Personnel Management
Final Test Solutions
Course Introduction
Personnel Management focuses on the fundamental principles and practices involved in managing an organizations human resources. The course covers key topics such as recruitment and selection, training and development, performance appraisal, compensation and benefits, motivation, labor relations, and compliance with employment laws. Students will gain an understanding of strategies for building effective teams, fostering a positive workplace culture, and resolving conflicts. Emphasis is placed on the role of personnel management in achieving organizational goals and adapting to changes in the workforce environment.
Recommended Textbook
Strategic Compensation in 6th Canada Edition by Richard Long
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13 Chapters
591 Verified Questions
591 Flashcards
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Page 2
Chapter 1: A Road Map to Effective Compensation
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Sample Questions
Q1) Which of the following would be an example of an extrinsic reward?
A) interesting and meaningful work
B) pay for performance based on the number of units produced per hour
C) being able to see the company's product being used by a satisfied customer
D) work that allows for enhanced personal development
Answer: B
Q2) Compensation strategy includes the "how" and "how much" in terms of compensation to be paid.
A)True
B)False
Answer: True
Q3) You have offered to your sales associate an all-expenses-paid trip for two to Australia if she doubles her annual sales volume from last year.What type of inducement are you offering?
A) intrinsic reward
B) extrinsic reward
C) incentive
D) job enrichment
Answer: C
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Page 3
Chapter 2: A Strategic Framework for Compensation
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Sample Questions
Q1) Group and organizational pay systems characterize firms that use a classical managerial strategy.
A)True
B)False
Answer: False
Q2) As a human resources consultant,you decided to recommend to a business owner that she should use a contingency view to organizational design.In order to support your recommendation,what would you look at first from a business structure perspective?
A) structural variables
B) job design variables
C) financial variables
D) contextual variables
Answer: D
Q3) What are the two main categories of organizational variables?
A) contextual and structural
B) horizontal and vertical
C) classical and human relations
D) miles and snow
Answer: A
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Page 4
Chapter 3: A Behavioural Framework for Compensation
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Sample Questions
Q1) From an employee behavioural perspective,what steps need to be followed to design an effective reward system?
Answer: An effective reward system generates the types of employee behaviour that an organization needs. The following steps will help create an effective reward system.
1. Define the employee behaviour that is really needed.
2. Determine the employee attributes and qualifications necessary to perform the needed behaviour.
3. Identify the needs that individuals possessing these qualifications are likely to find salient.
4. Ensure a positive valence for needed behaviour by providing rewards that address salient needs and by reducing the costs to the employee of performing the behaviour.
5. Make it clear that performance of the behaviour will lead to the promised rewards.
6. Provide conditions that make it likely that employee effort will actually lead to the desired behaviour.
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Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) Which statement best describes the notion of pay for knowledge systems?
A) There is little empirical evidence supporting the validity of competency-based pay models.
B) Competency-based pay models are usually associated with operational level roles.
C) Pay for knowledge requires very detailed job descriptions for every role in an organization.
D) Pay for knowledge fits well with classical management styles,requiring employee flexibility in skill sets.
Q2) As a general rule,organizations using a high-involvement managerial strategy use indirect pay as a way to encourage which of the following relationships?
A) employer-community
B) employee-task
C) employer-employee
D) employer-union
Q3) Briefly describe the three main categories of performance pay,and provide examples for each category.
Q4) Briefly explain the three methods for establishing base pay.
Q5) Briefly discuss the advantages and disadvantages of using indirect pay.
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Chapter 5: Performance Pay Choices
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Sample Questions
Q1) Unions generally oppose profit-sharing plans on the basis of potential manipulation of profits by management and the uncertainty associated with profit sharing when compared with base pay.
A)True
B)False
Q2) One of the problems with gain-sharing plans is that they do not encourage employee participation.
A)True
B)False
Q3) Which characteristic of profit-sharing plans may be viewed as negative from the perspective of an employer?
A) They align employee and employer interests.
B) They eliminate the "free rider" principle by holding everyone accountable.
C) They are more complex than gain-sharing plans.
D) They require the sharing of potentially confidential information with employees.
Q4) Discuss the nature of suggestion systems and some of the problems you need to be aware of.
Q5) Explain the difference between goal-sharing and gain-sharing plans.
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Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) Which of the following workers are NOT covered under minimum wage legislation in some jurisdictions?
A) students
B) employees working from home
C) domestic servants
D) commissioned salespeople
Q2) In which organization would compensation have a low role?
A) UNICEF store
B) chicken-processing plant
C) tree-planting firm
D) used car dealership
Q3) Pay equity legislation falls under employment standards in all Canadian provinces.
A)True
B)False
Q4) When we discuss labour market constraints,what are we specifically referring to?
A) union constraints on labour allocation
B) availability of employees versus demand
C) cost-of-living constraints on pay demands
D) managerial strategy in recruitment methods
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Chapter 7: Evaluating Jobs: the Job Evaluation Process
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Sample Questions
Q1) You have been asked to present to management potential drawbacks associated with using a job analysis process at your company.Which of the following would likely NOT be included in your list of drawbacks?
A) analyzing the jobholder rather than the job
B) gender bias
C) use of technical language
D) use of incorrect benchmark jobs
Q2) The Ontario Pay Equity Act covers all employers in the province.
