Human Resource Management, 3rd Test Bank

Human Resource Management, 3rd Edition By Stewart, Brown

Chapter: Chapter 01: Creating Value through Human Resources

True/False

1. Interestingly, good human resource practices create more satisfied employees, however, there is no research supporting that satisfied employees work any harder or more effectively.

Answer: False Difficulty: Easy Page: 4 Ref: How Can Human Resource Management Make an Organization Effective?

2. As an organization grows, measures of organizational and human resource success change.

Answer: True Difficulty: Medium Page: 6 Ref: How Is Organizational Success Determined?

3. The entrepreneurial stage, the communal stage, the formalization stage and the elaboration stage are the four common stages in an organization life cycle.

Answer: True Difficulty: Easy Page: 6-7, Table 1.1 Ref: How Is Organizational Success Determined?

4. It is critical that human resource practices, during the entrepreneurial stage of an organization’s life cycle, focus on the development of compensation and benefit programs that increase employee retention.

Answer: False Difficulty: Medium Page: 7, Table 1.1 Ref: How Is Organizational Success Determined?

5. During the communal stage of an organization expansion, innovation and cooperation are important.

The most critical human resource activity is to find and hire employees.

Page 1 of 19

Answer: False Difficulty: Medium Page: 7, Table 1.1 Ref: How Is Organizational Success Determined?

6. The stakeholder perspective focuses on people who affect and are affected by an organization.

Answer: True Difficulty: Easy Page: 9 & 10 Ref: How Is Organizational Success Determined?

7. An organization strives to move from the formalization stage in the organizational life cycle to the elaboration stage.

Answer: True Difficulty: Medium Page: 9 Ref: How Is Organizational Success Determined?

8. Employees, customers and owners are the only stakeholders considered by successful organizations.

Answer: False Difficulty: Easy Page: 10 Ref: How Is Organizational Success Determined?

9. Low turnover is a sign that employee needs are being met.

Answer: True Difficulty: Easy Page: 10 Ref: How Is Organizational Success Determined?

10. Employees satisfied with their jobs tend to have more satisfied customers.

Answer: True Difficulty: Easy Page: 10 Page 2 of 19

Ref: How Is Organizational Success Determined?

11. Research demonstrates that employees who have better skills, are well paid, and feel their jobs are secure have higher individual performance which translates into desirable organizational improvements.

Answer: True Difficulty: Easy Page: 11 Ref: How Is Organizational Success Determined?

12. Research finds that organizations are more profitable if they do not expend resources to deal with societal or community concerns.

Answer: False Difficulty: Easy Page: 11 Ref: How Is Organizational Success Determined?

13. Organizations can effectively reduce unethical corporate behavior through effective human resource management that creates open channels of communication.

Answer: True Difficulty: Easy Page: 11 Ref: How Is Organizational Success Determined?

14. The needs of stakeholder groups are not mutually exclusive; meeting the needs of one stakeholder group can sometimes help meet the needs of others.

Answer: True Difficulty: Easy Page: 11 Ref: How Is Organizational Success Determined?

15. Organizations, according to research, are more profitable when they treat employees well.

Answer: True Difficulty: Easy Page 3 of 19

Page: 12, Figure 1.1 Ref: How Is Organizational Success Determined?

16. Strategic management is not a core human resource function; rather it is the responsibility of toplevel management.

Answer: False Difficulty: Easy Page: 13-14, Table 1.2 Ref: What Does Human Resource Management Provide to an Organization?

17. Successful companies need human resources to only be involved in hiring processes because involvement by human resources in other functions reduces efficiency and increases costs.

Answer: False Difficulty: Easy Page 13-14, Table 1.2 Ref: What Does Human Resource Management Provide to an Organization?

18. The human resource development function ensures that employees learn the knowledge, skills, and abilities required for current and future performance.

Answer: True Difficulty: Easy Page: 14 Ref: What Does Human Resource Management Provide to an Organization?

19. When unions are present the human resource department must work directly with managers to ensure fair treatment of workers.

Answer: False Difficulty: Easy Page: 16 Ref: What Does Human Resource Management Provide to an Organization?

20. Successful organizations understand that good human resource practices are “common sense” and are all about one’s ability to hire the best person.

Answer: False Page 4 of 19

Difficulty: Easy Page: 16 Ref: What Does Human Resource Management Provide to an Organization?

21. A strategic role of a human resource professional provides valuable assistance that guides organizations as they adapt their policies and practices to fit with local cultures and laws.

Answer: True Difficulty: Easy Page: 14 Ref: What does Human Resource Management Provide to an Organization?

22. The most important work of human resources is to deal with people, so those who work well with others are automatically highly qualified to work in human resource roles.

Answer: False Difficulty: Easy Page: 18 Ref: What Do Human Resource Specialists Do?

23. Effective human resource functional experts can give an organization a competitive advantage over its competitors.

Answer: True Difficulty: Easy Page: 19 Ref: What Do Human Resource Specialists Do?

24. Knowing the business; carrying out human resource practices; and change management are the three broad categories of human resource competencies.

Answer: False Difficulty: Easy Page: 22, Figure 1.3 Ref: What Do Human Resource Specialists Do?

25. Successful human resource professionals should have competencies related to finance, competitor analysis, globalization, production capabilities and information systems.

Page 5 of 19

Answer: True Difficulty: Easy Page: 22 Ref: What Do Human Resource Specialists Do?

26. Credible activists competency focuses on knowing an organization’s strengths and weaknesses.

Answer: False Difficulty: Easy Page: 22 Ref: What Do Human Resource Specialists Do?

27. Change champion competencies deal primarily with risk management and how a manager must be willing to change his/her management style based upon the influx of new employees.

Answer: False Difficulty: Medium Page: 23-24 Ref: What Do Human Resource Specialists Do?

28. By 2018, the number of people between the ages of 16 and 44 will increase dramatically.

Answer: False Difficulty: Medium Page: 25 Ref: How Will Current Trends Affect Human Resource Management?

29. According to labor force trends, in order to be effective, new entrants to the workforce will have to be able to work effectively with older workers.

Answer: True Difficulty: Easy Page: 25 Ref: How Will Current Trends Affect Human Resource Management?

30. In the next decade the number of non-Hispanic white employees is expected to increase significantly.

Answer: False Page 6 of 19

Difficulty: Easy Page: 25 Ref: How Will Current Trends Affect Human Resource Management?

31. The number of male employees in the workforce, in the next decade, is expected to continue growing faster than the number of female employees.

Answer: False Difficulty: Medium Page: 25 Ref: How Will Current Trends Affect Human Resource Management?

32. Employment opportunity trends focus on the number and characteristics of people who will be working or looking for work.

Answer: False Difficulty: Medium Page: 26 Ref: How Will Current Trends Affect Human Resource Management?

33. Companies on average are more profitable when greater proportions of their sales, assets, and employees are outside the U.S. Answer: True Difficulty: Medium Page: 27-28 Ref: How Will Current Trends Affect Human Resource Management?

34. To be an effective global organization, the same practices and policies used in U.S. operations should be consistently applied to overseas operations.

Answer: False Difficulty: Easy Page: 27-28 Ref: How Will Current Trends Affect Human Resource Management?

Multiple Choice Page 7 of 19

35. What are some of the reasons to develop human resource skills? a) Human resource skills will ensure that you advance to the highest levels of management b) Human resource skills will ensure you avoid layoff during tough economic times c) Human resource skills will help you better understand how to hire, manage, and motivate employees more effectively d) Human resource jobs are expected to triple in number in the next five years Answer: c Difficulty: Medium Page: 4 Ref: How can Human Resource Management Make an Organization Effective?

36. Main human resource goals during the entrepreneurial stage of the organization life cycle are: a) to enhance employee commitment and attachment b) to focus on improving efficiency and to develop employee skills c) to enhance employee motivation and skills d) to find and hire quality employees and develop basic plans for measuring performance and paying employees Answer: d Difficulty: Medium Page: 7 Ref: How Is Organizational Success Determined?

37. During the communal stage in the organizational life cycle, it is important that the organization: a) continue to hire good employees b) focus on survival c) continue to hire quality employees, provide training, and develop effective communications c) focus on benefits and employee retention Answer: c Difficulty: Hard Page: 8 Ref: How Is Organizational Success Determined?

38. Employee turnover: a) is an expected cost of operations that cannot be changed b) can be reduced if an employer pays higher than average salaries c) is generally less in organizations with high levels of job satisfaction d) can be reduced if an employer keeps employees satisfied with their jobs Page 8 of 19

Answer: d Difficulty: Medium Page: 10 Ref: How Is Organizational Success Determined?

39. Which of the following is NOT an outcome of effective human resource practices? a) A stable workforce with fewer turnovers b) Improved productivity c) Improved customer satisfaction d) Decreased costs in human resource operations Answer: d Difficulty: Hard Page: 10-11 Ref: How Is Organizational Success Determined?

40. The formalization stage in the organizational life cycle focuses on: a) adapting and renewing b) survival and growth in new areas c) establishing a unique identity and overcoming internal conflict d)establishing clear practices and procedures for carrying out work Answer: d Difficulty: Medium Page: 9 Ref: How Is Organizational Success Determined?

41. During the elaboration stage, the main goals of an organization are: a) to adapt and renew, redefine objectives and identify new opportunities b) survival and growth c) for the organization to gain a unique identity and overcome internal conflict d) to improve efficiency and find better ways to accomplish tasks Answer: a Difficulty: Medium Page: 9 Ref: How Is Organizational Success Determined?

42. During the elaboration stage of an organization: a) change management is the most important skill that human resource personnel contribute b) functional knowledge is critical for all human resource personnel Page 9 of 19

c) employee advocacy is the most important role of human resources d) employee compensation can be highly competitive Answer: a Difficulty: Medium Page: 9 Ref: How Is Organizational Success Determined?

43. Which of the following is most likely to positively influence organizational profits? a) The level of employee salaries b) A commission based compensation system c) Motivating employees through effective performance management d) Regular cost of living increases Answer: c Difficulty: Medium Page: 11 Ref: How Is Organizational Success Determined?

44. Which of the following is most likely to reduce instances of unethical corporate behavior? a) Effective compensation and benefit practices b) High levels of occupational commitment c) When the organization is a good community citizen d) Open channels of communication Answer: d Difficulty: Easy Page: 11 Ref: How Is Organizational Success Determined?

45. Effective human resource management: a) represents the interests of management in all employee actions b) involves hiring the right people in the right job and keeping them motivated c) ensures that employees will not join a union d) involves hiring quality employees, motivating employees to maximize performance and helps meet employee psychological and social needs Answer: d Difficulty: Medium Page: 11 Ref: How Is Organizational Success Determined?

Page 10 of 19

46. Companies identified by Fortune as “The 100 Best Companies to Work for in America”: a) tend to be more profitable than their competitors b) spend more on benefits c) tend to have stock returns lower than other companies d) pay employees significantly higher salaries Answer: a Difficulty: Medium Page: 12 Ref: How Is Organizational Success Determined?

47. The strategic management core human resource function: a) is intangible and cannot be measured b) focuses on planning how the organization will produce and market goods and services c) can be measured through reduced costs of goods and services d) suggests the use of written assessments Answer: b Difficulty: Medium Page: 13-14 Ref: What Does Human Resource Management Provide to an Organization?

48. Which of the following is NOT a core human resource function? a) Strategic management b) Human resource development c) Training d) Risk management Answer: c Difficulty: Medium Page: 14, Table 1.2 Ref: What Does Human Resource Management Provide to an Organization?

49. The human resource core function most concerned with employee learning related to effective current and future performance is: a) total performance measurement and compensation b) human resource development c) concerned with labor force and education trends d) strategic management Answer: b Difficulty: Medium Page 11 of 19

Page: 14 Ref: What Does Human Resource Management Provide to an Organization?

50. The employee and labor relations function is: a) most concerned with preparing and distributing employee paychecks b) concerned with the health and welfare of employees c) concerned with building and maintaining effective working conditions and relationships d) concerned with defining work rules and pay levels Answer: c Difficulty: Easy Page: 15-16 Ref: What Does Human Resource Management Provide to an Organization?

51. The functional area of risk management is: a) concerned with employees’ physical and mental well-being b) involved in managing employee insurance plans c) a part of stakeholder analysis d) most important for an organization in the entrepreneurial stage of its life cycle Answer: a Difficulty: Medium Page: 16 Ref: What Does Human Resource Management Provide to an Organization?

52. It is important for human resources: a) to help managers learn what are the functional areas of human resources b) to help managers understand that much of good human resources is “common sense” c) to train managers so they know when to contact their human resources personnel d) to help managers learn and improve methods for hiring employees, assessing training needs and making pay decisions Answer: d Difficulty: Medium Page: 16 Ref: What Does Human Resource Management Provide to an Organization?

53. Human resource professionals tend to know more specifics about employment, staffing and compensation practices: a) when they are in a higher-level position b) when they have received certification as a human resource professional Page 12 of 19

c) if they do not waste time reading or studying theory d) if they work in a smaller organization where they are responsible for day to day human resources operations Answer: b Difficulty: Easy Page: 18 Ref: What Do Human Resource Specialists Do?

54. Managers are more likely to believe and act based upon information from human resources: a) when they feel that the human resource staff has functional expertise b) when the human resource staff is certified human resource professionals c) when managers see evidence that human resources helps them and their unit d) when human resource staff advice confirms what a manager already knows Answer: c Difficulty: Easy Page: 17 Ref: What Does Human Resource Management Provide to an Organization?

55. One way to break down critical roles for human resource professionals is: a) the functional expert, the caretaker, the management developer and the human capital developer b) the strategic partner, the human capital developer, the functional expert, and the employee advocate c) the strategic partner, the cop, the functional expert, and the employee advocate d) the strategic partner, the stakeholder, the functional expert and the employee advocate Answer: b Difficulty: Medium Page: 19, Figure 1.2 Ref: What Do Human Resource Specialists Do?

56. The functional expert role for human resource professionals: a) is concerned with looking out for the interests of management b) is concerned with providing inputs that help an organization put its competitive strategy into action c) is concerned with risk management for the human resources function d) is concerned with providing technical expertise related to human resource functions such as hiring, training and compensating employees Answer: d Difficulty: Medium Page: 19 Ref: What Do Human Resource Specialists Do? Page 13 of 19

57. Providing managers with guidance concerning improving interactions with employees would be an example of which critical role for human resource professionals? a) Functional expert b) Counselor c) Employee advocate d) Management advocate Answer: a Difficulty: Medium Page: 19 Ref: What Do Human Resource Specialists Do?

58. A program that provides employee relocation and trailing spouse employment assistance is an example of which human resource role: a) counselor b) employee advocate c) strategic partner d) functional expert Answer: b Difficulty: Medium Page: 20 Ref: What Do Human Resource Specialists Do?

59. Effective performance in the strategic partner role: a) requires human resource professionals to know about the organization’s products and services b) requires that human resource professionals are functional experts c) requires that human resource professionals are skilled in counseling d) requires that the human resource professionals be certified Answer: a Difficulty: Medium Page: 20 Ref: What Do Human Resource Specialists Do?

60. The human capital developer role focuses on: a) adding value to the organization through new employee orientation b) adding value to the organization by helping employees advance their formal education c) adding value to the organization by helping employees build and maintain cutting-edge skills d) adding value by developing metrics to measure the return on investment for human capital Page 14 of 19

Answer: c Difficulty: Medium Page: 22 Ref: What Do Human Resource Specialists Do?

61. Human resource practice competencies are a core set of competencies that: a) relate to human capital development b) include knowledge and skills that make a company profitable c) include knowledge and skills to carry out effective recruiting, hiring, training and compensation of employees d) are required for organizational strategic planning Answer: c Difficulty: Easy Page: 22-24 Ref: What Do Human Resource Specialists Do?

62. Strategic Positioner competencies are particularly important for which human resource role? a) Management developer b) Employee advocate c) Strategic partner d) Functional expert Answer: c Difficulty: Easy Page 22 Ref: What Do Human Resource Specialists Do?

63. Change management requires: a) functional expert with strategic role b) strategic managers with no employee advocacy role c) true leadership d) technology edge Answer: c Difficulty: Medium Page: 24 Ref: What Do Human Resource Specialists Do?

64. Change management: a) is one of the easiest competencies to develop Page 15 of 19

b) is best performed by human resource professionals who are professionally certified c) emphasizes employee retention d) requires true leadership and managers who feel an urgency to improve Answer: d Difficulty: Medium Page: 24 Ref: What Do Human Resource Specialists Do?

65. U.S. population trends are: a) the number of people who will be working or looking for work b) general movements over time in the number and characteristics of people living in the United States. c) the characteristics of people who will be working or looking for work d) specific information about individuals living in the United States Answer: b Difficulty: Medium Page: 24 Ref: How Will Current Trends Affect Human Resource Management?

66. Over the next decade, which U.S. groups will be increasing? a) People between the ages of 16 and 24 and non-Hispanic white employees b) People between the ages of 16 and 44 and Hispanic workers c) People over the age of 55 and female employees d) People between the ages of 45 and 54 and male employees Answer: c Difficulty: Hard Page 25 Ref: How Will Current Trends Affect Human Resource Management

67. Data concerning the number and gender of people currently and projected to be working in the health care industry is an example of: a) population trends b) labor force trends c) census trends d) affirmative action data Answer: b Difficulty: Medium Page: 25 Ref: How Will Current Trends Affect Human Resource Management Page 16 of 19

68. Which of the following influence an organization’s choice of human resource strategy? a) An organization’s competitive business strategy, legal and safety issues b) An organizations external environment and internal strengths and weaknesses c) The economic and business climate d) An organization’s vision and mission statement Answer: a Difficulty: Medium Page 28 How Do Strategic and Functional Perspectives Combine to direct Human Resource Practices?

69. Human resource activities that do NOT relate to motivating workers include: a) career development b) performance management c) training initiatives d) retention initiatives Answer: d Difficulty: Medium Page: 29 Ref: How Do Strategic and Functional Perspectives Combine to Direct Human Resource Practices?

Short Answer

70. The __________ approach to success suggests that measures of effectiveness change as an organization grows.

Answer: organizational life cycle Difficulty: Easy Page: 6 Ref: How Is Organizational Success Determined?

71. ________ consist of individuals or groups who can affect or who are affected by an organization.

Answer: Stakeholders Difficulty: Easy Page: 9 Ref: How Is Organizational Success Determined?

Page 17 of 19

72. The human resource function concerned with helping employees learn knowledge and skills is ___________.

Answer: human resource development Difficulty: Medium Page: 14 Ref: What Does Human Resource Management Provide to an Organization?

73. The human resource role of providing technical expertise related to hiring and motivating employees is the _________ role.

Answer: functional expert Difficulty: Easy Page: 19 Ref: What Do Human Resource Specialists Do?

74. The knowledge, skill and ability needed to perform a work behavior are _________.

Answer: competencies Difficulty: Easy Page: 22 Ref: What Do Human Resource Specialists Do?

75. Trends concerning the process in which companies move from doing business within one country to doing business in many countries are ________ trends.

Answer: globalization trends Difficulty: Easy Page: 27 Ref: How Will Current Trends Affect Human Resource Management

76. General movements over time in the number and characteristics of people living in the United States are _________.

Answer: population trends Difficulty: Medium Page: 25 Ref: How Will Current Trends Affect Human Resource Management?

Page 18 of 19

Essays

77. What are stakeholders? List and discuss three of the most important stakeholder groups for a company. In your discussion, include how each stakeholder group affects organizational success.

Answer: A. Stakeholders are individuals or groups of people who can affect or who are affected by an organization B. Important stakeholder groups: i. Employees – they influence the organization’s ability to achieve its objectives and they are influenced by the organization’s success ii. Customers – whether a company meets the needs of customers will influence company success and what the organization produces can positively and negatively influence customers iii. Owners – includes stockholders. Owners influence an organization by deciding who leads and makes decisions; their chief concern is the organization’s profits. iv. Society – the broader community in which an organization operates. Organizations affect society through their environmental practices, as well as their support of community charities and other such activities and society can influence organizations through political and social actions.

Difficulty: Hard Page: 9-11 Ref: How Is Organizational Success Determined?

78. List and describe each of the core human resource functions.

A. Business Management and Strategy-The human resource function concerned with strategic planning, change processes, and evaluating organizational effectiveness.

B. Workplace planning and employment-the human resource function concerned with designing jobs and placing people in those jobs.

C. Human resource development-the human resource function concerned with helping employees learn knowledge and skills.

D. Compensation and Benefits-Paying employees fairly; administering benefits such as insurance E. Employee and labor relations-the human resource function concerned with building and maintaining good relationships with employees and labor unions.

F. Risk management-the human resource function concerned with employees’ physical and mental well-being.

Difficulty: Medium Page13-16 Ref: What does Human Resource Management Provide to an Organization?

Page 19 of 19

Chapter: Chapter 02: Making Human Resource Management Strategic

True/False

1. A clear strategy for being better than competitors and a highly motivated workforce are major keys for long term profitability.

Answer: True Difficulty: Easy Page: 40 Ref: How Can a Strategic Approach to Human Resources Improve an Organization?

2. If a company is pursuing a low cost strategy, it is important that employees only perform duties specified in their job description.

Answer: False Difficulty: Medium Page: 41 Ref: How Can a Strategic Approach to Human Resources Improve an Organization?

3. Fortunately, all information is relevant for strategic planning.

Answer: False Difficulty: Easy Page: 43 Ref: How Is Strategy Formulated?

4. A competitive human resource strategy is a strategy that focuses on different ways to provide goods and services that meet customer needs.

Answer: False Difficulty: Medium Page: 42 Ref: How Is Strategy Formulated?

5. Opportunities are generally easier to control than threats.

Page 1 of 21

Answer: True Difficulty: Easy Page: 43 Ref: How Is Strategy Formulated?

6. The external environment for a company consists of physical and social factors outside the organization EXCEPT government legislation at all levels.

Answer: False Difficulty: Medium Page: 43 Ref: How Is Strategy Formulated?

7. Information on new job creation is a critical feature of the external environment that is relevant for an organization’s strategic planning.

Answer: True Difficulty: Medium Page: 44 Ref: How Is Strategy Formulated?

8. Information about threats and opportunities should be gathered early in the strategic planning process.

Answer: True Difficulty: Easy Page: 43 Ref: How Is Strategy Formulated?

9. An organization, for strategic planning purposes, should concentrate mainly on enhancing strengths so past success can be carried into the future.

Answer: False Difficulty: Medium Page: 46 Ref: Ref: How Is Strategy Formulated?

Page 2 of 21

10. During strategy formulation, organizations should focus on understanding only weaknesses so they have an understanding about areas in need of improvement.

Answer: False: Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

11. To compensate for weak human resources, an organization can use an effective strategy.

Answer: False Difficulty: Easy Page: 46 Ref: How Is Strategy Formulated?

12. Regardless of a company’s strategy, high quality human resources are a true competitive advantage.

Answer: False Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

13. In order for a human resource practice to be a strength, it must be difficult to imitate and a similar practice cannot be substituted.

Answer: True Difficulty: Easy Page: 46 Ref: How Is Strategy Formulated?

14. Groups of people who meet together often to discuss information can develop an effective sense of “gut level” decision making about proper strategic direction.

Answer: True Difficulty: Medium Page: 47 Ref: How Is Strategy Formulated?

Page 3 of 21

15. To help move decision making forward, groups making decisions should set a flexible timeline.

Answer: True Difficulty: Medium Page: 47 Ref: How Is Strategy Formulated?

16. Internal politics over group decision making, processes and outcomes should be encouraged as it can enhance outcomes.

Answer: False Difficulty: Easy Page: 47 Ref: How Is Strategy Formulated?

17. Strategy formulation is best done by a group of decision makers working together to carefully analyze the information obtained from assessing the organization’s external environment and internal capabilities.

Answer: True Difficulty: Medium Page: 47 Ref: How Is Strategy Formulated?

18. Controlling expenses is critical to an organization seeking a cost leadership strategy.

Answer: True Difficulty: Easy Page: 49 Ref: What Are Common Competitive Business Strategies?

19. In an industry, there is usually only one company that can be the lowest-cost provider.

Answer: True Difficulty: Easy Page: 49 Ref: What Are Common Competitive Business Strategies?

Page 4 of 21

20. Research finds that a lowest-cost provider is likely to be a small start-up business because the owner generally provides labor.

Answer: False Difficulty: Medium Page: 49 Ref: What Are Common Competitive Business Strategies?

21. Unlike the cost leadership strategy, a large number of organizations can simultaneously pursue the differentiation strategy.

Answer: True Difficulty: medium Page: 50-51 Ref: What Are Common Competitive Business Strategies?

22. Because effectiveness comes not from a single practice but from a number of related practices, effective human resource management capabilities are difficult to copy.

Answer: True Difficulty: Easy Page: 52 Ref: What Are Basic Approaches to Human Resource Strategy?

23. An organization pursuing a differentiation strategy can mostly ignore expenses and costs.

Answer: False Difficulty: Easy Page: 51 Ref: What are Common Competitive Business Strategies?

24. It is easy for an organization to pursue both cost leadership and differentiation strategies simultaneously.

Answer: False Difficulty: Easy Page: 52 Ref: What Are Common Competitive Business Strategies?

Page 5 of 21

25. Given that human resources are relatively easy for an organization to duplicate, it cannot be a source of competitive advantage.

Answer: False Difficulty: Easy Page: 52 Ref: What Are Basic Approaches to Human Resource Strategy?

26. The universalistic perspective seeks to identify methods of managing people that are effective for all organizations.

Answer: True Difficulty: Easy Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

27. The contingency approach to human resource management practices and the universalistic approach to human resource management are complementary and can be used together to develop an overall human resource strategy.

Answer: True Difficulty: Easy Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

28. The human resource bundle that is known as a commitment strategy includes empowerment of workers, careful screening of recruits, high levels of teamwork, and extensive sharing of information.

Answer: True Difficulty: Easy Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

29. Studies comparing the control and commitment strategies almost always conclude that in most cases the control strategy works best.

Answer: False Difficulty: Easy Page: 54 Page 6 of 21

Ref: What Are Basic Approaches to Human Resource Strategy?

30. Support for the commitment strategy is so strong that all organizations should adopt this strategy and the related human resource practices to be successful.

Answer: False Difficulty: Easy Page: 55 Ref: What Are Basic Approaches to Human Resource Strategy?

31. HR processes for the commitment strategy are specific and consistent across organizations, which makes them easy to duplicate for organization success.

Answer: False Difficulty: Medium Page: 54-55 Ref: What Are Basic Approaches to Human Resource Strategy?

32. A primary strength of the internal labor orientation is flexibility because internal employees can easily be trained and redeployed as the organization changes priorities.

Answer: False Difficulty: Medium Page: 59 Ref: What Are Basic Approaches to Human Resource Strategy?

33. Because they promote from within, an organization with an internal labor orientation tends to save money in their selection processes.

Answer: True Difficulty: Easy Page: 58 Ref: What Are Basic Approaches to Human Resource Strategy?

34. An organization with an external differentiation strategy is likely to excel when it follows the free agent HR strategy.

Answer: True Page 7 of 21

Difficulty: Hard Page: 62-63, Figure 2.3 Ref: What Are Common Human Resource Strategies?

35. The core idea of the contingency perspective is the notion that human resource strategies are most effective when they match competitive business strategies.

Answer: True Difficulty: Medium Page: 63 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

36. There is some evidence that organizations naturally tend to adopt the human resource practices that match their competitive strategies.

Answer: True Difficulty: Medium Page: 63 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

Multiple Choice

37. From a human resource management perspective the two types of strategy are: a) competitive business strategy and human resource strategy b) long term and short term strategy c) short and long term human resource strategy d) human resource strategy and long term strategy Answer: a Difficulty: Medium Page: 42 Ref: How Is Strategy Formulated?

38. Which type of strategy focuses on how to serve the needs of company customers? a) Human resource strategy b) Short term strategy c) Long term strategy d) Competitive business strategy Page 8 of 21

Answer: d Difficulty: Easy Page: 42 Ref: How Is Strategy Formulated?

39. Which type of strategy focuses on choices and actions concerning the management of people? a) Competitive business strategy b) Human resource strategy c) Short term human resource strategy d) Short term strategy Answer: b Difficulty: Easy Page: 42 Ref: How Is Strategy Formulated?

40. What steps are involved in the strategy formulation process? a) Customer and employee surveys, decision making, and evaluation b) Environmental analysis, internal analysis, problem solving c) Gathering information, analysis and decision making, and implementation d) External analysis, internal analysis, identification of strengths and weaknesses Answer: c Difficulty: Medium Page: 43, Figure 2.1 Ref: How Is Strategy Formulated?

41. Which of the following is true about assessing the external environment? a) Strengths and weaknesses are the easiest factors to control b) Understanding strengths and weaknesses of competitors is a critical factor c) Opportunities are generally easier to control, but a clear understanding of opportunities and threats is critical for effective strategy formulation d) Strengths are generally easier to control, but a clear understanding of strengths and weaknesses is critical for effective strategy formulation Answer: c Difficulty: Medium Page: 43 Ref: How Is Strategy Formulated?

Page 9 of 21

42. The physical and social factors outside an organization’s boundaries: a) exclude government and political actions b) are strengths and weaknesses c) are assessed through customer and employee satisfaction surveys d) are opportunities and threats Answer: d Difficulty: Medium Page: 43 Ref: How Is Strategy Formulated?

43. Elements of the environment relevant for analyzing the external environment include all of the following EXCEPT: a) demographic and cultural trends b) economic and political conditions c) organizational culture and employee satisfaction d) technological developments Answer: c Difficulty: Easy Page: 44 Ref: How Is Strategy Formulated?

44. Strengths and weaknesses a) should be kept confidential b) are areas of high and low capability c) relate to the external environment d) are an outcome of strategic implementation Answer: b Difficulty: Easy Page: 44 Ref: How Is Strategy Formulated?

45. Human resource management is critical: a) because high-quality employees are relatively rare b) mainly when an organization requires technological skills c) because of the high cost of compensation d) mainly when an organization requires general skills Answer: a Page 10 of 21

Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

46. To be true strengths, human resource practices must: a) also provide something that is difficult to imitate or substitute b) be part of a differentiation business strategy c) be part of a low cost business d) include effective employee and labor relations Answer: a Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

47. Which of the following is TRUE about human resource strategy? a) The ability to attract and keep high-quality employees is always a competitive advantage b) A human resource strategy is usually relatively easy for competitors to imitate c) Rarely can a competitor imitate an entire package of human resource strategies d) An organization can overcome the lack of effective human resource management by pursuing a differentiation strategy Answer: c Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

48. Research suggests these four steps can be used to make more effective decisions: a) set specific deadlines, gather information, minimize conflict, vote on all items b) ensure top level management is involved, train decision makers, set specific deadlines, minimize conflict c) set specific deadlines, ensure top level management support, minimize conflict, diffuse politics d) build collective intuition, stimulate conflict, maintain an appropriate pace, diffuse politics Answer: d Difficulty: Medium Page: 47 Ref: How Is Strategy Formulated?

49. Corporate-level strategy:

Page 11 of 21

a) is concerned with how an organization or part of the organization will compete with other organizations that produce similar goods and services b) is not related to human resource strategy c) concerns the different businesses and diversity of products and services that an organization produces d) focuses on different ways of managing employees of an organization Answer: c Difficulty: Medium Page: 48 Ref: What Are Common Competitive Business Strategies?

50. Business-level strategy: a) is not related to human resources strategy b) deals with how the organization will compete with companies that provide similar goods and services c) includes decisions related to business type d) should be completed after human resources strategy is determined Answer: b Difficulty: Easy Page: 48 Ref: What Are Common Competitive Business Strategies?

51. Which of the following is NOT true of organizations with a cost leadership strategy? a) The organization seeks to become low-cost producers b) The organization seeks to produce superior goods and services c) The organization seeks to become highly efficient d) Controlling expenses is very important Answer: b Difficulty: Medium Page: 49 Ref: What Are Common Competitive Business Strategies?

52. Apple computer produces the iPad, that is described by Apple as “A magical and revolutionary product…” From what you know about the iPad and Apple computer: a) Apple has a low cost leadership strategy b) Apple is very conscious of expenses c) Apple computer has a differentiation strategy d) Apple probably employs a large number of temporary employees Answer: c Page 12 of 21

Difficulty: Medium Page: 50 Ref: What Are Common Competitive Business Strategies?

53. An organization with a cost-leadership strategy: a) seeks to become the low cost producer of complex and unique goods and services b) has excellent customer service c) is likely to be one of many producers in the market d) is likely to have a relatively large share of the market and produce basic or standardized products and services Answer: d Difficulty: hard Page: 49 Ref: What Are Common Competitive Business Strategies?

54. Which of the following are consistent with a differentiation strategy? a) A focus on cost reduction, a unique product and a large share of the market b) A unique product, strong marketing, and excellent customer service c) Disregard for cost, few producers in the market and a focus on a unique product d) A focus on marketing and the production of basic or standardized products and services Answer: b Difficulty: Hard Page: 50 Ref: What Are Common Competitive Business Strategies?

55. An organization employing a differentiation strategy is likely to differentiate its goods or services in all of the following ways EXCEPT: a) a unique product b) low cost c) marketing the product as distinctive and a good value d) excellent customer service Answer: b Difficulty: Easy Page: 50-51 Ref: What Are Common Competitive Business Strategies?

56. Organizations pursuing a differentiation strategy pursue all of the following strategies EXCEPT: Page 13 of 21

a) adapting rapidly to changing customer preferences b) innovation of products and services c) taking risks and continually prospecting for new ways of doing things d) increasing distribution channels Answer: d Difficulty: Easy Page: 51 Ref: What Are Common Competitive Business Strategies?

57. Organizations that attempt to pursue a combination strategy that involves both cost leadership and differentiation: a) Is likely to excel in both cost leadership and product differentiation b) Usually end up not succeeding at either cost leadership or differentiation c) Is likely to succeed at product differentiation d) Is likely to succeed at cost leadership Answer: b Difficulty: Medium Page: 51 Ref: What Are Common Competitive Business Strategies?

58. The universalistic approach to human resource practices: a) seeks to identify human resource practices that benefit all organizations b) claims that appropriate human resource practices depend upon the organization and its strategy c) works best with a cost leadership strategy d) is an individual company approach to human resource management Answer: a Difficulty: Medium Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

59. The view that human resource practices differ based upon an organization’s competitive business strategy: a) is the universalistic approach b) is consistent with the contingency approach c) is the differentiation approach d) is the only way human resource practices can be considered Answer: b Difficulty: Medium Page: 53 Page 14 of 21

Ref: What Are Basic Approaches to Human Resource Strategy?

60. The contingency approach to human resource practices: a) tends to focus on broad principles b) can be effective in an organization pursuing human resource role differentiation c) tends to focus on specific human resource practices d) is supported by corporate strategy and business strategy Answer: c Difficulty: Medium Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

61. Which of the following is NOT true about human resource bundles? a) Human resource bundles are human resource practices that are internally consistent and reinforce each other b) There are human resource practices that bundle into a “control strategy” c) There are human resource practices that bundle into a “commitment strategy” d) Human resource practices that are bundled are easy for competitors to simulate Answer: d Difficulty: Medium Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

62. Which of the following is NOT consistent with a human resource bundle supporting a control strategy? a) Strict work rules b) Limited formal training c) Employee career development d) Narrow job responsibilities Answer: c Difficulty: Easy Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

63. Which of the following is not an example of a commitment strategy practice? a) Broad job responsibilities, organizing work around teams and pay for performance b) Two way communication, pay for performance, and highly selective recruiting practices

Page 15 of 21

c) Long term relationships with employees, extensive new employee training and high levels of pay d) Specialized and narrow job responsibilities, emphasis on individual accomplishment and performance and pay for performance Answer: d Difficulty: Hard Page: Table 2.1, page 54 Ref: What Are Basic Approaches to Human Resource Strategy?

64. Which of the following is characteristic of organizations with an external labor orientation? a) The organization seeks to buy talent b) A primary goal is to identify employees who will have long careers with the organization c) People are hired early in their careers d) Employees identify closely with the organization Answer: a Difficulty: Easy Page: 57 Ref: What Are Basic Approaches to Human Resource Strategy?

65. Which of the following is NOT true of a human resource strategy that emphasizes hiring and retaining loyal employees who do whatever the company asks of them? a) It is referred to as the Loyal Soldier HR strategy b) Employees are hired early in their careers and developed with extensive training c) Emphasis is on hiring employees who do not demand high wages d) These types of organizations are frequently unionized Answer: c Difficulty: Medium Page: 60-61 Ref: What Are Common Human Resource Strategies?

66. An organization with the human resource strategy that combines emphasis on short-term employees with a focus on reducing costs: a) is employing the Committed Expert HR strategy b) is employing the Bargain Laborer HR strategy c) is employing the Loyal Soldier HR strategy d) is employing the Free Agent HR strategy Answer: b Difficulty: Medium Page 16 of 21

Page: 61 Ref: What Are Common Human Resource Strategies?

67. An organization with the human resource strategy that combines emphasis on short-term employees with a focus on producing unique goods and services: a) is employing the Committed Expert HR strategy b) is employing the Bargain Laborer HR strategy c) is employing the Loyal Soldier HR strategy d) is employing the Free Agent HR strategy Answer: d Difficulty: Medium Page: 62 Ref: What Are Common Human Resource Strategies?

68. Organizations with a competitive business strategy of differentiation are expected to do best with which HR strategy? a) Committed Expert or Free Agent HR strategy b) Free Agent or Loyal Soldier HR strategy c) Bargain Laborer or Loyal Soldier HR strategy d) Loyal Soldier or Committed Expert HR strategy Answer: a Difficulty: Hard Page: 63 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

69. Organizations with matching competitive and human resource strategies: a) are not commonly found among U.S. companies b) perform only marginally better than those without matching strategies c) have been found to have higher morale among employees d) typically have an external labor orientation Answer: c Difficulty: Medium Page: 65 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

70. An organization with an internal labor orientation seeking cost reduction can benefit from: a) the Free Agent HR strategy Page 17 of 21

b) the Loyal Soldier HR strategy c) the Committed Expert HR strategy d) the Bargain Laborer Answer: b Difficulty: Hard Page: 66 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

71. Research supports which of the following findings: a) organizations with a cost leadership strategy have higher performance when their human resource practices include selective staffing, comprehensive technical training and group incentives b) organizations employing the Free Agent HR strategy have higher performance when their human resource practices include selective staffing, comprehensive technical training and group incentives c) organizations with a differentiation strategy have higher performance when their human resource practices include selective staffing, comprehensive technical training and group incentives d) organizations employing the Bargain Laborer strategy have higher performance when their human resource practices include selective staffing, comprehensive technical training and group incentives Answer: c Difficulty: Hard Page: 64-65 Ref: How Do Human Resource Strategies Align with Competitive Business Strategies?

