of training they need?

A) organization analysis B) demographic analysis C) individual analysis D) operations analysis

57) Which of the following terms is defined as the process in which participants learn through experience and application?

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A) distributed practice B) massed practice C) orientation D) action learning

58) In the context of effective teams, which of the following teams best represents the characteristic of conditions?

A) a team in which members have ready access to resources and information B) a team that collectively believes that it can succeed C) a team in which leaders promote and share ground rules D) a team that has psychological safety granted by leaders

59) In the context of effective teams, which of the following teams best represents the characteristic of cognition?

A) a team that has a strong team orientation B) a team that has clear roles and norms C) a team in which members have ready access to resources and information D) a team in which members ask, "What can I do to help you?"

60) In the context of effective teams, which of the following teams best represents the characteristic of coaching?

A) a team in which members ask, "What can I do to help you?"

B) a team that has a strong team orientation C) a team in which leaders promote and share ground rules D) a team that has psychological safety granted by leaders

61) In the context of the general systems model of the training and development process, the ________ serves as a foundation for the entire training effort.

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A) generalization phase B) evaluation phase C) training and development phase D) assessment phase

62) In the context of the training needs-assessment model, which of the following statements is true about operations analysis?

A) It requires careful examination of the work to be performed after training.

B) It defines training needs in terms of the difference between desired performance and actual performance.

C) It provides information that transcends particular jobs, even divisions, of an organization.

D) It provides information such as diagnostic ratings of employees by customers.

63) In the context of the levels of training needs analysis, ________ defines training needs in terms of the difference between desired performance and actual performance.

A) operations analysis B) individual analysis C) demographic analysis D) organization analysis

64) In the context of training, which of the following suggestions will maximize trainees' identification with a model?

A) Have a single model portray the behaviors.

B) Rank the behaviors to be modeled in a sequence from most to least difficult.

C) Provide the trainees with a list of key behaviors to attend to when observing the model.

D) Ensure that the trainees are unaware of repetitions of the behaviors being modeled.

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65) Regardless of which specific training method is chosen, it should attempt to all of the following, except

A) motivate the employee to evaluate the effectiveness of the training.

B) provide opportunities for practice.

C) structure the material from simple to complex.

D) provide feedback and reinforcement.

66) The impact of training on ________ is the most significant, but most difficult, effect to demonstrate.

A) trainee self-esteem B) organizational results C) demographics D) action learning

67) ________ are often used to help talented executives who are in trouble because of behavioral or style deficiencies, or to help them lead critical transitions, such as having to lead a major change effort.

A) Psychologists B) External coaches C) Hypnotists D) Administrative consultants

68)

Familiarization with and adaptation to a situation or an environment is

A) distributed practice.

B) massed practice.

C) orientation.

D) action learning.

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69) Which of the following is a series of events that helps new employees understand how to be successful in their day-to-day job and how their workcontributes to the overall business?

A) executive coaching B) overlearning C) on-boarding D) goal setting

70) Which of the following considerations guides the process of orienting and on-boarding new employees?

A) making the new employees basically responsible for the success of the complete process B) providing large amounts of information during orientation as new employees are keen C) giving new employees major responsibility for their own guided self-learning D) having the immediate supervisor complete a survey about the on-boarding program

71)

New employees need specific information in all of the following, except ________.

A) company standards, expectations, history, goals, politics, and language B) social behavior C) technical aspects of the job D) All of these choices are correct.

72)

The worst mistake a company can make is to ignore a new employee after

A) orientation.

B) interviewing.

C) the first meeting.

D) his or her one-year anniversary.

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73) At least once a year, review the orientation program to determine if it is ________ and to identify future improvements.

A) interesting to participants B) cost effective C) in compliance with state laws D) meeting its objectives

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

74) What are the factors that determine effective training?

75)

Write a short note on feedback.

76)

What are the minimal conditions needed for effective learning to take place?

77)

Describe the three typical problems that face new employees.

78)

Describe the training paradox.

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79) In the context of training and development, discuss some of the effects of digital technology on work.

80)

What are some of the reasons for the growth of technology-delivered instruction (TDI)?

81) What are the four characteristics that distinguish companies with the most effective training practices?

82) At the individual level, which two personality characteristics are important determinants of motivation to learn?

83) Why is it important to provide trainees with an overview of the material to be presented during the training?

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84)

What are the drawbacks of using simulation games in orientation programs?

85)

How can trainers structure training material to maximize its meaningfulness?

86)

What are the four steps that should be included in a systematic approach to team training?

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Answer Key Test name: chapter 9 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) FALSE 18) TRUE 19) FALSE 20) FALSE 21) TRUE 22) TRUE 23) FALSE 24) TRUE 25) FALSE 26) TRUE Version 1

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27) FALSE 28) FALSE 29) TRUE 30) TRUE 31) FALSE 32) TRUE 33) A 34) A 35) B 36) D 37) B 38) A 39) C 40) B 41) D 42) C 43) A 44) B 45) D 46) C 47) B 48) A 49) A 50) B 51) D 52) D 53) B 54) C 55) D 56) C Version 1

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57) D 58) A 59) B 60) C 61) D 62) A 63) B 64) C 65) A 66) B 67) B 68) C 69) C 70) C 71) D 72) A 73) D

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74) Research shows that a number of factors affect training effectiveness. Training success is determined not only by the quality of training but also by an individual's readiness for it and the degree of organizational support. Characteristics of the individual as well as the work environment are important influences before training (e.g., the motivation to participate), during training (by affecting learning), and after training (by influencing the transfer of learning and skills from the training situation to the job). Admittedly, some individual characteristics, such as trainability (i.e., the ability to learn the content of the training) and personality are difficult, if not impossible, for organizations to influence through policies and practices. The organization clearly can influence others, however, in such areas as job or career attitudes, a person's belief that he or she can learn the content of the training successfully, the attractiveness of training outcomes, and the work environment.

75) Feedback is a form of information about one's attempts to improve.

It is essential both for learning and for trainee motivation. If trainees are to understand what leads to good as well as poor performance, however, the specificity of feedback should vary. Specific feedback benefits the learning of responses for good performance, but it may not help the learning of responses for poor performance. It is also important to emphasize that feedback affects team, as well as individual, performance. To have the greatest impact, provide feedback as soon as possible after the trainee demonstrates good performance, especially to novices. It need not be instantaneous, but there should be no confusion regarding exactly what the trainee did and the trainer's reaction to it.

Feedback need not always be positive, but it will have the highest impact if provided by the trainee’s immediate supervisor. In fact, if the supervisor does not reinforce what is learned in training, the training will be transferred ineffectively to the job—if at all.

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76) To be useful, a method should meet the minimal conditions needed for effective learning to take place; that is, the training method should: 1.

Motivate the trainee to improve his or her performance.

2. Clearly illustrate desired skills.

3. Allow the trainee to participate actively.

4. Provide an opportunity to practice.

5. Provide timely feedback on the trainee's performance.

6. Provide some means for reinforcement while the trainee learns.

7. Be structured from simple to complex tasks.

8. Be adaptable to specific problems.

9. Encourage positive transfer from the training to the job.

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77) The three typical problems that face new employees are as follows: 1. Problems in entering a group. The new employee asks herself whether she will (a) be acceptable to the other group members, (b) be liked, and (c) be safe—that is, free from physical and psychological harm. These issues must be resolved before she can feel comfortable and productive in the new situation.

2. Naive expectations. Organizations find it much easier to communicate factual information about pay and benefits, vacations, and company policies than information about employee norms (rules or guides to acceptable behavior), company attitudes, or "what it really takes to get ahead around here." Yet employees ought to be told about these intangibles. The bonus is that being up front and honest with job candidates produces positive results. The research on realistic job previews (RJPs) indicates that job acceptance rates will likely be lower for those who receive an RJP, but job survival rates will be higher.

3. First-job environment. Does the new environment help or hinder the new employee trying to climb aboard? Can peers be counted on to support the new employee to desired job standards? How and why was the first job assignment chosen? Is it clear to the new employee what he or she can expect to get out of it?

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78) Some businesses, small and large, don't offer training because they think that by upgrading the skills of the workforce, their employees will be more marketable to competitors. That is true. However, if an employer provides lots of opportunities for learning and professional growth, employees who take advantage of them build more security with that employer. This is the training paradox: Increasing an individual's employability outside the company simultaneously increases his or her job security and desire to stay with the current employer (assuming that the employer creates challenging jobs and provides an exciting work environment).

79) Technology, especially information and communication technology, is changing the manner in which businesses create and capture value, how and where we work, and how we interact and communicate.

Technologies such as cloud and mobile computing, big data and machine learning, sensors and intelligent manufacturing, advanced robotics and drones, and clean-energy technologies are transforming the very foundations of global business and the organizations that drive it.

They have enabled workers to decide where they work, when they work, and in some cases even how they accomplish work. Although technology is surely not the answer to all people-related business issues, it is critical to recognize how prevalent it is and the high expectations that employees, job candidates, suppliers, customers, and other stakeholders have that it will operate well. With respect to training, employees can take a course on nearly any subject online without leaving their desks, couch, or coffee shop. Indeed, the trend toward consumer-centric learning puts employees, not training departments, in charge.

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80) Technology-delivered instruction (TDI) includes asynchronous (meaning it is not delivered to every user at the same time) text-based courses, job aids, educational games, and video and audio segments, as well as synchronous media, such as video-conferencing and chat rooms.

TDI is booming. Both demand and supply forces are operating. On the demand side, rapid obsolescence of knowledge and training makes learning and relearning essential if workers are to keep up with the latest developments in their fields. In addition, there is a growing demand for just-in-time training delivery, coupled with demand for cost-effective ways to meet the learning needs of a globally distributed workforce.

Finally, there is demand for flexible access to lifelong learning. On the supply side, Internet access is becoming standard at work and at home, and advances in digital technologies now enable training designers to create interactive, media-rich content. In addition, increasing bandwidth and better delivery platforms make TDI particularly attractive. Finally, there is a growing selection of high-quality products and services.

81) Four characteristics seem to distinguish companies with the most effective training practices: 1. Top management is committed to training and development; training is part of the corporate culture. This is especially true of leading companies, such as Google, Disney, Marriott, and Cisco.

2. Training is tied to business strategy and objectives and is linked to bottom-line results.

3. Managers at all levels are actively involved. They stress continuous improvement, promote risk taking, offer one-on-one coaching, and afford opportunities to learn from the successes and failures of decisions.

4. There is commitment to invest the necessary resources, to provide sufficient time and money for training.

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82) At the level of the individual, the personality characteristics of conscientiousness (striving for excellence, having high standards of performance, setting challenging personal goals) and internal locus of control (belief that one controls one's own fate) are important determinants of motivation to learn.

83) Seeing the overall picture helps trainees understand how each unit of the program fits together and how each unit contributes to the overall training objective.

84) Computer-based simulation games are costly to create. Complex games cost between $5 million and $20 million to develop. To maximize payoffs, designers have to concentrate on content reuse, utilizing software that streamlines the game-development process, and offsetting development costs with savings in travel costs for training that used to be delivered via classroom instruction. Some people may appreciate the opportunity to squeeze in a little training via a computer at home, on a plane, or in a hotel room. Others may view after-hours training as an unwarranted intrusion on their personal time.

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85) It's easier to learn and remember factual material when it is meaningful. Meaningfulness refers to material that is rich in associations for the trainees and is therefore easily understood by them. To structure material to maximize its meaningfulness, trainers should do the following: 1. Provide trainees with an overview of the material to be presented during the training. Seeing the overall picture helps trainees understand how all units of the program fit together and how each unit contributes to the overall training objectives. 2. Present the material by using examples, terms, and concepts that are familiar to the trainees in order to clarify and reinforce key learning points. Show them how they can use the content of the training to do their jobs better. 3. As complex intellectual skills are invariably made up of simpler ones, teach the simpler skills before the complex ones. This is true whether teaching accounting, computer programming, or X-ray technology.

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86) A systematic approach to team training should include the following four steps: 1. Conduct a team-training needs analysis. Such an analysis has two objectives: (a) to identify interdependencies among team members and the skills required to master coordination of team tasks and (b) to develop knowledge of team-member roles and responsibilities.

2. Develop training objectives that address both task-work and teamwork skills. Effective teams exhibit adaptability, shared awareness of situations, performance monitoring and feedback, leadership/team management, interpersonal skills, coordination, communication, and decision-making skills. Effective teams also share beliefs about the significance of teamwork skills, placing the team's goals above those of individual members, mutual trust, and shared vision. Sequence the training so that trainees can master task-work skills before learning teamwork skills. 3. Design exercises and training events based on the objectives from step 2. Opportunities for guided practice and constructive feedback are particularly important for team training. They may include, for example, team-coordination training (focusing on teamwork skills that facilitate information exchange, cooperation, and coordination of job-related behaviors); cross-training (providing exposure to and practice with other teammates' tasks, roles, and responsibilities in an effort to increase shared understanding and knowledge among team members); and guided team self-correction (providing guidance to team members in reviewing team events, identifying errors and exchanging feedback, and developing plans for the future). 4. Design measures of team effectiveness based on the objectives from step 2, evaluate the effectiveness of the team training, and use this information to guide future team training.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Performance management is a kind of compass that indicates a person's actual direction as well as a person's desired direction. ⊚ ⊚

true false

2) Performance management must be equated with performance appraisal, which is an administrative exercise that managers typically do once a year to identify and discuss jobrelevant strengths and weaknesses of individuals or work teams. ⊚ ⊚

true false

3) One of the reasons performance management is difficult to execute well throughout an entire organization is that it demands daily, not annual, attention from every manager. ⊚ ⊚

true false

4) Individual objectives work well when results depend on factors outside an employee's control. ⊚ ⊚

true false

5) Managers who are committed to managing for maximum performance recognize that one of their major responsibilities is to eliminate roadblocks to successful performance. ⊚ ⊚

true false

6) If employees lack the tools to reach the challenging goals they have set, they will become frustrated and disenchanted.

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⊚ ⊚

true false

7) Even if there is an excessive delay between effective performance and receipt of the reward, the reward still has great potential to motivate subsequent high performance. ⊚ ⊚

8)

true false

Performance management is an exact, human process. ⊚ ⊚

true false

9) Performance management systems provide feedback to employees and thereby serve as vehicles for personal and career development. ⊚ ⊚

true false

10) Despite their shortcomings, performance reviews continue to be used widely, especially as a basis for tying pay to performance. ⊚ ⊚

true false

11) Relevance implies that there are clear lines of sight between the performance standards for a particular job and organizational objectives. ⊚ ⊚

true false

12) Reliability implies that a performance-rating system is capable of distinguishing effective from ineffective performers.

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⊚ ⊚

true false

13) Smart managers enlist the active support and cooperation of subordinates or teams by making explicit exactly what aspects of job performance they will be rated on. ⊚ ⊚

true false

14) Managers need as much encouragement and organizational support as possible if painless layoffs are going to take place. ⊚ ⊚

true false

15) When determining adverse impact, organizations must keep records of who is eligible and interested in promotion. This defines the applicant group. ⊚ ⊚

true false

16) Results-oriented rating methods focus on employee behaviors, either by comparing the performance of employees to that of other employees or by evaluating each employee in terms of performance standards without reference to others. ⊚ ⊚

true false

17) The narrative essay method, a type of behavior-oriented rating method, assumes that a candid statement from a rater who is knowledgeable about an employee's performance is not as valid as other complicated rating methods. ⊚ ⊚

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18) Alternation ranking requires only that the rater order all employees from highest to lowest, from "best" employee to "worst" employee. ⊚ ⊚

true false

19) Ranking methods that compare employees to one another are useful for generating initial rankings for purposes of employment decisions. ⊚ ⊚

true false

20) In the context of behavior-oriented rating methods, critical incidents are brief anecdotal reports by supervisors that focus on traits, not behaviors. ⊚ ⊚

true false

21) In the context of behavior-oriented rating methods, graphic rating scales yield the depth of essays and critical incidents, but they are more time-consuming to develop and administer. ⊚ ⊚

true false

22) In the context of behavior-oriented rating methods, graphic rating scales that use critical incidents to anchor various points along the scale are known as behaviorally anchored rating scales (BARS). ⊚ ⊚

true false

23) The rating format is not as important as the relevance and acceptability of the rating system. ⊚ ⊚

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24) The most fundamental requirement for any rater is that he or she has an adequate opportunity to observe the ratee's job performance over a reasonable period of time. ⊚ ⊚

true false

25) Longitudinal research shows that managers who met with their direct reports to discuss their upward feedback improved more than other managers. ⊚ ⊚

true false

26) Multirater or 360-degree feedback utilizes input from managers, subordinates, peers, and customers to provide a perspective on performance from all angles. ⊚ ⊚

true false

27) The assessment of team performance should be regarded as independent tothe assessment and recognition of individual performance and individuals' behaviors and skills. ⊚ ⊚

true false

28) Of the many types of rater training programs available today, meta-analytic evidence has demonstrated reliably that 360-degree training is the most effective at improving the accuracy of performance appraisals. ⊚ ⊚

true false

29) After a performance-feedback interview, supervisors should communicate frequently with subordinates about their performance.

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⊚ ⊚

true false

30) An emphasis on the employee as a person or his or her self-concept, as opposed to the task and task performance only, is likely to lead to higher levels of future performance. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) This can be thought of as a kind of compass, one that indicates a person's actual direction as well as a person's desired direction.

A) management by objectives B) forced distribution C) central tendency D) performance management

32) An administrative exercise that is typically done once a year to identify and discuss jobrelevant strengths and weaknesses of individuals or work teams is ________.

A) performance appraisal B) performance facilitation C) performance encouragement D) performance standard

33) The broad process of performance management requires that you do which things well ________.

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A) define performance B) facilitate performance C) encourage performance D) All of these choices are correct.

34)

Defining performance requires all of the following except ________.

A) goals B) measures C) assessment D) performance facilitation

35) Which of the following is a major responsibility of the managers who are committed to manage and facilitate maximum performance in an organization?

A) to focus on employee's traits rather than their actual job behaviors B) to eliminate roadblocks to successful performance C) to identify developmental needs of employees D) to establish performance objectives for training programs

36)

Which of the following statements about performance appraisal is false?

A) It is an exercise in observation and judgment.

B) It is a feedback process.

C) It is an exact, human process.

D) It is a measurement process.

37) Performance management systems provide legal and formal organizational justification for ________.

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A) employment decisions B) keeping unions out C) high executive salaries D) bringing legal action against employees

38) Legal and scientific requirements for a successful performance-rating system include all of the following except ________.

A) relevance B) acceptability C) reliability D) sensitivity

39) Which of the following groups determines relevanceas a requirement of effective performance-rating systems?

A) managers B) employees C) customers D) HR executives

40) Which of the following statements is true of relevance as a requirement of effective performance-rating systems?

A) It implies the periodic maintenance and updating of job analyses.

B) It implies greater self-management and more autonomy for raters.

C) It implies that a performance-rating system is capable of distinguishing effective from ineffective performers.

D) It implies that rating instruments are easy for managers and employees to understand and use.

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41) ________ translate job requirements into levels of acceptable or unacceptable employee behavior.

A) Absolute rating systems B) Qualitative analyses C) Reliability judgments D) Performance standards

42) ________ implies that a performance-rating system is capable of distinguishing effective from ineffective performers.

A) Accuracy B) Sensitivity C) Relevance D) Coherence

43) Which of the following statements is true of reliability as a requirement of effective performance-rating systems?

A) It refers to consistency of judgment.

B) It provides a common frame of reference for raters.

C) It permits managers to remain anonymous to avoid retribution.

D) It reduces the preference of individuals for handling future disagreements.

44) ________ implies that appraisal systems are easy for managers and employees to understand and use.

A) Reliability B) Practicality C) Sensitivity D) Acceptability

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45) Which of the following steps will not help to avoid legal difficulties in regard to performance appraisals?

A) Conduct a job analysis to determine the characteristics necessary for successful job performance.