A)True
B)False
Q3) Briefly explain the purpose of job evaluation and the nature of "relative worth."
Q4) Which job analysis method is used for organizations that are being created or when new jobs are introduced?
A) observation
B) interviews
C) questionnaires
D) functional job analysis
Q5) What should a job description contain if it is to be useful for job evaluation?
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Chapter 8: Evaluating Jobs: the Point Method of Job Evaluation
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Sample Questions
Q1) Which statement best describes the use of job evaluations and pay equity in Ontario?
A) Multiple plans can be used for a bargaining unit in unionized organizations.
B) A single plan is required for a bargaining unit in unionized organizations.
C) The job evaluation system must use between 8-12 compensable factors.
D) If the organization is not unionized,Ontario legislation requires the use of different plans for blue-collar and white-collar jobs.
Q2) A living wage is the same as the minimum wage.
A)True
B)False
Q3) Which statement best reflects the relationship between the minimum wage and a living wage?
A) They are the same.
B) A living wage tends to be higher than the minimum wage.
C) The minimum wage tends to be higher than a living wage.
D) A living wage is two times the minimum wage.
Q4) What are the key considerations in establishing pay grades and pay ranges?
Q5) Briefly describe the main pitfalls in designing a point method system of job evaluation.
Q6) What criteria are used to determine movement through the pay range? Page 10
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Chapter 9: Evaluating the Market
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Sample Questions
Q1) Which of the following is generally NOT collected in compensation surveys?
A) base pay
B) performance appraisal methods
C) performance pay
D) benefits
Q2) What is NOT a main step in conducting a proper compensation survey?
A) identifying jobs to be surveyed
B) identifying employees to be surveyed
C) determining the information needed
D) determining how you will collect the data
Q3) Which statement best describes the compa-ratio?
A) It is calculated by averaging the pay ranges in the quartiles.
B) It is a measure of pay dispersion across employers.
C) It is derived by dividing mean base pay by the midpoint of the pay range.
D) It is a calculation based on average base pay for each job.
Q4) Which measure can be used to assess the central tendency of pay?
A) dispersion
B) standard deviation
C) quartiles and deciles
D) mean
12
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Chapter 10: Evaluating Individuals
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Sample Questions
Q1) Which statement associated with Management by Objectives (MBO)is NOT accurate?
A) Goals should be determined jointly between a manager and an employee.
B) To be effective,goals should be realistic.
C) Broad general goals are congruent with the MBO approach.
D) Regular evaluation and feedback against targets is critical.
Q2) Define and describe the key elements of performance management.
Q3) Three main categories capture the primary reasons why companies conduct performance appraisals: administrative,symbolic,and supervisory.
A)True
B)False
Q4) Which performance appraisal method could be described as "win-lose," creating a situation whereby in order to improve his/her standing,an employee has to displace another team or department member?
A) graphic rating scale
B) paired comparison method
C) forced distribution
D) field review
Q5) Describe the conditions under which recognizing individual contribution levels may be essential.
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Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) Gain sharing is not a viable plan to use if no valid historical benchmark can be set.
A)True
B)False
Q2) You have been tasked with providing management with a list of factors distinguishing goal-sharing plans from gain-sharing plans.Which of the following should NOT be included in your list?
A) Both have lost popularity in recent years.
B) Goal-sharing plans typically include several levels of attainment.
C) Goal-sharing plans quantify cost savings and then share those benefits with both employees and the company using a fixed formula.
D) Both require that management identify the group participating in the plan.
Q3) The Scanlon Plan helps in the development of a cooperative relationship among workers,unions,and management.
A)True
B)False
Q4) Briefly describe the Scanlon Plan.
Q5) Identify the fundamental ways in which gain-sharing and goal-sharing plans differ.
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14
Chapter 12: Designing Indirect Pay Plans
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Q1) Which of the following are all Canadians entitled to?
A) Old Age Security
B) defined pension plans
C) defined contribution plans
D) deferred profit-sharing plans
Q2) Research shows that satisfaction with a benefits plan declines as employees learn more about it.
A)True
B)False
Q3) From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?
A) Liability is limited to the amount placed into the plan.
B) Actuarial predictions are made easier.
C) Pensioners are guaranteed a fixed sum of money.
D) This avoids "underfunded" plans.
Q4) Defined contribution plans ultimately transfer retirement income risk from the employer to the employee.
A)True
B)False
Q5) Discuss the pros and cons of flexible versus fixed benefits plans.
Page 15
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Sample Questions
Q1) You work as a human resource professional at a large accounting firm in Ontario.Part of your mandate requires that you investigate processes that will streamline basic human resource functions,including remittance of pay stubs to employees.You are currently contemplating the notion of automating this process.What minimum requirements must you adhere to so as to make this process compliant with Bill 88?
A) Make the statements available via the company's intranet to employees.
B) Send out a quarterly summary to each employee via a "personalized email," and make the biweekly stubs available via the Intranet.
C) It is impossible to be compliant with the act while automating the process.
D) On a biweekly basis,send out the statements to each employee via the company's email platform.
Q2) Which statement does NOT accurately describe developing a communication plan to introduce a new compensation system?
A) Employees need to know the rationale behind the change.
B) Ensure it is an on-going process; communicate often.
C) Various modes of communications should be used.
D) It is often a recipe for failure if frontline managers are told of impending changes early in the process.
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