Short Answer

72. ______ concerns where a company wants to go and how they plan to get there Answer: Strategy Difficulty: Easy Page: 42 Ref: How Is Strategy Formulated?

73. ________ develops in a group of people who meet together often to discuss information.

Answer: Collective intuition Page 18 of 21

Difficulty: Medium Page: 46 Ref: How Is Strategy Formulated?

74. _________strategy concerns how an organization or part of an organization will complete with other organizations that produce similar goods and services.

Answer: Business-level Difficulty: Easy Page: 48 Ref: What Are Common Competitive Business Strategies?

75. An organization that seeks to become the lowest cost producer of goods and services is pursuing a(n) ________ strategy.

Answer: cost leadership Difficulty: Easy Page: 48 Ref: What Are Common Competitive Business Strategies?

76. An organization that seeks to produce unique and specialized goods and services and provide excellent customer services is pursuing a _______ strategy.

Answer: differentiation Difficulty: Easy Page: 48 Ref: What Are Common Competitive Business Strategies?

77. The ______ to human resource strategy seeks to align people management practices with competitive business strategies.

Answer: contingency approach Difficulty: Medium Page: 53 Ref: What Are Basic Approaches to Human Resource Strategy?

78. The ________ HR strategy combines emphasis on long-term employees with a focus on reducing costs.

Page 19 of 21

Answer: Loyal Soldier Difficulty: Medium Page: 60 Ref: What Are Common Human Resource Strategies?

Essays

79. Describe the two business level strategies employed by organizations and discuss which human resource strategies are effective for each.

Answer: Cost leadership strategy – the organization seeks to become the lowest-cost producer of goods and services, loyal soldier and bargain labor human resource strategies Differentiation strategy – the organizations seeks to produce goods and services that are somehow superior to those produced by competitors, free agent and committed expert human resource strategies Difficulty: Medium Pages: 60-63, Figure 2.3 Ref: What Are Common Competitive Business Strategies?

80. Describe the internal and external labor orientations. Compare and contrast 5 examples of characteristics and practices for each labor orientation.

Internal labor orientation – a human resource perspective that emphasizes hiring workers early in their careers and retaining those workers for long period of time.

External labor orientation – a human resource perspective that limits attachment to a specific organization and emphasizes hiring workers who already possess the skills they need to complete specific tasks.

Answer: Internal labor orientation characteristics and practices: 1) hiring of people early in their careers 2) extensive orientation for new employees 3) focus on internal promotions 4) ongoing training opportunities 5) development of skills valuable only to the specific organization 6) bias against laying off employees 7) employees contribute because of loyalty 8) people identify closely with the organization External labor orientation characteristics and practices: 1) hiring of people who have already developed skills Page 20 of 21

2) limited orientation of company policies 3) focus on bringing in new talent 4) limited training opportunities 5) development of skills valuable to many organizations 6) acceptance of layoffs 7) employees contribute because of money 8) people identify closely with a profession, not the organization Difficulty: Hard Page: 57-59, Table 2.3 Ref: What are Basic Approaches to Human Resource Strategy?

Page 21 of 21

Chapter: Chapter 03: Ensuring Equal Employment Opportunity and Safety

True/False

1. Unfortunately, complying with human resource related laws always costs an organization more money, but organizations spend the additional funds to avoid legal actions.

Answer: False Difficulty: Easy Page: 78 Ref: Why Is It Important to Understand Legal and Safety Issues?

2. Interestingly, if a class-action suit deals with equal pay or gender discrimination, it cannot be filed against an employer.

Answer: False Difficulty: Medium Page: 78 Ref: Why Is It Important to Understand Legal and Safety Issues?

3. The U.S. constitution provides the basis for equality and defines immutable characteristics such as race and sex.

Answer: False Difficulty: Medium Page 78 Ref: Why Is It Important to Understand Legal and Safety Issues?

4. The federal government cannot constrain state laws based upon the constitution; therefore, if a state law conflicts with a federal law, the state law rules.

Answer: False Difficulty: Easy Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

Page 1 of 22

5. Title VII of the Civil Rights Act of 1964 provides protection to people based upon five specific traits: race, color, national origin, religion and sex. .

Answer: True Difficulty: Medium Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

6. Title VII requires equal opportunity for people regardless of their race, color, national origin, gender or religion.

Answer: True Difficulty: Easy Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

7. Churches are not required to comply with any of the guidelines contained in Title VII. Answer: True Difficulty: Medium Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

8. A job has a need for the incumbent to speak fluent Spanish. The employer can require that employees hired for this position be Hispanic as a bona fide occupational qualification (BFOQ).

Answer: False Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

9. One of the best ways for an employer to avoid a charge of adverse impact is to treat all applicants consistently during the hiring process.

Answer: False Difficulty: Medium Page: 82

Page 2 of 22

Ref: What Is the Main Law Relating to Discrimination and Employment?

10. Adverse impact treatment is more subtle than disparate treatment.

Answer: True Difficulty: Easy Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

11. It is automatically adverse impact if a selection criteria or process screens out more people from some groups than others.

Answer: False Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

12. Validity of selection assessments is one of the best defenses against a claim of adverse impact.

Answer: True Difficulty: Medium Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

13. Court rulings suggest that the courts have consistently required that companies employ exactly the same proportion of people from all protected categories.

Answer: False Difficulty; Medium Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

14. Under Title VII, harassment is illegal if it is directed to a member of any of the five protected classes specified in Title VII.

Page 3 of 22

Answer: True Difficulty: Medium Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

15. Quid pro quo sexual harassment is fairly straight forward; it’s when sexual behavior in the work environment creates an intimidating or offensive work environment.

Answer: False Difficulty: Medium Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

16. An employee who does not receive a promotion may be a victim of harassment if he/she can show that the person who did receive the promotion received it as the result of a sexual relationship.

Answer: True Difficulty: Medium Page 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

17. An employer can be responsible for the inappropriate sexual harassment of managers and employees.

Answer: True Difficulty: Easy Page: 87 Ref: What Is the Main Law Relating to Discrimination and Employment?

18. The viewing of pornographic material, sexually derogatory postings, or inappropriate e-mail messages can create a hostile work environment.

Answer: True Difficulty: Medium Page: 89: Technology in HR Ref: What Is the Main Law Relating to Discrimination and Employment?

Page 4 of 22

19. Employers have the prerogative to monitor employee communications created and sent with employer equipment. This includes private email messages and associated computer content.

Answer: True Difficulty: Medium Page: 89: Technology in HR Ref: What Is the Main Law Relating to Discrimination and Employment?

20. Given the privacy laws, an employer does not have access to e-mail or other materials produced by the employee at work.

Answer: False Difficulty: Medium Page: 89: Technology in HR Ref: What Is the Main Law Relating to Discrimination and Employment?

21. In order for a claim of harassment to be valid, a victim must demonstrate that the harassment has made them completely incapable of performing their job.

Answer: False Difficulty: Medium Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

22. Race-norming, the practice of evaluating an applicant’s score by comparing the score only with scores achieved by people of the same race, is required under the Civil Rights Act of 1991.

Answer: False Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

23. Interestingly juries appear to be more willing than judges to award punitive damages.

Answer: True

Page 5 of 22

Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

24. Regardless of their location, U.S. employment laws apply to U.S. companies.

Answer: False Difficulty: Easy Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

25. Under the Age Discrimination in Employment Act (ADEA), people are compared to each other, so discrimination can occur when an employee age 45 receives better treatment than an employee age 55.

Answer: True Difficulty: Medium Page: 92 Ref: What Are Other Important Employment Laws?

26. Research shows that older workers perform as well as, and in many cases better than their younger coworkers.

Answer: True Difficulty: Easy Page: 93 Ref: What Are Other Important Employment Laws?

27. To qualify as a disability under the ADA, the disability must impair a major life activity. As a result, someone with poor vision that can be corrected with glasses is not considered disabled.

Answer: True Difficulty: Easy Page: 94 Ref: What Are Other Important Employment Laws?

Page 6 of 22

28. An employee who formerly used illegal drugs, and is involved in an outpatient treatment program can be considered as having a disability.

Answer: True Difficulty: Medium Page: 94 Ref: What Are Other Important Employment Laws?

29. An employer is not required to provide an accommodation if the accommodation creates an undue hardship, which means the accommodation costs too much relative to resources available to the company or the accommodation requires significant changes in how work is done.

Answer: True Difficulty: Medium Page: 95 Ref: What Are Other Important Employment Laws?

30. Equal pay is not an issue under the Equal Pay Act of 1963 if pay differences are a result of seniority, merit, or performance.

Answer: True Difficulty: Easy Page: 96 Ref: What Are Other Important Employment Laws?

31. Only women may be granted leave under the Family Medical Leave Act (FLMA).

Answer: False Difficulty: Easy Page: 97 Ref: What Are Other Important Employment Laws?

32. Affirmative action, under Title VII, is required of all employers with more than 15 employees.

Answer: False Difficulty: Medium Page: 100

Page 7 of 22

Ref: How Can Organizations Increase Diversity?

33. Affirmative action requires a utilization analysis and an employer must hire the number of minorities that are found to be lacking based upon the utilization study.

Answer: False Difficulty: Medium Page: 100 Ref: How Can Organizations Increase Diversity?

34. In order to comply with affirmative action requirements and case law, a company planning to lay off employees should lay off all non-minority employees before letting any minority employees go.

Answer: False Difficulty: Medium Page: 101 Ref: How Can Organizations Increase Diversity?

35. Under the Occupational Safety and Health Act all employers are required to have formal emergency plans to protect employee safety.

Answer: False Difficulty: Medium Page: 104 Ref: What Are the Major Laws Relating to Occupational Safety?

Multiple Choice

36. Which of the following actions is NOT one an employer would take to prevent discrimination complaints? a) Developing and enforcing clear policies against discrimination b) Mandating that more minority employees be hired and promoted c) Improving the image of the organization as a desirable place to work d) Adopting programs that further the causes of groups that have been historically disadvantaged

Page 8 of 22

Answer: b Difficulty: Medium Page: 79 Ref: Why Is It Important to Understand Legal and Safety Issues?

37. Immutable characteristics refer to: a) characteristics that are essential to successful job performance b) characteristics that are not related to successful job performance c) personal characteristics that cannot reasonably be changed d) personal characteristics that can be changed through employee training and development Answer: c Difficulty: Medium Page: 80 Ref: What Is the Main Law Relating to Discrimination and Employment?

38. Title VII of the Civil Rights Act of 1964 provides protection for individuals based upon the following traits: a) sex, race, color, religion, and national origin b) sex, race age, religion, and national origin c) sex, race, age, disability, religion, and nation origin d) sex, race, age, disability, religion, and national origin Answer: a Difficulty: Medium Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

39. Currently, employers with fewer than this number of employees are NOT covered by Title VII: a) less than 50 employees b) less than 25 employees c) less than 15 employees d) less than 10 employees Answer: c Difficulty: Medium Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

Page 9 of 22

40. This is the federal agency in charge of administrative and judicial enforcement of federal civil rights laws: a) Department of Labor b) Bureau of Equal Opportunity c) The Equal Employment Opportunity Commission d) Bureau of Labor Statistics Answer: c Difficulty: Easy Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

41. In the work place equal employment opportunity occurs when: a) an organization establishes quotas for hiring and promotion of protected classes and meets those quotas b) the organization has no record of any type of discrimination complaint or grievance c) people have equal chances for desirable employment, regardless of belonging to a certain race, gender, or other group d) an organization avoids the issue of equal employment opportunity by not hiring any members of a protected group so there can be no internal issues of discrimination Answer: c Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

42. Disparate treatment is the practice of treating: a) all job applicants and employees the same b) clerical and professional employees differently c) mangers differently from other employees d) job applicants and employees differently based on race, gender, or some other group characteristic Answer: d Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

Page 10 of 22

43. Title VII offers protection from three distinct types of discrimination: a) disparate treatment, adverse impact and affirmative action b) disparate treatment, adverse impact and harassment c) adverse impact, harassment and age discrimination d) disparate treatment, harassment and pay discrimination Answer: b Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

44. An employer asks all applicants, “As a part of this job, are you able to travel with an overnight stay at least once a week?” a) This is an example of disparate treatment because it is a job requirement b) This is an example of adverse impact because it’s a job requirement c) This question is not discriminatory as overnight travel is a performance requirement d) This is an example of discrimination Answer: c Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

45. Recruitment advertisements for certain guard positions at a women’s correction facility specify that employees must be female. This is an example of: a) adverse impact b) disparate treatment c) a bona fide occupational qualification (BFOQ) d) discrimination Answer: c Difficulty: Medium Page: 82 Ref: What Is the Main Law Relating to Discrimination and Employment?

46. Adverse impact: a) is not necessarily discrimination b) is the same as disparate treatment c) is more obvious than other forms of discrimination

Page 11 of 22

d) occurs when a company’s policies treat applicants the same, but result in different employment opportunities for different groups Answer: d Difficulty: Easy Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

47. A common defense against adverse impact is: a) when there is no difference in outcomes for different groups of personnel b) when reliability can be demonstrated c) when the burden of proof is shifted d) when the assessment measures used accurately identify the people most likely to succeed on the job Answer: d Difficulty: Medium Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

48. When an applicant claims adverse impact: a) the applicant has the burden to prove the employer is discriminating b) the burden of proof is on the employer to demonstrate that the hiring process identified people who are best able to do the job c) the burden of proof is on the employer to demonstrate the reliability of the selection processes d) it means that different types of applicants were not treated consistently Answer: c Difficulty: Medium Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

49. Outcomes when an employer uses ineffective selection methods could be all of the following EXCEPT: a) there’s not a problem as long as interviews are used b) the company may be subject to discrimination complaints c) the company is potentially missing out on hiring employees who would do a good job d) the company may be discriminating against applicants and risks legal action Answer: a

Page 12 of 22

Difficulty: Easy Page: 85 Ref: What Is the Main Law Relating to Discrimination and Employment?

50. Which of the following is NOT true of the four-fifths rule: a) it is a general indicator used to determine if adverse impact has occurred in hiring b) the rule is violated when the percentage of people selected from one group is less than 80 percent of the people selected from the best-represented group c) It is a clear indication that a company is in violation of Title VII d) a selection rate of less than 80 percent for a particular group of people means that the burden of proof falls to the company to demonstrate the validity of its selection procedures Answer: c Difficulty: Medium Page: 84 Ref: What Is the Main Law Relating to Discrimination and Employment?

51. Harassment occurs: a) when an employee is persistently annoyed or alarmed by the improper words or actions of supervisory personnel b) when an employee is persistently annoyed or alarmed by the improper words or actions of peer personnel c) when an employee is persistently annoyed or alarmed by the improper words or actions of other people in the workplace d) after a claim of disparate treatment or adverse impact Answer: c Difficulty: Medium Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

52. A female supervisor and a male subordinate are in a voluntary sexual relationship outside of work hours. While in this relationship the female supervisor selects the male employee for a coveted promotion. This action: a) is not a problem, because males cannot be victims of sexual harassment b) could be a situation of “hostile environment” sexual harassment for the male subordinate c) is not a problem because the relationship occurs outside work hours d) could be a situation of “quid pro” sexual harassment” for employees who applied for and were not selected for the promotion

Page 13 of 22

Answer: d Difficulty: Hard Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

53. Which of the following is NOT true concerning hostile work environment sexual harassment? a) A claim can be filed against a fellow employee b) A claim can be filed against a supervisor c) A claim can be filed against an employee, supervisor and/or the organization d) Organizations are not liable for the actions of their employees, so liability rests with the individual employee Answer: d Difficulty: Medium Page 87 Ref: What Is the Main Law Relating to Discrimination and Employment?

54. Examples of actions an organization can take to protect itself from sexual harassment include all of the following EXCEPT: a) establish a policy that any supervisor or employee accused of sexual harassment will be immediately terminated from employment b) define harassment and affirmatively express company disapproval of harassing actions c) inform employees of their legal rights, including how to make an EEOC claim d) establish a grievance procedure that is sensitive to the rights of all parties Answer: a Difficulty: Medium Page: 86: Table 3.2 Ref: What Is the Main Law Relating to Discrimination and Employment?

55. Sexual harassment has been linked to a number of undesirable outcomes, including all of the following EXCEPT: a) lower employee job satisfaction among those harassed b) decreased physical and mental among those harassed c) decreased productivity among those harassed d) the need to offer employees higher compensation Answer: d

Page 14 of 22

Difficulty: Easy Page: 87 Ref: What Is the Main Law Relating to Discrimination and Employment?

56. Which of the following statements concerning discrimination is true? a) People are more likely to discriminate when their supervisors are uninvolved b) People are more likely to discriminate when they are located in a separate geographical location from their supervisors c) People are more likely to discriminate when there are severe consequences d) People are less likely to discriminate when their supervisors establish a clear preference that everyone be treated equally Answer: d Difficulty: Medium Page: 88: How Do We Know?

Ref: What Is the Main Law Relating to Discrimination and Employment?

57. Which of the following is NOT true about race norming? a) It involves only comparing scores among like gender or race groups b) The Civil Rights Act of 1991 addressed race norming c) It is an effective process used in the U.S. for ensuring equal opportunities for minorities d) The effect can be to make some people have higher scores if scores in their group are lower than average Answer: c Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

58. Punitive damages: a) are designed to punish a company b) usually result in lower payment by a company in a discrimination case c) cannot be awarded if a complainant is awarded back pay d) cannot be awarded if a complainant is awarded lost earnings Answer: a Difficulty: Easy Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

Page 15 of 22

59. The Civil Rights Act of 1991: a) added discrimination for religious reasons for the first time b) allowed for jury trials for employment discrimination cases for the first time c) added discrimination based upon disability for the first time d) allowed claims based upon age for the first time Answer: b Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

60. Which of the following is true concerning the application of U.S. employment laws? a) People who enter the U.S. illegally are covered by these laws b) Most employees of non-U.S. employers located in the U.S. are NOT covered by these laws c) Even if an employer is not a U.S. company, discrimination laws generally apply to jobs located in the U.S. d) U.S. citizens are covered by U.S. employment laws outside the U.S. regardless of whether their employer is from the U.S. or not Answer: c Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

61. When would employees NOT usually be covered by U.S. employment laws? a) U.S. citizens working for a U.S. company overseas b) Foreign workers working for a U.S. company overseas c) U.S. citizens working for a foreign company located in the U.S. d) A foreign worker in the U.S. legally with permission to work Answer: b Difficulty: Medium Page: 90 Ref: What Is the Main Law Relating to Discrimination and Employment?

62. The Age Discrimination in Employment Act (ADEA): a) applies to all employees working for a company b) applies to all occupations and U.S. employers domestic and abroad

Page 16 of 22

c) applies to all employees 45 and older d) exempts some occupations, such as law enforcement and allow employers to require retirement at a particular age for those employed in these occupations Answer: d Difficulty: Medium Page: 92 Ref: What are Other Important Employment Laws?

63. Age discrimination is of particular concern to companies when they must reduce their workforce. Which of the following would NOT be consistent with effectively managing layoffs to avoid issues with the Age Discrimination and Employment Act (ADEA)? a) Conduct a study to support the necessity of a layoff b) A written layoff policy stating that when a particular position is to be cut, older employees will be retained over younger employees c) Using length of service to determine who will be laid off d) Use an internal committee for layoff decisions, not individual managers Answer: b Difficulty: Medium Page: 94: Table 3.2 Ref: What are Other Important Employment Laws?

64. Which of the following is NOT true of the Americans with Disabilities Act (ADA)? a) Under the ADA, if a disabled person is not able to perform all the duties of a job he/she is not qualified for the job b) ADA guidelines only apply if the disabled person has the qualifications essential for performing a job c) Under ADA a disabled person may not be required to perform functions that are not essential to the job d) The ADA protects individuals with physical disabilities or mental disabilities Answer: a Difficulty: Medium Page: 94-95 Ref: What Are Other Important Employment Laws?

65. The Americans with Disabilities Act (ADA): a) only covers physical disabilities b) only covers mental disabilities

Page 17 of 22

c) covers physical and mental disabilities that impair a major life activity d) covers all physical and mental disabilities Answer: c Difficulty: Medium Page: 94 Ref: What Are Other Important Employment Laws?

66. Reasonable accommodation: a) requires an employer to hire a person with a disability who can perform all essential duties of a job b) is a change in the work environment or in the way work is done that allows an individual with a disability to have equal employment opportunities c) requires an employer to make changes in the way work is done based upon how an employee prefers to work d) must be made to accommodate an employee with a disability if the cost is less than $2,000 Answer: b Difficulty: Medium Page: 95 Ref: What Are Other Important Employment Laws?

67. Which of the following is NOT a concern for employer compliance with the ADA? a) An employer requires that an applicant undergo a medical exam after he/she has received a conditional offer of employment b) An employer requires all applicants to undergo a medical exam before being interviewed c) Asking candidates during the interview if they have a disability and if so, how they will perform the job d) Asking candidates to indicate on an application what, if any, disabilities they have Answer: a Difficulty: Medium Page: 95 Ref: What Are Other Important Employment Laws?

68. Which of the following would be an acceptable explanation under the Equal Pay Act for why people in the same job are paid differently? a) Seniority and merit b) Merit and comparable worth c) Seniority and paying a member of a protected class more

Page 18 of 22

d) A piece rate system and comparable worth Answer: a Difficulty: Medium Page: 96 Ref: What Are Other Important Employment Laws?

69. Which of the following would NOT be appropriate for leave under the Family Medical Leave Act (FMLA)? a) An employee is not able to work because of a serious health condition b) An employee needs to care for a seriously ill parent c) An employee needs to care for a child just adopted by the employee d) An employee needs to care for a seriously ill sibling Answer: d Difficulty: Medium Page: 97 Ref: What Are Other Important Employment Laws?

70. Workers’ compensation laws: a) provide protection for employees who are injured or disabled while working even if the actions of the employee caused the injury b) are a part of the Occupational Safety and Health Act (OSHA) c) provide protection for employees who are injured or disabled while working ONLY if the employee is wearing appropriate safety gear and following prescribed work procedures d) suggest that employers carry workers’ compensation insurance Answer: a Difficulty: Medium Pages: 107 Ref: What Are the Major Laws Relating to Occupational Safety?

Short Answer

71. The collection of individuals specifically protected from discrimination by the wording and intent of Title VII are referred to as _____________.

Answer: protected classes

Page 19 of 22

Difficulty: Easy Page: 81 Ref: What Is the Main Law Relating to Discrimination and Employment?

72. A selection method is ___________ when it accurately predicts who will successfully perform a job.

Answer: valid Difficulty: Easy Page: 83 Ref: What Is the Main Law Relating to Discrimination and Employment?

73. A form of sexual harassment where one employee makes continued employment and advancement contingent on sexual favors is known as _________ sexual harassment.

Answer: quid pro quo Difficulty: Medium Page: 86 Ref: What Is the Main Law Relating to Discrimination and Employment?

74. _________ sexual harassment occurs when behavior of a sexual nature has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating or offensive working environment.

Answer: Hostile environment Difficulty: Easy Page: 87 Ref: What Is the Main Law Relating to Discrimination and Employment?

75. The Family and Medical Leave Act (FMLA) provides for up to 12 weeks of _______ leave.

Answer: unpaid Difficulty: Easy Page: 97 Ref: What Are Other Important Employment Laws?

76. A plan aimed at increasing representation of employees from protected classes who have historically been victims of discrimination is called a(n) __________ plan.

Page 20 of 22

Answer: affirmative action Difficulty: Medium Page: 100 Ref: How Can Organizations Increase Diversity?

77. One component of an affirmative action plan, a(n) _________ compares the percentage of women and minorities currently holding jobs in the company with the percentages of women and minorities in the population of the immediate labor area.

Answer: utilization study Difficulty: Medium Page: 100 Ref: How Can Organizations Increase Diversity?

78. The _____________ Act of 1970 deals with employee health and safety requirements.

Answer: Occupational Health and Safety Difficulty: Easy Page: 103 Ref: What Are the Major Laws Relating to Occupational Safety?

79. working.

provides protection for employees who are injured or disabled while

Answer: Workers’ Compensation Difficulty: Easy Page: 106 Ref: What Are the Major Laws Relating to Occupational Safety?

Essays

80. What is work place sexual harassment? List and define the two types of sexual harassment and provide an example of each type of harassment.

Page 21 of 22

Answer: Sexual harassment in the workplace involves improper words or actions that are sexual in nature or that are directed toward workers of a specific sex or sexual orientation.

Quid pro quo – a form of sexual harassment that makes continued employment and advancement contingent upon sexual favors.

Hostile environment – a form of harassment that occurs when employees create an offensive environment in the workplace that interferes with an individual’s ability to perform work duties.

Examples a) a supervisor requiring sexual favors in exchange for a pay raise is an example of quid pro quo sexual harassment b) an employee or supervisor who regularly makes offensive sexual remarks, sexual jokes, or sexual gestures in the workplace that interfere with an employee’s ability to perform work duties Difficulty: Medium Pages: 86-87 Ref: What Is the Main Law Relating to Discrimination and Employment?

81. Discuss the two types of major laws that provide employees with assurance of safety and protection on the job.

Answer: The Occupational Safety and Health Act (OSHA) is a federal law passed in 1970. OSHA requires employers to keep records about safety practices and incidents, including illnesses and injuries that occur in the workplace. Employers should conduct periodic inspections to make sure the workplace is safe and ensure that structures, machines, and materials do not place employees in dangerous situations. Employers must provide information and keep employees informed of protections and safety obligations. Employers must ensure that employees know about hazardous chemicals in the workplace to which they might be exposed.

OSHA is administered by the Occupational Safety and Health Administration.

Each state has laws and programs governing workers’ compensation, which provides protection for employees who are injured or disabled while working. Employers are required to carry workers’ compensation insurance. Workers’ compensation is administered by the individual states.

Difficulty: Hard Page: 102-107 Ref: What Are Major Laws Relating to Occupational Safety?

Page 22 of 22

Chapter: Chapter 04: Designing Productive and Satisfying Work

True/False

1. Differentiation suggests that each worker should be assigned a set of similar tasks in order to specialize in doing certain things very well.

Answer: True Difficulty: Medium Page: 122 Ref: How Can Strategic Design of Work Tasks Improve an Organization?

2. Strategic work design can benefit an organization by assigning and coordinating tasks in ways that increase productivity.

Answer: True Difficulty: Easy Page: 122 Ref: How Can Strategic Design of Work Tasks Improve an Organization?

3. Employees with more autonomy are more likely to go beyond expectations without extra pay.

Answer: True Difficulty: Medium Page: 125 Ref: How is Work Design Strategic?

4. Research finds that high autonomy is good for all workers, regardless of the work context.

Answer: False Difficulty: Medium Page: 125 Ref: How is Work Design Strategic?

Page 1 of 22

5. Workers with high autonomy are best at repetitive, clearly defined work.

Answer: False Difficulty: Medium Page: 125 Ref: How Is Work Design Strategic?

6. Autonomy is critical in an organization which has sequential processing in its operations.

Answer: False Difficulty: Medium Page: 125-126 Ref: How Is Work Design Strategic?

7. High autonomy will improve performance of the individual and the organization in a context with sequential processing in its operations.

Answer: False Difficulty: Medium Page: 125 Ref: How is Work Design Strategic?

8. In situations where work lacks prescribed plans or processes and team members must confer often to complete the work, reciprocal processing works best.

Answer: True Difficulty: Medium Page: 126 Ref: How Is Work Design Strategic?

9. Organizations using cost HR strategies focus on efficiency so jobs are often standardized in these organizations.

Answer: True Difficulty: Easy Page: 127 Ref: How Is Work Design Strategic?

Page 2 of 22

10. Reciprocal processes and high autonomy correspond with improved performance when work processes are complex and constantly changing.

Answer: True Difficulty: Medium Page: 126-127 Ref: How Is Work Design Strategic?

11. Efficiency is often created by combining low autonomy and sequential processing.

Answer: True Difficulty: Easy Page: 127 Ref: How Is Work Design Strategic?

12. The bargain laborer strategy is consistent with high differentiation.

Answer: False: Difficulty: Medium Page: 127 Ref: How Is Work Design Strategic?

13. The process of systematically collecting information about work tasks is called job analysis.

Answer: True Difficulty: Easy Page: 128 Ref: How Are Employee Jobs Determined?

14. To avoid legal problems, effective job analysis is important for an organization.

Answer: True Difficulty: Medium Page: 129 Ref: How Are Employee Jobs Determined?

Page 3 of 22

15. Effective job analysis can be viewed as a first step for appropriately hiring, training, and compensating workers.

Answer: True Difficulty: Easy Page: 129 Ref: How Are Employee Jobs Determined?

16. Jobs that are important to the success of the organization and jobs in which large numbers of people are employed should be given priority for job analysis.

Answer: True Difficulty: Medium Page: 130 Ref: How Are Employee Jobs Determined?

17. The Occupational Information Network, called O*Net, can substitute for job analysis.

Answer: False Difficulty: Medium Page: 131 Ref: How Are Employee Jobs Determined?

18. A potential problem using an employee currently assigned to a position as a source for job analysis is that they do not understand human resource policies and programs.

Answer: False Difficulty: Easy Page: 131 Ref: How Are Employee Jobs Determined?

19. To cut costs, the job analysis interview is typically conducted through survey methods.

Answer: False Difficulty: Easy

Page 4 of 22

Page: 131 Ref: How Are Employee Jobs Determined?

20. Job analysis questionnaires must be developed on an ad hoc basis and as a result are expensive and not used often.

Answer: False Difficulty: Medium Page: 131 Ref: How Are Employee Jobs Determined?

21. Job analysis observation works well in jobs where tasks are repeated frequently.

Answer: True Difficulty: Easy Page: 132 Ref: How Are Employee Jobs Determined?

22. The best way to conduct effective job analysis is to use a combination of techniques.

Answer: True Difficulty: Easy Page: 132 Ref: How Are Employee Jobs Determined?

23. Good job specifications focus attention on knowledge, skills, and abilities that separate high and low-performing workers.

Answer: True Difficulty: Medium Page: 132 Ref: How Are Employee Jobs Determined?

24. The critical incidents technique of job analysis involved identifying instances of effective and ineffective behavior exhibited by people in a specific position.

Page 5 of 22

Answer: True Difficulty: Easy Page: 134 Ref: How Are Employee Jobs Determined?

25. The Position Analysis Questionnaire (PAQ) is used to collect information about job duties and responsibilities so a job description can be developed.

Answer: False Difficulty: Medium Page: 134 Ref: How Are Employee Jobs Determined?

26. Carefully prepared job specifications can guide selection practices so that appropriate tests can be found to identify which applicants actually have the desirable characteristics.

Answer: True Difficulty: Easy Page: 137 Ref: How Are Employee Jobs Determined?

27. After job analysis is completed for a position, it is important to identify the relative degree of competency necessary for entry-level performance to avoid legal issues.

Answer: True Difficulty: Hard Page: 137, Table 4.4 Ref: How Are Employee Jobs Determined?

28. Competency modeling is more likely than job analysis to link work analysis procedures and outcomes to business goals.

Answer: True Difficulty: Easy Page: 138 Ref: How Are Employee Jobs Determined?

Page 6 of 22

29. Competencies tend to be somewhat broader and less specifically defined than the activities assessed in job analysis.

Answer: True Difficulty: Hard Page: 138 Ref: How Are Employee Jobs Determined?

30. To increase productivity, the mechanistic approach to designing jobs seeks to simplify work as much as possible.

Answer: True Difficulty: Medium Page: 142 Ref: How Do We Determine the Tasks Associated with Each Job?

31. Jobs designed to increase motivation and satisfaction may have reduced efficiency.

Answer: True Difficulty: Medium Page: 145 Ref: How Do We Determine the Tasks Associated with Each Job?

32. Conflict between work and family roles is a unique U.S. phenomenon.

Answer: False Difficulty: Easy Page: 146 Ref: How Can Work Be Designed to Improve Family Life?

33. Flextime tends to be more useful for organizations pursuing differentiation strategies.

Answer: True Difficulty: Medium Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

Page 7 of 22

1. Flextime is most consistent with the mechanistic approach to job design.

Answer: False Difficulty: Medium Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

34. Telework is consistent with the mechanistic approach to job design.

Answer: False Difficulty: Easy Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

35. Telework is most likely to occur in organizations pursuing differentiation strategies.

Answer: True Difficulty: Easy Page: 150 Ref: How Can Work Be Designed to Improve Family Life?

Multiple Choice

36. Which of the following are elements of work design? a) Differentiation and integration b) Integration but not differentiation c) Differentiation but not integration d) Differentiation, integration and job descriptions Answer: a Difficulty: Easy Page: 122 Ref: How Can Strategic Design of Work Tasks Improve an Organization?

Page 8 of 22

37. Which of the following statements is NOT true about autonomy? a) Autonomy concerns the extent to which individual workers are given the freedom and independence to plan and carry out work tasks b) A benefit of autonomy is increased motivation c) People with more autonomy feel more responsibility for their work d) High autonomy is desirable for all workers Answer: d Difficulty: Medium Page: 125 Ref: How Is Work Design Strategic?

38. Which situation described below would benefit from high levels of autonomy? a) An employee at Starbucks who makes the company’s signature coffee drinks b) An employee at McDonalds who makes sandwiches and French fires c) The cook at an eclectic and exclusive five star restaurant d) An employee at UPS responsible for packing and unpacking trucks carrying items shipped UPS Answer: c Difficulty: Medium Page: 125-126 Ref: How Is Work Design Strategic?

39. Workers with high autonomy: a) work well where coordination is required b) will excel in an assembly line context c) can adapt to changing conditions and effectively meet the needs of customers d) are likely to be paid extra to complete additional assignments to better serve customers Answer: c Difficulty: Medium Page: 126 Ref: How Is Work Design Strategic?

40. In an assembly line situation, which type of interdependence works best? a) Any type of interdependence will improve productivity b) Reciprocal processing works best c) Differentiated interdependence works best d) Sequential processing interdependence works best

Page 9 of 22

Answer: d Difficulty: Medium Page: 126 Ref: How Is Work Design Strategic?

41. Reciprocal processing: a) Is most appropriate in a manufacturing context b) Is organized around an assembly line such that the completed tasks of one employee feed directly into the tasks of another employee c) Is the extent to which a worker’s actions affect and are affected by the actions of others d) Is work organized around teams such that workers constantly adjust to the task inputs of others.

Answer: d Difficulty: Medium Page: 126 Ref: How Is Work Design Strategic?

42. Individuals and teams tend to benefit from sequential processes: a) when work activities can be broken into small tasks that do not change b) when activities are complex c) when activities require mental rather than physical inputs d) when activities require physical rather than mental inputs Answer: a Difficulty: Hard Page: 127 Ref: How Is Work Design Strategic?

43. Which of the following is NOT true of organizations using cost HR strategies? a) Employees have high levels of autonomy b) They use either the Bargain Laborer or Loyal Soldier HR strategy c) They focus on efficiency d) Jobs are standardized so that employees can quickly learn a set of tasks Answer: a Difficulty: Medium Page: 127-128, Figure 4.1 Ref: How Is Work Design Strategic?

Page 10 of 22

44. Which of the following is NOT true of organizations using the differentiation HR strategies? a) They use either the Committed Expert or Free Agent HR strategy b) Managers closely oversee work and are the experts for determining the best methods for accomplishing tasks c) These organizations focus on innovation d) Close interaction between workers using reciprocal processes allows them to help each other and learn new things Answer: d Difficulty: Medium Page: 127, Figure 4.1 Ref: How Is Work Design Strategic?

45. Job analysis is important for all of the reasons below EXCEPT: a) it helps establish what is expected of workers b) outcomes from job analysis help managers in the selection process c) it is one of the best motivators of employees d) outcomes from job analysis help plan training programs for employees Answer: c Difficulty: Medium Page: 129 Ref: How Are Employee Jobs Determined?

46. The steps in the job analysis process include: a) getting organized, choosing jobs, reviewing knowledge, seeking agents, collecting information, creating job descriptions and creating job specifications b) getting organized, reviewing job classification standards, meeting with incumbents, writing job descriptions and creating job specifications c) getting organized, choosing jobs, meeting with incumbents and writing job specifications d) choosing jobs, reviewing job descriptions, meeting with employees, creating job descriptions and creating job specifications Answer: a Difficulty: Medium Page: 130, Figure 4.2 Ref: How Are Employee Jobs Determined?

Page 11 of 22

47. The Occupational Information Network, O*Net: a) is not applicable outside the United States b) is a resource for job agents c) was developed by the U.S. department of labor as a source of information about jobs and careers d) is a resource for competency models Answer: c Difficulty: Easy Page: 131 Ref: How Are Employee Jobs Determined?

48. Which of the following is a disadvantage of using the incumbent as the source for job analysis information? a) There are not disadvantages b) It can result in emphasis on what is done rather than what should be done on the job c) A job analysis interview must be conducted d) The incumbent knows specifics about how the job is done in that organization only Answer: b Difficulty: Medium Page: 131 Ref: How Are Employee Jobs Determined?

49. Which of the following is NOT true about job analysis? a) Men and women identify different information about their jobs, even when they are performing the same job b) Information provided by job incumbents who are highly experienced is different from information provided by recently hired incumbents c) Minority and non-minority incumbents respond differently in job analysis information gathering d) Incumbents and supervisors generally provide the same information about a particular position Answer: d Difficulty: Medium Page: 131 Ref: How Are Employee Jobs Determined?

50. Which of the following are outcomes of job analysis?

Page 12 of 22

a) Job descriptions and job analysis salary scales b) Job descriptions and job specifications c) Job specifications and job analysis salary scales d) Job analysis salary scales Answer: b Difficulty: Medium Page: 130-131 Ref: How Are Employee Jobs Determined?

51. Which of the following is an example of a job specification? a) Knowledge of case law concerning labor law and skill in interpreting case law b) Incumbent will gather data for a variety of financial reports c) An internal job announcement d) Job analysis Answer: a Difficulty: Medium Page: 132 Ref: How Are Employee Jobs Determined?

52. Which of the following is a method of collecting job analysis information from job agents that includes the frequency or time spent on task and the importance of job tasks? a) Job analysis observation b) Job specifications c) Task analysis inventory d) Critical incident method Answer: c Difficulty: Medium Page: 133 Ref: How Are Employee Jobs Determined?