B) Include formal appeal mechanisms, coupled with higher-level review of ratings.

C) Train supervisors to avoid documenting cases where subjective standards were applied unevenly to members of protected groups.

D) Provide some form of performance counseling or corrective guidance to assist poor performers.

46) Which of the following statements is true of results-oriented rating methods of appraising employee performance?

A) They evaluate each employee in terms of performance standards without reference to others.

B) They use critical incidents to describe various levels of performance.

C) They focus on employee behaviors.

D) They place primary emphasis on what an employee produces.

47) Which of the following methods employs narrative essay, paired comparisons, forced distribution, and critical incidents?

A) behavior-oriented rating methods B) frame-of-reference training methods C) work planning and review methods D) results-oriented rating methods

48) The simplest type of absolute rating system is the ________, in which a rater describes, in writing, an employee's strengths, weaknesses, and potential, together with suggestions for improvement.

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A) simple ranking B) narrative essay C) relative essay D) comparative ranking

49) Which of the following is a disadvantage of narrative essay methods that makes it difficult to use them for employment decisions?

A) They do not provide detailed feedback to subordinates regarding their performance.

B) They are used to compare subordinates objectively.

C) Different essays touch on different aspects of each subordinate's performance.

D) Different essays facilitate clustering of all employees at the top of the distribution curve.

50) ________ requires only that a rater order all employees from highest to lowest, from "best" employee to "worst" employee.

A) Paired comparisons B) Simple ranking C) Forced distribution D) Narrative essay

51) When using ________, each employee is compared with every other employee, usually in terms of an overall category such as "technical/functional expertise."

A) simple ranking B) alternation ranking C) paired comparisons D) narrative essays

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52) Which of the following statements is an advantage of the method of forced distribution of appraising employee performance?

A) They are most useful when a large number of employees must be rated.

B) They are most useful when there is only one rater in the organization.

C) They provide employees with a series of statements that describe job-related behavior.

D) They support raters for becoming reporters whose task is to describe job behavior.

53) Which of the following statements is true about behavioral checklist as an alternative appraisal method?

A) Descriptive ratings are less reliable than evaluative (good-bad) ratings.

B) Behavioral checklist increases the cognitive demands placed on raters.

C) Raters become reporters whose task is to describe job behavior.

D) Raters are provided with a series of statements that describe job-related behavior.

54) ________ are brief anecdotal reports by supervisors of things employees do that are particularly effective or ineffective in accomplishing parts of their jobs.

A) Forced distributions B) Critical incidents C) Narrative essays D) Case studies

55)

Which of the following statements about graphic rating scales is false?

A) They may not yield the depth of essays or critical incidents.

B) They are time-consuming to develop and administer.

C) They allow results to be expressed in quantitative terms.

D) They consider more than one performance dimension.

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56) Graphic rating scales that use critical incidents to anchor various points along the scale are known as ________.

A) graphic rating scale B) simple ranking C) behaviorally anchored rating scales D) narrative essay

57) Which of the following statements is an advantage of behaviorally anchored rating scales (BARS) as an alternative appraisal method?

A) They are most useful when there is more than one rater.

B) They provide a series of statements that describe job-related behavior.

C) They define the dimensions to be rated in terms of traits.

D) They use critical incidents to describe various levels of performance.

58) ________ is a process of managing that relies on goal setting to establish objectives for the organization as a whole, for each department, for eachmanager within each department, and for each employee.

A) Graphic rating scales B) Behaviorally anchored rating scales (BARS) C) Management by objectives (MBO) D) Management by exception (MBE)

59) Which of the following is an advantage of narrative essays in appraising employee performance?

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A) good for individual feedback and development B) good for making comparisons across employees C) forces raters to make distinctions among employees D) provides a direct link between job analysis and performance appraisal

60)

Which of the following is a disadvantage of forced distribution?

A) difficult to make comparisons across employees B) may be inaccurate if a group of employees is either very effective or ineffective C) provides little basis for individual feedback and development D) forces raters to make distinctions among employees

61)

The advantage of using a behavioral checklist is that

A) it is good for individual feedback and development.

B) the meaning of response categories is generally interpreted similarly by various raters.

C) it focuses directly on job behaviors.

D) it provides a direct link between job analysis and performance appraisal.

62) Which of the following is a disadvantage of management by objectives (MBO) in appraising employee performance?

A) It does not facilitate comparison across employees.

B) It requires frequent supervisor/subordinate review of work plans.

C) It is time-consuming to implement properly.

D) It does not define dimensions or scale points clearly.

63) As an alternative appraisal method, ________ places greater emphasis on the periodic review of work plans by both supervisor and subordinate in order to identify goals attained, problems encountered, and the need for training.

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A) ranking and paired comparison B) graphic rating scale C) work planning and review D) behavioral checklist

64) Which of the following is a disadvantage of self-appraisal in the performance-appraisal process?

A) It lowers a ratee's motivation and increases her or his defensiveness during the appraisal interview.

B) It requires employers to accept the employee's rating without change.

C) It tends to be less lenient, more variable, and less biased than other performance rating methods.

D) It tends to show less agreement with the judgments of other performance rating methods.

65) ________ feedback utilizes input from a variety of sources including managers, subordinates, peers, and customers to provide a perspective on performance from all angles.

A) Multi-variance B) Multirater or 360-degree C) Various sources D) SPOT

66)

Which of the following statements is true of informal feedback?

A) It covers work performed over time.

B) It is initiated, directed, and controlled by the manager.

C) It covers multiple performance events and competencies.

D) It depends on two-way accountability and interaction.

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67) What type of team is assembled for a specific purpose and expected to disband after their task is completed?

A) service B) work C) project D) network

68) ________ errors occur when ratings are assigned on the basis of a global impression of a ratee.

A) Incidental B) Contrast C) Virtual D) Halo

69) Ron is a sales representative with Emergo Systems Ltd. He has performed beyond expectation for the current financial year. However, during the last month of the year, he enters into a feud with one of his customers over a trivial issue. As a result, his manager gives him a poor performance rating during the appraisals. Identify the appraisal error committed by Ron's manager.

A) halo error B) contrast error C) recency error D) similarity error

70) Which of the following statements is not a supervisory activity that should be done before a performance feedback interview?

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A) Set goals that you feel the employee should strive for.

B) Communicate frequently with subordinates about their performance.

C) Get training in performance appraisal interviewing.

D) Plan to use a problem-solving approach rather than "tell-and-sell."

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Explain the difference between performance management and performance appraisal.

Why is the distinction important?

72)

List the five basic requirements of performance-appraisal systems.

73)

Describe the benefits of the multirater or 360-degree feedback system.

74)

Describe halo error and give an example of how it operates.

75) List the three types of teams in an organization based on the complexity of the task and membership configuration.

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76)

What three things must be done well in order to define performance properly?

77) Rating systems designed to support employment decisions demand performance information about differences between individuals. What type of information do systems designed to promote employee growth demand?

78) To assess adverse impact, organizations should keep accurate records of two factors define the applicant group?

79) What rating method presents a declarative statement followed by several response categories that the rater checks, and then which are later weighted?

80)

In the context of appraisal errors, when do raters commit contrast error?

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Answer Key Test name: chapter 10 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) FALSE 18) FALSE 19) TRUE 20) FALSE 21) FALSE 22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) TRUE Version 1

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27) FALSE 28) FALSE 29) TRUE 30) FALSE 31) D 32) A 33) D 34) D 35) B 36) C 37) A 38) B 39) C 40) A 41) D 42) B 43) A 44) B 45) C 46) D 47) A 48) B 49) C 50) B 51) C 52) A 53) D 54) B 55) B 56) C Version 1

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57) D 58) C 59) A 60) B 61) D 62) A 63) C 64) D 65) B 66) D 67) C 68) D 69) C 70) A

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71) Performance management is a kind of compass, one that indicates a person's actual direction as well as a person's desired direction. Like a compass, the job of the manager is to indicate where that person is now, and to help focus attention and effort on the desired direction.

Unfortunately, the concept of performance management means something very specific, and much too narrow, to many managers. They tend to equate it with performance appraisal or rating exercise they typically do once a year to identify and discuss job-relevant strengths and weaknesses of individuals or work teams. This is a mistake. There are solid organizational payoffs for implementing strong performancemanagement systems, empirical research has found. Organizations with such systems are 51 percent more likely to outperform their competitors on financial measures and 41 percent more likely to outperform their competitors on nonfinancial measures. Obviously, if performance management were easy to do, more firms would do it. One of the reasons it is difficult to execute well throughout an entire organization is that performance management demands daily, not annual, attention from every manager. It is part of a continuous process of improvement over time. Performance appraisal is a necessary, but far from sufficient, part of performance management.

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72) Legally and scientifically, the key requirements of any performancerating system are relevance, sensitivity, and reliability. In the context of ongoing operations, the key requirements are acceptability and practicality. 1. Relevance: Relevance implies that there are clear lines of sight between the performance standards for a particular job and organizational objectives and between the critical job elements identified through a job analysis and the dimensions to be rated on an appraisal form. 2. Sensitivity: Sensitivity implies that a performance-rating system is capable of distinguishing effective from ineffective performers. 3.

Reliability: A third requirement of sound rating systems is reliability. In this context, it refers to consistency of judgment. For any given employee, ratings made by raters working independently of one another should agree closely. In practice, ratings made by supervisors tend to be more reliable than those made by peers. 4. Acceptability: Acceptability is the most important requirement of all. It indicates that appraisal systems that are acceptable to those who will be affected by them lead to more favorable reactions to the process, increased motivation to improve performance, and increased trust for top management. 5. Practicality: Practicality implies that appraisal instruments are easy for managers and employees to understand and use.

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73) Following are the benefits of the multirater or 360-degree feedback system: 1. It includes observations from different perspectives, and perhaps includes different aspects of performance that capture the complexities of an individual's performance in multiple roles.

2. Feedback from multiple sources may reinforce feedback from the boss, thereby making it harder to discount the viewpoint of that single person.

3. It may improve the reliability of performance information because it originates from multiple sources and not just one.

4. It has the potential to decrease biases, since multiple perspectives and individuals are involved.

74) Halo error is not as common as is commonly believed. Raters who commit this error assign their ratings on the basis of global (good or bad) impressions of ratees. An employee or a team is rated either high or low on many aspects of job performance because the rater knows (or thinks he/she knows) that the employee or team is high or low on some specific aspect. In practice, halo is probably due to situational factors or to the interaction of a rater and a situation (e.g., a supervisor who has limited opportunity to observe her subordinates because they are in the field dealing with customers). Thus, halo is probably a better indicator of how raters process cognitive information than it is as a measure of rating validity or accuracy.

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75) Depending on the complexity of the task (from routine to nonroutine) and membership configuration (from static to dynamic), following are the three types of teams: 1. Work or service teams: Intact teams engaged in routine tasks. 2. Project teams: Teams assembled for a specific purpose and expected to disband once their task is completed. 3.

Virtual teams: Teams that include membership not constrained by time or space and membership is not limited by organizational boundaries.

76) Set goals, decide how to measure accomplishment, and provide regular assessment of progress.

77) Differences within individuals 78) Eligibility and interest 79) The Likert method of summed ratings 80) Contrast error results when a rater compares several employees to one another rather than to an objective standard of performance.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The gap between a CEO's pay and the wages of employees has narrowed in the United States. ⊚ ⊚

2)

true false

Pay policies and practices are critical because they affect every employee. ⊚ ⊚

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3) low.

There is a current trend away from areas where organized labor is weak and pay rates are

⊚ ⊚

true false

4) Good corporate citizen awards include everything in a work environment that enhances a worker's sense of self-respect and esteem by others. ⊚ ⊚

true false

5) Rewards bridge the gap between organizational objectives and individual expectations and aspirations. ⊚ ⊚

true false

6) Internal equity is the relative size of pay differentials among different segments of the workforce. ⊚ ⊚

true false

7) Whether a labor market is tight or loose has a major impact on wage structures and levels. ⊚ ⊚

true false

8) The Sarbanes-Oxley Act states that executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial security of the company. ⊚ ⊚

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264

9) Wage structures tend to vary across firms to the extent that managers view any given position as more or less critical in their firms. ⊚ ⊚

true false

10) To be effective, an organizational reward system should treat each member of the organization in terms of his or her individual needs. ⊚ ⊚

true false

11) Different job evaluation methods yield different rank-orders of jobs and, therefore, different pay structures. ⊚ ⊚

12) jobs.

true false

The market-based pay system uses a premium price options approach for all of a firm's

⊚ ⊚

true false

13) If competitors' pay decisions determine a company's pay structure, then the level of pay or the mix of pay forms is no longer a source of potential competitive advantage. ⊚ ⊚

true false

14) Skill-based plans only focus on the depth of employee skills, such as specialists in corporate law or hydraulic maintenance. ⊚ ⊚

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15) Companies view skill- and competency-based pay plans as a way to develop the critical behaviors and abilities employees need to achieve specific business results. ⊚ ⊚

16)

true false

All organizations must make some allowance for the trust gap in their salary programs. ⊚ ⊚

true false

17) Collective bargaining is a major influence on wages in unionized and nonunionized firms. ⊚ ⊚

true false

18) Employee incentive programs are effective when they are as elaborate and generic as possible. ⊚ ⊚

true false

19) Because sign-on bonuses do not increase base salaries, the structure of differences in pay between new hires and experienced employees does not change. ⊚ ⊚

true false

20) Under the Fair Labor Standards Act, overtime pay is required for exempt as well as nonexempt jobs. ⊚ ⊚

21)

true false

Pay compression is associated with the general problemof inflation.

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⊚ ⊚

true false

22) Most commonly, merit systems are applied to exempt employees in the form of temporary adjustments to their base pay. ⊚ ⊚

true false

23) The Equal Pay Act specifically forbids wage differences between men and women doing largely similar work in terms of skills, efforts, responsibilities, and working conditions. ⊚ ⊚

true false

24) Regardless of the exact form of rebalancing, stock options will continue to be the focal point of executive compensation. ⊚ ⊚

true false

25) A unionized employer may establish an incentive system, but it will be subject to negotiation through collective bargaining. ⊚ ⊚

26)

true false

Competition between teams is an advantage of team incentives. ⊚ ⊚

true false

27) A disadvantage of team incentives is that workers may be unable to see how their individual contributions have impacted the overall output of the team, which could lead them to lose motivation.

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⊚ ⊚

true false

28) In the context of organizationwide incentives, gain-sharing plans pay out if a firm meets its profitability target. ⊚ ⊚

true false

29) In the 50 years since the inception of gain-sharing, it has been abandoned by firms about as often as it has been retained. ⊚ ⊚

true false

30) It is true of all incentive plans that none will work well except in a climate of trustworthy labor-management relations and sound human resource management practices. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) In the context of developing effective pay systems, which of the following is a major change seen today in company philosophies concerning pay and benefits?

A) a move toward increasing the size of local workforces B) an increased willingness to control the costs of pay and benefits C) making pay grades standard across all levels of organizational hierarchies D) more concern with maintaining pay positions relative to that of competitors

32) In the context of performance incentives, an end-of-year bonus given to employees that does not build into their base pay is known as a(n) ________.

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A) spot bonus B) individual equity C) lump-sum bonus D) merit-pay incentive

33) In the United States, 80 percent of large and medium-sized companies now offer some kind of ________, such as profit-sharing and bonus awards.

A) fluctuating incentive B) variable pay C) corporate inducement D) legal kickback

34)

At lower levels, ________ systems almost guarantee cost control.

A) contribution-based pay B) competency-based pay C) skill-based pay D) variable pay

35) In comparing the relative emphasis Chinese and American managers place on performance versus relationships, which of the following is true?

A) When making bonus decisions, Chinese managers tend to place less emphasis on employees' work performance than do American managers.

B) When making decisions about nonmonetary recognition of employees, American managers place more emphasis on employees' relationships with coworkers than do their Chinese counterparts.

C) American managers tend to give larger bonuses to employees with greater personal needs.

D) Chinese managers tend not to take personal needs into consideration when making bonus decisions.

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36) At a broad level, a(n) ________ includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions.

A) competency-based pay system B) employee stock-ownership plan C) organizational reward system D) merit-pay method

37) In the context of establishing incentive systems, identify a true statement about the attitude of unions toward incentives.

A) Unions tend to favor individual piece-rate system so that the contributions of individual workers are recognized.

B) Unions tend to support organization-wide systems because they provide extra earnings to their members.

C) Unions tend to push for incentive systems that create competition between individual workers or different worker groups.

D) Unions tend to oppose organization-wide incentive systems because such systems are more beneficial for executives than they are for low-level employees.

38) The ________ is a consequence of variable pay, where people who do not want to have their pay tied to their performance do not accept jobs at companies that offer variable pay.

A) broad-banding effect B) annuity problem C) sorting effect D) trust gap

39) If pay systems are to accomplish the objectives set for them, ultimately they must be perceived as ________.

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A) adequate and equitable B) generous and timely C) immediate and fair D) relevant and competitive

40) There should be a balance in pay relationships between supervisors and the highest-paid subordinates reporting to them. This differential typically varies from ________.

A) 1 to 10 percent B) 5 to 30 percent C) 8 to 50 percent D) 10 to 20 percent

41) ________ revenue theory in labor economics holds that unless an employee can produce a value equal to the value of received wages, it will not be worthwhile to hire that worker.

A) Continuous B) Variable C) Marginal D) Integrating

42) In the context of organizational reward systems, fairness in the wages paid by an organization, in terms of competitive market rates outside the organization, is known as ________.

A) external equity B) market-based payment C) individual equity D) merit-based rewarding

43)

The efficiency wage hypothesis holds that

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A) there is payment of wage premiums by some employers to attract the best talent available and to enhance productivity in order to offset any increase in labor costs.

B) unless an employee can produce a value equal to the value received in wages, it will not be worthwhile to hire that worker.

C) there is increased willingness to reduce the size of the workforce, to outsource jobs overseas, and to restrict pay to control the costs of wages, salaries, and benefits.

D) there is less concern with pay position relative to that of competitors and more concern with what a company can afford.

44)

Which of the following acts established the first national minimum wage?

A) the Davis-Bacon Act B) the Fair Labor Standards Act C) the Walsh-Healey Act D) the McNamara-O'Hara Service Contract Act

45) to

In the context of the mechanics of pay systems, the purpose of job evaluation methods is

A) identify, define, and weigh common job characteristics that an organization is willing to pay for.

B) ensure equal payment of wages to men and women who perform similar jobs.

C) provide a work-related and business-related rationale to support decisions about pay.

D) identify important characteristics of each job on the market.

46) In the context of legislation that determines the internal practices of organizations, the Sarbanes-Oxley Act holds that

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A) companies can seek repayment for incentives paid that were later found to be materially inaccurate.

B) employees performing hazardous jobs must be provided with long-term health-care coverage by their employers.

C) men and women doing substantially similar work in terms of skill, effort, responsibility, and working conditions must be paid the same.

D) executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company.

47) Which act states that executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company?

A) the Sarbanes-Oxley Act B) the National Defense Authorization Act C) the Administrative Procedure Act D) the Contract Work Hours and Safety Standards Act

48)

Which of the following is a temporary cost-containment action?

A) longer working hours B) reducing medical plans' coverage C) pay cuts and furloughs D) trimming expense accounts

49) ________ are criteria that specify how well work is to be done by defining levels of acceptable or unacceptable employee behavior.

A) Performance standards B) Internal equities C) Job summaries D) Federal provisions

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50)

The process of assessing the relative worth of jobs to a firm is called ________.

A) job evaluation B) job analysis C) pay structure D) pay review

51) Common job characteristics that an organization is willing to pay for, such as skill, effort, responsibility, and working conditions, are called ________.

A) workload standards B) benchmark jobs C) compensable factors D) employee stock-ownership plans

52) In the context of setting incentives for lower-level employees, identify a true statement about performance standards.

A) They are determined independently for each employee.

B) They make it easier for supervisors to assign work to employees equitably.