53. ABC Business has asked employees and supervisors to provide statements about important situations and actions and to describe behaviors that are particularly helpful or harmful for accomplishing work. Which job analysis technique is being used by ABC? a) Task analysis inventory b) Critical-incidents technique c) Job specification method d) Job analysis observation method

Page 13 of 22

Answer: b Difficulty: Medium Page: 134 Ref: How Are Employee Jobs Determined?

54. Which of the following is NOT an advantage of using the Position Analysis Questionnaire (PAQ)? a) It is useful across many different types of jobs b) The information concerns worker characteristics rather than tasks c) It is very useful for creating job descriptions d) Results can be compared across jobs that are quite different Answer: c Difficulty: Medium Page: 136 Ref: How Are Employee Jobs Determined?

55. _____ focus attention on knowledge, skills, and abilities, and _______ focus on duties and what is to be done. a) Job duties; job specifications b) Job analysis; job duties c) Job specifications; job description d) Job description; job specifications Answer: c Difficulty: Medium Page: 136, Figure 4.3 Ref: How Are Employee Jobs Determined?

56. Which of the following is NOT a legal issue related to job analysis? a) Data should be collected from enough people to be sure the results are accurate b) Use of a subject matter expert c) The method used to analyze the job should be clearly described d) Tasks, duties and activities must be identified and included in the job analysis Answer: b Difficulty: Easy Page: 137, Table 4.4

Page 14 of 22

Ref: How Are Employee Jobs Determined?

57. Competency modeling: a) is an alternative to job analysis that focuses on a broader set of characteristics that workers need to effectively perform job duties b) is an alternative to job analysis that focuses on a more specific set of knowledge and skills that workers need to effectively perform job duties c) does not work as well as job analysis as outcomes are not as related to business goals and strategies d) involves tasks, duties, and activities that make up a job Answer: a Difficulty: Hard Page: 138 Ref: How Are Employee Jobs Determined?

58. What is the process of determining what tasks will be grouped together to form employee jobs? a) Job analysis b) Position Analysis Questionnaire c) Job design d) Competency modeling Answer: c Difficulty: Easy Page: 140 Ref: How Do We Determine the Tasks Associated with Each Job?

59. A major goal of job design is: a) to differentiate and integrate work in ways that produce productivity and job satisfaction b) to allow employees to specialize in specific tasks c) to produce greater job satisfaction d) to create generalists Answer: a Difficulty: Medium Page: 140 Ref: How Do We Determine the Tasks Associated with Each Job?

Page 15 of 22

60. The mechanistic approach to job design: a) is based upon enhancing employee motivation and satisfaction b) is based on the scientific method to create jobs c) is based upon enhancing intrinsic motivation d) seeks to have employees develop new and better ways to accomplish work Answer: b Difficulty: Easy Page: 141 Ref: How Do We Determine the Tasks Associated with Each Job?

61. Which HR strategy benefits from the mechanistic approach to job design? a) Loyal Soldier and Committed Expert b) Committed Expert and Free Agent c) Loyal Soldier and Bargain Laborer d) Free Agent and Bargain Laborer Answer: c Difficulty: Medium Page: 142 Ref: How Do We Determine the Tasks Associated with Each Job?

62. Which of the following is NOT true of the motivational approach to job design? a) Organizational psychology principles are used to design work b) This approach seeks to increase employees’ enjoyment at work c) This approach seeks to increase employee effort at work d) Work is simplified as much as possible Answer: d Difficulty: Medium Page: 142-143 Ref: How Do We Determine the Tasks Associated with Each Job?

63. According to the job characteristics model, which of the following are characteristics of jobs that provide intrinsic motivation? a) Autonomy and knowledge of work results b) Meaningfulness, responsibility and knowledge of work results c) Interdependence and responsibility d) Meaningfulness, autonomy and independence

Page 16 of 22

Answer: b Difficulty: Medium Page: 142-143 Ref: How Do We Determine the Tasks Associated with Each Job?

64. Which of the following approaches to job design seeks to simplify mental demands on workers? a) Perceptual approach b) Perspective approach c) Biological approach d) Mechanistic approach Answer: a Difficulty: Medium Page: 144 Ref: How Do We Determine the Tasks Associated with Each Job?

65. Ergonomics is most likely to be emphasized under which approach to job design? a) Perspective approach b) Biological approach c) Work design approach d) Motivational approach Answer: b Difficulty: Medium Page: 144 Ref: How Do We Determine the Tasks Associated with Each Job?

66. The mechanistic approach: a) can be combined with the motivational approach to create jobs that are efficient and satisfying b) when combined with the motivational approach creates an organizations without strategic focus c) results in higher levels of employee satisfaction d) provides important guidance when the underlying strategy is differentiation Answer: a Difficulty: Hard Page: 145 Ref: How Do We Determine the Tasks Associated with Each Job?

Page 17 of 22

67. Conflict between work and family roles presents problems for employers for all the reasons below EXCEPT: a) it increases absenteeism and turnover b) it can result in decreased job satisfaction c) it can result in increased substance abuse d) it can result in more requests for flexible schedules Answer: d Difficulty: Medium Page: 146 Ref: How Can Work Be Designed to Improve Family Life?

68. Which of the following is NOT true of flextime? a) Flextime is most useful for organizations pursuing a differentiation strategy b) A primary benefit from flextime is increased satisfaction among workers c) Flextime is most consistent with the biological approach to job design d) Flextime is associated to some extent with higher productivity Answer: c Difficulty: Medium Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

69. A compressed workweek: a) often produces higher levels of job satisfaction among employees b) assures an employer higher levels of productivity c) decreases absenteeism d) is well suited for organizations with the Free Agent strategy Answer: a Difficulty: Medium Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

70. All the following statements are true about telework EXCEPT: a) employees who are independent and conscientious are most likely to succeed with telework

Page 18 of 22

b) employees are most likely to succeed with telework after they have spent time working in the office c) employees are most likely to succeed with telework if they have had to prove themselves “worthy” of the opportunity to work at home by first performing in the office setting d) telework is consistent with the biological approach to job design Answer: d Difficulty: Medium Page: 150 Ref: How Can Work Be Designed to Improve Family Life?

Short Answer

71. ________ is concerned with coordinating the efforts of employees.

Answer: Integration Difficulty: Easy Page: 122 Ref: How Can Strategic Design of Work Tasks Improve an Organization?

72. _______ is the extent to which an individual’s work actions and outcomes are influenced by other people.

Answer: Interdependence Difficulty: Easy Page: 126 Ref: How Is Work Design Strategic?

73. A collection of tasks that a person is required to perform at work is a _____.

Answer: job Difficulty: Easy Page: 128 Ref: How Are Employee Jobs Determined?

Page 19 of 22

74. ________ focus on what work is done, whereas _________ focus on who is most likely to be able to perform task successfully.

Answer: Job descriptions; job specifications Difficulty: Medium Page: 132 Ref: How Are Employee Jobs Determined?

75. Characteristics and capabilities that people need to succeed in work assignments are called _______.

Answer: competencies Difficulty: Easy Page: 138 Ref: How are Employee Jobs Determined?

76. The _______ of job design focuses on building intrinsic motivation.

Answer: job characteristics model Difficulty: Medium Page: 142 Ref: How Do We Determine the Tasks Associated with Each Job?

77. ____________ gives employees greater freedom in scheduling the times they will arrive and leave work.

Answer: Flextime Difficulty: Easy Page: 147 Ref: How Can Work Be Designed to Improve Family Life?

78. When an employee works at home and stays connected through voice and data services it is often called ___________.

Answer: telework Difficulty: Easy Page: 148 Ref: How Can Work Be Designed to Improve Family Life?

Page 20 of 22

Essays

79. Discuss job analysis. In your discussion explain how job analysis provides a foundation for effective human resources and discuss the outcomes from job analysis that support human resource effectiveness.

Answer: Job analysis is the process of systematically collecting information about work tasks. Job analysis is important for identifying the qualifications required for successful performance of a job. Job specifications, which identify the knowledge, skills and abilities that workers need to perform a job are an outcome from job analysis. Job specifications are important for effective recruiting and selection because they focus on what is needed to perform well in the job.

Understanding job tasks and what it takes to perform successfully helps plan training for the job.

The data collected through job analysis also helps guide decisions about pay. The knowledge of job duties and tasks is also helpful in developing performance appraisals.

Outcomes from job analysis that support effective human resources include the job description, which is a series of task statements that describe what is to be done by a job incumbent. Another outcome is job specifications which are critical for effective employee recruitment and selection.

Difficulty: Medium Page: 128-138 Ref: How Are Employee Jobs Determined?

80. Discuss the four general approaches to job design and the types of organizations and/or HR strategies that can benefit from each approach.

Answer: Mechanistic approach – this approach uses principles of scientific management to create jobs that eliminate wasted efforts so an organization can produce goods and services quickly. The goal of this approach is to simplify work tasks as much as possible. Workers focus on completing only one task at a time and work tasks are repetitive. Workers tend to specialize so they become very efficient in completing their work. The Loyal Soldier or Bargain Laborer HR strategies are likely to benefit from the mechanistic approach to organizing work.

Motivational approach – this approach emphasizes the study and understanding of the human mind and human behavior. Increasing employees’ enjoyment of their work and thus increasing their effort is a major goal of this approach. The motivational approach seeks to design work so that it is complex and challenging. Under this approach the belief is that workers are intrinsically motivated when they perceive their work to have meaning, when they feel personal responsibility for work outcomes, and when workers have knowledge of the results from their work efforts. This approach is good for work that requires innovation or creativity. Work

Page 21 of 22

designed using the motivational approach allows workers autonomy and is likely to increase worker satisfaction and retention. The motivational approach is appropriate for an organization pursuing differentiation strategies and a Committed Expert or Free Agent HR strategy.

Perceptual Approach – this approach emphasizes simplifying mental demands on workers and thereby decreasing errors. As a result, the perceptual approach to job design usually results in work characterized by sequential processing and low autonomy. Safety and prevention of accidents is a high priority. The perceptual approach is commonly found in organizations pursuing a Loyal Soldier or Bargain Laborer HR strategy.

Biological Approach – This approach to job design emphasizes the physical stresses and demands placed on workers. It is associated with ergonomics, which concerns methods of designing work to prevent physical injury. Work processes are designed to eliminate movements that can lead to physical injury or excess fatigue. Work design from the biological perspective helps organizations with Bargain Laborer or Loyal Soldier HR strategies to balance efficiency with the physical needs of workers.

Difficulty: Hard Page: 140-145 Ref: How Do We Determine the Tasks Associated with Each Job?

Page 22 of 22

Chapter: Chapter 05: Recruiting Talented Employees

True/False

1. The process of identifying and encouraging as many applicants as possible to apply for a position refers to employee recruiting.

Answer: False Difficulty: Easy Page: 162 Ref: How Can Strategic Recruiting Make an Organization Effective?

2. Research suggests that recruitment best practices are universal regardless of location or job type.

Answer: False Difficulty: Medium Page: 164 Ref: How Is Employee Recruiting Strategic?

3. If an organization is not sure about the type of person best suited for a position it is best to cast a wide net.

Answer: True Difficulty: Medium Page: 165 Ref: How Is Employee Recruiting Strategic?

4. The broad scope seeks to attract a large group of applicants who have a high probability possessing the characteristics that are needed to perform a specific job and qualifications are specific and specialized.

Answer: False Difficulty: Hard Page: 164-165

Page 1 of 23

Ref: How Is Employee Recruiting Strategic?

5. An organization seeking to fill a nanotechnology engineering position would likely use a targeted skill scope strategy which would involve recruiting in a small geographic area.

Answer: False Difficulty: Hard Page: 166 Ref: How Is Employee Recruiting Strategic?

6. Internal applicants have performance records and are already committed to a relationship with the organization represents an advantage of internal sourcing.

Answer: True Difficulty: Easy Page: 166 Ref: How Is Employee Recruiting Strategic?

7. Organizations with the Loyal Soldier and Committed Expert HR strategies try to fill as many job vacancies as possible with current employees.

Answer: True Difficulty: Medium Page: 166 Ref: How Is Employee Recruiting Strategic?

8. One reason to hire temporary workers, who are oftentimes employed by an outside staffing agency, is so the organization can respond quickly with changes in the work force to meet decreasing or increasing demand for products or services.

Answer: True Difficulty: Medium Page: 167 Ref: How Is Employee Recruiting Strategic?

9. Reduced cost is a major reason organizations hire contingent workers.

Page 2 of 23

Answer: True Difficulty: Easy Page: 167 Ref: How Is Employee Recruiting Strategic?

10. When hiring temporary workers, realistic job previews are most helpful so that upon being hired, temporary employees understand the job and organization and can begin successful performance immediately.

Answer: False Difficulty: Medium Page: 168 Ref: How Is Employee Recruiting Strategic?

11. Realistic messaging is most valuable to organizations seeking long-term employees, which is consistent with the Loyal Soldier or Committed Expert HR strategies.

Answer: True Difficulty: Medium Page: 168 Ref: How Is Employee Recruiting Strategic?

12. Realistic messaging may lead to inflated expectations about a job and organization as it focuses on communicating only positive information to potential employees. Nonetheless, realistic messaging is appropriate for organizations employing the Free Agent or Bargain Laborer HR strategies.

Answer: False Difficulty: Medium Page: 169 Ref: How is Employee Recruiting Strategic?

13. Human resource planning involves multiple steps, including: Assessing current employee levels: predicting future needs; predicting employee movement; and planning external hiring needs.

Answer: True

Page 3 of 23

Difficulty: Medium Page: 171, Figure 5.2 Ref: How Does Human Resource Planning Facilitate Recruiting?

14. An example of predicting future needs as a part of human resource planning is provided by a medical center linking the projected number of inpatients per month to the hiring projections for nurses.

Answer: True Difficulty: Medium Page: 171 Ref: How Does Human Resource Planning Facilitate Recruiting?

15. Effective human resource planning allows an organization to act strategically, can help smooth out upward and downward trends in employment and help eliminate surprises.

Answer: True Difficulty: Medium Page: 172 Ref: How Does Human Resource Planning Facilitate Recruiting?

16. A batch approach to recruiting brings new employees into the organization in groups.

Reasons for using the batch approach is that it allows the organization to take advantage of opportunities to hire top talent as they are found.

Answer: False Difficulty: Medium Page: 173 Ref: How is Employee Recruiting Strategic?

17. One outcome of human resource planning is that an organization can take advantage of hiring exceptional employees even before a specific vacancy occurs.

Answer: True Difficulty: Medium Page: 172 Ref: How Does Human Resource Planning Facilitate Recruiting?

Page 4 of 23

18. A primary advantage of centralized recruiting procedures is that prospective employees are able to form relationships with human resource management personnel, which is advantageous for the long term.

Answer: False Difficulty: Medium Page: 174-175 Ref: How Does Human Resource Planning Facilitate Recruiting?

19. In general, there are three types of people looking for work: those entering the workforce for the first time; people who have been in the workforce before and are currently unemployed; and people who are employed but seeking a different job.

Answer: True Difficulty: Easy Page: 175 Ref: Who Searches for Jobs?

20. Actual job search behaviors, such as gathering information and visiting organizations, arise from goals and intentions.

Answer: True Difficulty: Medium Page: 176 Ref: Who Searches for Jobs?

21. Positive messages that set apart an organization can result in more new entrants applying for employment because new entrants into the workforce begin their search with a broad perspective.

Answer: True Difficult: Medium Page: 176 Ref: Who Searches for Jobs?

Page 5 of 23

22. Consideration of potential fit between a new employee and the organization is most important for organizations pursuing long term relationships with employees, which is consistent with the Loyal Soldier and Committed Expert HR strategies.

Answer: True Difficult: Medium Page: 177 Ref: Who Searches for Jobs?

23. People who search for another job while still employed tend to be dissatisfied and prone to worry.

Answer: False Difficulty: Easy Page: 178 Ref: Who Searches for Jobs?

24. Studies suggest that dissatisfaction with a current job is an important key for understanding why people accept new employment.

Answer: True Difficulty: Medium Page: 178 Ref: Who Searches for Jobs?

25. Because of healthy conflict and competition, the war for talent creates positive outcomes for organizations and employees alike.

Answer: False Difficulty: Medium Page: 179 Ref: Who Searches for Jobs?

26. Familiar organizations generally have worse reputations because people tend to remember the negative things about the organization.

Answer: False Difficulty: Medium

Page 6 of 23

Page: 180 Ref: What Characteristics Make an Organization Attractive?

27. Familiar organizations do not benefit much from image enhancing activities such as sponsoring events or placing advertisements that provide general information about working for them because people already have a generally positive image of the organization.

Answer: True Difficulty: Easy Page: 180 Ref: What Characteristics Make an Organization Attractive?

28. Organizations, like people, have certain traits that make them more desirable places to work.

Answer: True Difficulty: Medium Page: 181 Ref: What Characteristics Make an Organization Attractive?

29. Potential employees tend to be more attracted to organizations when recruiters appear similar to them.

Answer: True Difficulty: Medium Page: 182, Table 5.1 Ref: What Characteristics Make an Organization Attractive?

30. Per research findings, human Resource professionals believe that employee referrals are ineffective because employees recruit their friends, regardless of their qualifications or capacity to perform successfully.

Answer: False Difficulty: Medium Page: 183 Ref: What Are Common Recruiting Sources?

Page 7 of 23

31. Providing an employee referral strengthens an employee’s commitment to their employing organization.

Answer: True Difficulty: Medium Page: 183 Ref: What Are Common Recruiting Sources?

32. An advantage of a private employment agency is that they are frequently able to recruit people who are not actively seeking new positions.

Answer: True Difficulty: Easy Page: 188 Ref: What Are Common Recruiting Sources?

33. Private employment agencies can be particularly helpful for organizations pursuing a Bargain Employee HR strategy.

Answer: False Difficulty: Easy Page: 188 Ref: What Are Common Recruiting Sources?

34. Cost per applicant measures are helpful because they allow an organization to assess the relative value of different recruitment techniques.

Answer: True Difficulty: Medium Page: 191 Ref: How Is Recruiting Effectiveness Determined?

35. Cost per hire is calculated to measure recruiting success. It is calculated by dividing the total cost of a particular search by the number of applicants who applied for employment.

Answer: False Difficulty: Medium

Page 8 of 23

Page: 190 Ref: How Is Recruiting Effectiveness Determined?

Multiple Choice

36. Effective recruiting involves which of the following? a) Getting as many applicants as possible to apply for positions and informing them about the positive aspects of the job and employment with the organization b) Getting well qualified applicants to apply for positions, keeping applicants interested and persuading the best applicants to accept job offers c) Limiting recruitment efforts to the sources that have provided employees in the past, getting as many applicants as possible to apply for positions and informing these applicants about the positive aspects of the job and employment with the organization d) Getting well qualified applicants to apply for positions Answer: b Difficulty: Medium Page: 162 Ref: How Can Strategic Recruiting Make an Organization Effective?

37. The broad skill scope strategy: a) is best used when not many people have the skills required and when the characteristics of successful workers are very clear b) is best used when the characteristics of successful workers are very clear c) is best used when characteristics of a successful worker are unclear or when a number of different characteristics may lead to success d) is pursued by organizations with a competitive strategy of differentiation Answer: c Difficulty: Medium Page: 165 Ref: How Is Employee Recruiting Strategic?

38. The targeted skill scope strategy: a) seeks to attract a large number of applicants who may have the characteristics that are needed to perform the specific job b) seeks to attract a small group of applicants who have a high probability of possessing the characteristics that are needed to perform a specific job

Page 9 of 23

c) is often used by an organization employing the Loyal Soldier HR strategy d) is optimal for attracting a large number of applicants for each position and then basing hiring decisions on assessment of fit with the culture and values of the organization Answer: b Difficulty: Medium Page: 165 Ref: How Is Employee Recruiting Strategic?

39. Internal sourcing: a) is consistent with the Free Agent HR strategy b) is usually used to fill entry level positions only c) is not appropriate for filling overseas assignments d) is consistent with the committed expert HR strategy Answer: d Difficulty: Medium Page: 166 Ref: How Is Employee Recruiting Strategic?

40. Organizations using external sourcing: a) provide a great deal of training and development of current employees b) are likely to be pursuing a Committed Soldier HR strategy c) provide few opportunities to current employees for promotion or reassignment d) fill only entry-level jobs from outside the organization Answer: c Difficulty: Medium Page: 167 Ref: How Is Employee Recruiting Strategic?

41. Which of the following is NOT true about hiring temporary workers? a) It is an example of external sourcing b) Organizations use such arrangements to avoid long-term employment commitments c) This strategy can be effectively used by organizations that have cyclical demands for their services, such as a business that prepares individual tax returns d) Using temporary workers allows an organization to employ an HR strategy that develops employees and creates a competitive advantage Answer: d

Page 10 of 23

Difficulty: Medium Page: 167 Ref: How Is Employee Recruiting Strategic?

42. An applicant applying for a Human Resource Generalist position is told that the organization offers opportunities for advancement but employees may be asked to relocate for a promotion; that the job fast paced, challenging, and that the incumbent may be required to work more than 40 hours per week. This is an example of: a) idealistic messaging b) contingent messaging c) a realistic job preview d) bottom line messaging Answer: c Difficulty: Medium Page: 168 Ref: How Is Employee Recruiting Strategic?

43. _______ is most valuable for organizations seeking long-term employees. ________ is used to avoid discouraging applicants who have highly developed work skills. a) Realistic messaging; Realistic messaging b) Realistic messaging; Competitive messaging c) Idealistic messaging; Competitive messaging d) Realist messaging; Idealistic messaging Answer: d Difficulty: Medium Page: 168 Ref: How Is Employee Recruiting Strategic?

44. When an organization conveys positive information about a job and the organization to applicants it is referred to as: a) a realistic job preview b) idealistic messaging c) realistic messaging d) effective recruiting Answer: b Difficulty: Easy

Page 11 of 23

Page: 168-169 Ref: How Is Employee Recruiting Strategic?

45. Effective recruiting plans: a) should be implemented as soon as a job becomes vacant b) increase the likelihood of hiring the best workers and reduce costs c) require an organization to begin recruiting as soon as it becomes aware of a vacancy d) involve contingent workers Answer: b Difficulty: Easy Page: 170 Ref: How Does Human Resource Planning Facilitate Recruiting?

46. The process of human resource planning: a) includes assessing current employment levels, predicting future needs, planning for internal movement, and predicting external hiring needs b) need only be completed by organizations planning an external recruitment strategy c) includes predicting future employment needs and predicting external hiring needs d) is concerned with future external hiring needs Answer: a Difficulty: Medium Page: 171, Figure 5.2 Ref: How Does Human Resource Planning Facilitate Recruiting?

47. When predicting future HR needs: a) an organization mainly should look at demographic shifts b) HR should be able to predict future employee needs without impinging on the time of managers c) an organization should begin with assessing environmental trends d) an organization should begin with assuming the same types and levels of production of goods and services Answer: c Difficulty: Easy Page: 171 Ref: How Does Human Resource Planning Facilitate Recruiting?

Page 12 of 23

48. Which of the following is NOT the type of data used for predicting future employee movements as a part of human resource planning? a) past patterns of employee movements b) how many employees are expected to quit or be terminated over a period c) quit rates, average length of time in specific jobs and promotion rates d) the number of projected vacancies for the future period Answer: d Difficulty: Medium Page: 171-172 Ref: How Does Human Resource Planning Facilitate Recruiting?

49. In the human resource planning process the number and types of people to be recruited externally: a) can be computed as vacancies occur b) can be computed by predicting the number of total employees needed by the organization at a future time minus the projected number of employees available internally for the same future time c) can be computed based upon known employee retirements d) can be computed after all vacancies have been announced for internal candidates Answer: b Difficulty: Easy Page: 172-173, Figure 5.3 Ref: How Does Human Resource Planning Facilitate Recruiting?

50. Which of the following is true of the flow approach to recruiting? a) An organization using this approach will bring new employees into the organization in groups to facilitate orientation and training b) Is used by an organization that has a specific work project with a beginning and an end c) This approach to recruiting can reduce the time between job opening and hiring decision d) This approach involves both human resources and supervisors in the hiring process so new employees understand the flow of work between human resources and the operating units Answer: c Difficulty: Medium Page: 174 Ref: How Does Human Resource Planning Facilitate Recruiting?

Page 13 of 23

51. Which of the following is true of batch recruiting? a) It is basically ineffective human resource planning b) It can be the best approach to recruiting when costly and timely training of new employees is necessary c) It is not an effective strategy when hiring students d) It does not work when applicants are only available at certain times Answer: b Difficulty: Medium Page: 173 Ref: How Does Human Resource Planning Facilitate Recruiting?

52. Which of the following is an advantage of centralized recruiting? a) It allows employees to have a relationship with human resource personnel b) It is usually less costly than decentralized procedures c) It allows employees to have a relationship with the people with whom they will work d) Human resource personnel have in depth understanding and knowledge jobs Answer: b Difficulty: Easy Page: 174 Ref: How Does Human Resource Planning Facilitate Recruiting?

53. Which of the following is an advantage of decentralized recruiting processes? a) There are more opportunities for company-wide planning for human resources b) Information provided to prospective employees will be consistent c) Managers and employees involved in the recruitment and selection of employees are more committed to help recruits succeed d) Less costs Answer: c Difficulty: Medium Page: 175 Ref: How Does Human Resource Planning Facilitate Recruiting?

54. Which of the following is a disadvantage of decentralized recruiting processes? a) There is less opportunity for human resource planning b) It does not create close relationship between human resources and new employees c) Information provided to prospective employees will be consistent

Page 14 of 23

d) It does not create relationships between new employees and the people with whom they will work Answer: a Difficulty: Medium Page: 175 Ref: How Does Human Resource Planning Facilitate Recruiting?

55. The three general types of people looking for work are: a) people entering the workforce for the first time, dissatisfied workers who are currently employed and those who are former dissatisfied workers who are currently unemployed b) contingent workers looking for permanent work, entry level workers who are seeking a promotion, and dissatisfied workers c) people entering the workforce for the first time, people who have worked before but are currently unemployed, and people who are currently employed and looking for a different job d) people entering the workforce for the first time, contingent workers, and former employees Answer: c Difficulty: Medium Page: 175 Ref: Who Searches for Jobs?

56. People make an effort to find employment: a) when they feel confident that they have qualifications for a new job, when they find the search process interesting and when significant others think that it is a good idea b) when they need an increase in compensation and when they are dissatisfied c) when those around them are applying for other jobs d) when they feel confident that they have qualifications for a new job and when they are passed over for a higher level position with their current employer Answer: a Difficulty: Medium Page: 175-176 Ref: Who Searches for Jobs?

57. The job search activities of new workforce entrants: a) involve a very intense and broad search of formal sources of information about many different job opportunities b) is focused and concentrates on a search for explicit information about a few possibilities c) involves an intense and broad search and then focuses and concentrates on a few possibilities

Page 15 of 23

d) usually involves a career counselor Answer: c Difficulty: Medium Page: 176 Ref: Who Searches for Jobs?

58. Organizations seeking to hire new workforce entrants: a) can benefit from providing applicants a lot of information so their organization is included when these workers are concentrating on a broad search b) can benefit from finding ways to share positive messages that set them apart from other employers c) should avoid applicants having contact with current employees d) do not need to be concerned with organizational fit Answer: b Difficulty: Medium Page: 176 Ref: Who Searches for Jobs?

59. An organization employing which type(s) of HR Strategies is most likely to hire entry level workers? a) Committed Expert HR strategy b) Bargain Labor HR Strategy c) Bargain Labor and Free Agent HR Strategies d) Committed Expert and Loyal Soldier HR Strategies Answer: d Difficulty: Medium Page: 177 Ref: Who Searches for Jobs?

60. Organizations most interested in assessing potential fit between a candidate and the organization: a) are most likely pursuing long-term relationships with employees which is consistent with the Free Agent HR strategy b) will most likely offer below market compensation c) are most likely pursuing long-term relationships with employees which is consistent with the Loyal Soldier HR strategy d) will most likely offer above market compensation

Page 16 of 23

Answer: c Difficulty: Medium Page: 177 Ref: Who Searches for Jobs?

61. An organization pursuing the _______ HR strategy is most likely to be recruiting from the _______category of potential job recruits. a) loyal soldier: new work entrants b) free agent; unemployed worker c) bargain laborer; workers currently employed d) bargain laborer; unemployed workers Answer: d Difficulty: Hard Page: 178 Ref: Who Searches for Jobs?

62. Which of the following is NOT true of the talent wars? a) Tactics employed in the talent war is dysfunctional for organizations b) Talent wars occur when competitors seek to “steal” employees from each other c) An organization that believes a competitor is attempting to raid its talent may respond by making employment with the organization a better place to work d) The back and forth competitive tactics employed by a raider of talent results in advantages for the entire market Answer: d Difficulty: Medium Page: 179 Ref: Who Searches for Jobs?

63. Which of the following is NOT true of familiar organizations? a) A familiar organization would not benefit greatly from sponsoring events or placing general advertisements b) Organizational familiarity can substitute for strategic human resource management and applicants are likely to excuse the organization if delays occur in the hiring process c) Familiar organizations have better reputations because people tend to remember positive things about them

Page 17 of 23

d) Organizations which are familiar and have a strong brand image have an overall advantage in recruiting Answer: b Difficulty: Medium Page: 180 Ref: What Characteristics Make An Organization Attractive?

64. Which type of internal recruiting strategy benefits from a broad job posting to attract a large number of people? a) Loyal Soldier HR strategy b) Committed Expert HR strategy c) Bargain Laborer HR strategy d) Free Agent HR strategy Answer: a Difficulty: Medium Page: 183 Ref: What Are Common Recruiting Sources?

65. Which of the following is NOT true about employee referrals? a) Employee referrals are relatively inexpensive method of recruiting b) Employee referrals are quicker than other forms of recruiting c) Employee referrals can result in higher turnover in the long run d) The current employee who makes a referral is likely to become more committed to the organization when they successfully refer someone Answer: c Difficulty: Medium Page: 183 Ref: What Are Common Recruiting Sources?

66. Which of the following is NOT a reason employers chose to use employee referrals? a) Employee referrals are relatively inexpensive b) People hired through employee referrals already know at least one employee who works for the organization, so they have established communication channels c) Employee referrals tend to be quicker than other forms of recruitment d) People hired through referrals tend to become better employees who are less likely to leave the organization

Page 18 of 23

Answer: b Difficulty: Easy Page: 183 Ref: What Are Common Recruiting Sources?

67. Which of the following is NOT likely to increase employee referrals? a) Provide rewards such as bonuses b) Make referrals fun c) Publicize success – recognize referrals made by employees d) Provide detailed information and rules so all employees understand how to refer an applicant for employment Answer: d Difficulty: Medium Page: 184, Table 5.2 Ref: What Are Common Recruiting Sources?

68. Which of the following is NOT true concerning the use of company websites for recruiting employees? a) Most companies provide career information and the means for applicants to apply for employment b) The use of company web sites for recruiting can be costly because of the constant need to update information c) Most company web sites provide information about the work environment, benefits, and employee diversity d) A company web site can be easily controlled to convey a clear recruiting message Answer: b Difficulty: Medium Page: 185 Ref: What Are Common Recruiting Sources?

69. The reasons for using electronic recruiting include all of the following EXCEPT: a) decreased cost b) identification of better job applicants c) electronic recruiting tends yield result quickly d) it is efficient in that it yields applicant who are mostly well qualified for the advertised job Answer: d Difficulty: Easy

Page 19 of 23

Page: 186 Ref: What Are Common Recruiting Sources?

70. Which of the following would likely NOT be a measure of recruiting effectiveness? a) Time measures—how long it takes to fill a position b) Retention measures, which focus on how long a new employee works for an organization c) Quantity measures, which focus on the number of applicants or hires generated d) Quality measures, which concern the extent to which recruiting activities locate and gain the interest of people who are actually capable of performing the job Answer: b Difficulty: Medium Page: 190-191 Ref: How Is Recruiting Effectiveness Determined?

Short Answer

71. An organization using ______ will focus on communicating positive information in order to develop and maintain an upbeat image. The ______ HR strategy is most consistent with the use of this.

Answer: idealistic messaging; free Agent Difficulty: Medium Page: 169-170 Ref: How Is Employee Recruiting Strategic?

72. Highly qualified applicants who may have other job alternatives are the most likely to be turned off by a ________.

Answer: realistic job preview Difficulty: Medium Page: 168 Ref: How Is Employee Recruiting Strategic?

73. The process of forecasting employment needs is _________.

Page 20 of 23

Answer: human resource planning Difficulty: Easy Page: 170 Ref: How Does Human Resource Planning Facilitate Recruiting?

74. A ______ approach to recruiting is ongoing and designed to constantly find new employees.

Answer: flow Difficulty: Easy Page: 173 Ref: How Does Human Resource Planning Facilitate Recruiting?

75. Helping individuals gain a sense of self-worth and confidence is important for hiring this group of potential job recruits: ____ workers.

Answer: unemployed Difficulty: Medium Page: 178 Ref: Who Searches for Jobs?

76. A _____ occurs when one employer seeks to “poach” or steal employees from another.

Answer: talent war Difficulty: Easy Page: 179 Ref: Who Searches for Jobs?

77. _________ occurs when current employees get their friends and acquaintances to apply for positions at their place of employment.

Answer: Employee referral Difficulty: Easy Page: 183 Ref: What Are Common Recruiting Sources?

78. ______ recruiting can be effective for organizations pursuing any HR strategy.

Page 21 of 23

Answer: Electronic Difficulty: Easy Page: 186 Ref: What Are Common Recruiting Sources?

Essays

79. Discuss various tips for increasing effectiveness of online recruiting.

Answer: A. Post information in multiple places because job seekers visit various sites. This will target likely applicants.

B. Create exciting job descriptions which tell interesting stories while still being realistic about the positives and negatives. This will sell the company.

C. Use cascading links which will provide easy access to additional information.

D. Communicate key reasons employees stay at a company, including company culture and the things that keep current employees satisfied with their jobs.

E. Assure data security in order to prevent spyware and malicious links.

Difficulty: Medium Page: 186, Table 5.3 Ref: What Are Common Recruiting Sources?

80. Discuss the use of employee referrals, public employment agencies and private employment agencies. Include advantages for using each and the types of hiring situations each best serves.

Answer: A. employee referrals – current employees recommend people they know for employment with their employer 1. employee referrals are cost effective 2. employee referrals are advantageous because many human resource professionals believe employee referrals are the most effective method of recruiting 3. employees only refer individuals who are most likely to perform satisfactorily as the employee’s reputation is at stake 4. employees referred for employment oftentimes have been given a realistic job preview by the referring employee, which reduces employee turnover B. Employee referrals can work with all types of HR strategies. Under the Bargain Laborer HR strategy, referrals offer a relatively low cost way to identify job candidates.

With the Loyal Soldier or Committed Expert HR strategies referrals help decrease turnover. In

Page 22 of 23

some cases referrals can help with the Free Agent HR strategy because current professional employees often have networks that help them identify individuals with rare but needed skills.

C. public employment agencies – government operated organizations that help match job seekers with employers 1. public employment agencies have local offices that assist employers and applicants 2. public employment agencies will post job announcements—often without any cost 3. public employment agencies will help employers screen job applicants 4. Public employment agencies are particularly helpful for recruiting workers for entrylevel positions and when an organization is engaged in broad skill recruiting D. private employment agencies – professional recruiting firms that help organizations identify recruits for a specific job in return for a fee.

1. private employment agencies will identify and screen potential employees for particular positions 2. private employment agencies are oftentimes able to recruit people who are not actively seeking new positions 3. use of a private employment agency allows the hiring organization to remain anonymous 4. though expensive, many private employment agency contracts specify that the fee is paid only if the individual stays with the organization for a minimum period of time 5. Private employment agencies can be particularly helpful for organizations pursuing a Free Agent HR strategy Difficulty: Hard Page: 183-189 Ref: What Are Common Recruiting Sources?

Page 23 of 23

Chapter: Chapter 06: Selecting Employees Who Fit

True/False

1. Because they usually are employed right after graduating from college or technical school and therefore do not demand high compensation, hiring specialists can be beneficial.

Answer: False Difficulty: Easy Page: 206 Ref: How is Employee Selection Strategic?

2. When ABC Manufacturing employs the Committed Expert HR Strategy, the managers attempt to select people capable of developing expertise in a particular area.

Answer: True Difficulty: Medium Page: 207 Ref: How Is Employee Selection Strategic?

3. When Tool Craft International uses the long-term generalist strategy, it seek to hire employees with specific skills and abilities who will stay employed with the organization for a long time.

Answer: False Difficulty: Medium Page: 207 Ref: How Is Employee Selection Strategic?

4. In order to be hired as a “Long term specialist” an applicant must have all skills to perform the job.

Answer: False Difficulty: Medium Page: 207 Ref: How Is Employee Selection Strategic?

Page 1 of 21

5. Job-based fit and organization-based fit are two important and different judgments for making effective selection decisions.

Answer: True Difficulty: Easy Page: 208 Ref: How Is Employee Selection Strategic?

6. Recruiters should assess, for effective hiring, a candidate’s organization fit based upon their own unique beliefs and perceptions about the organization.

Answer: False Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

7. Research suggests that when hiring generalists, job-based fit is a more important consideration than organization-based fit.

Answer: False Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

8. In the hiring of long-term employees, organization-based fit is the most critical factor.

Answer: True Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

9. If Car Toys, Inc. is pursuing the Bargain Laborer HR strategy seeking short term generalist, it is most concerned with organizational fit.

Answer: False

Page 2 of 21

Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

10. A hiring process that focuses on measuring applicant potential focuses on measuring achievements.

Answer: False Difficulty: Easy Page: 209 Ref: How Is Employee Selection Strategic?

11. Organizations using a Free Agent HR Strategy focuses on measuring potential.

Answer: False Difficulty: Easy Page: 210 Ref: How Is Employee Selection Strategic?

12. Industry Consultants, Inc. (ICI) employs a Free Agent HR Strategy. For ICI, hiring employees with existing technical skills and abilities are of primary importance.

Answer: True Difficulty: Medium Page: 210 Ref: How Is Employee Selection Strategic?

13. When evaluating the reliability of a measurement over time, the closer the correlation coefficient is to 1 (one), the stronger the reliability of the measurement.

Answer: True Difficulty: Medium Page: 212 Ref: What Makes a Selection Method Good?

Page 3 of 21

14. Content validation involves the use of assessment methods that are representative of the job situation.

Answer: True Difficulty: Medium Page: 213 Ref: What Makes a Selection Method Good?

15. The content validation strategy relies on expert judgments, and validity is supported when experts agree that the content of the assessment reflects the knowledge needed to perform well on the job.

Answer: True Difficulty: Medium Page: 213 Ref: What Makes a Selection Method Good?

16. Concurrent validation is the optimal means for determining validity because applicants are compared to current employees.

Answer: False Difficulty: Medium Page: 212 Ref: What Makes a Selection Method Good?

17. Fortunately, the strong generalizability of an assessment method can overcome weak reliability and validity.

Answer: False Difficulty: Medium Page: 214-215 Ref: What Makes a Selection Method Good?

18. If an organization hires almost everyone who applies then the assessments used has high utility.

Answer: False Difficulty: Easy

Page 4 of 21

Page: 215 Ref: What Makes a Selection Method Good?

19. According to research, when managers are provided with detailed cost information about selection methods, they adopt the best selection methods.

Answer: False Difficulty: Medium Page: 216 Ref: What Makes a Selection Method Good?

20. Fairness deals with more than the legality of a hiring action and includes an assessment of potential bias or discrimination associated with a given selection method.

Answer: True Difficulty: Medium Page: 217 Ref: What Makes a Selection Method Good?

21. High validity may make it legal for an organization to use a test that screens out some subgroups at a higher rate than others.

Answer: True Difficulty: Medium Page: 218 Ref: What Makes a Selection Method Good?

22. The purpose of employee selection is to make decisions that discriminate against some people based upon differences related to job performance.

Answer: True Difficulty: Easy Page: 217 Ref: What Makes a Selection Method Good?

Page 5 of 21

23. During the selection process an employer should gather as much information as possible about an applicant even if it doesn’t appear to be relevant at the time.

Answer: False Difficulty: Medium Page: 213 Ref: What Makes a Selection Method Good?

24. Tests that are valid will be always be perceived by applicants as fair.

Answer: False Difficulty: Medium Page: 217-218 Ref: What Makes a Selection Method Good?

25. Cognitive ability is somewhat related to education, but actual test scores have been shown to predict job performance better than measures of educational attainment.

Answer: True Difficulty: Medium Page: 219 Ref: What Selection Methods Are Commonly Used?

26. Cognitive testing can be widely generalized among cultures. Everything else being equal, people with higher cognitive ability perform better regardless of the type of work they perform.

Answer: True Difficulty: Medium Page: 219 Ref: What Selection Methods Are Commonly Used?

27. Interestingly, cognitive ability tests predict achievement more than potential.

Answer: False Difficulty: Medium Page: 221 Ref: What Selection Methods Are Commonly Used?

Page 6 of 21

28. Conscientiousness exhibits validity generalization in that it predicts work performance regardless of the type of work.

Answer: True Difficulty: Medium Page: 223 Ref: What Selection Methods Are Commonly Used?

29. If ABC Consulting places job applicants in a hypothetical situation to see how they respond to questions and perform, it is employing situational judgment tests.

Answer: True Difficulty: Medium Page: 224 Ref: What Selection Methods Are Commonly Used?

30. Illegal drug use has been linked to absenteeism, accidents, and the likelihood of quitting.

Answer: True Difficulty: Easy Page: 227 Ref: What Selection Methods Are Commonly Used?

31. Integrity tests are not reliable or valid because those completing the test fake their responses.

Answer: False Difficulty: Medium Page: 227 Ref: What Selection Methods Are Commonly Used?

32. Work sample testing is not used very often because of low reliability and the high expense of developing.

Answer: False Difficulty: Easy Page: 227

Page 7 of 21

Ref: What Selection Methods Are Commonly Used?

33. The individual interview is the most widely used selection method in the United States.

Answer: True Difficulty: Easy Page: 222, Table 6.4 Ref: What Selection Methods Are Commonly Used?

34. The behavioral interview focuses on how the applicant has behaved in past situations.

Answer: True Difficulty: Easy Page: 234 Ref: What Selection Methods Are Commonly Used?

35. The “multiple hurdles” approach to assessing candidates eliminates applicants without knowing how they would perform in all selection tests.

Answer: True Difficulty: Easy Page: 237 Ref: How Are Final Selection Decisions Made?

Multiple Choice

36. Factors to consider for strategic selection decisions include: a) the type of talent and the type of relationships b) hiring “loyal soldiers” because turnover will be low c) hiring long-term specialists d) hiring the “committed expert” Answer: a Difficulty: Hard Page: 205 Ref: How Is Employee Selection Strategic?

Page 8 of 21

37. Hiring short-term generalists: a) is consistent with the Free Agent HR strategy b) is consistent with the Bargain Laborer HR strategy c) is consistent with the Committed Expert HR strategy d) means that new employees have multiple skills and knowledge and perform key jobs in the organization Answer: b Difficulty: Medium Page: 206 Ref: How Is Employee Selection Strategic?

38. Advantages to organizations of hiring long-term specialists include: a) specialists develop specialized skills and stay with the organization for a long time b) specialists generally do not command high compensation c) specialists adapt well to changes in the organization d) the individual comes to the organization with required knowledge and skills Answer: a Difficulty: Medium Page: 207 Ref: How Is Employee Selection Strategic?

39. Short-term specialist employees: a) are usually developed by the employing organization b) generally command low compensation c) provide specific inputs for a short period of time d) provide general knowledge, skills and abilities for a short period of time Answer: c Difficulty: Easy Page: 207 Ref: How Is Employee Selection Strategic?

40. Organization-based fit: a) is concerned with how well an individual’s abilities match the job

Page 9 of 21

b) deals with how well the individual is matched with the organization’s culture, values and norms c) depends mostly on technical skill over personality d) is correlated with job-based fit Answer: b Difficulty: Easy Page: 208 Ref: How Is Employee Selection Strategic?

41. Job-based fit: a) is more important in organization that seek to hire generalists b) is more important than organizational fit for long-term generalist c) is more important in organizations that seek to hire specialists d) concerns the potential an individual has to develop knowledge and skill Answer: c Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

42. Organizations employing the Committed Expert HR strategy: a) focus on assessing job fit. b) focus on assessing job fit and organization fit. c) focus on assessing organization fit d) are not concerned with fit at all; rather the focus is on accomplishments and current knowledge and skills demonstrated by the candidate Answer: b Difficulty: Medium Page: 208 Ref: How Is Employee Selection Strategic?

43. When Trader Tools, Inc. focuses on achievement, it: a) will weigh most heavily past accomplishments that demonstrate knowledge and skills b) could be employing a Bargain Laborer HR strategy c) will focus on development of employees d) provides a lot of training for new employees Answer: a Difficulty: Medium

Page 10 of 21

Page: 209 Ref: How Is Employee Selection Strategic?

44. Which is most critical for an organization employing a long-term staffing strategy? a) Hiring employees with specific knowledge and skills b) Hiring employees based upon achievements c) Hiring employees based upon their potential to develop d) Hiring employees who will not have to be trained because employee training is expensive Answer: c Difficulty: Medium Page: 210 Ref: How Is Employee Selection Strategic?

45. Assessment aimed at measuring ______ focuses on history and past accomplishments that revel relevant abilities and skills whereas assessment aimed at measuring _________ are future oriented and seek to predict how a person will learn and develop knowledge and skills over time. a) fit; commitment b) cognitive ability; potential c) potential; achievement d) achievement; potential Answer: d Difficulty: Medium Page: 209-210 Ref: How Is Employee Selection Strategic?

46. Reliability: a) is concerned with whether an employer can depend on an employee coming to work over time b) is concerned with employee turnover over time c) is concerned with the consistency of a measurement over time c) is concerned with how relevant a measurement is for job performance Answer: c Difficulty: Easy Page: 211 Ref: What Makes a Selection Method Good?

Page 11 of 21

47. In the hiring process, a measurement is valid: a) when the factor measured is relevant for satisfactory job performance b) when the measurement is consistent over time c) if it is reliable d) if it is a measurement of past accomplishments Answer: a Difficulty: Medium Page: 213 Ref: What Makes a Selection Method Good?

48. Which of the following is most concerned with a selection method’s cost effectiveness? a) Generalizability b) Validity c) Reliability d) Utility Answer: d Difficulty: Medium Page: 215 Ref: What Makes a Selection Method Good?

49. Which of the following is not a factor that influences the utility of a selection method? a) The number of people selected into a position b) Validity c) Perception of fairness among applicants d) The ratio of applicants to hires Answer: c Difficulty: Medium Page: 215-216 Ref: What Makes a Selection Method Good?

50. Applicants react more negatively to a selection method: a) when they are really interest in being hired for a position b) when they believe that information from a selection assessment cannot be evaluated correctly c) when they believe the organization does not need the information being gathered d) when they believe they will do well on the assessment Answer: c

Page 12 of 21

Difficulty: Easy Page: 218 Ref: What Makes a Selection Method Good?

51. Which of the following personality dimensions have the highest correlation with job performance? a) Conscientiousness and openness to experience b) Emotional stability and agreeableness c) Conscientiousness and emotional stability d) Extraversion and agreeableness Answer: c Difficulty: Medium Page: 222, Figure 6.3 Ref: What Selection Methods Are Commonly Used?

52. What is the best predictor of individual performance in a work context? a) Verbal reasoning b) Quantitative problem solving c) Performance in a panel interview d) General mental ability Answer: d Difficulty: Medium Page: 219 Ref: What Selection Methods Are Commonly Used?

53. Which type of assessment has been shown to help predict the performance of a team? a) Cognitive ability assessments b) Personality assessments c) General intelligence d) Social interaction assessments Answer: b Difficulty: Easy Page: 223 Ref: What Selection Methods Are Commonly Used?

Page 13 of 21

54 Situational judgment tests: a) yield similar results to cognitive testing b) have been found to have good reliability and validity c) are not legal in all states in the U.S. d) predict performance for a limited number of jobs Answer: b Difficulty: Medium Page: 226 Ref: What Selection Methods Are Commonly Used?

55. Computer testing: a) has lower reliability b) is seen as unfair by applicants because of required computer skills c) is more often faked by applicants d) has less evidence of faking than paper-and-pencil test versions Answer: d Difficulty: Medium Page: 225: Technology in HR Ref: What Selection Methods Are Commonly Used?

56. Integrity tests can predict: a) cognitive performance and potential b) overall performance and potential c) absenteeism d) counterproductive behavior, absenteeism and overall performance Answer: d Difficulty: Hard Page: 227 Ref: What Selection Methods Are Commonly Used?

57. Which of the following is NOT true about work sample testing? a) work sample testing is relatively inexpensive which translates into high utility b) work sample testing is relatively expensive which translates into low utility c) work sample testing has good reliability and validity d) work sample testing involves few legal problems Answer: b

Page 14 of 21

Difficulty: Medium Page: 227-228 Ref: What Selection Methods Are Commonly Used?

58. Application forms and resumes: a) can be relatively expensive to develop and prove reliability b) capture important information about past achievements and potential fit c) are most frequently used by organizations hiring specialists d)have low utility as a selection method Answer: b Difficulty: Easy Page: 230 Ref: What Selection Methods Are Commonly Used?

59. Biographical data or biodata measures: a) can be indicators of physical and mental ability b) should not be used as indicators of interpersonal skill or leadership c) have only been in use recently d) are weak predictors of success in sales jobs Answer: a Difficulty: Medium Page: 230 Ref: What Selection Methods Are Commonly Used?

60. The work experience of candidates: a) correlates negatively with compensation an employer must offer b) correlates positively with performance of candidates selected c) should be considered when using weighted selection criteria d) primarily relates to job-fit Answer: b Difficulty: Medium Page: 230 Ref: What Selection Methods Are Commonly Used?

61. The use of biographical data (biodata) for selection is most effective when:

Page 15 of 21

a) the data is reviewed by a supervisor b) questions are verifiable and job related c) Human Resources is the only level of review d) a scoring key is not used Answer: b Difficulty: Easy Page: 231 Ref: What Selection Methods Are Commonly Used?

62. Reference checking: a) is not used very frequently b) is a highly reliable selection method c) is not generally a valid selection method d) is an easy means to learn important information about a candidate Answer: c Difficulty: Medium Page: 231 Ref: What Selection Methods Are Commonly Used?

63. Reference checking: a) is not commonly used any longer b) has high validity as a selection method c) is fraught with legal issues for the reference and the prospective employer d) should always be conducted by Human Resource Managers Answer: c Difficulty: Medium Page: 231 Ref: What Selection Methods Are Commonly Used?

64. Which of the following could constitute negligent hiring? a) A school district’s hiring process includes reviewing applicants’ driving records. A driver is hired after it is disclosed that he had a number of recent unpaid parking tickets. The bus driver has an accident after a year of employment. b) A sales person is hired after a background check, reference check, and credit check that discloses no negative information. After a year of employment the sales person misrepresents your product warranty resulting in the loss of a major customer.

Page 16 of 21

c) A cashier is hastily hired to fill an unexpected vacancy. After 8 months his performance is satisfactory. d) A warehouse supervisor is hired based only upon a resume and the recommendation of a highlevel manager. Six months after the hiring of the warehouse supervisor, an employee contacts law enforcement with a charge of sexual assault against the warehouse supervisor. After a thorough investigation, the supervisor is found guilty and it is determined that he also sexually harassed a number of support personnel. A news article about the conviction describes the criminal record of the supervisor including a prior rape conviction.

Answer: d Difficulty: Hard Page: 231 Ref: What Selection Methods Are Commonly Used?

65. Which of the following is NOT true of interviewing as a selection tool? a) The interview is the most frequently used selection method b) The interview is useful for assessing applicants and for providing information to applicants c) The interview is useful for selling the organization to candidates d) Interviews are one of the most valid selection methods available Answer: d Difficulty: Medium Page: 232 Ref: What Selection Methods Are Commonly Used?

66. Which of the following is NOT true about structured interviews? a) It is superior to unstructured interviews b) All candidates are asked a set of predetermined questions identified in advance c) It is not as effective or valid as unstructured interviews d) It can be effective in reducing the biasing effect of applicant impression management Answer: c Difficulty: Easy Page: 233-234 Ref: What Selection Methods Are Commonly Used?

67. Which question below is an example of a question that might be asked in a behavioral interview? a) What would you do if you were offered money by a customer to write off the amount owed the company?

Page 17 of 21

b) How would you respond to a customer shouting at you? c) Tell us about your prior work preparing and monitoring a unit budget. d) How do you feel about working overtime during the tax season?

Answer: c Difficulty: Medium Page: 234-235, Figure 6.5 Ref: What Selection Methods Are Commonly Used?

68. In making the final selection of a candidate from a pool of applicants, predictor weighting: a) ensures all information gathered about a candidate is considered equally important b) ensures that a combined average of all selection scores is used c) ensures the most important information has greater influence on the hiring decision d) each selection score is considered separately Answer: c Difficulty: Medium Page: 236 Ref: How Are Final Selection Decisions Made?

69. Which approach to selection ensures that candidates considered further fulfill all requirements at a particular level? a) The bottom line approach b) Predictor weighting approach c) Banding approach d) Minimum cutoffs approach Answer: d Difficulty: Medium Page: 236-237 Ref: How Are Final Selection Decisions Made?

70. The use of the banding approach is based upon: a) the idea that small differences in scores are not meaningfully different b) the use of minimum cutoff scores c) the use of weighted selection criteria d) color coding of candidates based upon their ranking Answer: a Difficulty: Medium

Page 18 of 21

Page: 237 Ref: How Are Final Selection Decisions Made?

Short Answer

71. An assessment measurement that is consistent over time is ______.

Answer: reliable Difficulty: Easy Page: 211 Ref: What Makes a Selection Method Good?

72. An assessment measurement that accurately predicts who will perform a job well is said to be _______.

Answer: valid Difficulty: Easy Page: 213 Ref: What Makes a Selection Method Good?

73. A selection method that is cost effective and accurately predicts retention would have high ________.

Answer: utility Difficulty: Easy Page: 215 Ref: What Makes a Selection Method Good?

74. _______ testing measures learning, understanding and ability to solve problems.

Answer: Cognitive ability Difficulty: Medium Page: 219 Ref: What Selection Methods Are Commonly Used?

Page 19 of 21

75. ________ testing is designed to assess the likelihood that an application will be dishonest or engage in illegal activity.

Answer: Integrity Difficulty: Easy Page: 226-227 Ref: What Selection Methods Are Commonly Used?

76. _______ assessments involve asking questions about historical events that have shaped a person’s behavior and identity.

Answer: Biodata (or Biographical data) Difficulty: Medium Page: 230 Ref: What Selection Methods Are Commonly Used?

77. _______ hiring can occur when an organization hires someone who harms another person and the organization could reasonably have determined that the employee was unfit.

Answer: Negligent Difficulty: Medium Page: 231 Ref: What Selection Methods Are Commonly Used?

78. The ______ interview focuses on how an applicant has behaved in past situations.

Answer: behavioral Difficulty: Easy Page: 234 Ref: What Selection Methods Are Commonly Used?

Essays

79. Identify and discuss at least three factors involved in assessing the effectiveness of selection methods.

Page 20 of 21

Answer: Five possible factors: 1. Reliability - measure is consistent over time 2. Validity - measure is relevant for job performance 3. Utility - costs associated with a selection method 4. Legality and fairness - compliance with legal requirements and avoidance of inappropriate bias 5. Acceptability - the perception of applicants concerning the method Difficulty: Hard Pages: 211-218 Ref: What Makes a Selection Method Good?

80. Discuss the principle of utility as related to selection methods. In your discussion, identify at least three factors that influence the utility of a selection method and discuss each.

Answer: Utility relates to the costs associated with a selection method Five possible factors: 1. Selection methods with higher validity have higher utility 2. The number of people to be selected for a position influences cost per applicant 3. The length of time people stay employed 4. Performance variability in a position 5. The ratio of applicants to hires for a particular position Difficulty: Medium Pages: 215-217 Ref: What Makes a Selection Method Good?

Page 21 of 21

Chapter: Chapter 07: Managing Employee Retention and Separation

True/False

1. Fortunately, the loss to an organization from an employee leaving employment is captured in the costs to hire a replacement employee.

Answer: False Difficulty: Medium Page: 252 Ref: How Can Strategic Employee Retention and Separation Make an Organization Effective?

2. Ensuring that nonproductive employees leave an organization is just as important as retaining productive workers.

Answer: True Difficulty: Easy Page: 252 Ref: How Can Strategic Employee Retention and Separation Make an Organization Effective?

3. Maximizing employee retention is a strategy that should be followed by all organizations.

Answer: False Difficulty: Easy Page: 255 Ref: How Are Employee Retention and Separation Strategic?

4. Employees whose performance is in the middle range are most likely to remain with an organization.

Answer: True Difficulty: Easy Page: 256 Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 1 of 22

5. Functional turnover is desirable and occurs when low performing employees voluntarily quit.

Answer: True Difficulty: Easy Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

6. When a high or low performing employee chooses to leave it is highly disruptive for an organization.

Answer: False Difficulty: Easy Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

7. Employees usually do not reflect much concerning a decision to quit; rather, quitting is in response to immediate events.

Answer: False Difficulty: Easy Page: 258 Ref: How Can Undesirable Employee Turnover Be Reduced?

8. An important part of each employee decision to quit is a lack of satisfaction with the current state in their current employment.

Answer: True Difficulty: Easy Page: 260-261 Ref: How Can Undesirable Employee Turnover Be Reduced?

9. An employee decision to quit is always proceeded by a specific event that creates a sense of dissatisfaction with the status quo.

Answer: False Difficulty: Medium Page: 259

Page 2 of 22

Ref: How Can Undesirable Employee Turnover Be Reduced?

10. When work is consistent with employees’ values and needs, job satisfaction is likely to be high.

Answer: True Difficulty: Easy Page: 260 Ref: How Can Undesirable Employee Turnover Be Reduced?

11. Overall, job satisfaction varies among organizations as well as among individuals.

Answer: True Difficulty: Easy Page: 261 Ref: How Can Undesirable Employee Turnover Be Reduced?

12. Organizations with more satisfied employees tend to be more productive.

Answer: True Difficulty: Medium Page: 261 Ref: How Can Undesirable Employee Turnover Be Reduced?

13. All dissatisfied employees eventually quit their jobs.

Answer: False Difficulty: Easy Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

14. Some people are predisposed toward either high or low levels of satisfaction regardless of the work environment.

Answer: True Difficulty: Easy

Page 3 of 22

Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

15. Withdrawal occurs when an employee who is dissatisfied pulls away from the organization over time. Early signs of employee withdrawal include: absenteeism, increased lateness, and decreasing commitment.

Answer: True Difficulty: Easy Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

16. People with chronically low job satisfaction tend to experience negative moods in all aspects of their lives.

Answer: True Difficulty: Easy Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

17. Organizations seeking to reduce employee turnover frequently measure their employees’ job satisfaction.

Answer: True Difficulty: Easy Page: 263 Ref: How Can Undesirable Employee Turnover Be Reduced?

18. Once an employee has decided to quit it is often too late to do anything to change that individual’s mind about leaving.

Answer: True Difficulty: Easy Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 4 of 22

19. Job satisfaction survey results will likely make things appear more positive than they are.

Answer: True Difficulty: Medium Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

20. Effective socialization begins when employees are given critical information that helps them understand the organization.

Answer: True Difficulty: Easy Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

21. The job analysis process is often used to help newcomers to an organization adjust.

Answer: False Difficulty: Easy Page: 265: Technology in HR Ref: How Can Undesirable Employee Turnover Be Reduced?

22. As employees acquire information about an organization through socialization they are more likely to experience increased feelings of fit with the organization.

Answer: True Difficulty: Easy Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

23. Research indicates that socialization/orientation programs must include personal interactions.

Answer: True Difficulty: Easy Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 5 of 22

24. Job satisfaction and general life satisfaction are related so conflict between work and family roles reduces happiness both on and off the job.

Answer: True Difficulty: Easy Page: 268 Ref: How Can Undesirable Employee Turnover Be Reduced?

25. Layoffs are employee terminations related specifically to job performance.

Answer: False Difficulty: Easy Page: 269 Ref: How Do Layoffs Affect Individuals and Organizations?

26. Firms that downsize have higher performance in subsequent years because they have reduced labor costs.

Answer: False Difficulty: Easy Page: 269 Ref: How Do Layoffs Affect Individuals and Organizations?

27. Individuals with low work centrality suffer much less from job loss than those with high work centrality.

Answer: False Difficulty: Easy Page: 270 Ref: How Do Layoffs Affect Individuals and Organizations?

28. Two factors that influence how a laid off employee copes with the layoff are the quality of the new job acquired after layoff and perceptions of the fairness surrounding the layoff process.

Answer: True Difficulty: Medium Page: 270

Page 6 of 22

Ref: How Do Layoffs Affect Individuals and Organizations?

29. Employees who survive a layoff who are the primary wage earners in their households are more likely to voluntarily begin searching for a new job.

Answer: True Difficulty: Medium Page: 272 Ref: How Do Layoffs Affect Individuals and Organizations?

30. When an organization needs to lay off employees, it is best to lay off employees across the board, regardless of their level of performance.

Answer: False Difficulty: Easy Page: 273 Ref: How Do Layoffs Affect Individuals and Organizations?

31. Not replacing people who leave an organization is a quick and effective means for downsizing.

Answer: False Difficulty: Easy Page: 273 Ref: How Do Layoffs Affect Individuals and Organizations?

32. Plans to lay off employees should be announced to employees and the media simultaneously.

Answer: False Difficulty: Easy Page: 273-274 Ref: How Do Layoffs Affect Individuals and Organizations?

33. The steps of progressive discipline must always be followed regardless of the nature of an employee’s misconduct.

Page 7 of 22

Answer: False Difficulty: Easy Page: 275-276 Ref: What Are Common Steps in Disciplining Employees?

34. During a dismissal meeting the manager should not directly tell the employee that he/she is being dismissed or terminated; rather the message should be upbeat to allow the employee to save face.

Answer: False Difficulty: Easy Page: 278 Ref: How Should Employee Dismissals Be Carried Out?

35. Severance compensation is payment so a dismissed employee will not file a lawsuit against the organization.

Answer: False Difficulty: Easy Page: 279 Ref: How Should Employee Dismissals Be Carried Out?

Multiple Choice

36. Benefits of an emphasis on employee retention include all of the following EXCEPT: a) reduced recruiting expenses . b) retaining employees supports HR strategy, regardless of an organization’s strategy. c) employees have a sense of security that persuades them to work for slightly lower wages than they may be able to earn elsewhere. d) employee retention helps build a workforce with unique skills.

Answer: b Difficulty: Medium Page: 254-255 Ref: How Are Employee Retention and Separation Strategic?

Page 8 of 22

37. For an organization with a Free Agent HR strategy: a) the organization seeks to attract a large number of applicants who may have the characteristics that are needed to perform the specific job. b) some employee turnover is desirable, since those who leave can be replaced by individual with more-up-to-date knowledge and skills. c) employee retention is of primary importance for the organization. d) the organization emphasizes employee commitment to avoid turnover.

Answer: b Difficulty: Medium Page: 256 Ref: How Are Employee Retention and Separation Strategic?

38. For organizations pursuing a differentiation strategy: a) employee retention is not an issue because the organization hires the lowest cost labor b) retaining employees is extremely important c) employee separations can be an important part of the strategy d) there’s little emphasis on removing low performers Answer: c Difficulty: Medium Page: 255 Ref: How Are Employee Retention and Separation Strategic?

39. An organization pursuing a Loyal Soldier HR strategy: a) is not concerned with employee separations b) usually puts little emphasis on employee retention c) can benefit from employee separations d) seeks to manage employee separations Answer: d Difficulty: Easy Page: 256 Ref: How Are Employee Retention and Separation Strategic?

40. An organization with a Bargain Laborer HR strategy: a) is not especially concerned with effective management of employee separation b) places emphasis on retaining high performing employees c) places emphasis on retention because of recruiting and hiring costs d) places emphasis on removing low performers

Page 9 of 22

Answer: a Difficulty: Easy Page: 256 Ref: How Are Employee Retention and Separation Strategic?

41. Dysfunctional retention: a) occurs when a high performing employee remains employed with the organization b) occurs when a low performing employee remains with the organization c) occurs when all turnover is low d) is critical for the Committed Expert HR strategy Answer: b Difficulty: Easy Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

42. Functional turnover: a) occurs when an employee whose performance is at least adequate voluntarily quits b) occurs when low performing employees quit c) occurs when all turnover is low d) occurs when high performing employees remain employed Answer: b Difficulty: Easy Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

43. Dysfunctional turnover: a) occurs when a low performing employee remains employed with the organization b) occurs when a high performing member of the organization quits c) occurs when any employee who is a member of the organization quits d) occurs when a high performing member of the organization remains employed Answer: b Difficulty: Medium Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

44. Employee dissatisfaction with their current state at work:

Page 10 of 22

a) does not influence tendency to quit b) is unlikely to lead to quitting c) can lead to withdrawal and thoughts of quitting d) usually leads to immediate quitting Answer: c Difficulty: Easy Page: 260 Ref: How Can Undesirable Employee Turnover Be Reduced?

45. Employee satisfaction: a) has little influence on employee retention b) is consistent across all aspects of an employee’s work situation c) results in happier employees being more productive when satisfaction is high d) is totally separate from employee life satisfaction Answer: c Difficulty: Easy Page: 261 Ref: How Can Undesirable Employee Turnover Be Reduced?

46. Which of the following is NOT a dimension of job satisfaction? a) Satisfaction with job fulfillment b) Satisfaction with security c) Satisfaction with pay d) Satisfaction with social relationships in the organization Answer: d Difficulty: Easy Page: 261, Table 7.1 Ref: How Can Undesirable Employee Turnover Be Reduced?

47. Employee withdrawal: a) occurs when employers use effective means such as exit interviews to gather information from departing employees b) results in short-term increases in productivity as an employee tries to make a decision about remaining with an employer c) results in an employee feeling less obligated to work for their organization’s success d) most all the time results in the employee leaving the organization

Page 11 of 22

Answer: c Difficulty: Medium Page: 261 Ref: How Can Undesirable Employee Turnover Be Reduced?

48. Which of the following is NOT true about an employee’s decision to leave their employment? a) Once an employee decides to quit, offering a significant pay raise will likely result in them remaining employed with the organization b) The decision to quit is influenced significantly by the availability of desirable job alternatives c) People are more likely to stay with their current job when they perceive high economic and psychological costs of quitting d) Some employees are simply more likely than others to leave organizations Answer: a Difficulty: Medium Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

49. A dissatisfied employee: a) will almost always make the decision to leave the organization b) will almost always look for alternative employment c) will almost always stay in their current job when they perceive it is difficult to find an alternative job d) will almost always leave, regardless of psychological or economic costs Answer: c Difficulty: Medium Page: 262 Ref: How Can Undesirable Employee Turnover Be Reduced?

50. Which of the following is NOT likely to reduce turnover? a) Developing fair pay practices b) The establishment of quick and fair grievance procedures c) Providing growth and promotion opportunities d) The use of idealistic job previews Answer: d Difficulty: Easy Page: 263, Table 7.2

Page 12 of 22

Ref: How Can Undesirable Employee Turnover Be Reduced?

51. Which of the following is NOT true about job satisfaction? a) A common survey that measures satisfaction is the Job Descriptive Index b) Job satisfaction is another component of job analysis c) Job satisfaction data provides insight into areas of concern and helps an organization determine which aspects of the work experience might need improvement d) Job satisfaction surveys include questions to assess facets of work such as satisfaction about work tasks, pay, promotions, co-workers and supervision Answer: b Difficulty: Medium Page: 263-264 Ref: How Can Undesirable Employee Turnover Be Reduced?

52. Job satisfaction surveys: a) should ask routine questions such as length of time worked at the organization near the beginning of the survey b) are oftentimes not completed by the least satisfied employees c) are usually not completed by very satisfied employees d) should not contain questions concerning the organization’s strategic objectives as job satisfaction questionnaires should focus on the individual Answer: b Difficulty: Medium Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

53. People are more likely to leave an organization: a) when the organization has programs that support diversity b) when job satisfaction surveys are used c) when they are risk averse d) when they perceive that they are very different from other members of the organization Answer: d Difficulty: Medium Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 13 of 22

53. Socialization: a) begins during the job analysis process b) is best accomplished outside of work hours c) should not occur between an employee and supervisor d) is the process through which a new employee acquire knowledge and behaviors needed to be a member of an organization Answer: d Difficulty: Easy Page: 264 Ref: How Can Undesirable Employee Turnover Be Reduced?

54. Which of the following statements is NOT true about employee perceived organizational support? a) Perceived organizational support is employees’ beliefs about the extent to which an organization values their contributions and cares about their well-being b) Employees who perceive organizational support are more committed to remaining with an organization c) The actions of top level organizational leaders are not important; rather, the actions of the Human Resource personnel are more critical d) Better compensation practices, better-designed jobs, fairness of procedures, and absence of politics are critical for building positive perceptions of organizational support Answer: c Difficulty: Medium Page: 264-265 Ref: How Can Undesirable Employee Turnover Be Reduced?

55. Which of the following is NOT true about computer-based socialization? a) Computer-based socialization is as effective as in person socialization for conveying information about an organization’s goals, politics and people b) Computer-based socialization results in lower levels of employee satisfaction c) Computer-based socialization results in lower levels of employee commitment d) Computer-based socialization is not helpful in developing social relationships in the organization Answer: a Difficulty: Medium Page: 265: Technology in HR Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 14 of 22

56. Organizations seeking to increase employee embeddedness: a) should more frequently conduct job analysis on employee positions b) should provide enjoyable work, strong promotional opportunities and good benefits c) should ensure that employees work standardized work hours so balancing work and family responsibilities is possible d) should have a strong policy that discourages employee associations outside of work hours.

Answer: b Difficulty: Easy Page: 268 Ref: How Can Undesirable Employee Turnover Be Reduced?

57. Which factor(s) influence positively how an individual will cope with job loss? a) Low work-role centrality b) Perceptions that the layoff process was unfair c) Finding a job immediately, regardless of what it is d) Perception that the job loss resulted from something they did wrong Answer: a Difficulty: Medium Page: 270 Ref: How Do Layoffs Affect Individuals and Organizations?

58. Layoff Survivors: a) do not have a negative reaction to lay-offs since they remain employed after a lay-off b) oftentimes think it is just a matter of time until they are laid off as well, so performance suffers among layoff survivors c) may begin to search voluntarily for new jobs d) are more likely to request a job analysis after a lay-off Answer: c Difficulty: Easy Page: 272 Ref: How Do Layoffs Affect Individuals and Organizations?

59. Which of the following is NOT a viable alternative to layoffs? a) Using financial incentives to induce employees near retirement age to retire early b) Having employees perform work tasks that might have been outsourced to other firms c) Having employees share jobs so that neither works a full-time week

Page 15 of 22

d) Flexible schedules and benefits to accommodate work and life balance Answer: d Difficulty: Easy Page: 272, Table 7.3 Ref: How Do Layoffs Affect Individuals and Organizations?

60. Which of the following would NOT help minimize the negative effects of layoffs? a) Identify the business need b) Involve HR staff c) Identify past work d) Analyze adverse impact Answer: c Difficulty: Medium Page: 273, Table 7.4 Ref: How Do Layoffs Affect Individuals and Organizations?

61. Due process: a) is markedly different for different organizations b) requires that every level of disciplinary action be in writing c) ensures that layoff notices are given in a timely fashion d) is a set of procedures carried out in accordance with established rules and principles Answer: d Difficulty: Easy Page: 275 Ref: What are Common Steps in Disciplining Employees?

62. The ultimate goal of discipline is: a) to reduce the number of employees on the payroll b) to dismiss employees whose behavior does not contribute to the organization c) to avoid legal issues d) to change employee behavior so the employee can become a contributing member of the organization Answer: d Difficulty: Easy Page: 274 Ref: What are Common Steps in Disciplining Employees

Page 16 of 22

63. Which of the following provides a set of principles for due process that is supported by court cases and labor arbitrators? a) Communication of clear expectations for acceptable performance, allowing an employee to present their case and consistent discipline b) Communication of consequences for inappropriate behaviors, careful investigation, confirmation by witnesses, and punishment consistent with the nature of the offense c) Communication of clear expectations for acceptable performance, careful investigation of facts and circumstances, an opportunity for employees to provide their version of events, and punishment consistent with the nature of the offense d) Communication of consequences for inappropriate behaviors, an investigation, presentation of witnesses, consistent punishment and the opportunity for an employee to appeal any decision Answer: c Difficulty: Hard Page: 275 Ref: What Are Common Steps in Disciplining Employees?

64. Progressive discipline a) provides successively more severe punishment for each occurrence of negative behavior b) always has a follow-up action c) never results in termination of employment d) always results in termination of employment Answer: a Difficulty: Easy Page: 276 Ref: What Are Common Steps in Disciplining Employees?

65. Most progressive discipline systems include the following steps: a) written warning, suspension, discharge, and appeal of discharge b) verbal warning by first level supervisor, verbal warning by second level supervisor, written warning by second level supervisor, and discharge c) verbal warning, suspension, discharge and appeal of discharge d) verbal warning, written warning, suspension and final written warning that a repeat of behavior will result in discharge Answer: d Difficulty: Medium Page: 276, Figure 7.7

Page 17 of 22

Ref: What Are Common Steps in Disciplining Employees?

66. Which of the following is a common problem with progressive discipline? a) A pattern of constructive discipline b) An inappropriate channel is used c) Supervisors are sometimes unwilling to take the first step in the process d) Employee appeals delay implementation Answer: c Difficulty: Easy Page: 277 Ref: What Are Common Steps in Disciplining Employees?

67. Outplacement services: a) are usually paid for by an employee union b) are generally more effective if an outside firm is employed c) are generally more effective if provided by the organization’s human resource professionals d) are not allowed to include actual job leads Answer: b Difficulty: Medium Page: 278 Ref: How Should Employee Dismissals Be Carried Out?

68. Notification that an employee is being dismissed: a) is best delivered in person b) is best delivered using e-mail so an employee learns the news in a private setting c) is best delivered on a Friday d) is best delivered in a private meeting with only the employee and supervisor present Answer: a Difficulty: Medium Page: 278 Ref: How Should Employee Dismissals Be Carried Out?

69. Which of the following is NOT true about employee dismissal? a) Employees should be dismissed on Friday so they have the weekend with family and friends to help them recover

Page 18 of 22

b) It is important to tell an employee directly that he or she is being dismissed c) Outplacement services help employees who have been dismissed to copy with job loss d) Severance compensation provides money to an employee as part of a dismissal package.

Answer: a Difficulty: Easy Page: 278 Ref: How Should Employee Dismissals Be Carried Out?

70. Severance compensation a) is only given if an employee agrees not to file a lawsuit after dismissal b) is only given if an employee agrees not to file a discrimination complaint c) provides money to an employee to help cover living expenses during a period of unemployment d) is usually paid during the dismissal meeting so it is easier to dismiss an employee and to allow the employee to save face Answer: c Difficulty: Medium Page: 279 Ref: How Should Employee Dismissals Be Carried Out?

Short Answer

71. _________ occurs when an employee makes a decision to leave an organization.

Answer: Voluntary turnover Difficulty: Easy Page: 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

72. _________ occurs when an employee whose performance is at least adequate voluntarily quits.

Answer: Dysfunctional turnover Difficulty: Easy Page; 257 Ref: How Can Undesirable Employee Turnover Be Reduced?

Page 19 of 22

73. ________ is employee feelings and beliefs about the quality of their jobs.

Answer: Job satisfaction Difficulty: Easy Page: 260 Ref: How Can Undesirable Employee Turnover Be Reduced?

74. An interview with an employee who is leaving to determine why the employee decided to quit is called the ________.

Answer: exit interview Difficulty: Easy Page: 263 Ref: How Can Undesirable Employee Turnover Be Reduced?

75. Employees are more _________ in an organization when they have strong connections to others, when they have values and goals that fit with their environment, and when they feel leaving would result in monetary or psychological losses.

Answer: embedded Difficulty: Medium Page: 268 Ref: How Can Undesirable Employee Turnover Be Reduced?

76. When an organization engages in widespread layoffs intended to permanently reduce the size of its workforce, it is said to be _________.

Answer: downsizing Difficulty: Easy Page: 269 Ref: How Do Layoffs Affect Individuals and Organizations?

77. A set of procedures carried out in accordance with established rules and principles and aimed at ensuring fairness is called ___________.

Page 20 of 22

Answer: due process Difficulty: Medium Page: 275 Ref: What Are Common Steps in Disciplining Employees?

78. A process which involves management providing successively more severe punishment for each occurrence of negative behavior is ___________.

Answer: progressive discipline Difficulty: Easy Page: 276 Ref: What Are Common Steps in Disciplining Employees?