C) They can only be applied to jobs with long cycles.

D) They are easy to specify and broadly similar at all levels of an organization's hierarchy.

53)

In the context of pay-system mechanics, identify a true statement about pay practices.

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A) Pay practices must be attractive to employees without becoming excessive in relation to those of competing employers.

B) The pay practices of an employer must not be influenced by the level of demand or degree of competition in product markets.

C) Pay practices are universal guidelines for compensation determined by the largest labor unions in the nation.

D) The disclosure of pay practices to employees is inadvisable as it can create unhealthy competition between workers.

54) In the context of pay-system mechanics, when jobs are evaluated and rank-ordered from highest point total to lowest point total, a(n) ________ is defined.

A) compensable factor B) hierarchy of job worth C) incentives system D) performance standard

55) In the context of pay-system mechanics, which of the following is a disadvantage of competency-based payment plans?

A) They become increasingly expensive as the majority of employees become certified at the highest pay levels.

B) They require employees to specialize in single roles, which reduces the flexibility and utility of individual employees.

C) They base workers' pay on the market value of the job they are doing, rather than on the basis of the workers' individual skills.

D) They are only applicable in work sectors that require strong technical skills, such as knowledge of certain manufacturing procedures.

56) Which type of pay structure is feasible if all jobs are benchmark jobs and direct matches can be found in the market?

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A) skill-based pay system B) competency-based pay system C) market-based pay system D) gain-sharing

57) In the United States, salary discussions among employees are protected under the ________.

A) Equal Pay Act B) National Labor Relations Act C) Sarbanes-Oxley Act D) Fair Labor Standards Act

58)

Open-pay systems tend to work best when

A) there is a union to negotiate pay increases.

B) a business strategy matches the organizational development stage.

C) individual or team performance can be measured objectively.

D) effort and performance are related closely over a long time span.

59) In the context of pay planning and administration, ________ occurs when the difference in pay between newly hired or less qualified employeesand more experienced ones is small or even negative.

A) external equity B) pay compression C) pay openness D) broad banding

60) Failure of organizations to address ________ may cause long-serving employees to rethink their commitment to a company they think does not value or reward loyalty.

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A) dependability issues B) annuity problems C) productivity problems D) compression issues

61) In the context of pay planning and administration, which of the following is a solution to the problem of pay compression?

A) adjusting salary ranges and structures to keep them current with market conditions B) recruiting new college graduates for professional jobs at salaries above those of current jobholders C) increasing overtime payment to senior employees and forbidding new hires from working overtime D) cutting the number of jobs in an organization and training a small group of employees to handle all roles

62)

One way to classify performance incentives is according to the ________ targeted.

A) audience B) level of performance C) budget D) benefit plan

63) In the context of effective incentives systems, which of the following is a possible reason for the failure of an organization's merit-pay system?

A) Union and nonunion employees are given matching wages.

B) The incentives are linked to performance rather than knowledge.

C) The link between performance and rewards is weak.

D) Performance benchmarks are standardized.

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64) In the context of merit-pay systems, the ________ occurs when past merit payments are incorporated into an individual's base salary and the resulting regularly paid sums of money allow formerly productive individuals to slack off and still earn a high pay.

A) sorting effect B) gain-sharing problem C) trust-gap effect D) annuity problem

65)

________ incentive plans encourage the efficient use of existing assets.

A) Annual B) Long-term C) Pre-tax dollars D) External equity

66) In the context of incentives for low-level employees, a ________ is a one-time bonus that an employer may offer an employee as a reward for exceptional performance.

A) lump-sum bonus B) spot bonus C) merit-pay bonus D) sign-on bonus

67) Team incentives provide an opportunity for each team member to receive a bonus based on the

A) net profit of the corporation.

B) discretion of the team supervisor.

C) terms of the collective bargaining unit.

D) output of the team as a whole.

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68) In the context of organizationwide incentives, which of the following is an element of a gain-sharing system?

A) an organizational climate that is characterized by high levels of trust B) a committee of executives that designs systems for improving organizational productivity C) individual financial bonus based on the market value of individual job D) hierarchical banding of incentives that are based on work experience

69)

Which of the following is not another name for gain-sharing?

A) the Scanlon plan B) the Rucker plan C) Control-based compensation D) Improshare

70)

Employee stock-ownership plan satisfaction tends to be highest in companies where

A) the company makes employees work harder.

B) the company makes relatively large annual contributions to the plan.

C) there is an increase in day-to-day work satisfaction.

D) management does not share power or decision making.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Describe gain-sharing, and list its major characteristics.

72)

Write a short note on the job evaluation process.

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73)

Compare and contrast market-based pay systems and competency-based pay systems.

74)

What steps must be taken to ensure that merit-pay systems are effective?

75)

What steps can companies take to sew corporate top and bottom back together?

76) What are the two key factors in the product and services market that affect the ability of a firm to change the prices of its products or services?

77)

What are the three elements of the ARM concept?

78)

Name at least three of the four basic tools needed to develop a pay system.

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79)

What is the biggest hurdle to overcome in pay-for-performance plans?

80)

In the context of developing pay structures, what is broad banding?

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Answer Key Test name: chapter 11 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) TRUE 22) FALSE 23) TRUE 24) FALSE 25) TRUE 26) FALSE Version 1

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27) TRUE 28) FALSE 29) TRUE 30) TRUE 31) B 32) C 33) B 34) D 35) A 36) C 37) B 38) C 39) A 40) B 41) C 42) A 43) A 44) B 45) C 46) D 47) A 48) C 49) A 50) A 51) C 52) B 53) A 54) B 55) A 56) C Version 1

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57) B 58) C 59) B 60) D 61) A 62) B 63) C 64) D 65) A 66) B 67) D 68) A 69) C 70) B

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71) Gain-sharing is a results-based program that generally links pay to performance at the facility level. It focuses on achieving savings in areas over which employees do have control—for example, reduced scrap or lower labor or utility costs. As the name suggests, employees share in the gains achieved. Gain-sharing comprises three elements: 1. A philosophy of cooperation: This refers to an organizational climate characterized by high levels of trust, two-way communication, participation, and harmonious industrial relations. 2. An involvement system: This refers to the structure and process for improving organizational productivity. Typically, it is a broadly based suggestion system implemented by an employee-staffed committee structure that usually reaches all areas of the organization. Sometimes this structure involves work teams, but usually it is simply an employee-based suggestion system. The employees involved develop and implement ideas related to productivity. 3. A financial bonus: This is determined by a calculation that measures the difference between expected and actual costs during a bonus period. The three components mutually reinforce one another. High levels of cooperation lead to information sharing, which in turn leads to employee involvement, which leads to new behaviors, such as offering suggestions to improve organizational productivity. This increase in productivity then results in a financial bonus (based on the amount of the productivity increase), which rewards and reinforces the philosophy of cooperation.

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72) A number of job evaluation methods are available. Their purpose is to provide a work-related and business-related rationale to support decisions about pay. All of the methods also have the same final objective: to rank jobs in terms of their relative worth to the organization so that an equitable rate of pay can be determined for each job.

However, different job evaluation methods yield different rank-orders of jobs, and, therefore different pay structures. In short, method matters.

Although job evaluation provides a business-related order and logic that supports pay differences among jobs, not all firms use it. One reason is that several policy issues must be resolved first, including the following: 1. Does management perceive meaningful differences among jobs? 2. Is it possible to identify criteria to make distinctions among jobs? 3. Will job evaluation result in meaningful distinctions in the eyes of employees? 4. Are jobs stable, and will they remain stable in the future?

5. Is job evaluation consistent with the organization's goals and strategies?

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73) The market-based pay system uses a direct market-pricing approach for all of a firm's jobs. This type of pay structure is feasible if all jobs are benchmark jobs and direct matches can be found in the market. Pay surveys can then be used to determine the market prices of the jobs in question. If competitors' pay decisions determine a company's pay structure, though, then the level of pay or the mix of pay forms is no longer a source of potential competitive advantage. It is neither unique nor difficult to imitate. In contrast, a firm may choose to differentiate its pay strategy from those of its competitors to execute its own strategy more effectively. Under a competency-based pay system, workers are paid not on the basis of the job they currently are doing, but rather on the basis of their skills or on their depth of knowledge, both of which are termed "competencies." Skill-based plans are usually applied to socalled blue-collar work and competencies to so-called white-collar work.

The distinctions are not hard and fast. They can focus on depth, breadth, or self-management. In a world of slimmed-down big companies and agile small ones, the last thing any manager wants to hear from an employee is "It's not my job."

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74) Those affected by the merit-pay system must support it if it is to work as designed. This is in addition to the requirements for incentive programs. From the very inception of a merit-pay system, it is important that employees feel a sense of ownership of the system. Involve them in the design process, if possible. Here are five other steps to follow: 1.

Establish high standards of performance. Low expectations tend to be self-fulfilling prophecies. Excellence rarely results from expectations of mediocrity. 2. Develop and implement sound performance-management systems. Such systems include clear definitions of what good performance looks like, elimination of roadblocks that might impede performance, regular coaching and feedback, and timely rewards that encourage good performance. 3. Train supervisors in the mechanics of performance appraisal and in the art of giving feedback to subordinates.

Train them to manage ineffective performance constructively. 4. Tie rewards closely to performance. One review found that 40 of 42 studies looking at merit pay reported increases in performance when pay was tied closely to performance. 5. Use a wide range of increases. Make pay increases meaningful. Merit-pay systems can work, but they need to follow these guidelines if they are to work effectively.

75) The following are some suggestions for sewing corporate top and bottom back together: 1. Start with the obvious. Forge a closer link between CEO compensation and company performance. 2. Consider instituting profit-sharing, gain-sharing, or some other program that lets employees profit from their efforts. 3. Rethink perquisites. 4. Make sure the board's pay consultants don't work for management. 5. Make sure your door is really open. If that means meeting with employees at unorthodox times, such as when their shifts end, then do it. 6. Start surveying employee attitudes. 7. Explain things—personally.

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76) 1) The degree of competition among producers and 2) the level of demand for the products or services 77) Attract, retain, and motivate 78) Choose any three of the following: 1) updated job descriptions, 2) a job evaluation method, 3) pay surveys, and 4) a pay structure 79) Coping with inflation 80) Broad banding is the consolidation of as many as four or five traditional salary grades into a single band with one minimum and one maximum.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) A mature firm with well-established products and substantial market share will probably offer low base pay and benefits but high incentives. ⊚ ⊚

true false

2) The perceived value of benefits rises when employers introduce choice through a flexible benefits package. ⊚ ⊚

true false

3) In determining the competitiveness of benefits, senior management tends to focus mainly on value, while employees are more interested in cost. ⊚ ⊚

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4) Achieving cost competitiveness provides assurance that employees will perceive the benefits program as valuable to them. ⊚ ⊚

true false

5) Income-maintenance laws were enacted to provide employees and their families with income security in case of death, disability, unemployment, or retirement. ⊚ ⊚

6)

true false

A primary concern for Gen-Xersis high levels of student debt. ⊚ ⊚

true false

7) Young employees who are just starting out are likely to be more concerned with a generous pension program than with direct pay. ⊚ ⊚

true false

8) The issue of salary competitiveness is much more complicated than that of benefitsprogram competitiveness. ⊚ ⊚

true false

9) Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), following a worker's death or divorce, the employee's family has the right to buy group-rate health insurance for as long as 3 years. ⊚ ⊚

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10) Disability coverage provides a supplemental one-time payment when death is accidental or when employees become disabled. ⊚ ⊚

true false

11) Long-term disability (LTD) recipients typically receive no more than 60 percent of their base pay, until they begin receiving pension benefits. ⊚ ⊚

true false

12) Although disability benefits traditionally were divided into salary continuation, shortterm disability, and long-term disability, combined disability management programs now merge all three. ⊚ ⊚

true false

13) Australia, Britain, Canada, Germany, the Netherlands, and New Zealand (all of which provide universal health-care coverage for their citizens) spend half as much of their gross domestic product on health care as the United States does. ⊚ ⊚

true false

14) An aging population and an increase in obesity are part of the major factors driving increases in the cost of health care. ⊚ ⊚

15)

true false

Strategies to contain the high costs of health care are largely being ignored. ⊚ ⊚

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16) In an effort to reform the U.S. health-care system, Congress passed the Patient Protection and Affordable Care Act in March 2010. ⊚ ⊚

true false

17) The Patient Protection and Affordable Care Act of 2010 requires states to create and maintain health-care exchanges in which health insurance providers compete for customers on equal terms. ⊚ ⊚

true false

18) At a broad level, insurance is the basic building block of almost all benefits packages, because it protects employees against income loss caused by death, accident, or ill health. ⊚ ⊚

true false

19) Employers are not required to pay a penalty for employees during a waiting period that is required before an employee can enroll in an employer-provided health insurance plan. ⊚ ⊚

true false

20) The Employee Retirement Income Security Act (ERISA) does not require employers to offer a pension plan. ⊚ ⊚

true false

21) To ensure covered workers will receive their accrued benefits even if they get fired, the Employee Retirement Income Security Act (ERISA) created the Pension Benefit Guaranty Corporation.

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⊚ ⊚

true false

22) An incentive for employers to begin and maintain pension plans is that the government defers taxes on the pension contributions and their earnings. ⊚ ⊚

true false

23) Workers' compensation, Social Security, unemployment insurance are the three benefits that are legally required of every employer in the UnitesStates. ⊚ ⊚

true false

24) Cash-balance plans are portable when an employee leaves, but they do not vest any sooner than traditional pension plans. ⊚ ⊚

25)

true false

Defined-contribution plans do not appeal to employers. ⊚ ⊚

true false

26) Social Security is a pay-as-you-go system. Payroll taxes earned by current workers are distributed to pay benefits for those who are already retired. ⊚ ⊚

true false

27) Every unemployed worker's benefits are charged against one or more companies; therefore, the more money paid out on behalf of a firm, the higher is the unemployment insurance rate for that firm.

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⊚ ⊚

true false

28) National survey data now indicate that people are more attached and committed to organizations that offer family-friendly policies because they benefit personally from the policies. ⊚ ⊚

true false

29) The theory underlying the cafeteria-benefits approach is simple: Instead of all workers at a company getting the same benefits, each worker can pick and choose among alternative options cafeteria-style. ⊚ ⊚

true false

30) Voluntary benefits programs allow smaller companies to offer a wider array of benefits than they otherwise would be able to. ⊚ ⊚

true false

31) Of all absence-control programs,employers rate paid-time-off (PTO) plans as the least effective. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

32) Which of the following should be considered by firms when determining their overall benefit plan?

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A) Are the type and level of benefits coverage consistent with our long-term business plan?

B) Given the characteristics of our workforce, are we meeting the needs of our employees?

C) What legal requirements must we satisfy in the benefits we offer?

D) All of these choices are correct.

33) Which law offers full coverage for retirees, dependent survivors, and disabled persons insured by 40 quarters of payroll taxes on their past earnings or earnings of heads of households?

A) Federal Unemployment Tax Act B) Social Security Act C) Workers' compensation D) Employee Retirement Income Security Act

34) The benefits of the ________ are based on a percentage of average weekly earnings and are available for up to 26 weeks.

A) Administrative Procedure Act B) Social Security Act C) Balanced Budget Act D) Federal Unemployment Tax Act

35) Generally, employees of nonagricultural, private-sector firms are entitled to benefits for work-related accidents and illnesses leading to temporary or permanent disabilities under ________.

A) workers' compensation B) the Employee Retirement Income Security Act (ERISA) C) the Social Security Act D) the Federal Unemployment Tax Act

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36) How long does the Family and Medical Leave Act protect a mother's or father's job for after childbirth or adoption?

A) up to 8 weeks B) up to 12 weeks C) up to 16 weeks D) up to 20 weeks

37) Which act covers private-sector employees over age 21 enrolled in noncontributory (100 percent employer-paid) retirement plans who have one year's service?

A) the Consolidated Omnibus Budget Reconciliation Act (COBRA) B) the Health Insurance Portability and Accountability Act (HIPAA) C) the Employee Retirement Income Security Act (ERISA) D) the Americans with Disabilities Act (ADA)

38) In the context of the four major income-maintenance laws, ________ provides benefits in the form of full retirement payments after age 67 (for those born in 1960 or later), or at reduced rates after 62, to worker and spouse.

A) the Social Security Act B) the Federal Unemployment Tax Act C) workers' compensation D) the Employee Retirement Income Security Act

39) In the context of the four major income-maintenance laws, ________ excludes federal government employees hired prior to January 1, 1984.

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A) the Federal Unemployment Tax Act B) the Social Security Act C) workers' compensation D) the Employee Retirement Income Security Act

40) The benefits of ________ average about two-thirds of an employee's weekly wage and continue for the term of a disability.

A) the Social Security Act B) the Employee Retirement Income Security Act C) workers' compensation D) unemployment insurance

41) In the context of the four major income-maintenance laws, ________ covers all employees except some state and local government workers, domestic and farm workers, railroad workers, and some nonprofit employees.

A) the Social Security Act B) the Employee Retirement Income Security Act C) workers' compensation D) the Federal Unemployment Tax Act

42) With respect to health information, the ________ includes strict provisions to safeguard employee privacy.

A) Health Insurance Portability and Accountability Act (HIPAA) B) Employee Retirement Income Security Act (ERISA) C) Public and Health Service Act D) Health Care Freedom Act

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43) The doctrine of ________ holds that an individual must pay taxes on benefits with monetary value when he or she receives them.

A) anti-discrimination B) constructive receipt C) equal benefits taxation D) tax shifting

44) The anti-discrimination rule holds that employers can obtain tax advantages only for those benefits that do not discriminate in favor of ________.

A) white males B) stockholders C) highly compensated employees D) younger employees

45) In determining the competitiveness of benefits, senior management tends to focus mainly on ________.

A) cost B) value C) security D) worth

46)

An individual or group health plan that provides or pays the cost of medical care may not

A) use the employer's ability to deny coverage for a preexisting condition.

B) be able to safeguard employee privacy.

C) disclose protected health information.

D) None of these choices are correct.

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47) The law requiring companies with at least 20 employees to make medical coverage available at group insurance rates for up to 18 months after an employee leaves the job is the ________.

A) Employee Retirement Income Security Act (ERISA) B) Health Insurance Portability and Accountability Act (HIPAA) C) Consolidated Omnibus Budget Reconciliation Act (COBRA) D) Family and Medical Leave Act (FMLA)

48) Which of the following laws provides that following a worker's death or divorce, the employee's family has the right to buy group-rate health insurance for as long as three years?

A) the Health Insurance Portability and Accountability Act B) the Consolidated Omnibus Budget Reconciliation Act C) the Employee Retirement Income Security Act D) the Fair Labor Standards Act

49)

Which of the following requires that health plans not disclose patient identifiers?

A) the Fair Labor Standards Act B) the Employee Retirement Income Security Act C) the Consolidated Omnibus Budget Reconciliation Act D) the Health Insurance Portability and Accountability Act

50) Which of the following is a type of insurance that is usually yearly renewable term insurance whose typical coverage is one to two times the employee's annual salary?

A) common stock B) workers' compensation C) protected health D) group life insurance

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51) ________ programs typically provide a core of basic life coverage and then permit employees to choose greater coverage as part of their optional package.

A) Flexible-benefit B) Defined-benefit C) Defined-contribution D) Point-of-service

52)

Which of the following is not an area of payment covered by workers' compensation?

A) payments to employers while injured workers are recovering B) payments to replace lost wages C) medical treatment and rehabilitation costs D) retraining to perform a different type of work

53)

Currently, ________ percent of states have workers' compensation laws.

A) 10 B) 50 C) 75 D) 100

54)

All states' workers' compensation laws share all of the following features except

A) all job-related injuries and illnesses are covered.

B) coverage is provided regardless of who caused the injury or illness.

C) a worker's loss is usually covered fully by the insurance program.

D) payments are usually made through an insurance program financed by employer-paid premiums.