Essays

79. List and discuss alternative actions an organization can take to limit layoffs.

A. Reduce work hours B. Reassign workers C. Lend employees D. Reduce hiring E. Cut costs F. Encourage voluntary separation Difficulty: Medium Page: 272, Table 7.3 Ref: How Do Layoffs Affect Individuals and Organizations

80.

Discuss progressive discipline—what is it, why do employers use it and what are the most common four steps in a progressive discipline process?

Answer: A. progressive discipline is a due process that provides successively more severe punishment for each occurrence of negative behavior B. organizations use progressive discipline to provide a due process that allows an employee to correct misbehavior C. most progressive discipline systems include the following steps:

Page 21 of 22

1. a verbal warning when the supervisor clearly communicates what the employee did wrong and consequences for future inappropriate behaviors 2. a written warning, usually placed in the employee’s personnel file for a period of time 3. a suspension that is usually without pay 4. discharge from the organization Difficulty: Medium Page: 275-277, Figure 7.7 Ref: What Are Common Steps in Disciplining Employees?

Page 22 of 22

Chapter: Chapter 08: Measuring Performance and Providing Feedback

True/False

1. Performance management is the process of assessing employee performance on an annual basis.

Answer: False Difficulty: Easy Page: 294 Ref: How Can Performance Management Make an Organization Effective?

2. Measuring performance and providing feedback does improve employee performance.

Answer: True Difficulty: Easy Page: 294 Ref: How Can Performance Management Make an Organization Effective?

3. During the performance appraisal process, a focus on clear goals that encourage an employee to stretch and improve help provide clear direction for employees to improve performance.

Answer: True Difficulty: Medium Page: 295 Ref: How Can Performance Management Make an Organization Effective?

4. All performance appraisal systems should differentiate high and low performers.

Answer: False Difficulty: Easy Page: 295 Ref: How Can Performance Management Make an Organization Effective?

Page 1 of 22

5. Parity-based performance appraisal systems usually require a forced distribution, which involves placing a certain percentage of employees in each rating category.

Answer: False Difficulty: Easy Page: 297 Ref: How can performance make management strategic?

6. Parity based systems encourage all employees to be high performers.

Answer: True Difficulty: Easy Page: 297 Ref: How can performance make management strategic?

7. Parity-based performance management systems are usually preferred by the top performers in an organization.

Answer: False Difficulty: Easy Page: 297 Ref: How can performance make management strategic?

8. Merit-based performance systems are appropriate for organizations pursuing a Free Agent or Committed Expert HR strategy.

Answer: True Difficulty: Medium Page: 298 Ref: How can performance make management strategic?

9. Under a parity-based performance appraisal system, evaluating most employees as high performers encourages the development of long-term employee relationships and a strong sense of loyalty.

Answer: True Difficulty: Medium Page: 298 Ref: How Is Performance Management Strategic?

Page 2 of 22

10. The general performance factor is a broad factor of performance that represents an employee’s overall contributions to the organization.

Answer: True Difficulty: Easy Page: 299 Ref: What is Performance?

11. Citizenship behaviors are more related to an employee’s motivation than the employee’s knowledge or skills.

Answer: True Difficulty: Easy Page: 301 Ref: What is Performance?

12. When an employee makes an extra effort to keep her company assigned automobile clean and in good repair it is an example of organizational citizenship behavior.

Answer: True Difficulty: Easy Page: 300 Ref: What Is Performance?

13. Interpersonal citizenship behavior has the effect of benefiting the entire organization.

Answer: False Difficulty: Easy Page: 300 Ref: What Is Performance?

14. Employees engage in more organizational citizenship behavior when they have close relationships with coworkers.

Answer: False Difficulty: Easy Page: 301 Ref: What Is Performance?

Page 3 of 22

15. Employees are more likely to engage in citizenship performance when they perceive a longterm work relationship.

Answer: True Difficulty: Easy Page: 301 Ref: What is Performance?

16. Employees with motivational personality traits such as dependability, cooperativeness, and empathy are generally more likely to go beyond minimum expectations and help both the organization and coworkers.

Answer: True Difficulty: Easy Page: 301 Ref: What Is Performance?

17. Production deviance occurs when an employee does things that put other employees at a disadvantage.

Answer: False Difficulty: Medium Page: 301 Ref: What Is Performance?

18. When employees feel they are being treated fairly by the organization, they are less likely to engage in counterproductive performance.

Answer: True Difficulty: Easy Page: 301 Ref: What Is Performance?

19. Employees who are more conscientious, more agreeable, and less anxious are less likely to engage in counterproductive behavior.

Page 4 of 22

Answer: True Difficulty: Easy Page: 302 Ref: What Is Performance?

20. Workers report spending about .5 hours per week visiting websites unrelated to work whereas human resource managers suggest the actual time is closer to 8 hours per week.

Answer: False Difficulty: Medium Page: 303: Technology in HR Ref: How is Performance Measured?

21. According to estimates, less than half of employers monitor employee Internet connections.

Answer: False Difficulty: Easy Page: 303: Technology in HR Ref: How is Performance Measured?

22. Employees are more accepting of electronic monitoring of their computer usage when they are given advance notice that it will be used.

Answer: True Difficulty: Easy Page: 303: Technology in HR Ref: How is Performance Measured?

23. Managers dislike preparing performance appraisals primarily because they are just one more assignment that keeps them from dealing with task matters.

Answer: False Difficulty: Medium Page: 302-303 Ref: How Is Performance Measured?

Page 5 of 22

24. Contamination occurs when things that should not be measured in a performance appraisal are included in an employee’s performance evaluation.

Answer: True Difficulty: Easy Page: 304 Ref: How Is Performance Measured?

25. A performance evaluation that fails to include citizenship behavior is deficient because it does not recognize actions that contribute to organizational success.

Answer: True Difficulty: Easy Page: 304 Ref: How Is Performance Measured?

26. Objective and subjective performance measures will always agree so one can be used to reinforce the other.

Answer: False Difficulty: Easy Page: 305 Ref: How Is Performance Measured?

27. When faced with a choice whether to use objective or subjective measures, it is always best to use objective measures, as they are more reliable.

Answer: False Difficulty: Medium Page: 305 Ref: How Is Performance Measured?

28. A significant problem with objective performance measures is that they can hold employees accountable for things they cannot control.

Answer: True Difficulty: Easy Page: 306

Page 6 of 22

Ref: How Is Performance Measured?

29. Outcome measures assess employee behaviors and end results.

Answer: False Difficulty: Easy Page: 305 Ref: How Is Performance Measured?

30. A performance appraisal that focuses on outcomes allows an employee more autonomy than one based on behavioral measures.

Answer: True Difficulty: Easy Page: 306 Ref: How Is Performance Measured?

31. The primacy error for performance appraisals occurs when raters place too much emphasis on recent behaviors and outcomes.

Answer: False Difficulty: Medium Page: 307 Ref: How Is Performance Measured?

32. There is no evidence to support claims that raters give lower performance ratings to employees who are members of minority groups.

Answer: False Difficulty: Easy Page: 308 Ref: How Is Performance Measured?

33. Raters tend to assume that women should be more helpful and cooperative than men and, as a result, women receive lower ratings when they do not engage in citizenship behaviors.

Page 7 of 22

Answer: True Difficulty: Easy Page: 308 Ref: How Is Performance Measured?

34. An employee is charged with increasing sales of a particular product by 50 percent. Due to a shortage of materials, production only increases 20%. The lack of productivity is an example of a situational influence for the sales personnel.

Answer: True Difficulty: Medium Page: 309, Table 8.1 Ref: How Is Performance Measured?

35. A supervisor who perceives that employees have exceptional ability and communicates greater confidence in the ability of employees to perform can actually influence employees to perform better.

Answer: True Difficulty: Easy Page: 322 Ref: How Should Feedback be Provided

Multiple Choice

36. Which of the following is NOT true about forced distribution performance rating systems? a) Under a forced distribution system, all employees may not be rated acceptable or higher, regardless of performance b) Forced distribution performance systems require that performance ratings are spread out among all categories of performance c) A forced distribution system is recommended for most all organizations d) A forced distribution performance system ensures that high and low performers are clearly identified Answer: c Difficulty: Medium Page: 297

Page 8 of 22

Ref: How is Performance Management Strategic?

37. A merit-based performance appraisal system: a) encourages cooperation among employees b) usually involves relative measures c) uses pre-defined criteria/standards to rate the performance of employees d) usually has a free distribution, which allows any number of employees to be rated at any level Answer: b Difficulty: Easy Page: 296 Ref: How is Performance Management Strategic?

38. Which of the following is NOT true of a parity-based performance appraisal system? a) The objective of the system is to encourage cooperation b) The system allows everyone who meets a predetermined standard to be classified as a high performer c) A parity-based system encourages all employees to perform above a certain standard d) The parity-based system uses a forced distribution Answer: d Difficulty: Medium Page: 297 Ref: How is Performance Strategic?

39. Which performance appraisal system is best suited for an organization pursuing a differentiation strategy? a) A merit-based system with free distribution b) A parity-based system with free distribution c) A merit-based system with forced distribution d) A parity-based system with forced distribution Answer: c Difficulty: Medium Page: 298 Ref: How Can Performance Management Make an Organization Effective?

40. Parity-based performance appraisal systems are preferred by:

Page 9 of 22

a) organizations pursuing a Bargain Laborer or Free Agent HR strategy b) organizations pursuing a Free Agent or Committed Expert HR strategy c) organizations pursuing a Bargain Laborer or Loyal Soldier HR strategy d) organizations pursuing a Loyal Soldier or Committed Expert HR strategy Answer: c Difficulty: Medium Page: 298 Ref: How Is Performance Management Strategic?

41. Which of the following is NOT true of the general performance factor? a) The general performance factor includes task performance, citizenship performance and parity performance b) The general performance factor represents overall contributions an employee makes to an organization c) People who do well at one aspect of performance tend to do well in other aspects d) The general performance factor includes task performance, citizenship performance and counterproductive performance Answer: a Difficulty: Hard Page: 299 Ref: What is Performance?

42. What are the components of the general performance factor? a) Task performance, citizenship performance, and counterproductive performance b) Declarative performance, procedural performance and task performance c) Citizenship performance, task performance and declarative performance d) Procedural performance, task performance and citizenship performance Answer: a Difficulty: Hard Page: 299, Figure 8.2 Ref: What is Performance?

43. The three important factors for satisfactory employee task performance are: a) knowledge, skill and motivation b) procedural knowledge, process skill and declarative knowledge c) citizenship behaviors, declarative knowledge and motivation d) process knowledge, procedural knowledge and motivation

Page 10 of 22

Answer: a Difficulty: Medium Page: 300 Ref: What Is Performance?

44. Which of the following types of behaviors is the most obvious form of behavior that contributes to an organization? a) Declarative behaviors b) Task behaviors c) Organizational citizenship behaviors d) General performance behaviors Answer: b Difficulty: Medium Page: 300 Ref: What Is Performance?

45. Which of the following is NOT true about citizenship behaviors? a) Citizenship behaviors contribute by building a positive organizational climate b) Citizenship behaviors can be focused on one’s job or the organization as a whole c) Citizenship behaviors contribute directly to organizational success by creating goods and services d) An example of citizenship behavior is following organizational procedures even when it is not convenient Answer: c Difficulty: Medium Page: 300 Ref: What Is Performance?

46. Which of the following is NOT true about counterproductive behaviors? a) Organizations whose employees engage in more counterproductive behaviors are more likely to have lower productivity b) Employees who engage in counterproductive behaviors are very unlikely to engage in citizenship behaviors c) An employee who contributes high task and citizenship performance may still engage in counterproductive behaviors d) Counterproductive behaviors can be directed at the organization or individual level

Page 11 of 22

Answer: b Difficulty: Medium Page: 301 Ref: What Is Performance?

47. Production deviance: a) includes actions that destroy the assets of an organization b) includes counterproductive behaviors that are targeted to particular individuals c) includes aggression towards coworkers d) occurs when employees do things that reduce the speed and accuracy at which goods and services are produced Answer: d Difficulty: Medium Page: 301 Ref: What Is Performance?

48. Which of the following is NOT an example of political deviance? a) Taking unauthorized breaks b) Demonstrating favoritism c) Gossiping about coworkers d) Nonproductive competition Answer: a Difficulty: Medium Page: 302 Ref: What Is Performance?

49. In which situation are employees MORE likely to engage in counterproductive behaviors? a) When leaders are ethical and fair because such leaders are likely unaware of counterproductive behaviors b) When an organization provides employee development opportunities c) When employees are higher in self mastery d) When employees perceive that the organization is treating them unfairly Answer: d Difficulty: Medium Page: 302 Ref: What Is Performance?

Page 12 of 22

50. Which of the following does NOT help employees be more accepting of electronic monitoring? a) When employees feel general support from the organization b) When data from monitoring is used to improve employee performance c) When employees are not made aware it is being used d) When they are given advance notice that electronic monitoring will be used Answer: c Difficulty: Medium Page: 303, Technology in HR Ref: What Is Performance?

51. Which of the following are errors that interfere with performance appraisals accurately representing an employee’s true contributions to the organization? a) Contamination and deficiency b) Counterproductive behaviors and citizenship behaviors c) Graphic rating scales and contamination d) Personal bias and deficiency Answer: a Difficulty: Medium Page: 304 Ref: How Is Performance Measured?

52. An organization using a performance appraisal with behavioral measures: a) allows employees high levels of autonomy for completing work b) typically has preferred ways of interacting with customer and obtaining new sales c) is probably pursuing a Free Agent or Loyal Soldier HR strategy d) is probably pursuing a Committed Expert HR strategy Answer: b Difficulty: Easy Page: 306 Ref: How Is Performance Measured?

53. An organization using a performance appraisal with outcome measures: a) allows employees high levels of autonomy for completing work

Page 13 of 22

b) should provide employees with a great deal of training dealing with how to accomplish work c) is likely pursuing a Free Agent or Loyal Soldier HR strategy d) is likely pursuing a Bargain Laborer HR strategy Answer: a Difficulty: Medium Page: 306 Ref: How Is Performance Measured?

54. A manager preparing performance appraisals is reluctant to give an employee a low rating because the employee’s performance is not as bad as the performance of another member of the work group. This is an example of which performance rating error? a) Central tendency b) Primacy error c) Halo effect d) Contrast error Answer: d Difficulty: Medium Page: 307 Ref: How Is Performance Measured?

55. An employee is the unit expert on work processes and is recognized throughout the organization for this competency. As a result the manager rates all aspects of the employee’s performance as exceptional. The manager’s actions are an example of: a) halo error b) recency error c) primacy error d) central tendency error Answer: a Difficulty: Medium Page: 307 Ref: How Is Performance Measured?

56. Which rater errors are related to the time of performance? a) Primacy and contrast errors b) Primacy and recency errors c) regency and contrast errors d) Central tendency and recency errors

Page 14 of 22

Answer: b Difficulty: Medium Page: 307 Ref: How Is Performance Measured?

57. Which of the following is NOT true about rater bias? a) Research demonstrates that ratings never differ depending on the race of the person being rated b) Performance ratings cannot vary based upon gender c) Rater bias is a form of contrast error d) One way to overcome bias is simply to make raters aware of it Answer: c Difficulty: Medium Page: 307 Ref: How Is Performance Measured?

58. When a rater consistently rates people with certain characteristics lower: a) it is a primacy rater error b) it is a frame-of-reference rater error c) it is a contrast error d) it is rater bias Answer: d Difficulty: Easy Page: 308 Ref: How Is Performance Measured?

59. Which of the following is NOT true about the impact of citizenship behaviors on performance ratings? a) The performance of citizenship behaviors have the same effect on performance ratings for men and women b) When women engage in citizenship behaviors by helping others, their performance ratings don’t necessarily improve c) When men engage in citizenship behaviors they get higher ratings d) When men withhold citizenship behaviors, they do not receive lower ratings, but when women withhold citizenship behaviors they receive lower ratings Answer: a

Page 15 of 22

Difficulty: Medium Page: 308 Ref: How Is Performance Measured?

60. Which of the following is NOT true about situational influences? a) Subjective ratings are frequently contaminated and deficient because raters fail to account for situational influences b) Situational factors can only inhibit performance outcomes c) Situational influences present a greater problem for objective, outcome-oriented performance measures d) Situational influences are factors outside the control of workers that influence performance Answer: b Difficulty: Medium Page: 309 Ref: How Is Performance Measured?

61. Which of the following is a situational factor for performance appraisal? a) In a unit where all employees perform the same duties, the organization provides training to only one employee which enhances that employee’s performance outcomes b) A supervisor receives training to effectively conduct employee performance meetings so employees are at ease during the performance appraisal meeting c) An employee is unable to meet production standards because she is too tired to work effectively d) An employee forgets to have routine maintenance performed on his company car and the car breaks down which results in the employee missing a meeting and losing a large sale Answer: a Difficulty: Medium Page: 309 and Table 8.1 Ref: How Is Performance Measured?

62. What steps can an organization take to minimize possible situational influences? a) Use only behavioral based measures of performance b) Combine information from a variety of different measures c) Provide managers with frame-of-reference training d) Do not take into account any situational variables so all employee are treated the same in the performance appraisal process Answer: b

Page 16 of 22

Difficulty: Medium Page: 309-310 Ref: How Is Performance Measured?

63. Performance over time: a) is usually stable and consistent b) for a new employee is almost always a pattern of continually increasing performance c) usually increases to a point, then performance declines rapidly d) can vary because of differences in motivation Answer: d Difficulty: Medium Page: 310 Ref: How Is Performance Measured?

64. Narrative ratings: a) are most useful in comparing the performance of individuals such as in the case of selecting employees to be promoted b) allow reviewers to easily compare employees c) are most useful for providing feedback to employees d) allow organizations to easily determine which employees are high and low performers Answer: c Difficulty: Medium Page: 311 Ref: How Is Performance Measured?

65. Which of the following is NOT true of graphic ratings? a) Graphic ratings are the most common rating format b) Graphic ratings can be developed to measure either outcomes or behaviors c) Graphic ratings make it easy to compare employees with one another d) Graphic ratings help minimize rater errors, especially the central tendency rater error Answer: d Difficulty: Medium Page: 311-312 Ref: How Is Performance Measured?

Page 17 of 22

66. Forced rankings: a) provide clear guidance for organizations that want to give promotions and pay raises to top performers b) is the preferred performance method of most managers c) are best for organizations that want employees to work together towards mutual goals d) is best for organizations that want to pursue a parity system for performance appraisal Answer: a Difficulty: Easy Page: 312 Ref: How Is Performance Measured?

67. Which of the following is NOT true about multisource performance ratings? a) Multisource ratings involve obtaining performance information from multiple raters who have different perspectives b) Multisource rating requires that forced distribution be used c) Ratings can be obtained from supervisors, coworkers, customers and the employee d) Multisource ratings provide better guidance about what an employee can do to improve performance Answer: b Difficulty: Medium Page: 313-314 Ref: Who Should Measure Performance?

68. Which of the following is NOT true about self-ratings? a) Self-ratings from white women and younger, less experienced employees tend to be more similar to ratings provided by others b) Experienced, non-white males tend to underrate their own performance more than others c) Self-assessments tend to differ significantly from ratings provided by others d) Self-ratings tend to more closely agree with ratings from others when employees have more knowledge about the performance appraisal system Answer: b Difficulty: Medium Page: 315-316 Ref: How Is Performance Measured?

69. Positive feedback: a) is likely to result in an employee being less motivated to perform

Page 18 of 22

b) is likely to result in an employee increasing their effort , but only in the short-run c) is likely to lead to higher motivation when an employee expects to receive benefits from continued high performance d) is likely to result in lower performance because the employee is less stressed about performance Answer: c Difficulty: Medium Page: 318 and Figure 8.6 Ref: How Should Feedback Be Provided?

70. Which of the following would NOT reduce negative emotions associated with feedback? a) Focus comments on the task rather than the person b) Combine feedback with goals for improvement c) Provide clear examples to support points concerning performance d) Begin a discussion concerning negative feedback with positive comments, discuss the negative feedback and close the meeting with positive comments Answer: d Difficulty: Medium Page: 321 Ref: How Should Feedback Be Provided?

Short Answer

71. _______ compares employees with each other.

Answer: Relative measures Difficulty: Easy Page: 296 Ref: How Is Performance Management Strategic?

72. ________ represents the contribution that individuals make to the organization that employs them.

Answer: Job performance Difficulty: Easy Page: 299

Page 19 of 22

Ref: What Is Performance?

73. _________ performance is behavior that contributes to the actual production of goods and services by the organization.

Answer: Task Difficulty: Easy Page: 299 Ref: What Is Performance?

74. When an employee engages in behavior that is harmful to the organization, they are engaging in __________.

Answer: counterproductive performance Difficulty: Medium Page: 301 Ref: What Is Performance?

75. _________ is the use of company computers for purposes other than work performance.

Answer: Cyberloafing Difficulty: Medium Page: 303: Technology in HR Ref: What Is Performance?

76. A manager does not like to differentiate employee performance because doing so may impact employee morale, so he rates all employees’ performance as acceptable. This is an example of the ________ rating error.

Answer: central tendency Difficulty: Easy Page: 307 Ref: How Is Performance Measured?

77. A manger seeks input for an employee’s performance appraisal from the employee, peers, and customers. This is an example of a(n) __________ performance rating.

Page 20 of 22

Answer: multisource Difficulty: Easy Page: 314 Ref: Who should measure performance?

78. A performance message that conveys low performance and the need to improve is ____________.

Answer: negative feedback Difficulty: Easy Page: 318 Ref: How should Feedback Be Provided?

Essays

79. Identify and define at least four rater errors for performance ratings. Provide an example for each error discussed.

Answer: A. Central tendency error – occurs when a supervisor places almost everyone in the middle of the rating scale to avoid separating employees into categories. Example: A supervisor rates all subordinates “3” satisfactory, on a rating scale of 1-5.

B. Contrast error – occurs when a rater compares people with one another and the comparison inappropriately influences performance appraisal. Example: The manger of 4 employees supervises two employees whose performance is marginal. Compared to the two marginal employees, another employee’s performance is adequate; however, after comparing the employee with adequate performance to the marginal employees, the supervisor rates the employee highly because he/she has better performance than the marginal performers.

C. Halo error – occurs when a rater bases an assessment on a general impression of an employee rather than on the employee’s specific contributions. Example: An employee lands a particularly difficult sale; however he/she just barely meets annual sales goals. Because of the one difficult sale, the employee is rated highly and higher than other employees whose overall sales are higher.

D. Recency error – occurs when a rater puts too much emphasis on recent behaviors and outcomes. Example: An employee fails to close a significant sale within two months of the annual performance rating. The manger rates the employee poorly even though he/she has closed several significant sales during the rating period and has higher than average overall sales for the rating period.

Page 21 of 22

E. Primacy error – occurs when a rater places too much emphasis on the behavior that is first observed. Example: An employee has difficulty adapting to a new software program to track materials and makes several errors at the start of the rating period. Even though the employee becomes proficient at using the system after a few months, the supervisor bases the performance rating for the period on the problems the employee encountered at the start of the rating period.

Difficulty: Medium Page: 307-308 Ref: How is Performance Measured?

80. Discuss the general performance factors that represent overall contributions to the organization.

Answer: A. Task performance is behavior that contributes to the actual production of goods or services.

In order to make significant contributions an employee must have the required knowledge, skill, and motivation.

B. Citizenship performance is voluntary behavior that contributes to the social and psychological environment of the organization. Citizenship behaviors contribute by building a positive organizational environment. Research indicates that citizenship performance is what separates top performers from everyone else. Citizenship behaviors can be focused to help the organization as a whole (organizational citizenship behaviors) or to help individual employees (interpersonal citizenship behaviors). Employees engage in more organizational citizenship behavior when they feel that they receive reasonable pay, are praised for doing a good job, and have pleasant working conditions. Interpersonal citizenship behaviors are more likely to occur when employees have close relationships with coworkers.

C. Counterproductive performance is behavior that is harmful to the organization. Organizations whose employees engage in counterproductive behavior have been found to have lower productivity. Counterproductive behavior can be directed at the organization or at specific individuals. Counterproductive organizational behavior includes production deviance and property deviance. Production deviance occurs when an employee does something to reduce the speed and accuracy with which goods and services are produced, such as taking unauthorized breaks, intentionally working slowly, or wasting company resources. Property deviance occurs when an employee destroys property of the organization. Counterproductive individual behavior includes political deviance and personal aggression. Political deviance involves putting other employees at a disadvantage. Personal aggression involves hostile acts, such as harassment or violence.

Difficulty: Medium Page: 299-302 Ref: What Is Performance?

Page 22 of 22

Chapter: Chapter 09: Training for Improved Performance

True/False

1. Training is a planned effort by a company to help employees learn and develop so they can advance in the company.

Answer: False Difficulty: Medium Page: 336 Ref: How Can Strategic Employee Training Improve an Organization?

2. Training increases employee commitment, which results in increased retention for an organization.

Answer: True Difficulty: Easy Page: 337 Ref: How Can Strategic Employee Training Improve an Organization?

3. Training is a key element for an organization pursuing a commitment based HR strategy.

Answer: True Difficulty: Easy Page: 337 Ref: How Can Strategic Employee Training Improve an Organization?

4. Training supports organizational strategy by providing employees with the specific knowledge, skills, and attitudes necessary to make strategic initiatives a reality.

Answer: True Difficulty: Easy Page: 337 Ref: How Can Strategic Employee Training Improve an Organization?

Page 1 of 22

5. Companies pursuing a differentiation strategy are likely to offer employees training that teaches efficiency and cost reduction.

Answer: False Difficulty: Easy Page: 339 and Figure 9.1 Ref: How Is Employee Training Strategic?

6. Companies with an external labor orientation are more likely to spend money and time to train employees.

Answer: False Difficulty: Easy Page: 341 Ref: How Is Employee Training Strategic?

7. A company with an external labor orientation would be more likely to acquire a new company to gain employee expertise than would a company with an internal labor orientation.

Answer: True Difficulty: Medium Page: 341 Ref: How Is Employee Training Strategic?

8. Employers with an external labor orientation are likely to offer little if any employee training.

Answer: False Difficulty: Easy Page: 341 Ref: How Is Employee Training Strategic?

9. To enhance transfer of learning, training should be developed and delivered by training specialists.

Answer: False Difficulty: Easy

Page 2 of 22

Page: 343 Ref: Ref: What Are Key Principles for Getting Benefits from Training?

10. In the rapid model of instructional design, training design begins while needs assessment is still being conducted.

Answer: True Difficulty: Easy Page: 344-345 Ref: What Are Key Principles for Getting Benefits from Training?

11. Employees who perceive that their organization has a supportive climate are more likely to succeed in the transfer of training.

Answer: True Difficulty: Easy Page: 346 Ref: How Are Training Needs Determined?

12. If an employee is not performing effectively, then training is necessary.

Answer: False Difficulty: Easy Page: 348 Ref: How Are Training Needs Determined?

13. Employees generally overestimate their knowledge and skills and underestimate the need for training.

Answer: True Difficulty: Easy Page: 348 Ref: How Are Training Needs Determined?

14. Research suggests that individuals with higher levels of general mental ability, necessary basic skills, and higher motivation are more likely to benefit from training.

Page 3 of 22

Answer: True Difficulty: Easy Page: 348 Ref: How Are Training Needs Determined?

15. Causal analysis is the process used to identify the gap between desired and actual performance.

Answer: False Difficulty: Medium Page: 350 Ref: How Are Training Needs Determined?

16. Training is helpful for dealing with any type of performance problem.

Answer: False Difficulty: Easy Page: 350 Ref: How Are Training Needs Determined?

17. Learning objectives are used to determine the content, methods, and media used in training.

Answer: True Difficulty: Medium Page: 352 Ref: How Are Training Needs Determined?

18. The three components of effective learning objectives are performance, criteria, and rewards.

Answer: False Difficulty: Medium Page 352 Ref: How Are Training Needs Determined?

Page 4 of 22

19. Specifying the intended organizational results of training programs helps to ensure that the training provides value to the organization as a whole and that each program is linked to the strategy of the firm.

Answer: True Difficulty: Easy Page: 352 Ref: How Are Training Needs Determined?

20. The best means to procure content for training is usually to create it from scratch.

Answer: False Difficulty: Easy Page: 354 Ref: How Is Effective Training Designed and Delivered?

21. Research suggests that people can and do learn from lectures.

Answer: True Difficulty: Easy Page: 355 Ref: How Is Effective Training Designed and Delivered?

22. Discussions can help trainees recognize what they do not know but should know, get their questions answered, and share ideas and develop a common perspective.

Answer: True Difficulty: Easy Page: 356 Ref: How Is Effective Training Designed and Delivered?

23. Case analysis is NOT an effective training method for improving motivation and changing attitudes.

Answer: False Difficulty: Easy Page: 357 Ref: How Is Effective Training Designed and Delivered?

Page 5 of 22

24. Role plays are best used to help trainees acquire interpersonal and human relations skills.

Answer: True Difficulty: Easy Page: 357 Ref: How Is Effective Training Designed and Delivered?

25. Behavior modeling is only effective when the model demonstrates positive examples of work related behavior.

Answer: False Difficulty: Easy Page: 358 Ref: How Is Effective Training Designed and Delivered?

26. On-the-job training is one of the most effective ways to train since employees learn actual job processes.

Answer: False Difficulty: Medium Page: 358 Ref: How Is Effective Training Designed and Delivered?

27. Research has demonstrated that carefully designed training can be equally effective whether it is presented via technology (e.g. using computers or videoconferencing) or face to face by an instructor.

Answer: True Difficulty: Medium Page: 361 Ref: How Is Effective Training Designed and Delivered?

28. Two concerns about e-learning are high up-front costs of development and a lack of interaction among peers which reduces trainee enjoyment and networking opportunities.

Page 6 of 22

Answer: True Difficulty: Medium Page: 360: Technology in HR Ref: How Is Effective Training Designed and Delivered?

29. One of the strengths of technology driven learning is that it puts control of learning into the hands of learners and learner’s best know their training needs.

Answer: False Difficulty: Easy Page: 360: Technology in HR Ref: How Is Effective Training Designed and Delivered?

30. If training is effectively designed and delivered, transfer to the job will naturally occur.

Answer: False Difficulty: Easy Page: 362 Ref: How Is Effective Training Designed and Delivered?

31. An effective means to improve transfer of training back to the job is the use of a behavioral contract which spells out what the employees and their managers expect to happen during and after training.

Answer: True Difficulty: Easy Page: 362 Ref: How Is Effective Training Designed and Delivered?

32. Relapse prevention training is an instructional add-on that addresses situations in which trainees may have difficulty applying trained skills and provides strategies for overcoming relapses into old patterns of behavior.

Answer: True Difficulty: Medium Page: 363 Ref: How Is Effective Training Designed and Delivered?

Page 7 of 22

33. After training, an important action that managers should take to ensure transfer of training is to provide trainees with an opportunity to perform.

Answer: True Difficulty: Medium Page: 364 Ref: How Is Effective Training Designed and Delivered?

34. Measuring employees’ reactions to training effectively captures how much they learned in the training.

Answer: False Difficulty: Easy Page: 367 Ref: How Do Organizations Determine Whether Training Is Effective?

Multiple Choice

35. Learning: a) involves experiences that change one’s knowledge, skills or attitudes b) involves the development of knowledge c) involves the development of knowledge and skills d) involves the development of knowledge and attitudes Answer: a Difficulty: Easy Page: 336 Ref: How Can Strategic Employee Training Improve an Organization?

36. Training can improve the overall effectiveness of an organization in all of the following ways EXCEPT: a) training can boost employees’ motivation b) training can foster employee commitment c) training helps employees perform their work more effectively and efficiently d) training allows an organization to identify employees who are unable to learn so they can be reassigned or let go

Page 8 of 22

Answer: d Difficulty: Easy Page: 337 Ref: How Can Strategic Employee Training Improve an Organization?

37. A disadvantage of delivering training via CD ROM is: a) employees must complete the training during work hours b) employees must travel to complete the training c) there is typically a large up-front cost d) CD-ROM training takes more employee time Answer: c Difficulty: Easy Page: 338 Ref: How Can Strategic Employee Training Improve an Organization?

38. A company pursuing a cost leadership strategy a) will emphasize training employees to deliver high quality products and services b) will use training to build knowledge, skill and attitudes so employees can work quickly without waste. c) will likely emphasize hiring new employees with desired skill rather than providing training to existing employees d) will emphasize training employees to deliver high quality products Answer: b Difficulty: Medium Page: 339 Ref: How Is Employee Training Strategic?

39. An organization with an internal labor orientation a) is not willing to spend money to train current employee b) will tend to hire new employees to fill their needs c) will likely buy employee expertise through a merger or acquisition d) will likely spend time and money to train current employees rather than hire or acquire new employees with required skills Answer: d Difficulty: Medium Page: 341

Page 9 of 22

Ref: How Is Employee Training Strategic?

40. Which of the following is NOT true about the transfer of training? a) Transfer of training occurs when trainees apply what they have learned in training when back on the job b) For transfer of training to occur, an employee must actually use what they learned in training back on the job c) Training should be a partnership among employees and human resource trainers d) Organizations must use a systematic process for designing and developing training to maximize the transfer of training Answer: c Difficulty: Medium Page: 342-343 Ref: What Are Key Principles for Getting Benefits from Training?

41. The fundamental components of a systematic process to develop training are: a) needs assessment, design and delivery, and evaluation of training b) transfer of training, needs assessment, and organizational analysis c) needs assessment, delivery, and transfer of training d) organizational analysis, delivery and evaluation Answer: a Difficulty: Medium Page: 344 Ref: What Are Key Principles for Getting Benefits from Training?

42. The rapid model of instructional design should be used: a) when there is only one opportunity to train a group of employees b) when the cost of employees doing the wrong thing is high c) when employees need at least some knowledge quickly d) when training must be right the first time Answer: c Difficulty: Easy Page: 345 Ref: What Are Key Principles for Getting Benefits from Training?

Page 10 of 22

43. A systematic process for determining and prioritizing the training programs to be developed and delivered by an organization: a) is known as the rapid model of instructional design b) is proactive needs assessment c) begins with program design d) is organization analysis Answer: b Difficulty: Easy Page: 345 Ref: How Are Training Needs Determined?

44. Proactive needs assessment: a) consists of organizational analysis and person analysis b) consists of task and person analysis c) consists of needs assessment, design and delivery, and evaluation d) consists of organizational analysis, task analysis, and person analysis Answer: d Difficulty: Medium Page: 345 Ref: How Are Training Needs Determined?

45. Organization analysis: a) is appropriate for an organization pursuing a Free Agent HR strategy b) measures characteristics of the organizational environment that will influence the effectiveness of training c) considers only internal factors d) is appropriate for an organization pursuing a Bargain Laborer HR strategy Answer: b Difficulty: Medium Page: 346 Ref: How Are Training Needs Determined?

46. Task analysis: a) focuses on the individual employee and his/her training needs b) is a viable alternative to organization analysis c) needs to be repeated when the organization’s external environment changes

Page 11 of 22

d) involves identifying the tasks performed by trainees and the knowledge and skills necessary to perform the tasks effectively Answer: d Difficulty: Easy Page: 346 Ref: How Are Training Needs Determined?

47. When conducting task analysis in the process of developing training: a) only data from incumbents should be used b) multiple sources of input should be used c) only data from incumbents and HR professionals should be used d) only data from HR professionals and managers should be used Answer: b Difficulty: Easy Page: 347 Ref: How Are Training Needs Determined?

48. Person analysis considers all of the following EXCEPT: a) determining if training is necessary to ensure that employees can perform tasks effectively b) determining who needs training c) determining training methods d) determining if trainees are ready for training Answer: c Difficulty: Medium Page: 347 Ref: How Are Training Needs Determined?

49. Cognitive task analysis: a) is most frequently used for specific positions with precise duties b) focuses on observable tasks and behaviors c) frequently costs less than other task analysis methods d) examines goals, decisions, and judgments that employees make on the job Answer: d Difficulty: Medium Page: 347 Ref: How Are Training Needs Determined?

Page 12 of 22

50. Team task analysis: a) is used where the performance of interest to the organization is largely determined by coordinated efforts b) focuses on the goals, decisions, and judgments that employees make on the job c) is most frequently used to understand specific positions with precise duties d) is mostly worker-focused rather than work-focused Answer: a Difficulty: Medium Page: 347 Ref: How Are Training Needs Determined?

51. All of the following are indicators of employee readiness for training EXCEPT: a) individuals with higher levels of general mental ability are more likely to benefit from training b) individuals who already have necessary basic skills are more likely to benefit from training c) individuals with higher levels of motivation are more likely to benefit from training d) individuals who have recently received a negative performance appraisal are likely to benefit from training Answer: d Difficulty: Medium Page: 348 Ref: How Are Training Needs Determined?

52. The reactive needs assessment approach to training involves three main steps: a) needs assessment, design and delivery, and evaluation b) problem definition, causal analysis, and solution implementation c) needs assessment, problem identification, and solution implementation d) problem definition, needs assessment, and solution implementation Answer: b Difficulty: Medium Page: 350 Ref: How Are Training Needs Determined?

53. Once a gap between desired and actual performance is identified: a) the next step is problem definition b) the next step is solution implementation

Page 13 of 22

c) causal analysis is used to determine reasons for the gap d) task analysis is used to determine the reasons for the gap Answer: c Difficulty: Easy Page: 350 Ref: How Are Training Needs Determined?

54. Which of the following is NOT true about learning objectives? a) Learning objectives should be used to determine the content of training b) Learning objectives should be used to determine the methods of training c) Learning objectives should be used to determine the media used in training d) Learning objectives should be used to determine appropriate solutions Answer: d Difficulty: Easy Page: 352 Ref: How Are Training Needs Determined?

55. What are the components of effective learning objectives? a) Performance, content and outcomes b) Performance, conditions and criteria c) Performance, collaboration requirements and outcomes d) Performance, methods and criteria Answer: b Difficulty: Medium Page: 352 Ref: How Are Training Needs Determined?

56. ____________ capture the intended results of training for the organization such as increased productivity, decreased waste or better customer service. a) Learning objectives b) Training criteria c) Organizational objectives d) Task analysis results Answer: c Difficulty: Easy Page: 352

Page 14 of 22

Ref: How Are Training Needs Determined?

57. Once learning objectives have been identified, decisions must be made about: a) content, methods, media and transfer-enhancement techniques b) organizational objectives, methods and media c) performance, conditions and transfer-enhancement techniques d) needs assessment, design, delivery, and evaluation Answer: a Difficulty: Medium Page: 353 Ref: How Is Effective Training Designed and Delivered?