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55) The U.S. health insurance system is based primarily on group coverage provided by ________.

A) employees B) employers C) the government D) communities

56)

The 2010 plan intended to reform the U.S. health-care system is called the ________.

A) Preferred Provider Organization Act B) Health Maintenance Organization Act C) Patient Protection and Affordable Care Act D) Equal Pay Act

57)

________ is one of the leading causes for an increase in the cost of health care.

A) The maintenance of health-care exchanges B) The increase in drug costs C) The decreasing number of illegal immigrants D) The rising cost of child care

58)

The "gatekeeper" in a "managed-care" health insurance plan is the ________.

A) primary-care physician B) insurance cost monitor C) the employee D) the HR representative

59) When given a choice, employees are moving toward ________, even though they are more expensive.

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A) consumer-driven health plans (CDHPs) B) point-of-service (POS) plans C) health maintenance organizations (HMOs) D) preferred provider organizations (PPOs)

60) Identify the type of managed-care health insurance plan where in-network care comes from a specified group of physicians and hospitals, patients can pay extra to get care from outside the network, and there generally is no gatekeeper.

A) flexible spending account B) preferred provider organization C) health reimbursement account D) health maintenance organization

61)

In the context of mandated benefits, all existing health insurance plans must

A) include lifetime limits of insurance coverage.

B) prohibit annual limits of insurance coverage.

C) limit the exclusion of preexisting conditions to two conditions.

D) include a requirement to provide coverage for nondependent children up to age 29.

62) In the context of managed-care insurance plans, which of the following statements is true about a health maintenance organization (HMO)?

A) It combines the features of point-of-service (POS) plans and preferred provider organizations (PPOs).

B) It provides lower deductibles and copayments for in-network care than for out-ofnetwork care.

C) It provides lower out-of-pocket costs than for any other managed-care plan.

D) It virtually covers all services except preventive care.

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63)

Identify a true statement about point-of-service (POS) plans.

A) They exclude any form of flat fee for in-network care, and patients pay 80 to 90 percent of the bills for care they get outside the network.

B) They fail to cover preventive care services.

C) They combine the features of health maintenance organizations (HMOs) and preferred provider organizations (PPOs).

D) They result in high out-of-pocket costs for the care patients get in the network.

64) Which of the following is not an approach widely used to express the cost of employee benefits and services?

A) national salary index B) cost per hour C) percentage of payroll D) cost per employee per year

65)

Identify a true statement about preferred provider organizations (PPOs).

A) They offer lower deductibles and copayments for out-of-network care than for innetwork care.

B) They usually fail to cover preventive services.

C) They allow patients to get care in or out of the network, but there is an in-network gatekeeper who must approve all services.

D) They pay 80 to 100 percent for what is done within the network but only 50 to 70 percent for services rendered outside it.

66)

An employee stock-ownership plan (ESOP) is a form of a ________.

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A) profit-sharing plan B) 401(k) plan C) money-purchase plan D) simplified employee pension (SEP)

67) A(n) ________ is a defined-contribution pension plan in which an employee can deduct a certain amount of his or her income from taxable income and place the money into a personal retirement account.

A) profit-sharing plan B) simplified employee pension (SEP) C) employee stock-ownership plan D) 401(k) plan

68) A(n) ________ is a defined-contribution pension plan in which an employer contributes a set percentage of each vested employee's salary to his or her account.

A) money-purchase plan B) profit-sharing plan C) employee stock-ownership plan D) simplified employee pension

69) In which of the following situations is a worker eligible to receive unemployment benefits?

A) when a worker is unemployed because of a labor dispute B) when a worker is able and available to work and is actively seeking work C) when a worker has left a job voluntarily D) when a worker has been terminated for gross misconduct

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70) Which act was enacted to protect the interests of employee-benefit-plan participants and their beneficiaries by requiring the disclosure to them of financial and other information concerning the plan?

A) the Employee Retirement Income Security Act B) the Health Insurance Portability and Accountability Act C) the Consolidated Omnibus Budget Reconciliation Act D) the Family and Medical Leave Act

71) Money set aside by employers to cover ________ has become the nation's largest source of capital.

A) workers' compensation claims B) employee benefits C) year-end tax obligations D) pension obligations

72) Which agency acts as an insurance company, collecting annual premiums from companies with defined-benefit plans that spell out specific payments upon retirement?

A) the Federal Deposit Insurance Corporation B) the Employee Benefits Security Administration C) the Pension Benefit Guaranty Corporation D) the Federal Retirement Thrift Investment Board

73) In 2019, the Pension Benefit Guaranty Corporation (PBGC) paid more than ________ in benefits owed to retirees and the surviving beneficiaries because their pension plans could not.

A) $1 million B) $35 million C) $2 billion D) $6 billion

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74) In regard to pensions, employees who have not worked at a company long enough to be ________ are not entitled to any benefits.

A) vested B) promoted C) given a performance review D) able to join the union

75) The type of private pension plan in which an employer promises to pay a retiree a stated pension is a ________.

A) defined-benefit plan B) defined-performance plan C) defined-retirement plan D) defined-contribution plan

76) The type of pension plan that offers all employees the same, steady annual credit toward an eventual pension is a(n) ________.

A) equity-purchase plan B) cash-balance plan C) defined-benefit plan D) profit-sharing plan

77) ________ is not legally required, and, because of unemployment compensation, many firms do not offer it.

A) Retirement pay B) Short-term disability C) Severance pay D) Cost shifting

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78) When employers continue the same group health insurance coverage offered to younger employees to employees overthe age of 70, it is an example of ________.

A) cost attainment B) flag posting C) cost shifting D) early medical retirement benefits

79)

Whatare the methods to express costing benefits?

A) annual cost of benefits for all employees B) cost per employee per year C) percentage of payroll and cost per hour D) All of these choices are correct.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

80) Briefly discuss some of the reasons why employee benefits have grown in the recent years.

81)

Write a short note on the Consolidated Omnibus Budget Reconciliation Act of 1986.

82) What is workers' compensation? Mention some common features that all states' workers' compensation laws share.

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83) Describe some measures that firms have taken to gain tighter management control over the cost of health care.

84)

Discuss some of the trends that are helping to shape the future in health-care coverage.

85)

Write a short note on the Pension Benefit Guaranty Corporation.

86)

What are the provisions of the Pension Protection Act (PPA) of 2006?

87) Discuss the four approaches that are widely used to express the costs of employee benefits and services.

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88)

What is the broad objective of the design of compensation programs?

89)

Who typically manages contributions to pension funds?

90)

Explain the purpose of the unemployment insurance system.

91)

What are the benefits that are included in thepayments for time not worked category?

92)

Discuss the objectives in communicating benefits.

93)

What are some of the requirements for a worker to receive unemployment benefits?

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Answer Key Test name: chapter 12 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) FALSE 7) FALSE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) TRUE 20) TRUE 21) FALSE 22) TRUE 23) TRUE 24) TRUE 25) FALSE 26) TRUE Version 1

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27) TRUE 28) FALSE 29) TRUE 30) TRUE 31) FALSE 32) D 33) B 34) D 35) A 36) B 37) C 38) A 39) B 40) C 41) D 42) A 43) B 44) C 45) A 46) C 47) C 48) B 49) D 50) D 51) A 52) A 53) D 54) C 55) B 56) C Version 1

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57) B 58) A 59) D 60) B 61) B 62) C 63) C 64) A 65) D 66) A 67) D 68) A 69) B 70) A 71) D 72) C 73) D 74) A 75) A 76) B 77) C 78) C 79) D

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80) In 2019, U.S. organizations spent an average of 29.9 percent of payroll on employee benefits: 7.7 percent on legally required benefits (Social Security, Medicare, workers' compensation, and unemployment insurance) and the remainder on voluntary benefits. Here are some reasons benefits have grown: 1. Millennials, especially working parents, prize the freedom to work remotely, and businesses are finding that flexible compensation in the form of one-time bonuses, paid time off, and increased contributions to employee health insurance meets the needs of many employees. 2. The interest by unions in bargaining over benefits has grown, particularly because employers are pushing for more cost-sharing by employees. 3. The tax treatment of benefits makes them preferable to wages. Many benefits remain nontaxable to the employee and are deductible by the employer. With other benefits, taxes are deferred. Hence, employees' disposable income increases because they are receiving benefits and services that they would otherwise have to purchase with after-tax dollars. 4. Granting benefits (in a nonunionized firm) or bargaining over them (in a unionized firm) confers an aura of social responsibility on employers; they are "taking care" of their employees.

81) Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986, companies with at least 20 employees must make medical coverage available at group insurance rates (100 percent premium plus a 2 percent administration fee) for as long as 18 months after the employee leaves—whether the worker left voluntarily, retired, or was dismissed. The law also provides that, following a worker's death or divorce, the employee's family has the right to buy group-rate health insurance for as long as three years. After that, participants can opt into the Health Insurance Marketplace created by the Affordable Care Act.

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82) Workers' compensation programs provide payments to workers who are injured on the job or who contract a work-related illness. The payments cover three areas: payments to replace lost wages, medical treatment and rehabilitation costs, and retraining to perform a different type of work (if necessary). At present, all 50 states have workers' compensation laws. Although specific terms and levels of coverage vary by state, all state laws share the following features: 1. All job-related injuries and illnesses are covered. 2. Coverage is provided regardless of who caused the injury or illness (i.e., regardless of who was "at fault").

3. Payments are usually made through an insurance program financed by employer-paid premiums. 4. A worker's loss is usually not covered fully by the insurance program. Most cash payments are at least two-thirds of the worker's weekly wage, but, together with disability benefits from Social Security, the payments may not exceed 80 percent of the worker's weekly wage. 5. Workers' compensation programs protect employees, dependents, and survivors against income loss resulting from total disability, partial disability, or death; medical expenses; and rehabilitation expenses.

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83) Here are some measures that firms have taken to gain tighter management control over the cost of health care: 1. Tie up with other companies to form a "purchasing coalition" to negotiate better rates with insurers. Such coalitions have become key cost-control devices for small businesses. 2. Analyze data on cost drivers, participation rates, and employee satisfaction to gain insight into benefits usage and costs. Here are some key questions to address. Cost drivers: What employee health conditions or behaviors are the most expensive? Health-plan providers and employers can then implement voluntary programs for affected groups, such as smoking-cessation programs. Participation rates: How many employees use wellness programs? Communicate the value of underused programs and consider implementing different ones.

Satisfaction: How do employees rate their health plans or wellness benefits? That analysis could lead to changes in plan design or to new health-plan vendors. 3. Encourage the use of generic drugs. Fully 95 percent of companies offer prescription drug program coverage. 4.

Contract directly with health care providers. Organizations are devising plans to guide employees to health care providers that offer high-quality, competitively priced care, whether those are doctors, hospitals, or national centers of excellence that specialize in areas such as cancer treatment, eye, or joint surgery. Some organizations are reducing the number of in-network doctors and hospitals, or offering tiered networks that lower out-of-pocket costs for employees. 5. Use a managed-care approach. Managed care relies on a gatekeeper system of cost controls.

6. Adopt a consumer-driven health plan (CDHP). A CDHP is a health insurance plan that allows employers, employees, or both to set aside pretax money to help pay for qualified medical expenses not covered by their health plan.

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84) A variety of trends are helping to shape the future in health-care coverage. Here are a few of them: 1. More experimentation with healthcare designs can be expected as electronic medical records are introduced, more research is conducted on medical effectiveness, and results are built into treatment and payment structures. 2. Fewer companies will provide health-care coverage for retirees; that means the government and individuals will pay in the decades ahead, although large employers may facilitate value purchasing. 3. Ongoing refinements can be expected with respect to payments for wellness and preventive care, chronic disease, and prescription drugs. The good news is that 73 percent of American workers would enroll in employer wellness programs to improve personal health if offered an incentive. At Johnson & Johnson, employees who enroll in such programs get a $500 discount on their insurance premiums. About 90 percent of them participate. 4.

As for consumer-driven health care, it will continue to grow—unless the plans fail to show proven savings, or if workers find themselves stuck only with the higher bills and none of the new information and control that are supposed to be part of the package. 5. Finally, individuals will increasingly be expected to check prices and shop around before undergoing surgery or popping a pill. Individuals will have to learn to manage the new system for it could earn or cost them thousands of dollars and affect their health.

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85) To ensure that covered private-sector workers will receive their accrued benefits even if their companies fail, the Employee Retirement Income Security Act (ERISA) created the Pension Benefit Guaranty Corporation (PBGC). This agency acts as an insurance company, collecting annual premiums from companies with defined-benefit plans (in 2020, $83 for single-employer plans and $30 for multi-employer plans) that spell out specific payments upon retirement. A company can still walk away from its obligation to pay pension benefits to employees entitled to receive them, but it must then hand over up to 30 percent of its net worth to the PBGC for distribution to the affected employees. The PBGC insures nearly 25,000 single-employer pension plans that cover 24 million workers and retirees. If a company terminates its pension plan, the PBGC guarantees the payment of vested benefits to employees up to a maximum amount set by law. In 2020, that maximum amount for a worker at full retirement age was $69,750. Despite these protections, the consequences of pension plan termination can still be devastating to some pensioners. Executives whose accrued benefits are bigger than the PBGC's guaranteed limits can see their monthly checks shrivel.

Employees who haven't worked at a company long enough to be vested (at least 3 years for "cliff vesting" of 100 percent of benefits, up to 6 years for "graduated vesting")—aren't entitled to any benefits. So they wind up having to get by with less to support them than they had planned. Nevertheless, as a matter of social policy, it is important that, as retirees, most workers end up getting nearly all that is promised to them—and they do.

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86) The Pension Protection Act made vast changes to the Employee Retirement Income Security Act (ERISA) of 1974. For example, it: 1.

Determines higher limits on the annual amount of compensation that can be taken into account for retirement-plan benefits. 2. Determines higher limits on the annual amount of permissible benefit and employer contributions. 3. Permits individuals age 50 and older to make "catchup" salary-deferral contributions. In addition, the PPA allows automaticenrollment of employees. It also allows employers to adopt cash-balance pension plans and to convert existing defined-benefit plans into cashbalance plans. Finally, the PPA also provides "safe harbor" protection for employers if employers:: 1. Enroll workers in the company plan at a default savings-contribution rate automatically. 2. Establish default investments, for example, those that automatically invest a worker's 401(k) contributions in an age-appropriate "life-cycle" diversified fund (greater equity exposure for younger participants, larger fixed income for older ones). 3. Escalate workers' contributions to their 401(k) accounts on a periodic basis automatically. Under the PPA, 401(k) participants can still exercise individual control over their investments if they want to, but the new law encourages sponsors to set up 401(k)s in a manner that helps workers to help themselves simply by doing nothing.

By 2019, 42 percent of employers adopted automatic enrollment.

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87) Despite the high cost of benefits, many employees take them for granted. A major reason for this is that employers have failed to do indepth cost analyses of their benefit programs and thus have not communicated the value of such programs to employees. Four approaches are used widely to express the costs of employee benefits and services. Although each has value individually, a combination of all four often enhances their impact on employees. The four methods are as follows: 1. Annual cost of benefits for all employees: valuable for developing budgets and for describing the total cost of the benefits program. 2. Cost per employee per year: the total annual cost of each benefits program divided by the number of employees participating in it.

3. Percentage of payroll: the total annual cost divided by total annual payroll (this figure is valuable in comparing benefits costs across organizations). 4. Cost per hour: the total annual cost of benefits divided by the total number of hours worked by all employees during the year.

88) The broad objective of the design of compensation programs (i.e., direct as well as indirect compensation) is to integrate salary and benefits into a package that will encourage the achievement of an organization's goals.

89) Contributions to pension funds are typically managed by trustees or outside financial institutions, frequently insurance companies.

90) The unemployment insurance system is a financial partnership between the federal and state governments. It is intended to be countercyclical, that is, to accumulate and hold significant funds during good economic times, pay out benefits during bad ones, and stimulate stagnant economies.

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91) Benefits included in the payments for time not worked category are vacations, holidays, reporting time, paid parental leave, grievances and negotiations, and sabbatical leaves.

92) The four broad objectives in communicating benefits are: 1. To make employees aware of the benefits. This can be achieved by reminding employees of their coverages periodically and of how to apply for benefits when needed.

2. To assist employees comprehend the benefits information they receive to take full advantage of the plans.

3. To make employees confident that they can trust the information they get.

4. To show employees how their benefits will meet their needs and assist them in reaching their personal goals.

93) Although 97 percent of the workforce is covered by state and federal unemployment insurance laws, each worker must meet eligibility requirements in order to receive benefits. That is, an unemployed worker must (1) be able and available to work and be actively seeking work, (2) not have refused suitable employment, (3) not be unemployed because of a labor dispute (except in Rhode Island and New York), (4) not have left a job voluntarily, (5) not have been terminated for gross misconduct, and (6) have been employed previously in a covered industry or occupation, earning a designated minimum amount for a minimum amount of time. Many claims are disallowed for failure to satisfy one or more of these requirements.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Workers will vote against unions if they feel unions abuse their power by calling strikes or have fat-cat leaders who selfishly promote their own interests at the expense of members' interests. ⊚ ⊚

true false

2) Managers who fail to treat workers with respect or companies that view workers only as costs invite collective action by employees to remedy these conditions. ⊚ ⊚

true false

3) Women and minority-group members, who are expected to continue entering the workforce at a high rate, tend to favor unions. ⊚ ⊚

true false

4) The very nature of high-tech industry in the United States promotes organizing efforts by unions. ⊚ ⊚

true false

5) Economic and working conditions in unionized firms directly affect those in nonunionized firms, as managers strive to provide competitive working conditions for their employees. ⊚ ⊚

true false

6) Even under union bargaining pressures, wages are now far more responsive to customer feedback at the industry and firm levels than they traditionally have been.

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⊚ ⊚

true false

7) Multiple unions may represent different groups of employees who work for the same employer. ⊚ ⊚

true false

8) The Wagner Act of 1935 affirmed the right of all employees to engage in union activities without interference or coercion from management. ⊚ ⊚

true false

9) A free-speech clause in the Taft-Hartley Act of 1947 specifies that management has the right to express its opinion about unions to employees, provided it does not threaten or promise favors to employees to obtain anti-union actions. ⊚ ⊚

true false

10) The Taft-Hartley Act of 1947 permits states to enact right-to-work laws under which employees represented by a union should be compelled to join the union and to pay dues as a condition of continued employment. ⊚ ⊚

true false

11) The Taft-Hartley Act covers most nonmanagerial employees, including railroad and airline employees. ⊚ ⊚

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12) The group of employees eligible to vote in a representation election is called the bargaining unit. ⊚ ⊚

13)

true false

The larger the bargaining unit, the less difficult it is for the union to win. ⊚ ⊚

true false

14) The size of a bargaining unit is of least concern to both the union and the employer because it is not related to the outcome of the representation election. ⊚ ⊚

true false

15) If the National Labor Relations Board (NLRB) finds that either party engaged in unfair labor practices during an election campaign, the election results still stand but a thorough investigation is conducted and either side might be fined. ⊚ ⊚

true false

16) After a representation election is held, regardless of the outcome, no further elections can be held in that bargaining unit for one year. ⊚ ⊚

true false

17) If a representation election results in union certification, under federal law, a union has 24 months as an exclusive representative to reach a contract for the newly organized workers. ⊚ ⊚

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18) According to one study, online negotiators were more satisfied with their outcomes and more confident in the quality of their performance because of the absence of differences in the quality of economic outcomes relative to face-to-face negotiations. ⊚ ⊚

true false

19) A work stoppage by employees must be the result of a secret-ballot election and not in violation of an existing agreement between management and the union. ⊚ ⊚

true false

20) Strikers engaged in activities protected by law may not be discharged, but they may be replaced during a strike. ⊚ ⊚

true false

21) Strikers engaged in activities that are not protected by law must still be rehired after the strike. ⊚ ⊚

true false

22) During a strike, management is not allowed to promise benefits to strikers in an attempt to end the strike or to undermine the union. ⊚ ⊚

true false

23) The most important human aspect at the end of a strike is the restoration of harmonious working relations as soon as possible, so that full operations can resume. ⊚ ⊚

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24) During a strike, management is allowed to discharge non-strikers who refuse to take over a striker's job. ⊚ ⊚

true false

25) In a fact-finding procedure, each party submits whatever information it believes is relevant to a resolution of the dispute and then the union president makes a study of the evidence and prepares a report on the facts. ⊚ ⊚

true false

26) Typical grievance rates in unionized employers are about 10 grievances per 100 employees per year. ⊚ ⊚

true false

27) The job performance of grievance filers in organizations is likely to be lower after they learn the outcome of their grievances. ⊚ ⊚

true false

28) Generally, an arbitration award cannot be appealed in court simply because one party believes the arbitrator made a mistake in interpreting an agreement. ⊚ ⊚

true false

29) Courts have held that arbitrator awards are extensions of labor contracts, and court deference is the rule.