58. The material that is covered in training is? a) Organizational objectives b) Learning goals c) Content d) Media Answer: c Difficulty: Easy Page: 354 Ref: How Is Effective Training Designed and Delivered?

59. Which of the following is NOT a recognized method of selecting training content? a) The person responsible for training can create it from scratch b) Subject-matter experts can be consulted c) Content can be purchased in off-the-shelf materials d) The passive method can be used Answer: d Difficulty: Easy Page: 354 Ref: How Is Effective Training Designed and Delivered?

60. Training methods: a) are the various ways of organizing content and encouraging trainees to learn b) involve determining the media used to deliver training

Page 15 of 22

c) impact organizational objectives d) are influenced by organizational analysis Answer: a Difficulty: Easy Page: 355 Ref: How Is Effective Training Designed and Delivered?

61. Lectures: a) are one of the most widely used active methods of instruction b) are an effective method to develop employee skills c) are an efficient way for many learners to receive the same content and gain the same knowledge d) rarely result in learning according to research finding Answer: c Difficulty: Easy Page: 355 Ref: How Is Effective Training Designed and Delivered?

62. All of the following are true of the discussion training method EXCEPT: a) discussion cannot help improve motivation or change attitudes b) discussion can help an individual recognize what they do not know but should know c) discussions can be used to build critical thinking skills d) discussions can effectively improve motivation Answer: a Difficulty: Medium Page: 356-357 Ref: How Is Effective Training Designed and Delivered?

63. Case analysis: a) is NOT an effective training method to teach basic principles b) is NOT an effective training method to improve motivation c) is an effective method for changing attitudes d) is only moderately effective in developing skills in analysis, communication and problem solving Answer: c Difficulty: Medium

Page 16 of 22

Page: 357 Ref: How Is Effective Training Designed and Delivered?

64. Simulation: a) is a passive method of training that gives trainees an opportunity to experience some aspects of a job b) involves the trainer explaining key learning points and then performing a task while the trainee observes c) is an active method of training that gives trainees an opportunity to experience some aspects of a job d) involves development, enactment and debriefing Answer: c Difficulty: Easy Page: 358 Ref: How Is Effective Training Designed and Delivered?

65. Effective on-the-job training: a) involves pairing up an inexperienced employee with an experienced employee so the inexperienced employee can watch and learn actual job knowledge and skills b) is unstructured so the trainee can advance at his/her own pace to successively more responsible assignments c) is structured and systematic—mirroring the application of behavior modeling d) occurs away from the job/work site Answer: c Difficulty: Medium Page: 358 Ref: How Is Effective Training Designed and Delivered?

66. All of the following are concerns about e-learning EXCEPT: a) the up-front cost can be substantial b) interaction among peers is limited c) training content is standardized so all trainees have to see the same material d) control is in the hands of learners, and not all learners make choices that help them learn Answer: c Difficulty: Hard Page: 360: Technology in HR Ref: How Is Effective Training Designed and Delivered?

Page 17 of 22

67. Ways to enhance the transfer of training after training has been completed include all of the following EXCEPT: a) arranging practice sessions and providing positive reinforcement b) supporting training reunions and publicizing successes in the use of the trained skills c) providing trainees an opportunity to perform as soon as possible after training is completed d) conducting a formal appraisal of performance immediately after training so it can be formally noted that the employee attended training and is able to apply training on-the-job Answer: d Difficulty: Easy Page: 364 Ref: How Is Effective Training Designed and Delivered?

68. Which of the following after training activity is essential for successful transfer of training? a) Financial rewards for completing training b) Initiate a behavioral contract c) Providing an opportunity to perform d) Training follow up sessions Answer: c Difficulty: Medium Page: 364 Ref: How Is Effective Training Designed and Delivered?

69. Pre-test and post-test with a control group: a) is the most frequently used evaluation design b) is most useful if a training program is being considered that will be expensive and there is uncertainty about whether to do it c) is a relatively less sophisticated training evaluation design d) is best used to provide feedback to trainers Answer: b Difficulty: Medium Page: 369 Ref: How Do Organizations Determine Whether Training Is Effective?

Page 18 of 22

Short Answer

70. ___________ occurs when trainees apply what they have learned in training to their jobs.

Answer: Transfer of training Difficulty: Easy Page: 342 Ref: What Are Key Principles for Getting Benefits from Training?

71. Determining who should be trained and what training should cover is a part of ___________.

Answer: needs assessment Difficulty: Easy Page: 345 Ref: How Are Training Needs Determined?

72. _____________ is a systematic process for determining and prioritizing the training programs to be developed and delivered by an organization.

Answer: Proactive needs assessment Difficulty: Medium Page: 345 Ref: How Are Training Needs Determined?

73. _____________ are the intended individual learning outcomes from training.

Answer: Learning objectives Difficulty: Easy Page: 352 Ref: How Are Training Needs Determined?

74. The materials that is covered in training is called _____________.

Answer: content Difficulty: Easy Page: 354

Page 19 of 22

Ref: How Is Effective Training Designed and Delivered?

75. A training method that reproduces events, processes, and circumstances that occur in the trainee’s job is called _____________.

Answer: simulation Difficulty: Easy Page: 358 Ref: How Is Effective Training Designed and Delivered?

76. An add-on to training that addresses situations in which trainees may have difficulty applying training on the job and provides strategies for overcoming relapses into old patterns of behavior is called _____________ training.

Answer: relapse prevention Difficulty: Medium Page: 363 Ref: How Is Effective Training Designed and Delivered?

77. ___________ is a change that occurs from experience.

Answer: Learning Difficulty: Easy Page: 367 Ref: How Do Organizations Determine Whether Training Is Effective?

Essays

78. Describe at least five training methods and the types of training objectives each is well suited to achieve.

Answer: A. Presentation is a passive method of instruction for providing content directly to learners. It is an efficient way for many learners to receive the same content and gain the same knowledge.

Page 20 of 22

B. Discussions allow two-way communication between trainer and trainees and between trainees. Discussions can be used to build knowledge and critical-thinking skills, but they are best used to help improve motivation and change attitudes.

C. Case analysis is an active training method in which trainees discuss, analyze, and solve problems based upon real or hypothetical situations. Cases can be used to help teach basic principles and to improve motivation and change attitudes. It is also effective in developing skill in analysis, communication, and problem solving.

D. Discovery is an active method that involves presenting trainees with a task that offers opportunities to learn new skills. Discovery can be highly motivating for trainees.

E. Role-playing involves each participant acting out a part in a simulated situation. It is most useful in helping trainees acquire interpersonal and human relations skills.

F. Simulations are active methods that reproduce events, process, and circumstances that occur in the trainee’s job. Simulations give trainees the opportunity to experience some aspects of their job in a safe and controlled environment and are most effective in building skills relevant to those aspects of the job.

G. Behavior modeling draws together principles of learning from many different areas and is most effective for improving job skills.

H. On the job training is a common approach, but less likely to help employees learn. Effective on the job training is structured and systematic, but some organizations simply pair up an inexperienced employee and experienced employee and have the inexperienced employee watch and learn.

Difficulty: Medium Page: 355-358 Ref: How Is Effective Training Designed and Delivered?

79. Discuss how an organization can foster the transfer of training back to the job. In your discussion identify techniques that can be affected before, during, and after training.

Answer: A. Before training – managers can build transfer into employees’ performance standards, offer rewards to trainees who demonstrate transfer, involve employees in planning training, brief trainees on the importance of training, send co-workers to training together, and encourage trainees to attend and actively participate in all training sessions. A behavioral contract which spells out what both the employee and the manger expect to happen during and after training can also be very helpful.

B. During training – training should be structured in ways that will help trainees to generalize what they learn back on the job. Training should focus on general principles and varying situations under which skills are practiced. Build relapse prevention training into the training program. Relapse prevention training directly addresses situations in which trainees may have difficulty applying trained skills and provides strategies for overcoming relapses into old patterns and behaviors.

C. After training – managers and employees should work together to ensure transfer of training to the job. Techniques include the manager giving positive reinforcement for using trained skills, arranging for practice sessions, supporting trainee reunions and publicizing successes in

Page 21 of 22

the use of training materials. Mangers might also consider reducing job pressures in the first few days that trainees are back from training to allow trainees time to test out their new knowledge and skills. Managers should ensure that trainees are given an opportunity to perform soon after they return from training.

Difficulty: Medium Page: 362-364 Ref: How is Effective Training Designed and Delivered?

Page 22 of 22

Chapter: Chapter 10: Developing Employees and Their Careers

True/False

1. The main difference between training and employee development is that training helps employees learn skills that will be helpful in current jobs and employee development helps employees learn skills that will be helpful in future jobs.

Answer: True Difficulty: Easy Page: 380 Ref: How Can Strategic Employee Development Make an Organization Effective?

2. Employee development is not as critical as in the past because most employees have higher levels of education than ten years ago.

Answer: False Difficulty: Easy Page: 380 Ref: How Can Strategic Employee Development Make an Organization Effective?

3. Organizations using the Bargain Laborer strategy are unlikely to invest heavily in employees’ long-term development.

Answer: True Difficulty: Easy Page: 382 Ref: How Is Employee Development Strategic?

4. Organizations that use the Free Agent strategy usually do not invest much in development of employees, since they have an external labor orientation.

Answer: False Difficulty: Medium Page: 382 Ref: How Is Employee Development Strategic?

Page 1 of 22

5. An organization with a Committed Expert HR strategy must have more extensive development programs so that employees do not feel compelled to leave in order to learn, grow, and advance in their careers.

Answer: True Difficulty: Medium Page: 383 Ref: How Is Employee Development Strategic?

6. Employee development is equally important for firms with differentiation and cost strategies.

Answer: True Difficulty: Easy Page: 383 Ref: How Is Employee Development Strategic?

7. Development is equally important for organizations pursing a cost or differentiation strategy.

The difference is that firms pursuing a cost strategy focus on keeping development costs low, and development through work experience is particularly useful for firms pursing a cost strategy.

Answer: True Difficulty: Easy Page: 383 Ref: How Is Employee Development Strategic?

8. Today, a more typical pattern of work experiences includes lateral as well as hierarchical movement within a company, however not the movement from company to company.

Answer: False Difficulty: Easy Page: 384 Ref: What Are Careers Like Today?

9. One characteristic of the Protean career is that employees are less focused on money and increasingly concerned with quality of day-to-day work and home life.

Page 2 of 22

Answer: True Difficulty: Medium Page: 385 Ref: What Are Careers Like Today?

10. The Protean career increasingly emphasizes financial success given that most employees must provide for their own retirement savings.

Answer: False Difficulty: Easy Page: 385 Ref: What Are Careers Like Today?

11. Organizations that develop and communicate career paths to employees can help employees achieve career goals and, as a result, employees are likely to reciprocate with greater commitment and job performance.

Answer: True Difficulty: Easy Page: 385-386 Ref: What Are Careers Like Today?

12. An employer tuition reimbursement program is a form of employee development.

Answer: True Difficulty: Easy Page: 387 Ref: How Can Organizations Help Employees Develop?

13. Certificates are a legal requirement in some states in order to conduct business.

Answer: False Difficulty: Easy Page: 387 Ref: How Can Organizations Help Employees Develop?

Page 3 of 22

14. Providing support for employees to gain and maintain certification is one way in which organizations can be attractive to both current and prospective employees.

Answer: True Difficulty: Easy Page: 387 Ref: How Can Organizations Help Employees Develop?

15. Multisource assessment is increasingly popular and involves employees, supervisors, and customers assessing the organization.

Answer: False Difficulty: Easy Page: 388 Ref: How Can Organizations Help Employees Develop?

16. Feedback is more likely to improve performance when an organization encourages employees to talk with others about feedback received and encourages employees to make a public commitment to improving performance.

Answer: True Difficulty: Medium Page: 391 Ref: How Can Organizations Help Employees Develop?

17. Job transfers are temporary work assignments in which employees are expected to move through multiple jobs with a set period of time.

Answer: False Difficulty: Easy Page: 392 Ref: How Can Organizations Help Employees Develop?

18. A coach, mentor, and role model are all nonreciprocal and deliberate relationships.

Answer: False Difficulty: Medium

Page 4 of 22

Ref: 393 Ref: How Can Organizations Help Employees Develop?

19. Coaching is most frequently employed in the development of front line managers.

Answer: False Difficulty: Easy Page: 393 Ref: How Can Organizations Help Employees Develop?

20. A good coach follows a process of contracting, opening, practicing, planning, and evaluating.

Answer: True Difficulty: Easy Page: 393 Ref: How Can Organizations Help Employees Develop?

21. It is helpful for a mentor and protégé to be diverse in their backgrounds and perspectives.

Answer: False Difficulty: Easy Page: 394 Ref: How Can Organizations Help Employees Develop?

22. Pairing protégés with mentors who are successful in their jobs is more likely to result in better learning and performance by the protégé.

Answer: True Difficulty: Easy Page: 394 Ref: How Can Organizations Help Employees Develop?

23. If an organization wants employees to learn to be winners, employees should be mentored by more senior employees who are already winners.

Answer: True

Page 5 of 22

Difficulty: Easy Page: 395: How Do We Know?

Ref: How Can Organizations Help Employees Develop?

24. Competency models can be developed to indicate what types of knowledge, skills, and behaviors will help the organization accomplish its strategy.

Answer: True Difficulty: Easy Page: 395 Ref: How Do Organizations Integrate Development Efforts?

25. Self-assessment is the process employees use to determine their fit with opportunities in the labor market and with their current employer’s future labor needs.

Answer: False Difficulty: Easy Page: 396 Ref: How Do Organizations Integrate Development Efforts?

26. In the process of action planning, employees make plans for how they will accomplish their career goals.

Answer: True Difficulty: Easy Page: 397 Ref: How Do Organizations Integrate Development Efforts?

27. The most effective new employee orientation programs are well-planned, structured programs of four hours or less because new employees can suffer information overload.

Answer: False Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

Page 6 of 22

28. Employees who attend a new employee orientation have significantly higher levels of affective organizational commitment than employees who are not offered an orientation program.

Answer: True Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

29. To be effective, new employee orientation programs should be conducted by HR professionals.

Answer: False Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

30. High levels of burnout are associated with low levels of commitment and high turnover intention.

Answer: True Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

31. Burnout is highly related to workload, pressure, stress, conflict, and unmet expectations.

Answer: True Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

32. Having programs that support work life balance is seen as positive by all employees, even those who do not use them.

Answer: True Difficulty: Easy Page: 401

Page 7 of 22

Ref: What Are Some Important Career-Development Challenges?

33. As employees get older, they can lose confidence in their ability to learn and they worry about having their skills become out of date.

Answer: True Difficulty: Easy Page: 402 Ref: What Are Some Important Career-Development Challenges?

34. Organizations can help expatriates deal with culture shock by informing them of coping mechanisms such as maintaining a reasonable fitness schedule and adhering to a sensible diet.

Answer: True Difficulty: Easy Page: 403 Ref: What Are Some Important Career-Development Challenges?

35. Repatriation occurs when an employee returns from an international assignment. However, repatriation support is not critical since the employee is returning to his/her home country.

Answer: False Difficulty: Easy Page: 403 Ref: What Are Some Important Career-Development Challenges?

Multiple Choice

36. All of the following are positive outcomes of employee development EXCEPT: a) development enhances the organization’s capacity to control environmental forces b) development increases the chances that the most capable employees will be attracted to work in the organization c) development enhances retention d) development ensures that employees have the knowledge and skill to effectively perform in the future

Page 8 of 22

Answer: a Difficulty: Easy Page: 380 Ref: How Is Employee Development Strategic?

37. How are employee development practices strategic? a) Employee development ensures that top-level management is trained so the organization has a competitive advantage b) Employee development ensures an organization minimizes training costs c) Employee development adds to research findings in the field of human resources d) Employee development helps ensure an organization has a continual supply of talented and committed employees Answer: d Difficulty: Medium Page: 380 Ref: How Is Employee Development Strategic?

38. All of the following are true of an organization with a Loyal Soldier HR strategy EXCEPT: a) the organization most likely employs an internal HR strategy b) the organization most likely employs a cost strategy c) will focus on low cost development options d) will focus on developing skills needed for high level service and innovation Answer: d Difficulty: Easy Page: 382, Figure 10.1 Ref: How Is Employee Development Strategic?

39. Which of the following types of employee development would a firm pursuing a differentiation strategy be most likely to use versus a firm pursing a cost strategy? a) Formal education such as university courses b) On-the-job training to develop efficiency c) Job enrichment that avoids having the employee leave the workplace d) Formal on-site training programs concerning cost cutting initiatives Answer: a Difficulty: Medium

Page 9 of 22

Page: 383 Ref: How Is Employee Development Strategic?

40. Organizations pursuing which HR strategies would be most likely to use work experience for employee development? a) Loyal Soldier and Free Agent b) Committed Expert and Bargain Laborer c) Loyal Soldier and Bargain Laborer d) Bargain Laborer and Free Agent Answer: c Difficulty: Medium Page: 382, Figure 10.1 Ref: How Is Employee Development Strategic?

41. A ___________refers to movement from position to position involving more responsibility and more pay. a) career path b) career ladder c) Protean career d) career plan Answer: b Difficulty: Easy Page: 384 What Are Careers Like Today?

42. All of the following are characteristics of the Protean career EXCEPT: a) high mobility requirements b) emphasis on psychological success c) high levels of organizational commitment d) emphasis on work-related flexibility Answer: c Difficulty: Medium Page: 385, Table 10.1 What Are Careers Like Today?

Page 10 of 22

43. All of the following are programs that help employees develop new knowledge and skills that will help them succeed in their careers EXCEPT: a) computer aided instruction b) completion of formal education c) assessment and feedback d) work experiences Answer: a Difficulty: Medium Page: 386 Ref: How Can Organizations Help Employees Develop?

44. Using assessment and feedback for development involves: a) collecting performance data and providing feedback to employees about how they can improve their on the job performance b) collecting information and providing feedback to employees about their interests, personality, behaviors, skills, and preferences c) collecting performance data from multiple sources and providing feedback to employees d) collecting information about career ladders in the organization and sharing possible career path information with employees Answer: b Difficulty: Medium Page: 387-388 Ref: How Can Organizations Help Employees Develop?

45. Which of the following is NOT true about the Holland Typologies? a) Enterprising people enjoy developing and running their own business b) Conventional people enjoy jobs as analysts, bankers, and secretaries c) Realistic people enjoy jobs a mechanics, electricians and farmers d) Investigative people enjoy jobs as scientists, laboratory assistants, and technicians.

Answer: a Difficulty: Medium Page: 388, Table 10.2 Ref: How Can Organizations Help Employees Develop?

46. The World of Work Map assessment tool: a) helps identify employees who are ready for overseas assignments b) helps identify employees who are ready for expatriate assignments

Page 11 of 22

c) helps people identify whether they prefer working with data or ideas, or people or things d) forms the foundation upon which the Holland typologies is based Answer: c Difficulty: Medium Page: 388 Ref: How Can Organizations Help Employees Develop?

47. ManagerView360: a) is an example of multisource assessment and feedback b) provides valuable information for job analysis c) provides valuable information for task analysis d) is an example of a career ladder Answer: a Difficulty: Easy Page: 388 Ref: How Can Organizations Help Employees Develop?

48. All of the following related to when multisource feedback works best EXCEPT: a) when reliable ratings are provided b) when rater’s confidentiality is maintained c)managers react on the feedback received d) when job analysis is used Answer: d Difficulty: Easy Page: 390 Ref: How Can Organizations Help Employees Develop?

49. Which of the following is NOT an example of work experiences used for employee development? a) Lateral moves b) Job analysis c) Upward moves d) Downward moves Answer: b Difficulty: Easy Page: 391-392

Page 12 of 22

Ref: How Can Organizations Help Employees Develop?

50. Downward moves for employee development: a) are sought out by employees b) usually involve an increase in responsibility or status c) can result in an employee who is more likely to quit d) often occur when an employee accepts an overseas assignment Answer: c Difficulty: Medium Page: 392 Ref: How Can Organizations Help Employees Develop?

51. Research suggests that all of the following characteristics of job experiences enhance development and the employee experiencing a sense of personal growth EXCEPT: a) when the job experience provides greater authority b) when the job experience requires skill at creating change c) when the job experience requires the use of persuasion rather than authority to get things done d) when the job experience involves working closely with people and things Answer: d Difficulty: Easy Page: 393 Ref: How Can Organizations Help Employees Develop?

52. An effective coach: a) is often employed to support first level supervisors b) is an HR professional c) will use a contract to set up a clear understanding of the nature and duration of the relationship d) will foster a one-on-one relationship between a less experienced employee and a more experienced person (the coach) Answer: c Difficulty: Medium Page: 393 Ref: How Can Organizations Help Employees Develop?

53. Mentors benefit employees in all the following ways EXCEPT:

Page 13 of 22

a) by offering challenging work experiences b) by recommending employees for overseas assignments c) by providing advice and political protection d) by helping the employee build a sense of identity and personal competence Answer: b Difficulty: Easy Page: 394 Ref: How Can Organizations Help Employees Develop?

54. Which of the following would NOT enhance the success of a mentoring program? a) Mentors and protégés should have diverse backgrounds and perspectives b) Providing high-quality training to mentors and protégés c) Programs should allow mentors and protégés to have input into the type of person with whom they are matched d) Encouraging mentors and protégés to set goals Answer: a Difficulty: Easy Page: 394 Ref: How Can Organizations Help Employees Develop?

55. The career development process: a) is rarely used by organizations employing a Bargain Laborer HR strategy b) is mostly used by organizations employing a Bargain Laborer HR strategy c) includes self-assessment, reality check, goal setting and action planning d) is a series of steps that help employees move up the career ladder of the organization Answer: c Difficulty: Easy Page: 396 Ref: How Do Organizations Integrate Development Efforts?

56. In performing a reality check: a) employees receive performance feedback from their supervisors b) employees determine their interests, values and skills c) an employer provides information about the jobs available in the organizational career ladder d) employees gather information to determine whether their self assessments are realistic and how those assessments fit with opportunities in the labor market and their employer’s future needs

Page 14 of 22

Answer: d Difficulty: Medium Page: 396 Ref: How Do Organizations Integrate Development Efforts?

57. All of the following are career-development challenges EXCEPT: a) effectively orienting new employees b) finding employees to accept overseas expatriate assignments c) preventing employee burnout d) helping employees balance work with their personal lives Answer: b Difficulty: Easy Page: 399 Ref: What Are Some Important Career-Development Challenges?

58. A typical new employee orientation program would include all of the following EXCEPT: a) lectures and discussion on the mission, values and history of the organization b) specific information about policies and procedures employees are expected to follow c) structured meetings between new employees and their managers and other important employees in the organization d) skill training for the job Answer: d Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

59. An effective employee orientation program: a) can increase commitment and reduce turnover of new employees b) should be scheduled on an employee’s first day of work c) should highlight the positive aspects of working for the organization and minimize problems d) should focus on compensation and benefit issues Answer: a Difficulty: Easy Page: 400

Page 15 of 22

Ref: What Are Some Important Career-Development Challenges?

60. Which of the following is NOT one of the five principles of an effective orientation program? a) Give new employees information specific to their new jobs and new bosses b) Provide realistic information about the company and the new employee’s role in the company c) Teach self control of thoughts and feelings to help employees manage negative thoughts that arise from the challenges of adapting d) Avoid contact with current employees to prevent new employees from interacting with employees who engage in counterproductive performance Answer: d Difficulty: Easy Page: 400 Ref: What Are Some Important Career-Development Challenges?

61. Which of the following is NOT a symptom of burnout? a) Feelings of being overextended and emotionally drained b) Indifference or a distant attitude towards work c) General fear of being let go d) Reduced expectations of continued effectiveness Answer: c Difficulty: Medium Page: 400 Ref: What Are Some Important Career-Development Challenges?

62. Which of the following is NOT true about balancing the demands of work and personal life? a) Allowing employees to work flexible hours can help employees more effectively balance work and their personal lives b) The strain of balancing the demands of work and personal life can cause dissatisfaction that leads employees to quit their jobs c) Allowing employees time off to deal with family needs can help employees more effectively deal with the demands of work and personal life d) Employer offered programs that help employees balance work and their personal life are viewed positively only by the employees who qualify for or use the programs Answer: d Difficulty: Easy

Page 16 of 22

Page: 401 Ref: What Are Some Important Career-Development Challenges?

63. Employer offered programs that help employees balance the demands of work and personal life: a) increase employee commitment among employees who qualify for or use the programs b) increase employee commitment among all women employees c) increase commitment among all employees d) send a message about how the organization cares about families to only employees with families Answer: c Difficulty: Easy Page: 401 Ref: What Are Some Important Career-Development Challenges?

64. Affinity groups: a) should only be organized for minority groups b) can be formed around a variety of issues including ethnicity, age, sexual orientation, and disability c) should only be organized for diverse groups the employer is trying to support d) provide a forum for diverse groups of employees to meet and confer with each other Answer: b Difficulty: Easy Page: 402 Ref: What Are Some Important Career-Development Challenges?

65. All of the following are actions an employer can take to support the continued development of older workers EXCEPT: a) training programs should include a program to retain and improve memory b) continue to provide challenging work assignments c) reward learning via pay for participating in development or contributing new ideas d) emphasize continuous learning Answer: a Difficulty: Easy Page: 402 Ref: What Are Some Important Career-Development Challenges?

Page 17 of 22

66. Which of the following is NOT a coping mechanism to manage culture shock? a) Do not discuss what an employee may encounter since discussion will raise their awareness and likely create stress b) Maintain a reasonable fitness schedule c) Adhere to a sensible diet d) Encourage the employee to discuss thoughts and feelings with sympathetic others Answer: a Difficulty: Medium Page: 403 Ref: What Are Some Important Career-Development Challenges?

67. Which of the following is NOT a reason for an overseas assignment to require more preparation? a) If the country where the employee is going is very different b) If the job requires extensive contact with the host society c) If the job requires intensive contact with the host society d) If the overseas job is not a lateral move Answer: d Difficulty: Easy Page: 403 Ref: What Are Some Important Career-Development Challenges?

68. All of the following are true about on-site resources for expatriate employees EXCEPT: a) on-site resources help an employee adjust to the uncertainties of living in a new culture b) on-site resources can be invaluable for helping the expatriate determine how to behave in certain situations c) a local mentor who is an employee from the expatriate’s home country should be assigned d) opportunities for the expatriate to have conversations with people who understand the culture and the work the expatriate is doing can be helpful Answer: c Difficulty: Easy Page: 403 Ref: What Are Some Important Career-Development Challenges?

Page 18 of 22

69. Which of the following is NOT true about repatriation? a) Since repatriation involves an employee and family returning to their home country, readjustment is not a problem b) Organizations can assist the repatriate by offering workshops c) Meetings between the expatriate and home office managers in the organization can help repatriation d) The repatriate should be given challenging work that allows him/her to use the new skills developed by working in another country Answer: a Difficulty: Easy Page: 403 Ref: What Are Some Important Career-Development Challenges?

70. Which of the items below is NOT the type of support an employer should offer to their employees from other countries who come to the U.S. to work? a) Assistance finding jobs for spouses b) New employee orientation programs c) Provide accurate information about life in the specific area they will be living and working d) Assistance finding housing and schools for children Answer: b Difficulty: Easy Page: 404 Ref: What Are Some Important Career-Development Challenges?

Short Answer

71. Using ___________ as a form of development allows organizations to improve employees’ knowledge and skill without pulling them away from work completely, as would occur with formal training.

Answer: work experience Difficulty: Easy Page: 383 Ref: How Is Employee Development Strategic?

Page 19 of 22

72. A pattern of work experiences that people have over the course of their lifetimes is called a ______________.

Answer: career Difficulty: Easy Page: 384 Ref: What Are Careers Like Today?

73. A series of work experiences that is likely to prepare an employee for high-level jobs, such as management is called a ______________.

Answer: career path Difficulty: Easy Page: 385 Ref: What Are Careers Like Today?

74. A process in which an employee’s managers, peers, and sometimes subordinates and customers, answer questions about the employee is known as ______________.

Answer: multisource assessments and feedback Difficulty: Easy Page: 388 Ref: How Can Organizations Help Employees Develop?

75. ____________ are temporary work assignments in which employees are expected to move through multiple jobs within a set period of time.

Answer: Job rotations Difficulty: Easy Page: 392 Ref: How Can Organizations Help Employees Develop?

76. ___________ refers to a one-on-one relationship between a less experienced and a more experienced person that is intended to contribute to personal and professional growth.

Answer: Mentoring

Page 20 of 22

Difficulty: Easy Page: 394 Ref: How Can Organizations Help Employees Develop?

77. ____________ is a process in which employees determine their interests, values, personalities, and skills.

Answer: Self-assessment Difficulty: Easy Page: 396 Ref: How Do Organizations Integrate Development Efforts?

78. A psychological phenomenon involving emotional exhaustion, cynicism, and a decline in competence about work is known as ______________.

Answer: burnout Difficulty: Easy Page: 400 Ref: How Can Organizations Help Employees Develop?

Essays

79. Discuss the four steps in the career development process.

Answer: A. Self assessment is a process in which employees determine their interests, values, personalities, and skills. It involves the use of psychological tests or exercises that ask employees to consider where they are today and where they want to be in the future. An employee can conduct these activities alone or with the help of their supervisor, a career coach, or a counselor.

B. The reality check phase involves employees gathering information to determine whether their sell-assessments are realistic and how the assessments fit with opportunities in the labor market and with their current employers’ future labor needs. Supervisors can provide a reality check by identifying the subordinate’s strengths and weaknesses and can provide information about opportunities within the company. Labor market opportunities can be found through career centers of colleges and universities, professional associations and publications, computer discussion groups, online resources, and through discussions with current incumbents.

Page 21 of 22

C. Goal setting involves setting milestones or achievements for the future, such as positions to achieve, skills to be gained, and development efforts to pursue.

D. Action planning involves employees making plans for how they will accomplish their goals.

This phase includes selecting developmental opportunities that will advance employees’ goals.

Difficulty: Medium Page: 396-398 Ref: How Do Organizations Integrate Development Efforts?

80. Discuss the five principles that should guide an effective new employee orientation program.

Answer: A. Present realistic information about the company and the new employee’s role in the company.

B. Provide support and reassurance to alleviate anxiety and fear.

C. Have a successful employee demonstrate how employees can use coping skills to succeed at work, allow for discussion, and encourage practice.

D. Teach self-control of thoughts and feelings to help employees manage negative thoughts and feelings that arise from the challenges of adjusting.

E. Give new employees information specific to their new jobs and new bosses.

Difficulty: Medium Page: 400 Ref: What Are Some Important Career-Development Challenges?

Page 22 of 22

Chapter: Chapter 11: Motivating Employees Through Compensation

True/False

1. Employee compensation includes only salary or pay received.

Answer: False Difficulty: Easy Page: 416 Ref: How Can Strategic Employee Compensation Make an Organization Effective?

2. Paying people more when they contribute more increases motivation, which in turn leads to high performance.

Answer: True Difficulty: Easy Page: 416 Ref: How Can Strategic Employee Compensation Make an Organization Effective?

3. A market-based pay approach seeks to create a wage structure where people are paid fairly in comparison to what they could earn doing a similar job at another company.

Answer: True Difficulty: Medium Page: 417 Ref: How Can Strategic Employee Compensation Make an Organization Effective?

4. Organizations with an internal labor orientation are willing to accept low retention rates because high levels of turnover create advancement and promotion opportunities for current employees.

Answer: False Difficulty: Medium Page: 419 Ref: How Is Employee Compensation Strategic?

Page 1 of 21

5. Employees of organizations with an internal labor orientation are less likely to compare their compensation with the compensation they could earn elsewhere.

Answer: True Difficulty: Medium Page: 419 Ref: How Is Employee Compensation Strategic?

6. An organization pursuing a differentiation strategy will pay some employees much more than others and compensation is used to encourage risk taking.

Answer: True Difficulty: Medium Page: 419 Ref: How Is Employee Compensation Strategic?

7. A differentiation strategy is associated with uniform transactional compensation.

Answer: False Difficulty: Easy Page: 420 Ref: How Is Employee Compensation Strategic?

8. Organizations with a uniform transactional compensation strategy are likely to link pay increases with time employed with the organization.

Answer: False Difficulty: Medium Page: 420 Figure 11.1 Ref: How Is Employee Compensation Strategic?

9. Uniform relational compensation provides similar rewards to all employees while building a sense of commitment to the organization and is associated with the Loyal Soldier HR strategy.

Answer: True Difficulty: Medium Page: 421 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

Page 2 of 21

10. Motivation is represented by three elements: behavioral choice, intensity, and reinforcement.

Answer: False Difficulty: Medium Page: 423 Ref: How Does Compensation Motivate People?

11. Salary compression, like the “glass ceiling,” deals with the situation where newly hired employees earn less than those employed for years.

Answer: False Difficulty: Medium Page: 422 Ref: How Is Employee Compensation Strategic?

12. Employees demonstrate high motivation when they choose to perform critical work tasks with high intensity and persistence.

Answer: True Difficulty: Medium Page: 423 Ref: How Does Compensation Motivate People?

13. A reward that is given without regard to the occurrence of a desired behavior loses the ability to motivate.

Answer: True Difficulty: Easy Page: 424 Ref: How Does Compensation Motivate People?

14. Goals focus attention away from other activities toward desired behaviors.

Answer: True Difficulty: Easy

Page 3 of 21

Page: 425 Ref: How Does Compensation Motivate People?

15. If goals are to act as effective motivators, they must be achievable.

Answer: True Difficulty: Easy Page: 425 Ref: How Does Compensation Motivate People?

16. Setting a difficult goal and providing a bonus only to those who achieve it can encourage everyone to try harder, even those who don’t think they can achieve the stretch goal.

Answer: False Difficulty: Medium Page: 425 Ref: How Does Compensation Motivate People?

17. People work on tasks longer when they have specific goals.

Answer: True Difficulty: Easy Page: 425 Ref: How Does Compensation Motivate People?

18. A problem with motivating employees by offering incremental rewards for achieving progressively higher goals is that some employees are satisfied with the small initial rewards and may not put forth maximum effort.

Answer: True Difficulty: Medium Page: 425 Ref: How Does Compensation Motivate People?

19. Justice theory is a psychological perspective that holds that motivation depends on beliefs about fairness.

Answer: True

Page 4 of 21

Difficulty: Easy Page: 426 Ref: How Does Compensation Motivate People?

20. People with higher wages tend to see pay as more fair.

Answer: True Difficulty: Easy Page: 427 Ref: How Does Compensation Motivate People?

21. A food server in a restaurant may believe that he is able to provide great service (instrumentality), and he may value high tips (expectancy), but if he doesn’t believe a certain customer will leave a tip even if his performance is excellent (valence), he will not be motivated to give that customer great service.

Answer: False Difficulty: Hard Page: 428 Ref: How Does Compensation Motivate People?

22. Organizations using differentiation strategies tend to use uniform compensation.

Answer: False Difficulty: Medium Page: 429 Ref: How Does Compensation Motivate People?

23. A majority of evidence shows that performance increases when high performers are paid more than low performers.

Answer: True Difficulty: Easy Page: 430 Ref: How Does Compensation Motivate People?

Page 5 of 21

24. Many variable compensation practices fail to motivate because the size of the potential reward is too large and therefore fails to influence behavior.

Answer: False Difficulty: Medium Page: 431 Ref: How Does Compensation Motivate People?

25. Developing employees so they have skills that are unique to the organization is a way to bind employees to the organization without increasing labor costs.

Answer: True Difficulty: Easy Page: 431 Ref: How Does Compensation Motivate People?

26. To offer competitive pay levels, the first thing an organization must do is understand the compensation packages being provided by other organizations.

Answer: True Difficulty: Medium Page: 432 Ref: How Is Compensation Level Determined?

27. Research shows that all organizations benefit from paying more than their competitors.

Answer: False Difficulty: Easy Page: 436 Ref: How Is Compensation Level Determined?

28. An organization that adopts a meet-the-market pay strategy seeks to attract and retain employees using compensation as a tool to maintain a superior work force.

Answer: False Difficulty: Hard Page: 436 Ref: How Is Compensation Level Determined?

Page 6 of 21

29. Pay level is concerned with how compensation differs among organizations.

Answer: True Difficulty: Easy Page: 438 Ref: How Is Compensation Structure Determined?

30. An individual’s level of compensation within the range is determined by factors such as performance level and experience.

Answer: True Difficulty: Easy Page: 440 Ref: How Is Compensation Structure Determined?

31. Concern associated with job-based pay systems includes inflexibility and resistance to change. As a result employees at the top pay range can only receive more compensation by being promoted.

Answer: True Difficulty: Medium Page: 440 Ref: How Is Compensation Structure Determined?

32. Skill-based pay focuses on the skills workers possess. Emphasizing skill development helps build a culture that supports greater employee self-management. Skill based pay has been linked to higher organizational productivity.

Answer: True Difficulty: Hard Page: 441-442 Ref: How Is Compensation Structure Determined?

33. A university professor is likely nonexempt under FLSA given their professional status.

Page 7 of 21

Answer: False Difficulty: Easy Page: 444 and Table 11.2 Ref: How Do Government Regulations Influence Compensation?

34. All employees must be paid at least the current federal hourly minimum wage.

Answer: False Difficulty: Easy Page: 445 Ref: How Do Government Regulations Influence Compensation?

35. Employees exempt under the Administrative Exemption of the Fair Labor Standards Act primarily manage a department or supervise two or more employees and are involved in employee hiring and firing.

Answer: False Difficulty: Medium Page: 444, Table 11.2 Ref: How Do Government Regulations Influence Compensation?

Multiple Choice

36. Which of the following is NOT true about employee compensation? a) The positive feelings that come from working at a particular place are sometimes seen as a form of compensation b) Compensation includes insurance c) Compensation consists of only the monetary rewards an employee receives for working d) Compensation includes psychological rewards as well as monetary rewards Answer: c Difficulty: Medium Page: 416 Ref: How Can Strategic Employee Compensation Make an Organization Effective?

37. Organizations choosing an internal labor orientation:

Page 8 of 21

a) hire new employees with the expectation that they will not form a long-term attachment to the organization b) focus on the fairness of what the company is paying compared to what employees could earn working elsewhere c) emphasize providing security and good working conditions more than money d) emphasize pay secrecy more than an organization with an external orientation Answer: c Difficulty: Medium Page: 419 Ref: How Is Employee Compensation Strategic?

38. An organization with a Free Agent HR strategy: a) must be concerned with external equity, which concerns the fairness of what the company pays compared to other possible employers b) must be concerned with justice c) must be concerned with internal equity, which concerns the fairness of what the company pays compared to other possible employers d) should have narrow pay bands Answer: a Difficulty: Medium Page: 421 Ref: How Is Employee Compensation Strategic?

39. Which of the following is NOT characteristic of an organization with a differentiation strategy? a) Compensation is used to encourage risk taking b) Success depends on outstanding contributions from a few individuals c) There is substantial difference between the pay of high performers and low performers d) Compensation is used to develop feelings of inclusion and support from the organization Answer: d Difficulty: Medium Page: 419 Ref: How Is Employee Compensation Strategic?

40. An organization that is pursuing a cost strategy: a) uses compensation to encourage risk taking b) has substantial difference between the pay of high performers and low performers

Page 9 of 21

c) will tend to have little difference in pay between high and low performers d) is not concerned with internal equity Answer: c Difficulty: Easy Page: 419 Ref: How Is Employee Compensation Strategic?

41. The employees working part-time at a local McDonald’s all perform the same duties and receive the same hourly pay. Which type of compensation strategy is McDonald’s using? a) Uniform relational compensation b) Uniform transactional compensation c) Variable transactional compensation d) Variable relational compensation can change to one of others Answer: b Difficulty: Medium Page: 420 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

42. Which of the following is NOT true about uniform transactional compensation? a) Uniform transactional compensation is often associated with the Bargain Laborer HR strategy b) Under uniform transactional compensation, pay levels are set at the lowest level that allows the organization to attract enough workers c) Employee perceptions concerning fairness are not an issue because pay is “uniform” d) A company that has uniform transactional compensation is not overly concerned with turnover Answer: c Difficulty: Medium Page: 420-421 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

43. Organizations with a uniform relational compensation strategy: a) are likely to differentiate compensation for high and low performers b) use a Bargain Laborer HR strategy c) are likely to have highly flexible compensation practices d) are likely to use benefits such as health insurance and retirement benefits as a part of compensation Answer: d

Page 10 of 21

Difficulty: Medium Page: 420-421 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

44. Which of the following is NOT true about variable transactional compensation? a) Future rewards such as retirement benefits are likely to be used as a part of compensation b) An organization with variable transactional compensation will likely pay more than other employers c) Variable transactional compensation provides strong monetary incentives for high performers d) New employees are often paid more than current employees Answer: a Difficulty: Medium Page: 420 and 421 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

45. An organization using variable relational compensation: a) strives to have high and low performers treated similarly b) sets pay at the lowest possible level that will still attract enough workers c) provides top performers immediate rewards and also offers long-term incentives such as a retirement program to retain workers d) is likely to have a Loyal Soldier HR strategy Answer: c Difficulty: Medium Page: 420-421 and Figure 11.1 Ref: How Is Employee Compensation Strategic?

46. Motivation consists of these three elements: a) antecedents, contingency, and behavior b) behavior choice, intensity, and persistence c) antecedents, behavior, and consequents d) behavior choice, consequents, and persistence Answer: b Difficulty: Medium Page: 423 Ref: How Does Compensation Motivate People?

Page 11 of 21

47. An employee who wants a career in human resources decides to enroll in a college level Human Resource Management Course. This is an example of which element of motivation? a) Behavioral choice b) Antecedent c) Intensity d) Consequent Answer: a Difficulty: Medium Page: 423 Ref: How Does Compensation Motivate People?

48. Reinforcement theory holds that behavior is influenced by: a) antecedents and persistence b) behavior choice and antecedents c) antecedents and consequents d) behavior choice and intensity of effort Answer: c Difficulty: Medium Page: 423 Ref: How Does Compensation Motivate People?

49. Which of the following is NOT true about pay-for-performance? a) Compensation should be based on behavior so that better performers receive higher pay b) Employees whose pay is not contingent generally perform better than employees whose pay is contingent c) Linking pay to performance is beneficial when it is part of an overall program of performance assessment, goal setting, and feedback d) Contingent rewards have a positive effect that endures over time Answer: b Difficulty: Medium Page: 424 Ref: How Does Compensation Motivate People?

50. Which of the following is NOT true about goal-setting theory? a) Goals get people energized and excited about accomplishing something worthwhile b) People work on tasks longer when they have specific goals

Page 12 of 21

c) Goals encourage the discovery and use of knowledge d) If goals are to act as effective motivators, they must be difficult to achieve and nearly impossible to reach Answer: d Difficulty: Easy Page: 425 Ref: How Does Compensation Motivate People?

51. According to equity theory: a) motivation concerns people’s belief that they can actually achieve the desired level of performance b) people compare the ratio of their inputs and outcomes with the ratios of others c) valence is the belief that a desirable reward will really be given if the appropriate behavior or outcome is produced d) fairness is not a critical factor for motivation Answer: b Difficulty: Medium Page: 426 Ref: How Does Compensation Motivate People?

52. All of the following are ways an employee who perceives inequity may behave EXCEPT: a) engage in cyberloafing b) seek other employment c) take more time for lunch and breaks d) pursue formal education to earn an MBA Answer: d Difficulty: Medium Page: 426-427 Ref: How Does Compensation Motivate People?

53. People with higher wages: a) tend to view pay as more fair than those with lower compensation b) tend to view pay as less fair than those with higher compensation c) are working under a uniform transactional compensation system d) are likely working under a uniform relational compensation system \ Answer: a

Page 13 of 21

Difficulty: Medium Page: 427 Ref: How Does Compensation Motivate People?

54. According to expectancy theory: a) people compare the ratio of their inputs and outcomes with the ratios for others b) principal and agent relationships impact motivation c) motivation comes from three beliefs: valence, instrumentality, and expectancy d) difficult goals are motivating Answer: c Difficulty: Easy Page: 427 Ref: How Does Compensation Motivate People?

55. Agency theory: a) is a form of expectancy theory b) emphasizes distributive justice c) suggests that employees are willing to share risk with owners and managers if they can also share the potential for a bigger reward. d) suggests that agents and principles usually have the same interests Answer: c Difficulty: Hard Page: 428-429 Ref: How Does Compensation Motivate People?

56. Which of the following is NOT likely to increase motivation through compensation? a) Linking pay with goals that encourage stretch efforts b) Following principles of procedural fairness, including accurate assessment, lack of bias and provide an opportunity for input c) Ensuring that interests of owners are not disclosed to employees d) Giving higher rewards for those who assume risk Answer: c Difficulty: Easy Page: 430, Table 11.1 Ref: How Does Compensation Motivate People?

Page 14 of 21

57. Variable compensation: a) benefits a great deal from making rewards contingent upon achieving goals b) is appropriate for organizations pursuing a lowest cost strategy c) is appropriate for organizations pursuing a Bargain Laborer HR strategy d) is usually appropriate when employees are not required to take risks Answer: a Difficulty: Medium Page: 430 Ref: How Does Compensation Motivate People?

58. Procedural fairness is particularly important when which HR strategy is in place? a) Free Agent HR strategy b) Committed Expert HR strategy c) Bargain Laborer HR strategy d) Loyal Soldier HR strategy Answer: b Difficulty: Medium Page: 431 Ref: How Does Compensation Motivate People?

59. Uniform compensation practices: a) are as effective as variable compensation practices for encouraging high levels of performance b) have rewards structured to reduce the emphasis on extreme levels of individual performance c) will encourage employees to compare themselves to external reference groups d) are employed with the Free Agent HR strategy Answer: b Difficulty: Medium Page: 431 Ref: How Does Compensation Motivate People?

60. Which of the following is NOT true about pay surveys? a) A problem with pay surveys is choosing the appropriate comparison group b) It is difficult to obtain salary information from employers that is specific to particular jobs c) A good pay survey must have current up to date data d) For most organizations, national pay surveys are the most useful for determining pay levels

Page 15 of 21

Answer: d Difficulty: Easy Page: 432-435 Ref: How Is Compensation Level Determined?

61. A pay strategy that pays employees more than what they can earn with other employers: a) is a exceed-the-market strategy b) is a meet-the-market strategy c) is a lead-the-market strategy d) is a lag-the-market strategy Answer: c Difficulty: Easy Page: 436 Ref: How Is Compensation Level Determined?

62. Organizations that adopt a lead-the-market compensation strategy: a) are more likely to use uniform transactional compensation b) are likely to have an internal labor strategy c) are likely to have a Bargain Laborer HR strategy because increased salary costs are offset by productivity gains d) are likely to have pay that is on the average higher than most organizations Answer: d Difficulty: Easy Page: 436 Ref: How Is Compensation Level Determined?

63. Which type of method for determining pay structure assigns a numerical value to each job position? a) A job-based pay system b) A skill-based point system c) A point system d) A point pay system Answer: c Difficulty: Easy Page: 438 Ref: How Is Compensation Structure Determined?

Page 16 of 21

64. Skill-based pay: a) uses a point system to assign a numerical value to each job position b) uses broadbanding to reduce the number of pay categories so that each pay grade contains a large set of different jobs c) can be inflexible and resistant to change d) tends to have higher costs but skill based pay has been linked to higher organizational productivity Answer; d Difficulty: medium Page: 442 Ref: How Is Compensation Structure Determined?

65. Which of the following is NOT true of broadbanding? a) Broadbanding results in fewer pay grades b) Broadbanding allows more flexibility in determining an individual’s pay c) Under broadbanding more pay grades are available to increase flexibility d) Broadbanding groups more categories of jobs together in each pay band Answer: c Difficulty: Easy Page: 440 Ref: How Is Compensation Structure Determined?

66. Which of the following is NOT an advantage of point systems? a) Point systems provide a clear method for controlling and administering pay b) Point systems are flexible and easily adaptable for change c) Point systems decrease bias d) Point systems make comparison between different jobs easier Answer: b Difficulty: Medium Page: 439-440 Ref: How Is Compensation Structure Determined?

67. Skill-based pay a) usually results in lower total payroll b) usually results in lower training costs

Page 17 of 21

c) usually results in a better-trained workforce d) improves organizational commitment, but has not been shown to improve productivity Answer: c Difficulty: Medium Page: 442 Ref: How Is Compensation Structure Determined?

68. Which HR Strategy most benefits from skill based pay linked to specific training? a) Free Agent HR Strategy b) Committed Expert HR strategy c) Bargain Laborer HR strategy d) Loyal Soldier HR strategy Answer: d Difficulty: Hard Page: 442 Ref: How Is Compensation Structure Determined?

69. Juan, a 21-year-old college senior, works for Verizon Wireless selling mobile phones in a store just off campus. Which of the following is NOT true about Juan’s compensation? a) Juan is exempt under FLSA because his duties involve sales b) Juan must be paid overtime if he works more than 40 hours in a work week c) Juan and his employer must keep detailed records of hours worked d) Juan’s pay can be based on sales, as long as the hours worked are tracked and the minimum amount paid equals what would be paid as the minimum wage Answer: a Difficulty: Hard Page: 444 Ref: How Do Government Regulations Influence Compensation?

70. Kim is non-exempt under the Fair Labor Standards Act (FLSA). Because a colleague calls in sick, she works a double shift on Monday of 12 hours and a double shift on Tuesday of 12 hours. Her total work hours for the week are 40. Therefore, a) Kim is entitled to 8 hours of additional pay at double her wage rate b) Kim is not entitled to overtime since she is non-exempt under FLSA c) Kim is entitled to 8 hours of additional pay at an overtime rate of 1.5 times her normal wage rate d) Kim is not entitled to any overtime pay because her hours in the work week do not exceed 40 hours

Page 18 of 21

Answer: d Difficulty: Medium Page: 445 Ref: How Do Government Regulations Influence Compensation?

Short Answer

71. The approach to pay that seeks to create a wage structure where people are paid fairly in comparison to what they could earn performing a similar job for another company in the same geographic area is known as ____________.

Answer: market-based pay Difficulty: Easy Page: 417 Ref: How Can Strategic Employee Compensation Make an Organization Effective?

72. A reward system that pays some employees substantially more than other in order to emphasize differences between high and low performers is called a _____________ system.

Answer: variable rewards Difficulty: Medium Page: 420 Ref: How Is Employee Compensation Strategic?

73. When new employees earn more than employees who have worked at an organization for a number of years, the situation is known as ____________.

Answer: salary compression Difficulty: Easy Page: 422 Ref: How Is Employee Compensation Strategic?

74. A force that causes people to engage in a particular behavior rather than other behaviors is _____________.

Answer: motivation

Page 19 of 21

Difficulty: Easy Page: 423 Ref: How Does Compensation Motivate People?

75. Using a reward such as money to encourage behavior is consistent with ____________ theory.

Answer: reinforcement Difficulty: Easy Page: 423 Ref: How Does Compensation Motivate People?

76. ___________ is the amount of overall pay that employees earn in an organization relative to what employees earn in other organizations.

Answer: Pay level Difficulty: Easy Page: 432 Ref: How Is Compensation Level Determined?

77. An organization with a ____________ pay-level strategy pays employees an amount above what they might earn working for another organization.

Answer: lead-the-market Difficulty: Easy Page: 436 Ref: How Is Compensation Level Determined?

78. The practice of reducing the number of pay categories under a job-based pay point system so that each pay grade contains a large set of different jobs is known as: _____________.

Answer: broadbanding Difficulty: Medium Page: 440 Ref: How is Compensation Structure Determined?

Page 20 of 21

Essays

79. List and describe the four general compensation strategies that result from combing relationship type (internal and external) with reward type (uniform and variable). Identify which HR strategies align best with each general compensation strategy.

Answer: A. Uniform transactional compensation uses a reward package that emphasizes money to build commitment and minimizes the differences in the pay levels of employees.

Most suited with the Bargain Laborer HR strategy.

B. Uniform relational compensation uses a reward package that develops long-term loyalty and minimizes differences in the pay levels of employees. Most suited with the Loyal Soldier HR strategy.

C. Variable transactional compensation uses money to build commitment and emphasizes differences in the pay of high and low performers. Most suited with the Free Agent HR strategy.

D. Variable relational compensation uses a reward package that develops long-term loyalty and emphasizes differences in the pay of high and low performers. Most suited with Committed Expert HR strategy.

Difficulty: Hard Page: 420 Ref: How Is Employee Compensation Strategic?

80. Compare and contrast job based pay and skill based pay. Identify which of the HR strategies is associated with each.

A. Job based pay bases the determination of how much to pay an employee on assessments dealing with the duties performed. The focus for pay is the job. The Committed Expert and Bargain Laborer HR strategies are associated with skill based pay.

B. Skill based pay bases the determination of how much to pay on employee skills, even if those skills are not currently used to perform duties. The focus for pay is the employee. Free Agent and Loyal Soldier HR strategies are associated with skill based pay.

Difficulty: Medium Page: 438-442 Ref: How Is Compensation Structure Determined?

Page 21 of 21

Chapter: Chapter 12: Designing Compensation and Benefit Packages

True/False

1. Health insurance is the largest component of most compensation packages.

Answer: False Difficulty: Easy Page: 458 Ref: How Can a Strategic Compensation Package Make an Organization Effective?

2. Benefits such as health insurance, retirement savings, and flexible schedules destroy employee loyalty to an organization.

Answer: False Difficulty: Medium Page: 459: Building Strength Through HR Ref: How Can a Strategic Compensation Package Make an Organization Effective?

3. Placing a high proportion of pay at risk is common for organizations pursing a differentiation strategy.

Answer: True Difficulty: Medium Page: 461 Ref: How Do Compensation Packages Align with Strategy?

4. Paying some people more than others can actually harm an organization’s performance when workers are required to work together and when group incentives are used.

Answer: True Difficulty: Medium Page: 461 Ref: How Do Compensation Packages Align with Strategy?

Page 1 of 23

5. Individual incentives have the potential to destroy cooperation among employees.

Answer: True Difficulty: Easy Page: 463 Ref: How Do Compensation Packages Align with Strategy?

6. Base pay is always an effective motivator for performance, especially for employees with the responsibility to support a family.

Answer: False Difficulty: Easy Page: 463 Ref: How Do Compensation Packages Align with Strategy?

7. Group incentives are not at risk because the synergy of a group ensures productivity.

Answer: False Difficulty: Medium Page: 463 Ref: How Do Compensation Packages Align with Strategy?

8. Employees are not attracted to organizations that pay a specific level of pay, so all organizations should have some pay at risk.

Answer: False Difficulty: Easy Page: 464 Ref: What Are Common Approaches to Base Pay?

9. An organization with a lead-the-market strategy will likely establish a higher compensation level than an organization with a lag-the-market strategy.

Answer: True Difficulty: Easy Page: 465 Ref: What Are Common Approaches to Base Pay?

Page 2 of 23

10. Netflix focuses on innovation and high individual employee performance. Netflix pursues a differentiation strategy and employees have a significant portion of their pay at risk.

Answer: False Difficulty: Hard Page: 465: Building Strength Through HR Ref: What Are Common Approaches to Base Pay?

11. Dollar for dollar, benefits provide more value to employees because generally employees do not pay taxes on benefits.

Answer: True Difficulty: Medium Page: 466 Ref: What Are Common Employee Benefit Plans?

12. Most employees overestimate the amount of money an employer spends on benefits.

Answer: False Difficulty: Easy Page: 466 Ref: What Are Common Employee Benefit Plans?

13. Social security includes income during retirement, disability benefits, and if a worker dies before retirement, provides a death benefit to a worker’s spouse and dependent children.

Answer: True Difficulty: Medium Page: 467-468 Ref: What Are Common Employee Benefit Plans?

14. The amount an employer pays for unemployment insurance differs from employer to employer. One factor influencing the amount paid is how frequently the organization lay off personnel.

Answer: True Difficulty: Medium Page: 468

Page 3 of 23

Ref: What Are Common Employee Benefit Plans?

15. Worker’s compensation is only paid when an employee is injured and they are not at fault.

This provision is to reinforce on the job safety.

Answer: False Difficulty: Easy Page: 468-469 Ref: What Are Common Employee Benefit Plans?

16. Discretionary benefits are optional benefits an employer offers and these benefits are not regulated by the government, as are legally required benefits.

Answer: False Difficulty: Medium Page: 471 Ref: What Are Common Employee Benefit Plans?

17. A qualified benefit plan is one that qualifies as tax-exempt compensation. This means a qualified benefit is more valuable than one that is not a qualified benefit.

Answer: True Difficulty: Medium Page; 471 Ref: What Are Common Employee Benefit Plans?

18. Money an employer places in a health savings account is not subject to taxes, but must be spent within the plan year.

Answer: False Difficulty: Medium Page: 470 Ref: What Are Common Employee Benefit Plans?

19. Defined benefit plans are highly portable.

Page 4 of 23

Answer: False Difficulty: Medium Page: 473-474 Ref: What Are Common Employee Benefit Plans?

20. Defined contribution retirement plans are more common than defined benefit retirement plans.

Answer: True Difficulty: Medium Page: 473 Ref: What Are Common Employee Benefit Plans?

21. A potential disadvantage of commission incentives for employees is uneven levels of income over time.

Answer: True Difficulty: Easy Page: 478 Ref: What Are Common Individual Incentives?

22.. One way to reduce the risk to employees of a commission incentive system is to offer a low base salary to provide a safety net to cover living expenses when sales are low.

Answer: True Difficulty: Easy Page: 478 Ref: What Are Common Individual Incentives?

23. Merit pay increases focus on past employee performance and reward past performance that exceeded performance expectations.

Answer: False Difficulty: Medium Page: 479 Ref: What Are Common Individual Incentives?

Page 5 of 23

24. A problem with merit pay as a motivator is that the amount of merit pay increase is oftentimes not large enough to have motivation value.

Answer: True Difficulty: Easy Page: 480 Ref: What Are Common Individual Incentives?

25. Merit pay is a short-term immediate incentive to reward employees for past performance.

Answer: False Difficulty: Easy Page: 479 Ref: What Are Common Individual Incentives?

26. A merit bonus is an increase is an employee’s base pay.

Answer: False Difficulty: Medium Page: 480 Ref: What Are Common Individual Incentives?

27. A discretionary team bonus is provided at the discretion of the team’s manager whenever and at whatever level the manger decides.

Answer: True Difficulty: Easy Page: 481 Ref: What Are Common Group and Organizational Incentives?

28. Under a gainsharing program, in order to increase the likelihood of motivation, monetary rewards should be paid out as close to the time of performance as possible.

Answer: True Difficulty: Medium Page: 484, Table 12.1 Ref: What Are Common Group and Organizational Incentives?

Page 6 of 23

29. Employee involvement in a gainsharing program increases employee commitment and trust.

Answer: True Difficulty: Easy Page: 484, Table 12.1 Ref: What Are Common Group and Organizational Incentives?

30. Profit sharing is a strong motivator for the average employees because he/she can work to earn extra income based upon the performance of the company.

Answer: False Difficulty: Medium Page: 484 Ref: What Are Common Group and Organizational Incentives?

30. One advantage of employee stock ownership plans (ESOPs) is favorable tax status.

Answer: True Difficulty: Medium Page: 485 Ref: What Are Common Group and Organizational Incentives?

31. There is a direct and clear relationship between employee stock ownership plans (ESOPs) and employee performance and motivation.

Answer: False Difficulty: Medium Page: 485 Ref: What Are Common Group and Organizational Incentives?

32. The optimal level of at-risk compensation depends upon an organization’s HR strategy, and the Free Agent and Committed Expert HR strategies are most likely to include substantial at-risk compensation.

Answer: True

Page 7 of 23

Difficulty: Medium Page: 487 Ref: How Do Strategic Decisions Influence a Compensation Package?

33. Meet-the-market pay level strategies are most frequently adopted by organizations pursuing Free Agent and Loyal Soldier HR strategies.

Answer: False Difficulty: Medium Page: 488 Ref: How Do Strategic Decisions Influence a Compensation Package?

34. The lowest levels of at-risk pay are associated with the Bargain Laborer and Loyal Soldier HR strategies.

Answer: True Difficulty: Easy Page: 488 How Do Strategic Decisions Influence a Compensation Package?

35. Under the Free Agent HR strategy, profit sharing and stock plans are fairly common; however, to be effective motivators, there must be near immediate payouts.

Answer: True Difficulty: Easy Page: 488 Ref: How Do Strategic Decisions Influence a Compensation Package?

Multiple Choice

36. At-risk pay: a) is compensation that depends upon performance and remains the same until an employee receives an increase in base pay b) usually results in the same level of compensation as pay is more predictable c) results in variable pay across pay periods depending on performance. d) results in less motivation among low performers

Page 8 of 23

Answer: c Difficulty: Easy Page: 460 Ref: How Do Compensation Packages Align with Strategy?

37. Organizations pursuing a differentiation strategy: a) should offer a low proportion of employees’ pay at risk b) should provide employees with consistent pay c) should reward employees who loyally complete their work tasks d) should place a high proportion of pay at risk Answer: d Difficulty: Medium Page: 461 Ref: How Do Compensation Packages Align with Strategy?

38. All of the following are true about line of sight EXCEPT: a) line of sight is motivating for members of a project group preparing a group report b) employees’ motivation increases when they are rewarded for outcomes that are within their line of sight. c) line of sight is clear for individual assignments d) line of sight allows an employee to see how personal effort is important Answer: a Difficulty: Medium Page: 461 Ref: How Do Compensation Packages Align with Strategy?

39. Paying employees by the hour rather than a salary: a) makes employees less conscious of time b) can result in employees being less willing to volunteer to perform tasks for which they are not paid c) results in employees being less motivated to perform d) lacks line of sight for the employee Answer: b Difficulty: medium Page: 463 Ref: How Do Compensation Packages Align with Strategy?

Page 9 of 23

40. Which of the following is an issue with group incentives? a) Line of sight is so obvious that group incentives are not motivating b) Group incentives encourage an individual to excel at the expense of team members c) Line of sight is so distant with group incentives that individual employees may fail to put forth maximum personal effort. d) Little pay is at risk with group incentives, so group incentives are not motivating to the individual employee Answer: c Difficulty: Medium Page: 463 Ref: How Do Compensation Packages Align with Strategy?

41. An organization with a lead the market strategy: a) will need to establish a higher compensation level than organizations with lag the market strategies b) will almost always have an element of commission to compensation c) is unlikely to pay employees by the hour d) will use job based analysis to establish a pay structure Answer: a Difficulty: Easy Page: 465 Ref: What Are Common Approaches to Base Pay?

42. Job-based analysis: a) uses a point system to evaluate the worth of jobs and thereby determine base pay b) tends to be more biased than other methods of evaluating jobs c) provides employees with lower compensation when the tasks they do require more knowledge and skill d) provides an incentive for employees to learn new skills Answer: a Difficulty: Medium Page: 464-465 Ref: What Are Common Approaches to Base Pay?

Page 10 of 23

43. Which organization would be most likely to have a larger percentage of total compensation at risk? a) An organization with a Bargain Laborer HR strategy b) An organization with a Loyal Soldier HR strategy c) An organization with a lowest cost provider strategy d) An organization with a differentiation strategy Answer: d Difficulty: Medium Page: 461 Ref: How Do Compensation Packages Align with Strategy?

44. All of the following are true about employee benefits EXCEPT: a) employee benefits include wages and salary b) employee benefits are not at risk c) employee benefits provide a means for an organization to provide greater rewards to employees without increasing overall labor costs d) some employee benefits are required by law Answer: a Difficulty: Easy Page: 466-467 Ref: What Are Common Employee Benefit Plans?

45. Which of the following is NOT true of legally required benefits? a) Legally required benefits are not usually a good means to make employment more attractive than working for a competitor b) Legally required benefits are within employees’ line of sight c) Legally required benefits include social security, unemployment insurance, and worker’s compensation d) Legally required benefits are not at-risk compensation Answer: b Difficulty: Medium Page: 467 Ref: What Are Common Employee Benefit Plans?

46. Which of the following is NOT true about unemployment insurance? a) Unemployment insurance operates under federal guidelines and is administered by the states

Page 11 of 23

b) In order to qualify for unemployment insurance an individual must have been employed for a minimum time period (usually a year) c) All organizations in a state pay the same percentage of compensation for unemployment insurance d) In order to continue receiving benefits, individuals must demonstrate that they are actively seeking employment Answer: c Difficulty: Medium Page: 468 Ref: What Are Common Employee Benefit Plans?

47. Which of the following is NOT true about worker’s compensation benefits? a) A percentage of weekly wages is paid to employees during the time when they are unable to work because of an accident b) Worker’s compensation is paid for work-related injuries only when an employee was following all prescribed work processes when an accident occurred c) Money is paid to workers who are permanently disabled d) Medical expenses are paid to injured workers Answer: b Difficulty: Medium Page: 468 Ref: What Are Common Employee Benefit Plans?

48. Benefit plans that meet the regulations necessary for tax exemption status: a) are known as qualified benefit plans b) are known as legally required benefits c) are regulated by the states d) are known as tax deductible plans Answer: a Difficulty: Easy Page: 471 Ref: What Are Common Employee Benefit Plans?

49. Which of the following is NOT a downside of Health Maintenance Organizations (HMOs)? a) Employees enrolled in HMOs are limited to using the providers that participate in the plan b) There is concern that in their quest to reduce costs, HMOs ration services

Page 12 of 23

c) The medical providers who participate in HMOs can be limited because providers elect not to participate in the HMO d) Costs to employees are usually greater with HMOs than traditional health care plans Answer: d Difficulty: Easy Page: 470 Ref: What Are Common Employee Benefit Plans?

50. Which of the following is NOT true about health savings accounts (HSAs)? a) A health savings account is established and owned by the employee b) An HSA must be set up through an employer c) Money placed into an HSA is not subject to federal income taxes d) Money placed in an HSA can be carried over from year to year Answer: b Difficulty: Medium Page: 470 Ref: What Are Common Employee Benefit Plans?

51. Which of the following is NOT a key issue in the 2010 legislation passed to alter healthcare? a) Small businesses with less than 50 employees will receive tax credits when they provide health insurance coverage to their employees b) Companies with more than 50 employees must pay a fine if they do not provide health insurance coverage c) The federal government will offer an affordable health plan that will allow employers to offer a government plan to employees d) Insurance companies cannot cancel or deny coverage to someone who is ill Answer: c Difficulty: Medium Page: 469 Ref: What Are Common Employee Benefit Plans?

52. An employer contributes 3 percent of salary into an employee’s retirement savings account.

This is an example of: a) a defined payment plan b) a defined benefit plan c) a defined contribution plan d) a vested retirement plan

Page 13 of 23

Answer: c Difficulty: Medium Page: 473 Ref: What Are Common Employee Benefit Plans?

53. Under a defined contribution plan, the risk to pay for retirement is assumed by: a) the employer b) the employee c) the federal government d) worker’s compensation Answer: b Difficulty; Easy Page: 472 Ref: What Are Common Employee Benefit Plans?

54. Which of the following is NOT true about 401(k) accounts? a) Contributions into a 401(k) account are tax deferred b) After retirement, money withdrawn from a 401(k) account is not taxable c) Employees can decide how to invest money in a 401(k) from among investment options offered by their employer d) 401(k) accounts are highly portable Answer: b Difficulty: Medium Page: 473-474 Ref: What Are Common Employee Benefit Plans?

55. Defined benefit programs make the most sense for organizations with which HR strategies? a) Bargain Laborer and Free Agent HR strategies b) Committed Expert and Bargain Laborer HR strategies c) Loyal Soldier and Free Agent HR strategies d) Committed Expert and Loyal Soldier HR strategies Answer: d Difficulty: Medium Page: 474 Ref: What Are Common Employee Benefit Plans?

Page 14 of 23

56. The most commonly offered employee benefit is: a) 401(k) plans b) Health Savings Accounts (HSAs) c) pay without work d) health care plans Answer: c Difficulty: Easy Page: 474 Ref: What Are Common Employee Benefit Plans?

57. Cafeteria benefits: a) provide employee discounts in company or area eating establishments b) allow an employee to choose customized benefits from the benefits offered by their employer c) allow employers to avoid paying social security contributions for employees d) are less costly for employers because all employees are covered under the same benefit programs Answer: b Difficulty: Easy Page: 474 Ref: What Are Common Employee Benefit Plans?

58. Employees assembling MP3 players are paid a fixed amount for each unit they assemble without a defect. This is an example of: a) merit pay b) merit bonuses c) commissions d) piece-rate incentives Answer: d Difficulty: Easy Page: 476 Ref: What Are Common Individual Incentives?

59. Which of the following is NOT an advantage for organizations with commission based incentives? a) Sales commissions make pay computations relatively easy for organizations to calculate

Page 15 of 23

b) Sales commissions are paid only when sales are made c) Commissions shift some of the risk associated with low sales from the organization to the employee d) Commission pay tends to attract employees who excel as sales representatives Answer: a Difficulty: Easy Page: 477-478 Ref: What Are Common Individual Incentives?

60. All of the following are potential disadvantages of commission incentives EXCEPT: a) people who are paid commissions may tend to think of themselves as free agents with little loyalty to the organization b) turnover can be high if alternate sales jobs are available c) sales representatives may overly focus on commission generating activities and avoid performing other important tasks d) commission incentive systems can result in sales personnel focusing on long-term results Answer: d Difficulty: Medium Page: 477-478 Ref: What Are Common Individual Incentives?

61. In order for merit pay to be motivating: a) the organization must have clear and accurate methods for assessing performance b) all employees should receive a raise that covers the cost of living increase c) it should exceed what an employee would receive under a commission or piece-rate incentive system d) an organization should pursue a Bargain Laborer HR strategy Answer: a Difficulty: Medium Page: 479 Ref: What Are Common Individual Incentives?

62. Merit bonuses: a) are a sum of money added to base pay when performance exceeds expectations b) lack line of sight c) are always given at the time of exceptional performance rather than on a fixed schedule d) are beginning to take the place of merit raises according to trends

Page 16 of 23

Answer: d Difficulty: Easy Page: 480 Ref: What Are Common Individual Incentives?

63. All of the following enhance group or team incentives EXCEPT: a) when the size of the group being measured is small b) when rewards are given to team members as they meet their individual goals c) when collective performance can be accurately measured d) when management support for a group incentive rewards system is high Answer: b Difficulty: Easy Page: 481-482 Ref: What Are Common Group and Organizational Incentives?

64. Which of the following is NOT true about team rewards? a) Giving team members equal shares of a team reward builds a sense of unity b) Dividing the team reward based on individual performance may undermine cooperative efforts of the team c) Equal allocation of rewards among team members is highly motivating for the team members d) A system that bases team rewards on the value of contributions employees make to a team can encourage both teamwork and individual effort Answer: c Difficulty: Medium Page: 482 Ref: What Are Common Group and Organizational Incentives?

65. Which of the following is NOT true about gainsharing? a) Gainsharing focuses on individual and group rewards b) Gainsharing is dependent on reducing costs and improving productivity c) Gainsharing involves establishing a benchmark for productivity d) Under gainsharing, cost savings and productivity increases are shared by employees and the organization Answer: a Difficulty: Medium Page: 483-484

Page 17 of 23

Ref: What Are Common Group and Organizational Incentives?

66. All of the following are true of gainsharing programs EXCEPT: a) gainsharing occurs when groups of workers receive a portion of the financial return from reducing costs and improving productivity b) gainsharing is particularly beneficial in organizations where employees expect to have long careers c) most gainsharing programs focus on entry and mid level managers d) gainsharing programs are most successful when there is a high level of employee involvement Answer: c Difficulty: Easy Page: 483-484 Ref: What Are Common Group and Organizational Incentives?

67. Profit sharing: a) involves the transfer of corporate stock to individual employees b) may not be a strong motivator for individual employees c) has strong line of sight d) rewards employees for cost cutting in their individual jobs Answer: b Difficulty: Medium Page: 484 Ref: What Are Common Group and Organizational Incentives?

68. Which of the following is NOT true about stock plans and stock options? a) Stock plans help align the interests of employees and owners b) Stock options help align the interests of employees and owners c) Stock options are only offered to high-level executives in large companies d) Stock options provide a long-term incentive that links the financial interests of all stock owners Answer: c Difficulty: Medium Page: 485-486 Ref: What Are Common Group and Organizational Incentives?

Page 18 of 23

69. All of the following are factors for developing a compensation package EXCEPT: a) the organization’s overall competitive strategy must be determined b) the organization’s HR strategy must be determined c) a pay level must be established (lag, meet, lead) d) merit pay and/or cost of living increases must be added to base pay Answer: d Difficulty: Easy Page: 486-488 Ref: How Do Strategic Decisions Influence a Compensation Package?

70. Organizations with which HR strategy are most likely to have the highest level of pay at risk? a) Loyal Soldier HR strategy b) Bargain Laborer and Committed HR Expert strategies c) Free Agent or Committed HR Expert strategies d) Loyal Soldier and Bargain Laborer HR strategies Answer: c Difficulty: Medium Page: 487 Ref: How Do Strategic Decisions Influence a Compensation Package?

Short Answer

71. ____________ is a form of compensation that is not at risk and may consist of an hourly wage or an annual salary.

Answer: Base pay Difficulty: Easy Page: 463 Ref: How Do Compensation Packages Align with Strategy?

72. Benefits represent approximately __________ percent of an organization’s labor costs.

Answer: Thirty Difficulty: Hard Page: 466 Ref: What Are Common Employee Benefit Plans?

Page 19 of 23

73. ____________ provides protection for workers who lose their jobs through no fault of their own.

Answer: Unemployment insurance Difficulty: Easy Page: 468 Ref: What Are Common Employee Benefit Plans?

74. A prepaid health plan with a specific healthcare provider that supplies health services to clients for a fixed rate is known as a(n) __________.

Answer: health maintenance organization Difficulty: Easy Page: 470 Ref: What Are Common Employee Benefit Plans?

75. Under the 2010 legislation related to health care in the U.S. employers with less than ___________ employees will receive tax credits when they provide health insurance coverage for their employees.

Answer: Fifty Difficulty: Medium Page: 469 Ref: What Are Common Employee Benefit Plans?

76. Juan must work for his company for five years before he is eligible to receive the benefits of his company’s retirement plan. After five years of work, Juan is _________.

Answer: vested Difficulty: Medium Page: 472 Ref: What Are Common Employee Benefit Plans?

77. A ________ provides income to an employee after they retire. The amount is based on factors such as salary and the number of years the employee worked for the organization.

Page 20 of 23

Answer: defined benefit plan Difficulty: Easy Page: 472 Ref: What Are Common Employee Benefit Plans?

78. An employer offers benefits to help employees balance work and life responsibilities including flexible schedules and tuition reimbursement. This employer is offering ______.

Answer: lifestyle benefits Difficulty: Medium Page: 474 Ref: What Are Common Employee Benefit Plans?

79. ________ occurs when groups of workers receive a portion of the financial return from reducing costs and improving productivity.

Answer: Gainsharing Difficulty: Medium Page: 483 Ref: What Are Common Group and Organizational Incentives?

Essays

79. A. Describe base pay and how it is established. B. Discuss the types of individual incentives that can be used to supplement base pay and how each can influence behavior.

Answer: A. Base pay is the recurring predictable portion of an employee’s pay. Base pay can be set according to either job-based analysis or skill-based analysis. Job-based analysis focuses on compensating employees for the tasks they perform as part of a particular position. Skill-based analysis focuses on compensating employees for the skills they possess.

B. Types of individual incentives: 1. Piece rate incentives pay employees a fixed amount for each piece of output they produce. Piece rate incentives are most effective when the line of sight is such that an individual has sole responsibility for producing a measurable portion of an output.

2. Commissions pay a percentage of the total amount a company receives to the person who performed the work (usually sales). A straight commission system pays only based on

Page 21 of 23

receipts generated, for example sales or piece-rate can be combined with a low rate of base pay.

Commissions shift some of the risk associated with low sales from the organization to the employee. The employee receives greater rewards for assuming more of the risk of low sales, so if sales are good, employee compensation is usually higher with commissions than with just a salary. The type of person attracted to a position with commission type pay is oftentimes aggressive and performs well in sales, which is good for the company. People paid a commission may have little loyalty to the organization and may be unwilling to perform duties that are not directly related to increasing their commissions.

3. Merit pay is an increase in base pay that is linked to performance. Research suggests that organizations that provide merit pay increases do have higher productivity. To be truly motivational, merit pay must be sufficiently higher for employees with superior performance.

Even with merit pay, the vast majority of an employee’s pay is not at risk; only the incremental merit pay increase is at risk.