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⊚ ⊚

30)

true false

Throughout the world, union membership is highest in Spain and France. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) Many of the fastest-growing unions in the United States represent ________.

A) white-collar professionals B) blue-collar workers C) immigrants D) women

32) Fundamentally, labor-management relations are about ________—who has it and how they use it.

A) motivation B) money C) power D) political authority

33) Management's objective is to get labor costs per unit of output to a point below that of the ________.

A) national average B) competition C) previous year D) projected company goal

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34) Distinctive features of the U.S. industrial relations system compared with those of other countries include ________.

A) exclusive representation B) relatively high union dues and large union staffs C) decentralized collective bargaining D) All of these choices are correct.

35) Which of the following statements is true of direct comparisons among industrial relations (IR) systems around the world?

A) The objectives of the bargaining process are similar in different countries.

B) No industrial relations system can be understood without an appreciation of its historical origins.

C) Concepts are interpreted similarly even in different industrial relations contexts.

D) The traditional view among IR systems is that the role of government is to establish labor standards.

36)

Which of the following statements is true about mediation?

A) Disputants see mediation process as unfair, which accounts for a low settlement rate.

B) The neutral third party acts as a judge to decide the resolution of the dispute.

C) Mediation involves opening communication and making procedural suggestions.

D) Mediators have unlimited power in aiding the parties in dispute to reach a settlement.

37)

Which of the following statements is true about interest arbitration?

A) It is employed mainly in the private sector.

B) It is similar to mediation and fact-finding.

C) It has increased the probability of strikes.

D) It is controversial as settlements are imposed.

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38) An employee requests that union dues be deducted from his or her pay and be sent directly to the union. Identify the formof union security illustrated in this scenario?

A) checkoff B) union shop C) closed shop D) maintenance of membership

39) Which act created the National Labor Relations Board to supervise representation elections and to investigate charges of unfair labor practices by management?

A) the Norris-LaGuardia Act B) the Wagner Act C) the Civil Service Reform Act D) the Fair Labor Standards Act

40)

Which of the following statements is true of the Landrum Griffin Act of 1959?

A) It authorized unions to negotiate "hot cargo" agreements with the management.

B) It stated that unions should include featherbedding provisions in labor contracts that require employers to pay for services that are not performed.

C) It included the secondary boycott as an unfair labor practice.

D) It allowed unions to coerce employees who do not want to participate in union activities to ensure maximum participation.

41)

Federal-government employees are covered by the ________.

A) Civil Service Reform Act B) Taft-Hartley Act C) Railway Labor Act D) Landrum Griffin Act

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42) Which of the following statements is not a way in which an organizing campaign is kicked off?

A) Employees themselves begin it.

B) National and international unions contact employees in organizations that have been targeted for organizing.

C) Management steps in and provides relevant information to the employees.

D) Employees request that a union begin one for them.

43) Whenever an organizing drive begins, employees are asked to sign ________ that designate the union as the employees' exclusive representation in bargaining with management.

A) union letters of intent B) liability waivers C) exclusive contracts D) authorization cards

44) Which of the following statements is true of the Employee Free Choice Act regarding unions and employees?

A) It was passed by Congress in 1999.

B) It makes card-check recognition of a union by the management voluntary.

C) It proposes to bypass a secret-ballot election.

D) It permits union leaders to solicit fellow employees to sign authorization cards during working time.

45) The group of employees eligible to vote in a representation election is termed a(n) ________.

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A) community of interest B) bargaining unit C) agency shop D) general union

46) The National Labor Relations Board (NLRB) defines a bargaining unit that reflects the shared interests of the employees involved using a concept called ________.

A) arbitration B) collective-bargaining agreement C) agency shop D) community of interest

47) Under the ________, professional employees cannot be forced into a bargaining unit with nonprofessionals without their majority consent.

A) Norris-LaGuardia Act B) Civil Service Reform Act C) Taft-Hartley Act D) Fair Labor Standards Act

48) The ________ of a bargaining unit is critical for both the union and the employer because it is strongly related to the outcome of the representation election.

A) size B) location C) ethnic diversity D) professional to nonprofessional ratio

49)

Which of the following practices by management is not prohibited by law?

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A) physical interference, threats, or violent behavior toward union organizers B) using company time and premises to stress the disadvantages of unionization C) discipline or discharge of employees for pro-union activities D) interference with employees involved with an organizing drive

50)

Which of the following actions is management prohibited by law from participating in?

A) physical interference B) disciplining employees for pro-union activities C) promises to provide future benefits D) All of these choices are correct.

51) Under federal law, how much time does a union have after the representation election as an exclusive representative to reach a contract for the newly organized workers?

A) 6 months B) 3 months C) 18 months D) 12 months

52)

Why do unions often insist on multiyear contracts?

A) because decertification is most likely to occur the first year or so after certification B) because many young workers are highly mobile C) because their organizational objectives are more pragmatic than management's goals D) because the very existence of management is strongly related to the outcome of their representation election

53) In win-lose, or ________, the goals of the parties initially are irreconcilable, or at least they appear that way.

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A) soft bargaining B) integrative bargaining C) distributive bargaining D) principled negotiation

54) Which of the following statements is true of integrative bargaining between management and unions?

A) The goals of the parties are not mutually exclusive.

B) The goals of the parties initially are irreconcilable.

C) One party's gain is necessarily at the other party's expense.

D) If one side pursues its goals, this prohibits the other side from achieving its own goals.

55)

Which of the following statements is true of effective integrative bargaining?

A) It involves first identifying, then solving, problems.

B) Negotiators typically find it valuable to overstate demands.

C) It involves withholding of valuable information from the parties.

D) Negotiators typically project a stern, tough image.

56) The Japanese value ________ and tend to resolve conflict by emphasizing status differences between the parties.

A) multitasking B) egalitarianism C) collectivism D) explicit contracting

57) When ________ fail, the union may strike, management may shut down operations, or both parties may appeal for third-party involvement.

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A) secret-ballot elections B) decertification initiatives C) secondary boycotts D) contract negotiations

58)

Which of the following rights is protected by the Landrum Griffin Act?

A) the right of employees to strike in support of their bargaining demands B) the right of employees for work stoppage in violation of an existing agreement between management and a union C) the right of management to discharge strikers engaged in activities protected by law D) the right of strikers engaged in activities that are not protected by law to be rehired after the strike

59) Employees engaged in this type of strike are afforded the highest degree of protection, and under most circumstances they are entitled to reinstatement after the strike ends.

A) sit-down strike B) unfair labor practice strike C) sympathy strike D) wildcat strike

60) Actions by a union of withdrawing its labor in support of bargaining demands, including those for recognition or organization, are ________.

A) unfair labor practice strikes B) unprotected strikes C) sympathy strikes D) economic strikes

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61) ________ include work stoppages, both lawful and unlawful, such as sit-down strikes, strikes in violation of federal laws, slowdowns, wildcat strikes that occur while a contract is in force, and partial walkouts.

A) Unprotected strikes B) Unfair labor practice strikes C) Sympathy strikes D) Economic strikes

62)

Which of the following statements is true of economic strikes?

A) They are a new tactic among nonunion employees, often backed by organized labor.

B) They are conducted for giving support to other workers on strike.

C) Economic strikers have limited rights to reinstatement.

D) Employees engaged in economic strikes are afforded the highest degree of protection under federal law.

63)

A ________ occurs when parties are unable to move further toward settlement.

A) bargaining impasse B) lockout C) mediation D) grievance

64)

Which of the following statements is true of lockouts in organizations?

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A) Employees engaged in lockouts are afforded the highest degree of protection under federal law.

B) They are legitimate employer tactics to decrease union power in situations where a lockout is done to avoid economic loss.

C) The use of permanent replacements (without first consulting the union) is permissible after lockouts, according to the National Labor Relations Board.

D) They involve a neutral third party that attempts to help the parties in dispute to reach a settlement of the issues that divide them.

65)

Which of the following is a rule of conduct during a strike?

A) The right to pass freely in and out is denied to people working in the companies.

B) A door, passageway, driveway, or other entrance or exit can be blocked by pickets.

C) The right to talk to people going in or out is denied to union officials.

D) State law or local ordinance may regulate the use of sound trucks.

66) In a(n) ________, employees need not join the union that represents them, but, in lieu of dues, they must pay a service charge for representation.

A) union shop B) preferential shop C) agency shop D) closed shop

67) Which of the following acts enables states to enact right-to-work laws that prohibit compulsory union membership (after a probationary period) as a condition of continued employment?

A) the Landrum Griffin Act of 1959 B) the National Labor Relations Act of 1935 C) the Civil Service Reform Act of 1978 D) the Taft-Hartley Act of 1947

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68) The role of the line manager in grievance procedures is to know and understand ________, as well as federal and state labor laws.

A) the collective-bargaining contract B) the personality of the accusing worker C) company policy D) local labor laws

69) Which of the following statements is true of the grievance arbitration stage of the grievance process used by management and labor?

A) Labors are allowed to file prehearing briefs and the lists of witnesses to be called, while the management is not allowed to file prehearing briefs.

B) It is used to ensure labor peace for the duration of a labor contract.

C) Arbitrators are bound by the formal rules of evidence, as they would be in a court of law.

D) The first step of grievance arbitration is the enforcement of an arbitrator award.

70) ________ is a situation in which employers seek to avoid unionization by offering workers the wages, benefits, and working conditions that rival unionized firms do.

A) Bargaining savoir faire B) Equitable arbitration C) Spillover effect D) Matched cause

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) What are the reasons for employees joining unions?

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72)

List the fundamental features of the U.S. industrial relations system.

73) What are the unfair labor practice provisions of the Taft-Hartley Act of 1947? Be sure to specify which apply to unions and which apply to management.

74)

What are the types of strikes conducted by unions and employees?

75) What are the major sections of a typical collective-bargaining agreement in the United States?

76) In recent years, unions in the United States have lost power as a result of six interrelated factors. Name any three.

77) The Taft-Hartley Act covers most private-sector employers and nonmanagerial employees, except railroad and airline employees. Why?

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78)

What are the four illegal management activities that TIPS stands for?

79)

What are the two postures assumed by the parties involved in bargaining?

80)

What is the essence of a labor union?

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Answer Key Test name: chapter 13 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) FALSE 11) FALSE 12) TRUE 13) FALSE 14) FALSE 15) FALSE 16) TRUE 17) FALSE 18) FALSE 19) FALSE 20) TRUE 21) FALSE 22) TRUE 23) TRUE 24) FALSE 25) FALSE 26) TRUE Version 1

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27) TRUE 28) TRUE 29) TRUE 30) FALSE 31) A 32) C 33) B 34) D 35) B 36) C 37) D 38) A 39) B 40) C 41) A 42) C 43) D 44) C 45) B 46) D 47) C 48) A 49) B 50) D 51) D 52) A 53) C 54) A 55) A 56) C Version 1

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57) D 58) A 59) B 60) D 61) A 62) C 63) A 64) B 65) D 66) C 67) D 68) A 69) B 70) C

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71) Labor union is a group of workers who join together to influence the nature of their employment. Perhaps they are seeking improved wages and benefits, protection against arbitrary treatment and discharge, or a greater voice in workplace decision making. Expected economic gains alone do not influence the attitudes of workers toward unions; much deeper values are at stake. As one union leader recently noted, "Our union has never seen itself as just a collective-bargaining agent, but as an agent for social change." Indeed, if one talks to any worker long enough, and candidly enough, one discovers that his loyalty to the union is not simply economic. One may even be able to show him that, on a strictly cost-benefit analysis, measuring income lost from strikes, and jobs lost as a result of contract terms, the cumulative economic benefits are delusions. It will not matter. In the end, he will tell you, the union is the only institution that ensures and protects his "dignity" as a worker, that prevents him from losing his personal identity, and from being transformed into an infinitesimal unit in one huge and abstract "factor of production." Managers who fail to treat workers with respect, or companies that view workers only as costs to be cut rather than as assets to be developed, invite collective action by employees to remedy these conditions. In 2019, a Gallup poll found that 64 percent of Americans approve of labor unions. The favorability ratings exceeded 60 percent for the third year in a row. However, unions are not without sin either, and workers will vote against them to the extent that the unions are seen as unsympathetic to a company's need to remain viable, or if they feel unions have fat-cat leaders who selfishly promote their own interests at the expense of the members' interests or abuse their power by calling strikes.

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72) Six distinctive features of the U.S. industrial relations system, compared with those in other countries, are as follows: 1. Exclusive representation. Only one union in a given job territory (exclusive representation), selected by majority vote. 2. Collective agreements that embody a sharp distinction between negotiation of and interpretation of an agreement. Most agreements are of fixed duration, often 3 or 4 years, and they result from legitimate, overt conflict that is confined to a negotiations period. 3. Decentralized collective bargaining, largely due to the size of the United States, the diversity of its economic activity, and the historic role of product markets in shaping the contours of collective bargaining. 4. Relatively high union dues and large union staffs to negotiate and administer private, decentralized agreements, including grievance arbitration to organize against massive employer opposition and to lobby before legislative and administrative tribunals.

5. Opposition by both large and small employers to union organization, in contrast to countries such as France and Germany. Such opposition has been modified in terms of the constraints placed on management only slightly by more than 85 years of legislation. 6. The role of government in the U.S. industrial relations system, as compared with other systems, such as those of Mexico and Australia. The U.S. government has been relatively passive in dispute resolution and highly legalistic, both in administrative procedures and in the courts.

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73) The unfair labor practices for management and unions under the Taft-Hartley Act of 1947 are as follows: Management: 1. Interference with, coercion of, or restraint of employees in their right to organize. 2.

Domination of, interference with, or illegal assistance of a labor organization. 3. Discrimination in employment because of union activities. 4. Discrimination because an employee has filed charges or given testimony under the act. 5. Refusal to bargain in good faith. 6.

"Hot cargo" agreements: refusals to handle another employer's products because of that employer's relationship with the union. Union: 1.

Restraint or coercion of employees who do not want to participate in union activities. 2. Any attempt to influence an employer to discriminate against an employee. 3. Refusal to bargain in good faith. 4. Excessive, discriminatory membership fees. 5. Make-work or featherbedding provisions in labor contracts that require employers to pay for services that are not performed. 6. Use of pickets to force an organization to bargain with a union, when the organization already has a lawfully recognized union. 7. "Hot cargo" agreements: that is, refusals to handle, use, sell, transport, or otherwise deal in another employer's products.

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74) The major types of strikes conducted by unions and employees are as follows: 1. Unfair Labor Practice Strikes: Unfair labor practices of an employer cause or prolong unfair labor practice strikes. Employees engaged in this type of strike are afforded the highest degree of protection under the act, and under most circumstances they are entitled to reinstatement once the strike ends. Management must exercise great caution in handling unfair labor practice strikes because the NLRB will become involved and company liability can be substantial. 2. Economic Strikes: Actions by a union of withdrawing its labor in support of bargaining demands, including those for recognition or organization, are economic strikes. Economic strikers have limited rights to reinstatement.

3. Unprotected Strikes: These include all remaining types of work stoppages, both lawful and unlawful, such as sit-down strikes, strikes in violation of federal laws, slowdowns, wildcat strikes that occur while a contract is in force, and partial walkouts. Participants in unprotected strikes may be discharged by their employers. 4. Sympathy Strikes: Strikes in support of other workers on strike are sympathy strikes.

Although the NLRB and the courts have recognized the right of the sympathy striker to stand in the shoes of the primary striker, the facts of any particular situation ultimately will determine the legal status of a sympathy strike. 5. Intermittent Strikes: Intermittent strikes occur when workers walk out for a relatively short time (e.g., an 8-hour shift), then return to work, with the intention of striking again later.

75) Compensation, employment policies and procedures, employee rights and responsibilities, employer rights and responsibilities, union rights and responsibilities, and dispute resolution and ongoing decision making

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76) The six interrelated factors because of which unions in the United States have lost power are as follows: 1) global competition, 2) nonunion domestic competition, 3) deregulation, 4) the growth of service industries, 5) corporate downsizing, and 6) the willingness of firms to move operations overseas.

77) Railroad and airline employees are covered under the Railway Labor Act of 1926.

78) Threaten, interrogate, promise, or spy 79) In general, there are two postures that the parties involved in bargaining might assume: win-lose and win-win.

80) A labor union is a group of workers who join together to influence the nature of their employment. They may be seeking improved wages and benefits, protection against arbitrary treatment or discharge, or a greater voice in workplace decision making.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Constitutional due-process rights protect individual rights with respect to state, municipal, and federal government processes. ⊚ ⊚

true false

2) Procedural justice focuses on the fairness of the outcomes of decisions rather than on the fairness of the procedures used to make the decisions. ⊚ ⊚

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3) Ethical decisions about behavior concern conformity to moral standards or to the standards of conduct of a given profession or group. ⊚ ⊚

true false

4) Distributive justice in legal proceedings provides individuals with rights such as prior notice, prohibited conduct, timely procedures, etc. ⊚ ⊚

true false

5) Evidence indicates that layoff survivors who were provided explanations for the layoffs, or who received advance notice of them, had more positive reactions to layoffs and higher commitment to the organization. ⊚ ⊚

true false

6) A skip-level policy prevents an employee from skipping levels of authority to resolve his or her issues. ⊚ ⊚

true false

7) A fair alternative dispute resolution (ADR) program is characterized by neutrality and confidentiality? ⊚ ⊚

true false

8) Organizational support includes all the practices that implement the philosophy and policy of an organization with respect to employment. ⊚ ⊚

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9) An ombudsperson is a neutral facilitator between employees and managers who assists them in resolving workplace disputes. ⊚ ⊚

10)

true false

An ombudsperson is much more of a fact-finder than a mediator. ⊚ ⊚

true false

11) People in individualistic cultures such as the United States prefer to have higher levels of control over the processes used to make decisions in conflicts than do people in more collectivistic cultures, such as Ecuador. ⊚ ⊚

true false

12) According to the fiduciary duty of loyalty, individuals in groups look to others to learn appropriate behaviors and attitudes. ⊚ ⊚

13)

true false

Open-door policy is the simplest form of nonunion grievance procedures. ⊚ ⊚

true false

14) Noncompete agreements are most common in such highly competitive industries as computers, pharmaceuticals, toys, biotechnology, and electronics. ⊚ ⊚

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15) According to the red-hot-stove rule, discipline should be immediate, with warning, consistent, and impersonal. ⊚ ⊚

true false

16) Employment at will refers to an employment relationship where only the employer may terminate employment at any time and for any reason. ⊚ ⊚

true false

17) When a whistle-blower is trustworthy and powerful and the evidence is compelling, whistle-blowing is likely to be effective. ⊚ ⊚

true false

18) The Supreme Court has ruled that even where state law permits, union as well as nonunion employees do not have the right to sue over their dismissals, even if they are covered by a collective-bargaining contract that provides a grievance procedure and remedies. ⊚ ⊚

true false

19) Employees with contracts (bargained collectively or individually) are not at-will employees. ⊚ ⊚

true false

20) A nondisclosure clause bars you from working for a competitor for 6 months up to 5 years.

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⊚ ⊚

true false

21) Whether or not a contract has been signed, executives are still required to maintain all trade secrets with which their employers have entrusted them. ⊚ ⊚

true false

22) The Sarbanes-Oxley Act requires employers of more than 100 workers to grant 60 days' written notice before closing a plant or before laying off more than one-third of a workforce in excess of 150 people. ⊚ ⊚

true false

23) Before deciding to dismiss an employee, managers should conduct a detailed review of all relevant facts, including the employee's side of the story. ⊚ ⊚

24)

The IT department should not be notified of a pending termination. ⊚ ⊚

25)

true false

true false

Noncompete agreements are mandatory in all the states in the United States. ⊚ ⊚

true false

26) At least two-thirds of U.S. companies monitor employees for e-mail infractions, and half have fired employees for those infractions.

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⊚ ⊚

true false

27) Bosses may view employees on video monitors, tap their phones, and rummage through their computer files with or without employee knowledge or consent 24 hours a day. ⊚ ⊚

true false

28) Research indicates that individuals cannot be conditioned to behave unethically, even if they are rewarded for it. ⊚ ⊚

true false

29) The Sarbanes-Oxley Act makes it unlawful to discharge, demote, suspend, threaten, harass, or in any manner discriminate against a whistle-blower. ⊚ ⊚

true false

30) The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act offers incentives for whistle-blowers as well as enhanced anti-retaliation protections. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) ________ refers to the maintenance or administration of what is just, especially by the impartial adjustment of conflicting claims or the assignment of merited rewards or punishments.

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A) Justice B) Prejudice C) Just cause D) Positive discipline

32)

________ focuses on the fairness of the procedures used to make decisions.

A) Proactive behavior B) Distributive justice C) Due process D) Procedural justice

33)

Distributive justice focuses on the fairness of the ________ of decisions.

A) procedures B) outcomes C) content D) responses

34) Joseph is upset about the amount of bonus he received last week. He tells his supervisor that the decision to reduce his bonus amount was unfair because other employees got higher bonuses than he did. Which of the following statements is true about this scenario?

A) Joseph believes he was denied interactional justice.

B) The organization has violated Title VII of the Civil Rights Act of 1964.

C) Joseph believes he was denied distributive justice.

D) The organization gave Joseph informational justice but denied him retributive justice.

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35) James is doing Ryan's work because Ryan is on leave. Even though James is not required to do Ryan's work, James likes helping out his fellow colleagues. This sets him apart from his team members because most of them do not exhibit such behavior. Which of the following statements is true about James?

A) James is exhibiting sportsmanship.

B) James provides interactional justice to his coworkers.

C) James provides informational justice to his coworkers.

D) James is being altruistic.

36) ________ refers to the quality of interpersonal treatment that employees receive in their everyday work.

A) Interactional justice B) Informational justice C) Distributive justice D) Blind justice

37) ________ is expressed in terms of providing explanations or accounts for decisions made.

A) Informational justice B) Distributive justice C) Interactional justice D) Retributive justice

38) Karen is laid off by her employer. Karen asks her employer to give her reasons for the layoff. In this case, Karen is demanding ________.

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A) interactional justice B) informational justice C) retributive justice D) restorative justice

39) A ________ is one whereby an employee may proceed directly to the next higher level of management above his or her supervisor.

A) just cause B) progressive disciplinary policy C) skip-level policy D) choice-of-law provision

40) Kumar is unhappy about the way his supervisor Grey treats him. He directly proceeds to Grey's supervisor and tells him about Grey's discourteous behavior. Which of the following statements is true about this scenario?

A) Kumar is demanding informational justice from his supervisor.

B) Kumar is using an external ombudsperson to resolve his problems.

C) Kumar is using his firm's skip-level policy to find a resolution.

D) Kumar is being denied distributive justice by Grey.

41) Toll-free telephone numbers that employees can use anonymously to report waste, fraud, or abuse are examples of a(n) ________.

A) union intervention B) employee-voice system C) ethical dilemma D) grievance procedure step

42)

Which of the following statements is true aboutgrievance procedures?

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A) They are found in workplaces of 50 or more employees.

B) They play a key role in the promotion of unionization.

C) They impact organizational commitment negatively.

D) They serve the purpose of avoiding expensive lawsuits.

43) A(n) ________ is a neutral facilitator between employees and managers who assists in resolving workplace disputes.

A) peer-review panel B) grievance committee C) ombudsperson D) complaint team

44) Asif and Joseph have a conflict. Their supervisor allows their colleagues to mediate the conflict and make decisions to resolve the conflict. Which of the following statements is true about this scenario?

A) Asif and Joseph's firm lacks an open-door policy to address issues faced by its employees.

B) This is an example of a nonunion arbitration.

C) The supervisor is using a peer-review panel to resolve the conflict.

D) Asif and Joseph are denied interactional justice and informational justice.

45)

Which of the following statements is true about organizational citizenship behaviors?

A) They involve helping workers and are enhanced by procedurally fair treatment.

B) They are involuntary behaviors performed within one’s formal role.

C) They correspond to 15 to 30 percent of outcomes in customer-service settings.

D) They represent as many as 40 percent of the business outcomes.

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46) Which of the following rules should the firing manager follow in a termination interview?

A) emphasizing that the situation is not working B) presenting the situation in an elaborate manner C) involving in debates about past performance D) being compromising but not sympathetic

47) In a unionized firm, the ________ clause of the collective-bargaining agreement typically retains for management the authority to impose reasonable rules for workplace conduct and to discipline employees for just cause.

A) employee relations B) management rights C) implied promises D) organizational support

48) The concept of ________ requires an employer not only to produce persuasive evidence of an employee's liability or negligence but also to provide the employee a fair hearing and to impose a penalty appropriate to the proven offense.

A) the hot-stove rule B) positive discipline C) progressive discipline D) just cause

49) Which theory states that individuals in groups look to others to learn appropriate behaviors and attitudes?

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A) the social learning theory B) the rational choice theory C) the differential association theory D) the labeling theory

50) ________ proceeds from an oral warning to a written warning to a suspension to dismissal.

A) Procedural justice B) Positive discipline C) Progressive discipline D) Due process

51)

Which of the following statements is true about progressive discipline?

A) It does not give employees a second or third chance to change their inappropriate behavior.

B) It excludes warnings.

C) It is the policy of choice for most employers.

D) It does not require any documentation.

52)

According to ________, discipline should be immediate, consistent, and impersonal.

A) distributive justice B) the social learning theory C) the red-hot-stove rule D) due process

53) Generally, disciplinary interviews are held over issues of workplace conduct or ________.

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A) job performance B) collective-bargaining disagreements C) career path possibilities D) organizational policy

54) In the context of disciplinary interviews, the ________ allow a union employee to demand that a union representative be present at an investigatory interview that the employee reasonably believes may result in disciplinary action.

A) Beck rights B) Loudermill rights C) Parrish rights D) Weingarten rights

55) ________ refers to an employment relationship between an employer and an employee under which either party can terminate the relationship without notice for any reason not prohibited by law.

A) A fiduciary duty of loyalty B) Employment at will C) Due process D) An implied promise

56) Rob asks Jerome to commit acts of fraud for him. Jerome refuses to oblige. Rob threatens to fire him because Jerome is an at-will employee. Which of the following would most likely protect Jerome from wrongful termination?

A) the public policy exception B) Jerome's Weingarten rights C) the exception of retaliatory discharge D) the exception of implied promises

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57) A worker being fired for actions ranging from filing a workers' compensation claim to reporting safety violations to government agencies is called ________.

A) unfair dismissal B) red-hot-stove discipline C) retaliatory discharge D) just cause

58) In ________, workers have been fired for refusing to quit smoking, for living with someone without being married, drinking a competitor's product, motorcycling, and engaging in other legal activities outside of work.

A) constructive discharge B) defamation C) invasion of privacy D) lifestyle discrimination

59) An employee, who is 50 years old, was fired from his job because he was living with an employee from a competing firm. In the context of employment at will, this is an example of ________.

A) age grading B) classism C) sexism D) lifestyle discrimination

60)

________ means employees may not be fired for refusing to commit illegal acts.

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A) Public policy exception B) Collective-bargaining agreement C) Noncompete agreement D) Export system

61) A ________ clause prohibits you from recruiting key clients or employees away from your former employer for a year or two.

A) nondisclosure B) payback C) mandatory matching D) nonsolicitation

62) A ________ clause requires that you not take another job until you have repaid your company any expenses incurred in your relocation and recruitment.

A) nondisclosure B) payback C) mandatory matching D) nonsolicitation

63) Veronica was terminated by her employer because she shared confidential information and trade secrets about her employer with other firms during the course of her employment. In this case, Veronica violated the ________.

A) nondisclosure clause B) payback clause C) nonsolicitation clause D) noncompete clause

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64) Harold was terminated by his employers for poor performance. A clause in his employment agreement stated that Harold would be barred from working for a rival firm for a period of 1 year from the date of termination. This clause is an example of a ________.

A) nondisclosure clause B) payback clause C) nonsolicitation clause D) noncompete clause

65) Daren voluntarily left his employer and joined a new firm. A clause in his employment agreement with his previous employer stated that Daren would not be allowed to partner with the key clients or customers of his previous employer for a period of 2 years. This clause is an example of a ________.

A) nondisclosure clause B) payback clause C) nonsolicitation clause D) noncompete clause

66) Whether or not a contract has been signed, executives are still required to maintain all trade secrets with which their employers have entrusted them. This obligation is called a ________.

A) skip-level policy B) fiduciary duty of loyalty C) public policy exception D) retaliatory discharge

67) A(n) ________ designates that the laws of a particular state will be used to interpret a contract.

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A) choice-of-law provision B) employment at will clause C) red-hot-stove rule D) employer protection agreement

68) Which act requires employers of more than 100 workers to grant 60 days' written notice before closing a plant or before laying off more than one-third of a workforce in excess of 150 people?

A) the Employment Discrimination Act B) the Riot Act C) the Federal Employers Liability Act D) the Worker Adjustment and Retraining Notification Act

69) Companies should familiarize all supervisors with company policies and provide a(n) ________ to use when conducting dismissals.

A) copy of the collective-bargaining agreement B) termination checklist C) security guard D) employer protection agreement

70) Situations that have the potential to result in a breach of acceptable behavior are called ________.

A) implied promises B) conscience struggles C) fiduciary duties of loyalty D) ethical dilemmas

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Discuss the components of procedural justice.

72)

What are the functions of voice systems?

73)

What is due process, and what are constitutional due-process rights?

74) What is progressive discipline? Explain the advantages and disadvantages of progressive discipline.

75) Discuss the implications of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

76) List at least two of the four basic requirements for a nonunion grievance procedure to work effectively.

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77)

What are the reasons why managers may avoid imposing discipline?

78)

What are implied promises?

79) Why should a contract state that it reflects the entire agreement of the parties and can only be amended in writing signed by both parties?

80)

Who should typically be present in a termination interview?

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Answer Key Test name: chapter 14 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) TRUE 22) FALSE 23) TRUE 24) FALSE 25) FALSE 26) TRUE Version 1

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27) TRUE 28) FALSE 29) TRUE 30) TRUE 31) A 32) D 33) B 34) C 35) D 36) A 37) A 38) B 39) C 40) C 41) B 42) D 43) C 44) C 45) A 46) A 47) B 48) D 49) A 50) C 51) C 52) C 53) A 54) D 55) B 56) A Version 1

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57) C 58) D 59) D 60) A 61) D 62) B 63) A 64) D 65) C 66) B 67) A 68) D 69) B 70) D

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71) The first component of procedural justice is employee voice, illustrated by organizational policies and rules that provide lots of opportunities for employee to communicate their interests upward.

Interactional justice is the second component. It is the quality of interpersonal treatment that employees receive in their everyday work.

Treating others with dignity and respect is the positive side of interactional justice. Derogatory judgments, deception, invasion of privacy, inconsiderate or abusive actions, public criticism, and coercion represent the negative side of interactional justice. Violating any of these elements of interactional justice leads to decreased perceptions of fair treatment. Evidence indicates that employee perceptions of interactional justice that stem from the quality of their relationships with their supervisors are positively related to their performance, citizenship behaviors directed toward their supervisors, and job satisfaction.

Informational justice is the third component of procedural justice. It is expressed in terms of providing explanations or accounts for decisions made. In the context of layoffs, evidence indicates that layoff survivors who were provided explanations for the layoffs, or who received advance notice of them, had more positive reactions to layoffs and higher commitment to the organization. Survivors had the most negative reactions to layoffs when they identified with the victims and when they perceived the layoffs to be unfair.

72) Voice systems guarantee fair treatment to employees, offer a context in which unfair treatment can be appealed, assist to improve the effectiveness of an organization, and maintain employee loyalty and commitment.

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73) Due process in legal proceedings provides individuals with rights such as the following: prior notice of prohibited conduct; timely procedures adhered to at each step of the procedure; notice of the charges or issues prior to a hearing; impartial judges or hearing officers; representation by counsel; opportunity to confront and to cross-examine adverse witnesses and evidence, as well as to present proof in one's own defense; notice of decision; and protection from retaliation for using a complaint procedure in a legitimate manner. These are constitutional due-process rights. They protect individual rights with respect to state, municipal, and federal government processes. However, they normally do not apply to work situations. Hence, employee rights to due process are based on a collective-bargaining agreement, legislative protections, or procedures provided unilaterally by an employer.

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74) Many firms, both unionized and nonunionized, follow a procedure of progressive discipline that proceeds from an oral warning to a written warning to a suspension to dismissal. If progressive discipline is to be effective, however, employers need to follow four rules. Specifically, the employee needs to (1) know what the problem is, (2) know what he or she must do to fix the problem, (3) have a reasonable period of time to fix the problem, and (4) understand the consequences of inaction. At the same time, there are downsides to progressive discipline. It can be frustrating for managers and employees to tolerate poor behavior and performance while they "wait out" the progressive-discipline process. It is time-consuming and requires proper documentation. By giving employees a second or third chance to change their inappropriate behavior to conform to the company's standards of conduct, such a policy is employee friendly and less susceptible to challenge in litigation than alternative approaches without progressive steps. However, severe issues such as violence, theft, vandalism, and gross insubordination might warrant immediate discharge without the need for progressive discipline.

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75) The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act contains powerful new incentives for whistle-blowers as well as enhanced anti-retaliation protections. The act creates a substantial financial incentive for whistle-blowers who voluntarily report "original information" directly to the Securities and Exchange Commission (SEC) or to the Commodity Futures Trading Commission (CFTC) that leads to successful enforcement and the recovery of more than $1 million in monetary sanctions. Those who qualify may be awarded 10 percent to 30 percent of the collected monetary sanctions, with the specific amount determined by the SEC or CFTC. The SEC will "consider higher percentage awards for whistle-blowers who first report violations through their company's internal compliance programs." Finally, The Dodd-Frank Act amends SOX to lengthen the statute of limitations for a SOX retaliation claim from 90 days to 180 days and to clarify that employees are entitled to have SOX retaliation claims tried before a jury.

76) A nonunion grievance procedure should meet four basic requirements to work effectively. Student answers should include any two of the following four basic requirements: 1) All employees must know about the procedure and understand exactly how it operates. 2) Employees must believe that there will be no reprisals taken against them for using it. 3) Management must respond quickly and thoroughly to all grievances. 4) Employees must be provided with an appeal process.

77) Ignorance of organizational rules, fear of formal grievances, or fear of losing the friendship of employees are some of the reasons why managers avoid imposing discipline.

78) Implied promises are oral promises and implied covenants of goods faith and fair dealing.

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79) Doing so prevents employee claims that the employer made oral promises or agreements that expanded his or her rights.

80) Typically, the employee's direct supervisor and a human resource representative should be present in a termination interview.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) In the United States, the number of workers dying on the job each day has been increasing steadily over the past 10 years. ⊚ ⊚

true false

2) In workplaces in the United States, overexertion and falls are the most common workplace injuries. ⊚ ⊚

true false

3) Public policy has focused on two types of actions: monetary compensation for job-related injuries and preventive measures to enhance job safety and health. ⊚ ⊚

true false

4) The purpose of the Occupational Safety and Health Act is to prevent work-related injuries, illnesses, and deaths. ⊚ ⊚

true false

5) The Occupational Safety and Health Act does not require federal agencies to comply with standards set for private-sector employees.

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⊚ ⊚

true false

6) Every employer has a general duty to provide a place of employment free from recognized hazards. ⊚ ⊚

true false

7) The purpose of Occupational Safety and Health Act's record-keeping requirements is to identify where safety and health problems have been occurring (if at all). ⊚ ⊚

true false

8) At the worksite, inspectors concentrate more on technical infractions than on dangerous hazards. ⊚ ⊚

true false

9) Employees are guaranteed access to Form 300 at their workplaces, and the records must be retained for five years following the calendar year they cover. ⊚ ⊚

true false

10) Since the Occupational Safety and Health Administration is a federally run program, states are not allowed to develop and administer their own programs, even if they are approved by the secretary of labor. ⊚ ⊚

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373

11) In the context of workers' rights to health and safety, the Supreme Court of the United States has ruled that a walkout in protest of dangerous working conditions is legal if objective evidence is presented to support the claim that abnormally dangerous working conditions exist. ⊚ ⊚

true false

12) Because of the expenses required to make adjustments, management's willingness to correct hazards and to improve such vital environmental conditions as ventilation, noise levels, and machine safety is much lower now than it was before the Organizational Health and Safety Act. ⊚ ⊚

true false

13) Studies show that changing the design of jobs and reducing employees' exposure to physical hazards and heavy workloads is the only way to reduce accidents and injuries related to work. ⊚ ⊚

14)

true false

Management controls attempt to eliminate unsafe work conditions. ⊚ ⊚

true false

15) Loss-control programs help employees with substance abuse problems adopt healthy practices to improve their quality of life. ⊚ ⊚

true false

16) If employees see executives disregarding safety rules or treating hazardous situations lightly, they will feel that they, too, have the right to violate the rules.

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⊚ ⊚

true false

17) Safety rules are important refinements of the general safety policies issued by top management. ⊚ ⊚

18)

true false

Regardless of length of service, the older the employee, the higher the accident rate. ⊚ ⊚

true false

19) Accident rates are substantially higher during the first month of employment than in all subsequent time periods, regardless of age. ⊚ ⊚

true false

20) One of the requirements of the Right-to-Know Law is all chemical manufacturers and importers must train all workers to recognize and understand any new elements introduced to labels and safety data sheets. ⊚ ⊚

true false

21) Supervisors need to learn about and look for signs of substance abuse on the job because it relates strongly to the incidence of work injuries. ⊚ ⊚

true false

22) Although feedback and incentives have a positive impact on the motivation of employees to improve productivity, they have little effect on improving safe behavior.

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⊚ ⊚

true false

23) The Supreme Court has ruled that the states can also prosecute company officials under criminal statutes for endangering the health of employees, even if such hazards are also regulated by the Occupational Safety and Health Administration. ⊚ ⊚

true false

24) The U.S. Supreme Court ruled that states cannot prosecute company officials under criminal statutes for endangering the health of employees. ⊚ ⊚

true false

25) Modern employee assistance programs are comprehensive management tools that address behavioral risks in the workplace by extending professional counseling and medical service to all troubled employees. ⊚ ⊚

true false

26) Under an employee assistance program, a supervisor is responsible for recognizing symptoms of alcoholism and assigning behavioral change therapists to alcoholic employees. ⊚ ⊚

27)

true false

Fully half of all auto fatalities involve alcohol. ⊚ ⊚

true false

28) The goals of a disease management program are to reduce episodes of acute illness, avoid repeated hospitalizations, and lower mortality risks.

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⊚ ⊚

true false

29) An employee assistance program can be considered effective when repeated evaluations demonstrate the same findings for different groupsof employees. ⊚ ⊚

true false

30) Employers violate the Americans with Disabilities Act (ADA) if they require employees to submit to wellness initiatives, such as health-risk appraisals and assessments. ⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) More than ________ workers either get sick or are injured because of their jobs each year.

A) 1 million B) 2 million C) 3 million D) 5 million

32)

Which of the following is the most common workplace injury?

A) being hit by an object B) sprains C) strains D) falls

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33) Low-back injuries account for ________ of all workers' compensation claims and cost an average of $24,000, more than twice the average workplace claim.

A) 10 percent B) 15 percent C) 20 percent D) 25 percent

34) In the context of hazards to health in workplaces, efforts by individuals to harm others with whom they work or have worked are defined as ________.

A) workplace aggression B) workplace conflict C) abusive supervision D) deviant behavior

35)

The most dangerous occupations are ________.

A) commercial fishing and logging B) construction and demolition C) manufacturing and sales D) mining and shipping

36) In the context of safety and health problems at workplaces, ________ are classified as illness because of their long-term nature.

A) occupational hazards B) soft tissue injuries C) workplace stressors D) repetitive-strain injuries

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37) Which of the following statements about Occupational Safety and Health Administration is true?

A) It is a three-member board appointed by the President.

B) It is prohibited from evaluating compliance officers on the basis of enforcement activities, such as the number of citations issued or penalties assessed.

C) It reviews the enforcement actions taken by the National Institute for Occupational Safety and Health when they are contested by employers, employees, or unions.

D) It conducts research on the causes and prevention of occupational injury and illness.

38) Which government agency conducts research on the causes and prevention of occupational injury and illness?

A) the National Institute for Occupational Safety and Health B) the Occupational Safety and Health Administration C) the National Center for Health Statistics D) the Center for Disease Control

39)

Identify a true statement about the Occupational Safety and Health Act.

A) The act requires employers to keep a log of work-related injuries and illnesses.

B) The act forbids employees from staging walkouts in protest of unsafe work conditions.

C) The act holds federal agencies to safety standards that are different from those expected of private-sector employers.

D) The act does not apply to businesses that affect interstate commerce.

40) Juan is an employee at an accounting firm. He types many emails and documents on a daily basis and takes notes on important meetings. He starts to experience numbness in his arms and a burning sensation in his fingers. Juan's doctor diagnoses his condition as carpal tunnel syndrome, which he says is a result of Juan typing for several hours a day. In the context of safety and health problems at workplaces, Juan's injury is characteristic of

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A) an indirect work-related injury.

B) a repetitive-strain injury.

C) troublesome workplace behavior.

D) workplace violence.

41) The Occupational Safety and Health Administration assigns top priority to reports of ________.

A) imminent dangers B) employee dissatisfaction C) fatality accidents D) supervisor misconduct

42) Considerable emphasis has been given to the Organizational Safety and Health Administration's role of ________, but not much to its role of consultation.

A) harassment B) enforcement C) inspecting D) retribution

43) Employers can appeal citations, proposed penalties, and corrections they have been ordered to make through multiple levels of the agency, culminating with the

A) Supreme Court.

B) National Institute for Occupational Safety and Health.

C) Occupational Safety and Health Review Commission.

D) Safety and Health Workers' Compensation Review Board.

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44) Although the Occupational Safety and Health Administration is a federally run program, the act allows states to develop and administer their own programs if they are approved by the ________.

A) secretary of labor B) secretary of commerce C) President D) executive branch

45) In the context of organizational safety and health programs, management's implementation and sustaining of safety policies is performed through a(n) ________.

A) management control program B) employee assistance program C) engineering control program D) loss-control program

46) Occupational Safety and Health Administration (OSHA) standards govern potentially unsafe ________ that employees may be exposed to but not potentially unsafe employee behaviors.

A) work conditions B) management practices C) home settings D) contractor behaviors

47)

Which of the following would not be considered an indirect cost of an accident?

A) cost of wages paid for time lost B) cost of workers' compensation C) cost of overtime work by others required by the accident D) cost of damage to material or equipment

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48) Lisa, a manager at a chemical manufacturing firm, wants to improve workplace safety.

She has protective meshes installed over all large chemical vats so that workers cannot fall into them. She also improves the chemical bottling process to make it impossible for an employee to become injured by accidental leakages. In this scenario, Lisa's efforts to reduce the number and severity of workplace accidents are characteristics of ________.

A) engineering controls B) loss-control programs C) management controls D) employee assistance programs

49) The managers at a manufacturing firm decide to implement a program that improves workplace safety. They formulate a safety policy and set a safety budget to implement it. They train supervisors to maintain accurate safety records. They also train employees on new behaviors to improve workplace safety. In this scenario, the actions taken by the managers are characteristics of a(n) ________.

A) loss-control program B) employee assistance program C) employee wellness program D) action program

50) ________ are programs that offer professional counseling, medical services, and rehabilitation opportunities to all troubled employees.

A) Employee assistance programs B) Workers' compensation programs C) Pre-employment training programs D) Loss-control programs

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51) Luke is a manager at a foundry. To improve safety in the workplace, he introduces new behaviors for employees. These new practices forbid employees from being within 20 feet of an active furnace. In the context of organizational safety and health programs, Luke's introduction of new safety behaviors for employees is characteristic of ________.

A) engineering controls B) management controls C) wellness programs D) employee assistance programs

52) In the context of organizational safety and health programs, ________ attempt to eliminate or reduce the number and severity of workplace accidents by increasing safe worker behaviors.

A) engineering controls B) management controls C) employee assistance programs D) wellness programs

53)

Which of the following are the most common types of workplace violence?

A) homicides B) emotional harm C) damage to company resources D) bullying and intimidation

54) Occupational Safety and Health Administration (OSHA) standards require that employers furnish and employees use ________ where there is a reasonable probability that injuries can be prevented by such use.

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A) adequate break areas B) suitable protective equipment C) online safety training courses D) OSHA guidelines

55) One large-scale study found that workers over age ________ are a third less likely than their younger colleagues to be injured at work seriously enough to lose work time.

A) 25 B) 35 C) 55 D) 65

56) Notification rules come under the Organizational Safety and Health Administration's hazard-communication standard, also known as the ________.

A) Right-to-Know Law B) Right-to-Disclosure Law C) Exposure Disclosure Law D) Need-to-Know Law

57) ________ inform employees of the ingredients and hazards of dangerous materials, safe handling, use and storage, and the first-aid steps to take in the event of exposure.

A) Right-to-Know laws B) Safety Data Sheets C) Loss-control programs D) Employee assistance programs

58) About 11 percent of the total health-care cost of the United States is directly related to ________.

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A) substance abuse B) industrial accidents C) marital and family stress D) inadequate physical activity

59)

Which of the following statements is true about drug users?

A) They are usually at the top level in an organization.

B) They are four times more likely to be engaged in a workplace accident.

C) They are more in number in manufacturing plants.

D) They reach work early and leave late when compared to fellow employees.

60)

Which of the following is the fifth element in health promotion process?

A) teaching employees about health-risk factors B) recognizing the health-risk factors that employees face C) assisting employees eliminate or reduce health risks D) leading by example, middle managers in particular

61) In the context of wellness programs, which of the following is a key element in achieving positive cost outcomes?

A) having the ability to reduce risks for high-risk employees B) using a variety of program offerings to obtain results C) using different methods to measure and report costs and benefits D) considering when and how long the program effects are measured

62) From a handful of programs begun in the 1940s, today ________ percent of companies offer employee assistance programs.

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A) 90 B) 80 C) 75 D) 65

63) According to studies on wellness programs, which of the following is key for effectively implementing follow-up programs for employees with substance abuse problems?

A) mechanisms in place to monitor and reinforce the recovery process B) reduced responsibilities for rehabilitated employees C) loss-control programs to account for reduced employee productivity D) financial incentives to encourage employees to adhere to follow-up programs

64) In the context of corporate health promotion, identify one of the key actions required for the success of disease management programs.

A) delivering intensive follow-up to reinforce compliance to such programs B) financial disincentives to discourage relapse of problematic behaviors C) external monitoring to track at-risk employees' progress toward healthier lifestyles D) repeated mandatory health-risk appraisals for employees previously involved in such programs

65) In the context of corporate health promotion, the firing of workers for engaging in legal activities outside of work, such as refusing to quit smoking, is known as ________.

A) willful violation B) lifestyle discrimination C) impulsive quitting D) debarment

66)

About ________ percent of full-time employees have a serious drinking problem.

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A) 2 B) 10 C) 32 D) 45

67)

Which act protects rehabilitated substance abusers from discrimination in employment?

A) the Occupational Safety and Health Act B) the Rehabilitation Act C) the Americans with Disabilities Act D) the National Labor Relations Act

68) In the context of substance abuse, identify a true statement about the Americans with Disabilities Act (ADA).

A) The act permits employers to subject rehabilitated substance abusers to random drug testing.

B) The act does not address the discrimination of rehabilitated substance abusers.

C) Under the act, former substance abusers are held to stricter standards of evaluation than other employees.

D) The act does not protect people who are actively using drugs or abusing alcohol.

69) ________ is a combination of strategies developed to reduce the costs of chronic conditions that require significant changes in behavior.

A) Wellness initiative B) Health administration C) Disease management D) Chronic cost initiative

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70) The objective of ________ is to help employees build lifestyles that will enable them to achieve their full physical and mental potential.

A) loss-control programs B) disease management C) employee assistance programs D) wellness programs

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

71) Describe the three government agencies established to administer and enforce the Occupational Safety and Health Act.

72)

Discuss the impact of the Occupational Safety and Health Administration (OSHA).

73) What are some of the steps that a leader can take in a time of crisis such as coronavirus pandemic?

74)

Write a short note on employee assistance programs.

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75)

What are the focus areas of safety training?

76)

What is the purpose of the Occupational Safety and Health Act?

77)

Identify three indirect costs of accidents in workplaces.

78) In the context of organizational safety, identify the two broad causes of accidents at workplaces.

79)

What are the four components of a loss-control program?

80)

Give at least two reasons why safety rules may not be obeyed.

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Answer Key Test name: chapter 15 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) FALSE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE 21) TRUE 22) FALSE 23) TRUE 24) FALSE 25) TRUE 26) FALSE Version 1

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27) TRUE 28) TRUE 29) TRUE 30) TRUE 31) C 32) D 33) C 34) A 35) A 36) D 37) B 38) A 39) A 40) B 41) A 42) B 43) C 44) A 45) D 46) A 47) B 48) A 49) A 50) A 51) B 52) B 53) D 54) B 55) C 56) A Version 1

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57) B 58) D 59) B 60) D 61) A 62) B 63) A 64) A 65) B 66) B 67) C 68) D 69) C 70) D

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71) The 1970 act established three government agencies to administer and enforce the law: 1. The Occupational Safety and Health Administration (OSHA) to establish and enforce the necessary safety and health standards. However, OSHA is prohibited by law from evaluating compliance officers and their supervisors on the basis of enforcement activities, such as the number of citations issued or penalties assessed. Today, the OSHA emphasizes three overarching goals: strong, fair, and effective enforcement; outreach, education, and compliance assistance; and partnerships and cooperative programs. 2.

The Occupational Safety and Health Review Commission (a threemember board appointed by the president) to rule on the appropriateness of the OSHA's enforcement actions when they are contested by employers, employees, or unions. 3. The National Institute for Occupational Safety and Health (NIOSH) to conduct research on the causes and prevention of occupational injury and illness, to recommend new standards (based on this research) to the secretary of labor, and to develop educational programs.

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72) From its inception, the Occupational Safety and Health Administration's effectiveness in improving workplace safety and health has been questioned by the very firms it regulates. Employers complain of excessively detailed and costly regulations that, they believe, ignore workplace realities. However, even critics acknowledge that the agency has made the workplace safer. Since its inception in 1971, OSHA has helped cut workplace fatalities by two-thirds and occupational injury and illness rates by more than 74 percent. At the same time, U.S. employment has more than doubled. Despite such encouraging results, some employers try to improve their competitiveness at the expense of safety. Management's willingness to correct hazards and to improve such vital environmental conditions as ventilation, noise levels, and machine safety is much greater now than it was before OSHA. Moreover, because of OSHA and the National Institute for Occupational Safety and Health, we now know far more about such dangerous substances as vinyl chloride, PCBs, silica, asbestos, cotton dust, and a host of other carcinogens. As a result, management has taken at least the initial actions needed to protect workers from them. Finally, any analysis of the OSHA's impact must consider the fundamental issue of the causes of workplace accidents. OSHA standards govern potentially unsafe work conditions that employees may be exposed to. There are no standards that govern potentially unsafe employee behaviors. And while employers may be penalized for failure to comply with safety and health standards, employees are subject to no such threat. Empirical studies that control for other influences that cause worker safety to improve over time, such as changes in the industrial mix of workers, improvements in safety technology, and expanded use of employer incentives to improve safety, generally have found that OSHA’s impact on safety has been modest. Additional reductions in on-the-job accidents will require behavioral rather than technical modifications.

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73) During crisis, leaders need to 1. Recognize the biggest challenge, which is uncertainty.

2. Develop an overall strategy, which involves having a plan and giving hope.

3. Prepare a plan.

4. Acknowledge employee communication as a crucial part of the plan.

5. Suggest tips about how to work remotely.

6. Exhibit self-awareness and self-control 7. Realize that managers need help too.

8. Make time to keep things light.

9. Involve employees in building new, efficient strategies and work culture that works best for all.

74) Employee assistance programs (EAPs) represent an expansion of traditional work in occupational alcoholism-treatment programs. From a handful of programs begun in the 1940s (led by DuPont), EAPs have become a core benefit today, with almost 80 percent of companies offering them. By its very title, "employee assistance program" signals a change both in application and in technique from the traditional occupational alcoholism-treatment program. Modern EAPs are comprehensive management tools that address behavioral risks in the workplace by extending professional counseling and medical services to all "troubled" employees. A troubled employee is an individual who is confronted by unresolved personal or work-related problems. Such problems run the gamut from alcoholism, drug abuse, and high stress to marital, family, and financial problems. Although some of these may originate outside the work context, they most certainly will have spillover effects to the work context.

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75) To produce utmost benefits, safety training should concentrate on using personal protective equipment, following safe practices to reduce risk, communicating health and safety information, and worker involvement in the training. Not all employees are English speakers, hence, the OSHA’s Training Standards Policy Statement entails employers to provide training in a language and vocabulary that employees can understand.

76) To prevent work-related injuries, illnesses, and deaths 77) Select any three of the following: 1) Cost of wages paid for time lost, 2) Cost of damage to material or equipment, 3) Cost of overtime work by others required by the accident, 4) Cost of wages paid to supervisors while their time is required for activities resulting from the accident, 5) Costs of decreased output of the injured worker after she or he returns to work, 6) Costs associated with the time it takes for a new worker to learn the job, 7) Uninsured medical costs borne by the company, 8) Cost of time spent by higher management and clerical workers to investigate or to process workers' compensation forms 78) 1) unsafe work conditions and 2) unsafe work behaviors 79) A safety budget, safety records, management's personal concern, and management's good example 80) Select any two of the following: 1) they are not being enforced, 2) flaws in the employee selection practices, 3) inadequate training, 4) there is simply no incentive for doing so

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Several factors that affect the backlash against globalization include growing job insecurity, the difficulty managing global supply chains, and localization requirements.

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⊚ ⊚

true false

2) A foreign-service employee is an expatriate who has transferred to an additional country while working abroad. ⊚ ⊚

3)

true false

Home country is the country in which an expatriate is working. ⊚ ⊚

true false

4) A third-country national is an expatriate who is transferred to an additional country while working abroad. ⊚ ⊚

true false

5) Rather than accepting differences as legitimate, managers with a cosmopolitan perspective view and measure alien cultures in terms of their own. ⊚ ⊚

6)

true false

Knowledge of food and eating habits often provides insights into customs and cultures. ⊚ ⊚

true false

7) In the United States, the most important issues are generally discussed first when making a business deal. ⊚ ⊚ Version 1

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8) In cultures where a religious view of work still prevails, work is viewed as a necessary evil and is expressed in a moral commitment to the job or quality of effort. ⊚ ⊚

true false

9) Practices that are not consistent with the dominant values of a culture are less likely to have positive effects on employees' performance and behavior. ⊚ ⊚

10)

true false

Power distance reflects the extent to which people emphasize personal or group goals. ⊚ ⊚

true false

11) Managers who bear responsibility for international operations need to understand the cultural differences inherent in the management systems of countries in which their firms do business. ⊚ ⊚

true false

12) Evidence indicates that U.S.-based multinationals actually do not perform better when they have CEOs with international-assignment experience. ⊚ ⊚

true false

13) Organizational structure directly affects all human resource (HR) functions from recruitment through retirement because to be effective, HR management must be integrated into the overall strategy of the organization.

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⊚ ⊚

true false

14) Culture shock is defined as the frustrations, conflict, anxiety, and feelings of alienation experienced by those who enter an unfamiliar culture. ⊚ ⊚

true false

15) One of the first lessons global corporations learn is that it is much more expensive to hire competent host-country nationals (if they are available) than to send their own executives overseas. ⊚ ⊚

true false

16) Culture refers to characteristic ways of doing things and behaving that people in a given country or region have evolved over time. ⊚ ⊚

true false

17) Staffing systems for international assignees are unique because their focus is on predicting success in a specific role (such as bank manager or brand manager) rather than in a given context (a foreign country). ⊚ ⊚

true false

18) Study after study show that adaptability is important for expatriate success, yet nearly 80 percent of firms do not formally assess the adaptability of candidates for international assignments. ⊚ ⊚

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19)

General mental ability may be defined broadly as the ability to adapt to foreign cultures. ⊚ ⊚

true false

20) General mental ability is just as robust a predictor of job performance and training in Europe as it is in the United States. ⊚ ⊚

true false

21) Although agreeableness may be universally positive for forming social relationships, individuals who are too agreeable may be seen as dishonest in some cultures. ⊚ ⊚

true false

22) The Age Discrimination in Employment Act (ADEA), Title VII, and the Americans with Disabilities Act apply to U.S. citizens employed abroad. ⊚ ⊚

true false

23) Female expatriates need training on the norms, values, and traditions that host nationals possess about women and also on how to deal with challenging situations they may face as women. ⊚ ⊚

true false

24) An effective way to train employees to adapt is to expose them to situations like those they will encounter in their assignments that require adaptation. ⊚ ⊚ Version 1

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400

25) The more a firm moves away from the export stage of development, the less rigorous the training should be, including its breadth of content. ⊚ ⊚

true false

26) Compensation policies can produce intense internal conflicts within a company at any stage of globalization. ⊚ ⊚

true false

27) A modified balance-sheet approach ties salary to the home country rather than to a region (Asia-Pacific, Europe, North America). ⊚ ⊚

true false

28) It is common practice for companies to pay for security guards in many overseas locations, such as in Middle Eastern countries, in the Philippines, and in Indonesia. ⊚ ⊚

true false

29) Just as national unions tend to follow the development of national companies, union expansion also typically follows the expansion of a company across national boundaries. ⊚ ⊚

true false

30) Begun in 1994, the North American Free Trade Agreement (NAFTA) eliminated trade barriers on goods and services within the United States, Canada, and Mexico over the next 50 years.

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⊚ ⊚

true false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

31) Which of the following statements is true about efficient-purchaser indexes?

A) They are used to reduce the costs for established expatriates.

B) They assume that a person is completely new to a location.

C) They keep track of overseas assignments that do not work out.

D) They account for 5 to 50 percent of expatriate assignments.

32) ________ have allowed new ideas and technology to flow freely around the globe, accelerating productivity growth and allowing companies to be more competitive than they have been in decades.

A) Corporate websites B) Open borders C) Virtual teams D) International ambassadors

33) In the context of communication and language, which of the following statements is true in many cultures?

A) Providing specific details may be viewed as insulting to one's intelligence.

B) An open person is viewed as strong and trustworthy.

C) Directness is regarded as a warm, friendly behavior.

D) Insisting on a written contract suggests that a person is highly professional.

34) A(n) ________ is a generic term applied to anyone working outside her or his home country with a planned return to that third country.

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A) host B) headquarter C) expatriate D) domestic

35)

________ is the expatriate's country of residence.

A) Domestic B) Headquarter C) Home country D) Host

36)

What is the country where an expatriate is working called?

A) host country B) home country C) third country D) base country

37) Managers with a ________ perspective are sensitive to cultural differences, respect the distinctive practices of others, and make allowances for such factors.

A) bigoted B) cosmopolitan C) superiority D) regional

38)

Increasing general awareness of differences across cultures can help minimize ________.

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A) time to disengage B) cost of referrals C) differences D) culture shock

39) Which of the following is not a broad classification that helps managers assess any culture and examine its people systematically?

A) food and eating habits B) values and norms C) local laws and regulations D) mental processes and learning

40)

Self-identity in ________ emphasizes group cooperation and conformity.

A) Japan B) Australia C) Canada D) the United States

41) life.

To some degree, ________ expresses the philosophy of people about important facets in

A) mental process B) religion C) dress and appearance D) eating habits

42) Europeans pay more attention to ________, which results in more formal management and operating styles in comparison to the informality found in the United States.

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A) wages B) consensus decision-making C) power and status D) short-term results

43)

In terms of work motivation and practices, in the United States,

A) people pay more attention to power and status.

B) managers are encouraged to seek consensus before acting.

C) employees work as teams.

D) individual initiative and achievement are rewarded.

44)

Linear thinking and logic are stressed by ________ cultures.

A) Arabic B) Western C) Oriental D) African

45) The extent to which members of a culture accept inequality in positions is referred to as ________.

A) masculinity-femininity B) individualism C) power distance D) uncertainty avoidance

46)

Which of the following countries is a tight culture?

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A) Malaysia B) Greece C) Israel D) Venezuela

47) ________ is the extent to which a culture programs its members to feel either comfortable or uncomfortable in unstructured situations.

A) Masculinity-femininity B) Individualism C) Power distance D) Uncertainty avoidance

48)

Which of the following statements is true about loose culture?

A) Norms are clear, pervasive, and entail strong punishments.

B) The emphasis is on creativity and openness to change.

C) Examples include South Korea, Norway, and Turkey.

D) The focus is on social order and self-regulation.

49)

Which of the following statements applies to assignment briefing?

A) It involves information on shipping, packing, or storage; home sale or rental; and housing at the new location.

B) It involves introduction to the language, reinforcement of crucial values, and arrival information.

C) It involves information on length of task, salary and allowances, tax consequences, and repatriation policy.

D) It involves information on economy, living conditions, clothing and housing requirements, and visa applications.

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50)

Masculine cultures tend to emphasize ________.

A) centrality of work B) quality of life C) helping others D) relationships

51) Which of the following statements is true about the North American Free Trade Agreement(NAFTA)?

A) NAFTA requires 75 percent of a vehicle’s parts to be made in one of the three countries to remain free from tariffs.

B) NAFTA prohibits Canada and Mexico from forcing U.S. companies to store their data on in-country servers.

C) An interagency committee will monitor implementation of Mexico's labor reforms and compliance with labor obligations.

D) Since NAFTA took effect in 1994, trade among Canada, the United States, and Mexico more than tripled.

52) In terms of scope, international operations, as compared to domestic operations, have all of the following except

A) more HR activities.

B) similar approaches to management.

C) more involvement in employees' personal lives.

D) broader external influences.

53) ________ use geodiversity to great advantage, placing their top executives and core corporate functions in different countries to gain a competitive edge. What makes them different is that even the executive suite is virtual.

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A) International corporations B) Domestic corporations C) Transnational corporations D) Regional corporations

54) In ________, national labor markets can usually supply the skilled technical and professional people needed.

A) developed countries B) developing countries C) second-tier cities D) third-tier cities

55) In the context of the role of cultural understanding in international management practice, identify a true statement about managers who have a local perspective.

A) They believe in the inherent superiority of their own group and culture.

B) They have a sense of appreciation for cultural differences.

C) They accept cultural differences as legitimate.

D) They respect the distinctive practices of others and make allowances for such practices.

56) In the context of the role of cultural understanding in international management practice, identify a true statement about managers who have a cosmopolitan perspective.

A) They are less tentative and more absolute in their interactions with others.

B) They recognize that culture and behavior are relative.

C) They have little appreciation for cultural differences.

D) They tend to look down on groups that are considered "foreign."

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57) In the context of Geert Hofstede's dimensions of cultural variation in values, long-term versus short-term orientation refers to the extent to which

A) members of an organization accept inequality and whether they perceive much distance between those with power and those with little power.

B) a culture programs its members to feel either comfortable or uncomfortable in unstructured situations.

C) a culture programs its members to accept delayed gratification of their material, social, and emotional needs.

D) people emphasize personal or group goals.

58) In the context of the Big Five personality characteristics, ________ refers to the extent to which an individual is creative, curious, and has broad interests.

A) agreeableness B) extroversion C) conscientiousness D) openness

59) In the context of the Big Five personality characteristics, ________ refers to a general work ethic that supervisors look for in their subordinates.

A) conscientiousness B) extroversion C) agreeableness D) openness

60) A strategy that may be appropriate during the early phases of international expansion is known as ________.

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A) geocentrism B) ethnocentrism C) polycentrism D) transnational development

61)

Which of the following is a disadvantage of ethnocentrism?

A) It requires a great deal of centralized control over managers.

B) It is inappropriate during the early phases of international expansion.

C) Cross-cultural adjustment problems of managers and their families.

D) Increased tendencies to impose the management style of the parent company.

62) The recruitment strategy of seeking the best person for the job regardless of nationality is called ________.

A) ethnocentrism B) polycentrism C) geocentrism D) egocentrism

63)

Which of the following is a disadvantage of geocentrism?

A) Consideration of only home- and host-country nationals may result in the exclusion of some very able executives.

B) It requires a great deal of centralized control over managers and their career patterns.

C) If there are many subsidiaries, home-country nationals must recognize that their foreign service may not lead to faster career progress.

D) There are increased tendencies to impose the management style of the parent company.

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64) A major problem in international staffing is that the selection of people for overseas assignments is often based solely on ________ and job knowledge.

A) personality B) motivation C) cultural diversity D) technical competence

65)

________ may be defined broadly as the ability to learn.

A) Adaptability B) General mental ability C) Conscientiousness D) Long-term orientation

66)

All of the following employment laws may apply to U.S. citizens working abroad except

A) Title VII of the Civil Rights Act. B) the Age Discrimination in Employment Act. C) the Equal Pay Act. D) the Uniformed Services Employment and Reemployment Rights Act.

67)

Initial orientation for expatriates includes ________.

A) cultural briefing B) orientation to the job C) orientation toward the work unit D) introduction to the languages

68) The final aspect of overseas orientation, called post-arrival orientation, consists of all of the following except

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A) orientation toward the environment.

B) cultural briefing orientation.

C) orientation toward the work unit and fellow employees.

D) an actual job orientation.

69) In the context of the three types of expatriate compensation plans, which of the following statements is true about localization?

A) It is preferred by expatriates who plan to return to their home countries because there are no long-term tax and retirement-benefit complications.

B) It works well in case of permanent, indefinite, or extremely long transfers of an employee to another country.

C) It aims to ensure that expatriates neither gain nor lose financially compared with their home-country peers.

D) It works well when transferring an employee with extensive home-country experience to a developed country.

70) In the context of the three types of expatriate compensation plans, identify a true statement about local-plus compensation.

A) It works well under certain conditions—for example, when transferring an employee with very limited home-country experience to a developed country.

B) It facilitates mobility among the expatriate staff in the most cost-effective way possible.

C) It is increasingly used for training or developmental assignments, for roles with significant incentive compensation, and for self-initiated assignments.

D) It is an ineffective alternative when employees are coming from lower-wage to higher-wage countries as well as for permanent transfers and localized expatriates.

71) In the context of the three types of expatriate compensation plans, which of the following statements is true about the balance-sheet approach?

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A) It refers to the practice of paying expatriates on the same scale as local nationals in the country of assignment.

B) It works well when transferring an employee with very limited home-country experience to a developed country.

C) It results in long-term tax and retirement-benefit complication that makes it less desirable for expatriates who plan to return to their home countries.

D) It primarily aims to ensure that expatriates neither gain nor lose financially compared with their home-country peers.

72) In the context of the benefits included in an international compensation package, ________ refer to a cash or noncash item that is made mandatory by local law.

A) required benefits B) recommended benefits C) optional benefits D) core benefits

73) In the context of the benefits included in an international compensation package, ________ refer to those benefits that are available wherever cost considerations permit.

A) required benefits B) recommended benefits C) optional benefits D) core benefits

74) In the context of the three types of expatriate compensation plans, which of the following statements is true about local-plus compensation?

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A) It complicates long-term tax and retirement-benefits that make it a less desired alternative.

B) It works well when transferring an employee with very limited home-country experience, such as a recent college graduate, to a developed country.

C) It is commonly used when employees are coming from lower-wage to higher-wage countries as well as for permanent transfers and localized expatriates.

D) It facilitates mobility among the expatriate staff in the most cost-effective way possible.

75) In the context of the three types of expatriate compensation plans, which of the following statements is true about the balance-sheet approach?

A) It localizes expatriates in the host-country salary program.

B) It is the least preferred alternative used by North American multinational organizations to compensate expatriates.

C) It complicates long-term tax and retirement-benefits that make it a less desired alternative.

D) It facilitates mobility among the expatriate staff in the most cost-effective way possible.

76) In the context of the benefits included in an international compensation package, ________ is usually a percentage of base pay provided as compensation for living in an area with climactic extremes, political instability, or poor living conditions.

A) hardship pay B) danger pay C) core benefits D) required benefits

77) In the context of the benefits included in an international compensation package, ________ is a compensation provided to expatriates for living and working in a physically hazardous area, such as a war zone.

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A) required benefit B) danger pay C) hardship pay D) core benefit

78) ________ refers to the practice of paying expatriates on the same scale as local nationals in the country of assignment.

A) Base-line equity B) Localization C) Native balance D) Resident equality

79)

________ compensation localizes expatriates in the host-country salary program.

A) Home leave B) Hazardous-duty pay C) School allowance D) Local-plus

80) After becoming accustomed to foreign ways, many expatriates suffer ________ upon reentry into the United States.

A) repatriation shock B) reverse discrimination C) reverse culture shock D) cultural disorientation

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81) Research shows that unless there is a planned purpose in repatriation, the investment of as much as ________ to send an expatriate overseas is likely to be squandered completely because turnover among repatriates may be 30 percent or more within the first year back in their home countries.

A) $50,000 B) $200,000 C) $500,000 D) $1 million

82) To avoid a severe financial shock upon repatriation, many firms have replaced the monthly foreign-service premium with a(n) ________ for each move.

A) mobility premium B) moving bonus C) expatriate payment D) global guarantee

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

83) What are the factors that are driving the backlash against globalization?

84)

Explain the three important lessons to be learned from cross-cultural differences.

85) List the 10 broad classifications that will help managers assess any culture and examine its people systematically.

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86) What are the eight key things outsiders should know about human resource management (HRM) in the European Union (EU) countries?

87)

Discuss the applicability of U.S. employment laws to multinational employers.

88) Which are the two philosophies that characterize the balance-sheet approach of expatriate compensation plans? Discuss some of the most important advantages of the balance-sheet approach.

89)

Suggest three different solutions for the problems of repatriation.

90)

What is another term for an expatriate?

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91)

Describe managers who have a cosmopolitan perspective.

92) List the three basic models in the recruitment of executives followed by companies operating outside their home countries.

93) What three personality characteristics are most related to the ability of an expatriate to successfully complete an assignment?

94)

What are the three areas that managers need training to survive, cope, and succeed?

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Answer Key Test name: chapter 16 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) FALSE 18) TRUE 19) FALSE 20) TRUE 21) FALSE 22) TRUE 23) TRUE 24) TRUE 25) FALSE 26) TRUE Version 1

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27) FALSE 28) TRUE 29) FALSE 30) FALSE 31) A 32) B 33) A 34) C 35) C 36) A 37) B 38) D 39) C 40) A 41) B 42) C 43) D 44) B 45) C 46) A 47) D 48) B 49) C 50) A 51) D 52) B 53) C 54) A 55) A 56) B Version 1

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57) C 58) D 59) A 60) B 61) D 62) C 63) B 64) D 65) B 66) C 67) A 68) B 69) B 70) C 71) D 72) A 73) B 74) C 75) D 76) A 77) B 78) B 79) D 80) C 81) D 82) A

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83) Open borders have allowed new technology and ideas to flow freely around the globe, accelerating productivity growth and allowing companies to be more competitive than they have been in decades. Yet there is a growing fear on the part of many people that globalization benefits big companies instead of average citizens, as growing job insecurity and stagnating wages in developed countries create rising disenchantment. Big multinational companies suddenly realized the dangers of depending on complicated global supply chains.

Simultaneously, governments of all stripes rushed to impose travel bans, additional visa requirements, and export restrictions, thus escalating nationalism and protectionism. The pandemic is expected to have a longterm impact, though the exact extent is, as yet, unknown. It may deal a blow to fragmented international supply chains, diminish the hypermobility of global business travelers, and encourage nationalists who favor greater protectionism and immigration controls. Localization requirements are also part of the backlash against globalization. Since 2008, governments have imposed nearly 350 regulations across the world requiring local sourcing, hiring, or operations. Governmentbacked development banks need projects to buy or build domestically in exchange for inexpensive financing.

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84) The three important lessons to be learned from cross-cultural differences are as follows: 1. Do not export headquarters-country bias: As we have seen, the HR management approach that works well in the headquarters country might be totally out of step in another country.

Managers who bear responsibility for international operations need to understand the cultural differences inherent in the management systems of the countries in which their firms do business. 2. Think in global terms: We live in a world in which a worldwide allocation of physical and human resources is necessary for continued survival. 3. Recognize that no country has all the answers: Flexible work hours, statistical process control, and various innovative approaches to productivity have arisen outside the United States. Effective multinational managers must not only think in global terms but also be able to synthesize the best management approaches to deal with complex problems.

85) The 10 broad classifications that will help managers assess any culture and examine its people systematically are as follows: 1. Sense of self and space 2. Dress and appearance 3. Food and eating habits 4.

Communication and language 5. Time and time consciousness 6.

Relationships 7. Values and norms 8. Beliefs and attitudes 9. Work motivation and practices 10. Mental processes and learning

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86) The eight key things outsiders should know about human resource management (HRM) in the European Union (EU) countries are as follows: 1. Each country has a unique set of intricate laws that govern employment and labor relations. 2. Each country has a unique culture that impacts management styles and the corporate cultures of companies.

3. Within some EU countries there are different subcultures that influence HRM. 4. The power of the labor unions is decreasing, but labor relations issues remain very important. 5. Each country has developed a set of institutions that reflects its traditions and influences the way HR is practiced. 6. Distinct underlying social models have an impact on the way HR is practiced in each country. For example, in the Dutch social-justice model, the government plays an active, interventionist role to provide social justice in areas such as occupational health, safety, and terminations. In contrast, the Italian social model is a mixture of Christian and Marxist values. It emphasizes the individual's need for protection and solidarity and is less meritocratic and competitive than Protestant cultures. 7. There are formal consultation processes in place that allow for greater involvement of employees and trade unions in the decision-making processes of companies. 8.

Importing HR practices from abroad without attempting to localize them to the specific culture, laws, and languages of the country provides little chance of successful implementation.

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87) The following four employment laws may apply to U.S. citizens working abroad: Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and the Uniformed Services Employment and Reemployment Rights Act (USERRA). They also apply to U.S. citizens of foreign corporations doing business in the United States, even if those corporations employ fewer than 20 workers. However, they do not apply to foreign employees of a U.S.-based multinational who are not U.S. citizens. USERRA applies only to veterans and reservists working overseas for the federal government or a firm under U.S. control. Title VII, the ADEA and the ADA are more far reaching, covering all U.S. citizens who are either employed outside the United States by a U.S. firm, or by a company under the control of a U.S. firm. In determining whether a non-U.S. firm is under U.S. control, the Equal Employment Opportunity Commission will review the following: 1. The degree of interrelated operations. 2. The extent of common management. 3. The degree of centralized control of labor relations, common ownership, and financial control. 4. The place of incorporation. Each of the four laws contains an exemption if compliance with the U.S. law would cause a company to violate a law of the country in which it is located. If the laws of a particular country prohibit the hiring of women for certain jobs, a U.S. company operating within that country must follow that country's law. This is consistent with the general principle that MNEs are accountable to the laws of the countries where they operate.

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88) The two philosophies that characterize the balance-sheet approach are as follows: 1. Protection, which is paying expatriates the supplements in home-country currency. 2. In a process known as equalization, the employer deducts standard home-country amounts from an expatriate’s salary for income taxes, housing, and goods and services and then pays the balance in home-country currency. The most important advantages of the balance-sheet approach are as follows: 1. It preserves the purchasing power of expatriates in a cost-effective manner.

2. It facilitates mobility among expatriates.

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89) Possible solutions to repatriation problems fall into three areas: planning, career management, and compensation. Planning: Both the expatriation assignment and the repatriation move should be examined as parts of an integrated whole—not as unrelated events in an individual's career. To improve this process, it is necessary to define a clear strategic purpose for the move prior to the assignment. Is it executive development, coordination, and control between headquarters and foreign operations, or training of local employees? Career Management: This is the number 1 issue for expatriates. As an Australian expat living in Singapore noted, "Most expatriates are actually thinking that far ahead in terms of 'Where will this assignment take me in three years' time if I agree to go?'" If companies want to retain this key talent, therefore, they need to give them a reason to stay beyond only financial rewards. They need to leverage their international experience in appropriate and challenging roles. Unfortunately, research with 111 expatriates from 23 countries who returned to their home countries within the previous year tells a different story. Compared to their expatriate job assignments, 16 percent of the repatriates were in a job that they considered a demotion, 57 percent were in a job considered a lateral move, and 27 percent were in a job considered a promotion.

Receiving a promotion upon repatriation, however, signaled that the organization valued international experience and it contributed to repatriates' beliefs that the organization met their expectations regarding training and career development. These two perceptions, in turn, related positively to career satisfaction and to intentions to stay. Compensation: The loss of a monthly premium to which the expatriate has been accustomed is a severe shock financially, whatever the rationale. To overcome this problem, some firms have replaced the monthly foreignservice premium with a one-time mobility premium (e.g., 3 months' pay) for each move—overseas, back home, or to another overseas Version 1

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assignment. A few firms also provide low-cost loans or other financial assistance, so that expatriates can get back into their hometown housing markets at a level at least equivalent to what they left. Finally, there is a strong need for financial counseling for repatriates. Such counseling has the psychological advantage of demonstrating to repatriates that the company is willing to help with the financial problems that they may encounter in uprooting their families once again to bring them home.

90) Another term for an expatriate is foreign-service employee.

91) They are sensitive to cultural differences, respect the distinctive practices of others, and make allowances for such factors when communicating with representatives of different cultural groups.

Recognizing that culture and behavior are relative, they are more tentative and less absolute in their interactions with others.

92) Broadly speaking, companies operating outside their home countries follow three basic models in the recruitment of executives: (1) They may select from the national group of the parent company only, (2) they may recruit only from within their own country and the country where the branch is located, or (3) they may adopt an international perspective and emphasize the unrestricted use of all nationalities.

93) When success is defined in terms of completing the expatriate assignment and supervisory ratings of performance on the assignment, evidence indicates that three personality characteristics are related to ability to complete the assignment. These are extroversion and agreeableness (which facilitate interactions and making social alliances with host nationals and other expatriates) and emotional stability.

94) To survive, cope, and succeed, managers need training in three areas: the culture, the language, and practical day-to-day matters.

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