4. A merit bonus is a sum of money given to an employee in addition to their regular pay.

Whereas merit pay increases base pay, a merit bonus does not; rather it is a one-time bonus that must be earned each year. Motivation is maximized when the bonus is tied directly to specific behaviors and outcomes. Merit bonuses put more pay at risk than merit pay and they are designed to strengthen perceptions that pay truly depends on performance, which in turn increases motivation.

Difficulty: Medium Page: 463 and 476-480 Ref: What Are Common Approaches to Base Pay? What Are Common Individual Incentives?

80. Describe defined benefit and a defined contribution retirement plans. Discuss the benefits of each plan from the employer and employee perspective. Identify which of the 4 HR strategies are compatible with each plan.

Answer: A. Descriptions: 1. A defined benefit plan guarantees that when an employee retires he/she will receive a certain level of income based upon factors such as their salary and the number of years working for the organization.

2. A defined contribution plan involves the organization paying a certain amount each month into a retirement saving account for each employee.

B. Benefits of each plan.

1. Defined benefit plan – benefit to employees: employer bears the responsibility to plan for and pay retirement income to the employee so employee does not have to be concerned with investing funds. Benefit to employer: encourages employee retention because a defined benefit plan is not very portable.

2. Defined contribution plan – benefit to employee: defined contribution plans are more portable than defined contribution plans. benefit to employer: the cost to the organization is fixed as the employer only makes fixed contributions and defined contribution plans require less paperwork for the employer than defined benefit plans.

Page 22 of 23

C. Defined benefit plans are most consistent with the Loyal Soldier and Committed Expert HR strategies. Defined contribution plans are most consistent with the Free Agent and Bargain Laborer if an employer offers any type of retirement plan.

Difficulty: Medium Page: 472-474 Ref: What Are Common Employee Benefit Plans?

Page 23 of 23

Chapter: Chapter 13: Working Effectively with Labor

True/False

1. A labor union is an organization of workers who work collectively to network, socialize, and create fellowship.

Answer: False Difficulty: Easy Page: 498 Ref: How Can Good Labor Relations Make an Organization Effective?

2. Organizations with labor unions tend to provide fewer benefits than organizations without unions because of the cost of unions. .

Answer: False Difficulty: Medium Page: 501 Ref: How Are Labor Relations Strategic?

3. Regardless of HR strategy type, all organizations are better off without a unionized workforce.

Answer: False Difficulty: Easy Page: 500 Ref: How Are Labor Relations Strategic?

4. The gap between high- and low-performing employees is less in unionized organizations than organizations without unions.

Answer: True Difficulty: Medium Page: 501 Ref: How Are Labor Relations Strategic?

Page 1 of 22

5. Unions are most compatible with organizations pursuing a Committed Expert HR strategy.

Answer: False Difficulty: Easy Page: 501 Ref: How Are Labor Relations Strategic?

6. Organizations with unionized employees tend to invest less of their profits back into the business, because a higher percentage of the profit goes to employees in the form of higher wages.

Answer: True Difficulty: Medium Page: 502 Ref: How Are Labor Relations Strategic?

7. Cost-focused organizations are incompatible with unions because of the lower productivity of union labor.

Answer: False Difficulty: Medium Page: 502 Ref: How Are Labor Relations Strategic?

8. Labor unions are compatible with organizations that emphasize an external labor strategy.

Answer: False Difficulty: Medium Page: 503 Ref: How Are Labor Relations Strategic?

9. The central purpose of the Wagner Act is to assure that employees have the right to participate in labor unions.

Answer: True Difficulty: Medium Page: 504 Ref: How Has Organized Labor Evolved over Time?

Page 2 of 22

10. It is an unfair labor practice for an organization to grant wage increases timed to discourage employees from forming a union.

Answer: True Difficulty: Medium Page: 505, Table 13.1 Ref: How Has Organized Labor Evolved over Time?

11. It is acceptable for an organization to assist a particular union in organizing in exchange for the union agreeing to work with management.

Answer: False Difficulty: Medium Page: 505 Ref: How Has Organized Labor Evolved over Time?

12. The Wagner Act requires businesses to bargain with unions in good faith.

Answer: True Difficulty: Easy Page: 505 Ref: How Has Organized Labor Evolved over Time?

13. It is an unfair labor practice for unions to have picketers on the sidewalk in front of the employer’s building, even if the picketers do not block access to the building.

Answer: False Difficulty: Easy Page: 506, Table 13.2 Ref: How Has Organized Labor Evolved over Time?

14. The secondary boycott, allowed under the Taft-Hartley Act, is a favorite union tactic to encourage employers to negotiate in good faith.

Answer: False

Page 3 of 22

Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

15. Featherbedding is the practice of requiring employees to join the union once they are on the job and is prohibited by the Taft-Hartley Act. Answer: False Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

16. Most unions are highly supportive of right-to-work laws.

Answer: False Difficulty: Easy Page: 506 Ref: How Has Organized Labor Evolved over Time?

17. Misuse of union funds by union leaders is a federal crime.

Answer: True Difficulty: Easy Page: 508 Ref: How Has Organized Labor Evolved over Time?

18. As of 2012, approximately 25% of workers in the U.S. belong to unions.

Answer: False Difficulty: Medium Page: 508, Figure 13.3 Ref: How Has Organized Labor Evolved over Time?

19. The number of unionized employees in the public sector has been declining as is happening in the private sector.

Page 4 of 22

Answer: False Difficulty: Easy Page: 509 Ref: How Has Organized Labor Evolved over Time?

20. It is interesting that while union membership is declining in the U.S. it is increasing throughout the rest of the world.

Answer: False Difficulty: Medium Page: 511 Ref: How Has Organized Labor Evolved over Time?

21. Greater acceptance of unions in many foreign countries may affect U.S. as businesses become more global.

Answer: True Difficulty: Easy Page: 513 Ref: How Has Organized Labor Evolved over Time?

22. The threat of having employees join a union is sufficient for an employer to increase wages.

Answer: True Difficulty: Easy Page: 513 Ref: How Has Organized Labor Evolved over Time?

23. In order to petition the National Labor Relations Board to hold an election, union organizers must have signatures from at least 50 percent of eligible workers.

Answer: False Difficulty: Medium Page: 515 Ref: How Do Workers Become Part of a Union?

Page 5 of 22

24. The determination of an appropriate bargaining unit is rarely a source of contention between management and the union.

Answer: False Difficulty: Easy Page: 516 Ref: How Do Workers Become Part of a Union?

25. After a certification election, the union is certified if the NLRB determines that at least 50 percent of employees in the bargaining unit voted in favor of the union.

Answer: True Difficulty: Medium Page: 516 Ref: How Do Workers Become Part of a Union?

26. If employees want to end their affiliation with a union, a vote is required. This is known as featherbedding.

Answer: False Difficulty: Medium Page: 516 Ref: How Do Workers Become Part of a Union?

27. Effective union organizing campaigns tend to emphasize only better wages and benefits.

Answer: False Difficulty: Easy Page: 517 Ref: How Do Workers Become Part of a Union?

28. A union that has obtained signatures of support from 50 percent of eligible workers can directly ask an organization to recognize its right to bargain for employees.

Answer: True Difficulty: Medium Page: 516 Ref: How Do Workers Become Part of a Union?

Page 6 of 22

29. Having a union representative participate on a company’s board of directors is a mandatory bargaining topic.

Answer: False Difficulty: Easy Page: 518 Ref: What Happens During Labor Negotiations and Collective Bargaining?

30. Wages are one of the mandatory bargaining topics, which means that management and the union must discuss wages as a part of a collective bargaining agreement.

Answer: True Difficulty: Easy Page: 518 Ref: What Happens During Labor Negotiations and Collective Bargaining?

31. A lockout is an action in which an employer closes a workplace or otherwise prevents union members from working as a result of a labor dispute. Lockouts are not permitted under the Landrum-Griffin act.

Answer: False Difficulty: Medium Page: 519 Ref: What Happens During Labor Negotiations and Collective Bargaining?

32. Strikes mostly impose hardships on a company when an employer closes the workplace or otherwise prevents union members from working.

Answer: False Difficulty: Easy Page: 519 Ref: What Happens During Labor Negotiations and Collective Bargaining?

33. Cooperative labor relations usually prove to be of advantage to management at the expense of union members.

Page 7 of 22

Answer: False Difficulty: Easy Page: 520 Ref: What Happens During Labor Negotiations and Collective Bargaining?

34. Interest-based negotiations use power and pressure to obtain a desired solution that the party has an interest in.

Answer: False Difficulty: Easy Page: 523, Table 13.5 Ref: What Happens During Labor Negotiations and Collective Bargaining?

35. Mediation involves a third party who helps management and the union reach an agreement.

If a voluntary agreement is not reached, the mediator has the authority to issue a binding decision.

Answer: False Difficulty: Medium Page: 526 Ref: What is the Grieving Process?

Multiple Choice

36. Which of the following is NOT an objective of unions? a) To provide employment security and long-term employment b) To secure fair wages that depend upon performance c) To encourage organizations to provide training and better develop the skills of employees d) To provide more extensive benefits to a greater number of employees Answer: b Difficulty: Medium Page: 500-501 Ref: How Are Labor Relations Strategic?

Page 8 of 22

37. Unions are most prevalent, and potentially most beneficial in organizations pursuing which HR strategy? a) Loyal Soldier HR strategy b) Free Agent HR strategy c) Bargain Laborer HR strategy d) Committed Expert HR strategy Answer: a Difficulty: Medium Page: 501 Ref: How Are Labor Relations Strategic?

38. An organization with this HR strategy is likely to have the most difficulty working cooperatively with a labor union: a) Loyal Soldier HR strategy b) Free Agent HR strategy c) Bargain Laborer HR strategy d) Committed Expert HR strategy Answer: b Difficulty: Medium Page: 501 Ref: How Are Labor Relations Strategic?

39. Why is a union not altogether consistent with the Committed Expert HR strategy? a) The Committed HR Expert strategy emphasizes long-term commitment b) Unionized organizations generally spend less on research and development c) Unions emphasize benefits and short-term employees d) Organizations with unionized employees tend to invest more money back into the business Answer: b Difficulty: Medium Page: 502 Ref: How Are Labor Relations Strategic?

40. What positive contributions can labor unions make to organizations pursuing the Loyal Soldier HR strategy? a) Costs tend to be higher for unionized organizations b) Unionized organizations tend to spend more on research and development c) The benefits of a stable workforce help maintain high quality

Page 9 of 22

d) Unionized organizations tend to spend less on capital developments Answer: c Difficulty: Medium Page: 502 Ref: How Are Labor Relations Strategic?

41. Which of the following is NOT legislation related to unions? a) The Fair Labor Standards Act b) The Wagner Act c) The Taft Hartley Act d) The Landrum-Griffin Act Answer: a Difficulty: Medium Page: 504-507 Ref: How Has Organized Labor Evolved over Time?

42. Which of the following is NOT provided for under the Wagner Act, also called the National Labor Relations Act? a) Employees have the right to bargain collectively b) Employees have the right to strike, or collectively refuse to work c) Employees have the right to protest unfair labor practices d) Employees have the right to form picket lines that block entrances to a business Answer: d Difficulty: Medium Page: 504 Ref: How Has Organized Labor Evolved over Time?

43. Which of the following is NOT an unfair labor practice for management? a) Threatening to close a facility if a union is organized b) Questioning employees about union activities or membership c) Granting wage increases deliberately timed to discourage employees from joining a union d) Fining or expelling union members from the union for filing unfair labor charges with the NLRB Answer: d Difficulty: Hard Page: 505, Table 13.1

Page 10 of 22

Ref: How Has Organized Labor Evolved over Time?

44. Which of the following is NOT an unfair labor practice for a union? a) Mass picketing that bars others from entering company property b) Threatening bodily inquires to others c) Requiring that management negotiate on working conditions d) Threatening that employees will lose their jobs if they do not support the union Answer: c Difficulty: Medium Page: 506, Table 13.2 Ref: How Has Organized Labor Evolved over Time?

45. What is the purpose of the National Labor Relations Board (NLRB)? a) The NLRB appoints a general counsel who serves as a prosecutor for unfair labor practices b) To organize and oversee employee elections that determine whether a union will be formed in a particular workplace c) To investigate all employee grievances and require remedies if appropriate d) To investigate management allegations Answer: b Difficulty: Hard Page: 505 Ref: How Has Organized Labor Evolved over Time?

46. The Taft-Hartley Act created a list of unfair labor practices for unions and all of the following are true EXCEPT: a) the act prohibits labor unions from coercing employees to join b) the act requires unions to bargain in good faith c) the act allows union members to be expelled or fined for filing unfair labor practices d) the act describes procedures for removing a union once it is in existence Answer: c Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

Page 11 of 22

47. When a labor union pressures other businesses to stop purchasing goods and services from a business with which the union has a dispute it is known as: a) a secondary boycott b) featherbedding c) a decertification boycott d) a mediator boycott Answer: a Difficulty: Easy Page: 506 Ref: How Has Organized Labor Evolved over Time?

48. A union shop: a) does not require employees to join the union but requires them to pay service fees to the union b) hires only individuals who are members of a particular union c) does not require union membership as a condition of hiring, but does require employees to join the union once they are on the job d) is required under right-to-work laws

Answer: c Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

49. Which of the following is NOT provided for by the Landrum-Griffin Act, formally known as the Labor-Management Reporting and Disclosure Act? a) All union members have equal rights to nominate and vote for union leaders b) Closed shops became illegal c) A union can only impose fees through democratic procedures d) All members must have the right to participate in union meetings Answer: b Difficulty: Medium Page: 507 Ref: How Has Organized Labor Evolved over Time?

50. All of the following are explanations for the continuing decline in union membership EXCEPT:

Page 12 of 22

a) manufacturing, which is a sector with historically high unionization, has replaced workers with automated processes b) organizations have moved their manufacturing facilities to foreign countries c) jobs remaining in the U.S. are those that have not traditionally been unionized d) demographics have created a large numbers of younger employees in entry-level positions that are not typically unionized Answer: d Difficulty: Medium Page: 508 Ref: How Has Organized Labor Evolved over Time?

51. A number of factors support the organization of public employees, including all of the following EXCEPT: a) public employees desire more of a voice b) improving their current work situation is particularly important for public-sector employees c) the low profile of public sector employees d) public-sector unions experience less resistance for organizing Answer: c Difficulty: Medium Page: 509-510 Ref: How Has Organized Labor Evolved over Time?

52 All of the following are trends that suggest that public-sector unions are currently facing many of the obstacles that caused the decline of unions in the private sector EXCEPT: a) unions representing public employees are attempting to innovate b) increased pressure to control service costs is pressuring many governments to curtail wage growth c) public sentiment seems to be shifting toward a less favorable opinion of unions d) the privatization of public services Answer: a Difficulty: Medium Page: 510 Ref: How Has Organized Labor Evolved over Time?

53. Public-sector employees are more likely to organize unions: a) because the public sector allows a closed shop b) because these employees work for organizations that employ a Free Agent HR strategy

Page 13 of 22

c) because many public-sector employees have fewer alternative jobs d) because public sector employees work for organizations employing a Bargain Laborer HR strategy Answer: c Difficulty: Medium Page: 509 Ref: How Has Organized Labor Evolved over Time?

54. All of the following are strategies unions are using to deal with declines in membership EXCEPT: a) unions are focusing on organizing part-time workers b) unions are focusing on managing their image c) unions are focusing on organizing professional workers d) unions are making greater efforts to organize historically disadvantaged workers Answer: b Difficulty: Medium Page: 510 Ref: How Has Organized Labor Evolved over Time?

55. All of the following are ways unions affect non-union workers EXCEPT: a) the threat of unionization can result in employers communicating more effectively with their nonunionized workers b) unionization can increase wages for an industry c) the threat of unionization can result in improved working conditions d) unionized workers impact political outcomes for non-union workers Answer: d Difficulty: Easy Page: 513-514 Ref: How Has Organized Labor Evolved over Time?

56. Industries with a higher percentage of workers who are union members: a) tend to pay their nonunion employees lower wages b) tend to have detailed grievance processes c) tend to pay their nonunion employees higher wages than they would earn in nonunionized industries d) will have larger Human Resource staffs than industries with more union members Answer: c

Page 14 of 22

Difficulty: Medium Page: 513 Ref: How Has Organized Labor Evolved over Time?

57. An authorization card campaign: a) is the first step to decertify a union b) is a process whereby employees or labor union representatives seek signatures from employees requesting a vote for a closed shop c) is a process whereby employees or labor union representatives seek signatures from employees requesting a vote on union representation. d) requires that at least 50 percent of eligible works have signed off Answer: c Difficulty: Hard Page: 514 Ref: How Do Workers Become Part of a Union?

58. Collective Bargaining: a) provides for employees voting to have a closed shop b) involves employers and labor unions negotiating contracts to define the terms and conditions under which union members will work c) results after a strike or lockout have been declared d) requires that the National Labor Relations Board work with the employer and union members to negotiate contracts to define the terms and conditions under which union members will work Answer: b Difficulty: Medium Page: 518 Ref: What Happens During Labor Negotiations and Collective Bargaining?

59. Which of the following items below is NOT a mandatory bargaining topic? a) Minimum salary and bonuses b) Hours for each shifts and vacation time c) Formation of a closed shop d) Safety rules and grievance procedures Answer: c Difficulty: Easy Page: 518 Ref: What Happens During Labor Negotiations and Collective Bargaining?

Page 15 of 22

60. When an employer shuts down operations during a labor dispute: a) members of the union are prohibited from working but still must be paid b) members of the union are prohibited from working and are not paid c) it is a strike d) discussion of the shutdown is a mandatory bargaining issue Answer: b Difficulty: Easy Page: 519 Ref: What Happens During Labor Negotiations and Collective Bargaining?

61. Which of the following union actions has the potential to inflict the most damage on an organization? a) A lockout b) A boycott c) Mandatory bargaining d) A strike Answer: d Difficulty: Easy Page: 519 Ref: What Happens During Labor Negotiations and Collective Bargaining?

62. Distributive issues: a) deal with the distribution of rewards and benefits b) deal with the effective delegation of power and authority c) deal with finding mutual gains d) deal with the distribution of information Answer: a Difficulty: Easy Page: 522 Ref: What Happens During Labor Negotiations and Collective Bargaining?

63. Labor management relations tend to be more cooperative in all of the following cases EXCEPT: a) when management shares information with the union b) when management has practices that are perceived as fair

Page 16 of 22

c) when a union adopts an integrative approach to bargaining d) when management and the union approach bargaining from a distributive perspective Answer: d Difficulty: Medium Page: 522: How Do You Know?

Ref: What Happens During Labor Negotiations and Collective Bargaining?

64. Which of the following would be associated with interest-based negotiations? a) Effectively presenting and supporting a position b) Defining solutions acceptable to both parties c) Pursuing a specific bargaining position d) Using pressure to obtain a desired position Answer: b Difficulty: Easy Page: 523, Table 13.5 Ref: What Happens During Labor Negotiations and Collective Bargaining?

65. All of the following represent the steps for the interest-based negotiation process EXCEPT: a) identify distributive and integrative processes by focusing on the interests behind an issue b) open negotiations by developing and sharing open statements and redefining and combing issues c) negotiate and focus on interests behind an issue and generate and evaluation options d) communicate results by preparing a joint statement of process and outcomes and by sharing the statement with everyone affected Answer: a Difficulty: Medium Page: 523-525 Ref: What Happens During Labor Negotiations and Collective Bargaining?

66. Arbitration: a) is similar to interest-based negotiations b) involves a third party who helps the disagreeing parties arrive at a mutually beneficial resolution c) is a type of judicial process d) is less formal than mediation Answer: c

Page 17 of 22

Difficulty: Easy Page: 526 Ref: What Is the Grievance Process?

67. When it comes to filing grievances: a) men and women are equally likely to file a grievance, regardless of Industry b) young and educated males are more likely to file a grievance c) mature minority women are more likely to file a grievance d) young minority males are more likely to file a grievance Answer: b Difficulty: Medium Page: 526 Ref: What Is the Grievance Process?

68. Which of the following is true about the likelihood of grievances? a) Grievance rates are higher when supervisors emphasize production rather than friendly relationships b) Grievance rates are higher when more women are in the bargaining unit c) Grievance rates are higher when the work unit has more diversity d) Grievance rates are lower when a supervisor is more rigorous Answer: a Difficulty: Medium Page: 526 Ref: What Is the Grievance Process?

69. Which of the following is NOT true about arbitration? a) Arbitration is a third party who helps the parties reach a mutually beneficial resolution b) Arbitration involves a third party who resolves a dispute by issuing a binding decision c) Arbitration is generally the last step in the grievance process d) Arbitration is a type of judicial process.

Answer: a Difficulty: Medium Page: 526 Ref: What Is the Grievance Process?

Page 18 of 22

70. Which of the following is NOT true about mediation? a) Mediation involves a third party who helps the parties reach a mutually beneficial resolution b) Mediation involves a third party who makes a decision that is binding on all parties c) Mediation is more informal than arbitration d) There are no witnesses during the mediation process Answer: b Difficulty: Easy Page: 526 Ref: What Is the Grievance Process?

Short Answer

71. The HR strategy most compatible with labor unions is the ______________ HR strategy.

Answer: Loyal Soldier Difficulty: Easy Page: 501 Ref: How Has Organized Labor Evolved Over Time?

72. The Taft-Hartley Act prohibits a labor union from pressuring other businesses to stop purchasing goods and services from a business with which the union has a dispute, which is a practice known as a __________.

Answer: secondary boycott Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

73. A(n) _______ does not require union membership as a condition of hiring but does require employees to join the union once they are on the job.

Answer: union shop Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

Page 19 of 22

74. The states have the authority to enact ________ laws that allow open shops where employees are not required to join or contribute to a union.

Answer: right-to-work Difficulty: Medium Page: 506 Ref: How Has Organized Labor Evolved over Time?

75. A ______ is two or more employees who share a “community of interest” and may be reasonably grouped together for collective bargaining purposes.

Answer: bargaining unit Difficulty: Easy Page: 515-516 Ref: How Do Workers become Part of a Union?

76. When striking employees encourage consumers or other companies not to do business with their company, such as not purchasing goods and services, it is known as a ___________.

Answer: boycott Difficulty: Easy Page: 519 Ref: What Happens During Labor Negotiations and Collective Bargaining?

77. A dispute that arises between an employer and employee over the terms of the employment agreement is called a _________.

Answer: grievance Difficulty: Easy Page: 525 Ref: What Is the Grievance Process?

78. A representative of the union who acts as an advocate for employees is known as a _________.

Answer: union steward Difficulty: Easy

Page 20 of 22

Page: 525 Ref: What Is the Grievance Process?

Essays

79. Discuss the goals of unions and how unions and organized labor fit with various human resource strategies.

Answer: A. Unions strive to: • provide employment security and long-term employment for their members • secure fair wages and benefits for all workers, which has the impact of reducing pay differences between employees with different skills and reducing pay differences between high and low performers.

• The union emphasis on equal treatment is most compatible with the Loyal Soldier HR strategy given its emphasis on organizational commitment and long-term employment relationships. A cost-focused organization can thus achieve higher productivity through working with unions to reduce costs and create processes that are more efficient.

• The Committed Expert HR strategy emphasizes long-term relationships, which is compatible with union priorities. However, because of the higher wages usually paid to union employees, unionized organizations generally spend less on research and development and capital projects, which is inconsistent with the Committed Expert HR strategy. In addition, the Committed Expert HR strategy depends on some pay differential based upon expertise.

• The Bargain Laborer HR strategy is inconsistent with the union’s emphasis on employment security and long-term employment. Therefore, unionization is not compatible with the Bargain Laborer HR strategy.

• The Free Agent HR strategy with its external labor focus is incompatible with unionization because of its emphasis on paying experts highly for working as needed.

The lack of employment security or long term employment and the emphasis on high pay for some workers makes the Free Agent HR Strategy inconsistent with unionization.

Difficulty: Medium Page: 500-503 Ref: How Are Labor Relations Strategic?

80. Discuss the various means for resolving problems at the individual and organizational level in a union environment. Be sure to include mediation and arbitration in your discussion.

Answer:

Page 21 of 22

A. Management and the union may file unfair labor practices with the National Labor Relations Board (NLRB). Examples of inappropriate management behavior that can result in an unfair labor practice (Table 13.1) include: • threatening employees with loss of jobs or benefits if they join a union • threatening to close a plant if a union is organized • questioning employees about union activities or membership • spying on union gatherings • granting wage increases deliberately timed to discourage employees from forming a union B. Examples of inappropriate union or union member actions that can result in the filing of an unfair labor practice (Table 13.2) include: • mass picketing in numbers that physically bar others from entering the workplace • threatening bodily harm to other employees • threatening that employees will lose their jobs unless they support the union • entering into a contract with an employer when a majority of employees have not chosen the union • fining or expelling members for filing unfair labor charges with the NLRB C. A grievance is a dispute that arises between an employer and employee over the terms of an employment agreement. It is usually dealt with through a multi-step process that moves from informal to formal discussions. A majority of complaints are handled during informal discussions.

D. Arbitration is the final step in many grievance processes. It is a type of judicial process where management and the union present facts and arguments to support their position. An arbitrator, a neutral third party, hears the arguments and makes a ruling, which is usually binding on both parties.

E. Mediation involves a third party—a mediator—who helps the parties work together to arrive at a mutually beneficial resolution. Each side presents facts and the mediator does not make a decision; rather, the mediator facilitates problem resolution.

Difficulty: Hard Page: 504-506, 525-526 Ref: How Has Organized Labor Evolved over Time? What Is the Grievance Process?

Page 22 of 22

Chapter: Chapter 14: Aligning Strategy with Practice

True/False

1. “Hire for attitude; train for skills,” reflects the Bargain Laborer HR strategy employed by The Walt Disney Company.

Answer: False Difficulty: Medium Page: 539 Ref: How Can Alignment of HR Practices Make an Organization Effective?

2. The alignment of human resource practices is achieved by focusing on the relationships between human resources best practices.

Answer: False Difficulty: Medium Page: 541 Ref: What Are Two Basic Forms of Strategic Alignment?

3. Vertical alignment refers to the positioning of an organization’s human resource strategy in relation to other organizational strategies.

Answer: True Difficulty: Easy Page: 541 Ref: What Are Two Basic Forms of Strategic Alignment?

4. Horizontal alignment refers to the fit of individual human resources with each other.

Answer: True Difficulty: Easy Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

5. Research studies support the value of vertical alignment for organizational success.

1 of 20

Answer: True Difficulty: Medium Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

6. Organizations with human resource strategies that emphasize developing long-term relationships with highly skilled employees have been shown to be more effective than their competitors because they create more new products and services.

Answer: True Difficulty: Medium Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

7. Organizations with consistent bundles of human resource practices have been found to be more effective than firms without consistent practices.

Answer: True Difficulty: Medium Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

8. An organization that has a selection process that focuses on hiring team players and employs a competitive merit pay performance appraisal process will be highly productive because it has horizontal alignment of its practices.

Answer: False Difficulty: Medium Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

9. Research has demonstrated that layoffs can erode the competitive advantage that a firm achieves through adopting a set of human resource practices that demonstrate high commitment to employees.

Answer: True Difficulty: Easy Page: 543: How Do We Know?

Ref: What Are Two Basic Forms of Strategic Alignment?

2 of 20

10. The Bargain Laborer HR strategy focuses on internal labor markets because promoting from within is less costly and helps minimize labor costs.

Answer: False Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

11. Few workers feel strong commitment to an organization pursuing a Bargain Laborer HR strategy.

Answer: True Difficulty: Easy Page: 544 Ref: How Do HR Practices Align with One Another?

12. Organizations that pursue a Bargain Laborer HR strategy make work as simple as possible so that employees with little skill can quickly learn their jobs.

Answer: True Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

13. Autonomy is high in an organization pursuing a Bargain Laborer HR strategy.

Answer: False Difficulty: Easy Page: 544 Ref: How Do HR Practices Align with One Another?

14. An organization pursuing the Bargain Laborer HR strategy will likely have a performance appraisal system that emphasizes merit pay and rewarding the best performers.

Answer: False Difficulty: Medium Page: 545 Ref: How Do HR Practices Align with One Another?

3 of 20

15. Under the Bargain Laborer HR strategy little emphasis is placed on identifying higher performers.

Answer: True Difficulty: Easy Page: 545 Ref: How Do HR Practices Align with One Another?

16. Assessing organizational fit and dependability are important for an organization pursuing a Bargain Laborer HR strategy.

Answer: False Difficulty: Medium Page: 545 Ref: How Do HR Practices Align with One Another?

17. Under the Bargain Laborer HR strategy good employees are encouraged to remain employed and high performers have ample incentives to remain employed.

Answer: False Difficulty: Easy Page: 545 Ref: How Do HR Practices Align with One Another?

18. Organizations that follow the Bargain Laborer HR strategy set wage rates at the point necessary to attract workers and do not usually offer a premium to attract and retain highly skilled employees.

Answer: True Difficulty: Easy Page: 545 Ref: How Do HR Practices Align with One Another?

19. Employees are less likely to organize or join unions in an organization with the Bargain Laborer HR strategy because the employees do not expect to have a long-term relationship with the organization.

4 of 20

Answer: True Difficulty: Medium Page: 546 Ref: How Do HR Practices Align with One Another?

20. Work design under the Loyal Soldier HR strategy focuses on determining efficient production processes and then encouraging employees to follow prescribed methods of doing work.

Answer: True Difficulty: Medium Page: 546 Ref: How Do HR Practices Align with One Another?

21. Under the Loyal Soldier HR strategy retention and keeping loyal employees is emphasized.

Answer: True Difficulty: Easy Page: 548 Ref: How Do HR Practices Align with One Another?

22. Under the Loyal Soldier HR strategy applicants receive an idealistic recruiting message to encourage applicants to come to work for the organization.

Answer: False Difficulty: Medium Page: 548 Ref: How Do HR Practices Align with One Another?

23. Under the Loyal Soldier HR strategy labor unions can supplement a culture of solidarity.

Answer: True Difficulty: Medium Page: 549 Ref: How Do HR Practices Align with One Another?

5 of 20

24. The Loyal Soldier HR strategy predicts that an employee who is not performing well in a given job will be swiftly removed from the position and organization and a new employee will be hired from the external labor market.

Answer: False Difficulty: Medium Page: 548 Ref: How Do HR Practices Align with One Another?

25. Compensation plans under the Loyal Soldier HR strategy seek to significantly differentiate the pay of high and low performers to enhance motivation.

Answer: False Difficulty: Medium Page: 549 Ref: How Do HR Practices Align with One Another?

26. Under the Loyal Soldier HR strategy most compensation takes the form of base pay and little is placed at risk from pay period to pay period.

Answer: True Difficulty: Medium Page: 549 Ref: How Do HR Practices Align with One Another?

27. Profit-sharing and stock plans to link employee behavior with long-term organizational interest are consistent with the Loyal Soldier HR strategy.

Answer: True Difficulty: Easy Page: 549 Ref: How Do HR Practices Align with One Another?

28. A labor union’s emphasis on long-term employment and equality among workers is compatible with the Loyal Soldier HR strategy.

Answer: True Difficulty: Easy Page: 549 Ref: How Do HR Practices Align with One Another?

6 of 20

29. Under the Committed Expert HR strategy job fit is emphasized over organizational fit.

Answer: False Difficulty: Medium Page: 550, Table 14.3 Ref: How Do HR Practices Align with One Another?

30. Like the Free Agent HR strategy, the Committed Expert HR strategy emphasizes the development of talent internally.

Answer: False Difficulty: Medium Page: 549 and 552 Ref: How Do HR Practices Align with One Another?

31. An organization pursuing the Free Agent HR strategy will likely have a parity-based performance management system that encourages teamwork and collaboration.

Answer: False Difficulty: Hard Page: 552 Ref: How Do HR Practices Align with One Another?

32. Removing low-performing employees is particularly important for organizations pursuing the Free Agent HR strategy, so employees who cannot do what is required are dismissed.

Answer: True Difficulty: Easy Page: 553 Ref: How Do HR Practices Align with One Another?

32. Compensation rates are relatively high in organizations pursuing the Free Agent HR Strategy.

Answer: True Difficulty: Easy Page: 554 7 of 20

Ref: How Do HR Practices Align with One Another?

33. Under a growth strategy, organizations frequently expand into new markets through acquisitions and mergers.

Answer: True Difficulty: Medium Page: 555 Ref: What Are Some Other HR Issues?

34. Research has demonstrated that for small organizations, one outcome of better strategic plans for human resource management is a higher rate of survival among small organizations.

Answer: True Difficulty: Easy Page: 557 Ref: What Are Some Other HR Issues?

Multiple Choice

35. Vertical alignment: a) deals with the positioning of an organization’s human resource management strategy in relation to other organizational strategies b) refers to how a company interacts with its suppliers c) refers to how a company interfaces with its competition d) refers to the fit of specific human resource practices with other practices Answer: a Difficulty: Medium Page: 541 Ref: What Are Two Basic Forms of Strategic Alignment?

36. Which of the following is an example of vertical alignment? a) A company seeks to be the low cost provider and adopts a Loyal Soldier HR strategy b) A company seeks to differentiate its product through superior service and adopts a Bargain Laborer HR strategy c) A company seeks to be the low cost provider and adopts a Free Agent HR strategy d) A company seeking long-long term committed employees offers health insurance and a retirement program 8 of 20

Answer: a Difficulty: Hard Page: 541-542 Ref: What Are Two Basic Forms of Strategic Alignment?

37. Horizontal alignment: a) deals with the positioning of an organization’s human resource management strategy in relation to its competitive strategy. b) refers to how a company interacts with its suppliers c) refers to how a company interfaces with its competition d) refers to the fit of specific human resource practices with other organizational practices Answer: d Difficulty: Medium Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

38. Which of the following is an example of horizontal alignment? a) A company seeks to be the low cost provider and adopts a Loyal Soldier HR strategy b) A company seeks to differentiate its product through superior service and adopts a Bargain Laborer HR strategy c) A company seeks to be the low cost provider and adopts a Free Agent HR strategy d) A company seeking long-term committed employees offers health insurance and a retirement program Answer: d Difficulty: Hard Page: 542 Ref: What Are Two Basic Forms of Strategic Alignment?

39. An HR strategy that focuses on creating efficiency using talent from the external labor markets is the: a) Bargain Laborer HR strategy b) Free Agent HR strategy c) Committed Expert HR strategy d) Loyal Soldier HR strategy Answer: a Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

9 of 20

40. Which characteristics of work design are NOT compatible with the Bargain Laborer HR strategy? a) Employees are expected to complete specific tasks in a prescribed way, which helps ensure coordination b) Work is structured according to concepts from the mechanistic approach to job design c) Work is broken down into simple tasks that can be easily learned d) Autonomy is high and employees are encouraged to improve work processes Answer: d Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

41. Training and development under the Bargain Laborer HR strategy: a) is likely to emphasize the development of general skills b) is likely to emphasize continual/lifelong learning c) will likely offer good development opportunities to attract well qualified employees d) will likely focus of the development of specific job duties Answer: d Difficulty: Medium Page: 545 Ref: How Do HR Practices Align with One Another?

42. Which of the following describes recruiting methods likely to be used by an organization pursuing the Bargain Laborer HR strategy? a) Referrals, print advertising in newspapers, electronic advertising and public employment agencies b) Job postings and electronic advertising on the company intranet c) Job posting and company web page d) Employee referrals, print advertising in specialized journals, targeted Internet sites and private employment agencies Answer: a Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

43. During the recruiting process, an organization with a Bargain Laborer HR strategy: 10 of 20

a) tends to provide an accurate job preview b) tends to emphasize the negative aspects of the job to avoid early turnover c) emphasizes the positive aspects of the job to encourage applicants to accept a position d) tends to provide a positive review of the organization and emphasizes organizational fit Answer: c Difficulty: Medium Page: 544 Ref: How Do HR Practices Align with One Another?

44. Which of the following is NOT true about training and development under the Bargain Laborer HR strategy? a) Training focuses on teaching employees specific job duties b) Training emphasizes efficient operations c) Training emphasizes the importance of following company procedures d) A company pursuing a Bargain Laborer HR strategy rarely uses on the job training Answer: d Difficulty: Medium Page: 545 Ref: How Do HR Practices Align with One Another?

45. Unions are somewhat at odds with which HR strategy because of the lack of job security inherent with this strategy: a) Loyal Soldier HR strategy b) Committed Expert HR strategy c) Free Agent HR strategy d) Bargain Laborer HR strategy Answer: d Difficulty: Medium Page: 546 Ref: How Do HR Practices Align with One Another?

46. This HR strategy focuses on internal talent development, efficiency, and developing a strong culture of commitment: a) Committed Expert HR strategy b) Loyal Soldier HR strategy c) Bargain Laborer HR strategy d) Free Agent HR strategy Answer: b Difficulty: Medium 11 of 20

Page: 546 Ref: How Do HR Practices Align with One Another?

47. Which characteristic of work design is NOT compatible with the Loyal Soldier HR strategy? a) Standardization is a core principle b) The mechanistic approach to job design is used c) Employees are encouraged to develop new and better ways of accomplishing work d) Assembly lines are common and each employee performs a limited number of tasks Answer: c Difficulty: Medium Page: 546 Ref: How Do HR Practices Align with One Another?

48. The recruiting and selection strategies compatible with which HR strategy include identifying current employees who can be promoted and employees who will benefit from new job opportunities? a) Loyal Soldier HR strategy b) Committed Expert HR strategy c) Free Agent HR strategy d) Bargain Laborer HR strategy Answer: a Difficulty: Medium Page: 547-548 Ref: How Do HR Practices Align with One Another?

49. All of the following are true about an organization under the Loyal Soldier HR strategy EXCEPT: a) fit with organizational culture is essential b) identifying specific skills and interests of applicants is essential c) general aptitude and motivation are important d) employees are hired more for potential than past accomplishments Answer: b Difficulty: Easy Page: 548 Ref: How Do HR Practices Align with One Another?

12 of 20

50. Common methods for locating applicants include employee referrals, electronic advertising, public employment agencies, and campus recruiting when an organization has adopted this HR strategy: a) Bargain Laborer HR strategy b) Free Agent HR strategy c) Committed Expert HR strategy d) Loyal Soldier HR strategy Answer: d Difficulty: Medium Page: 548 Ref: How Do HR Practices Align with One Another?

51. Which of the following performance management practices is NOT compatible with the Loyal Soldier HR strategy? a) Employee contributions are assessed and feedback is important to provide guidance for improvement b) Cooperation and teamwork are emphasized over high individual performance c) Parity-based assessments compare employees against each other resulting in rankings d) Performance management is used to motivate employees Answer: c Difficulty: Medium Page: 548 Ref: How Do HR Practices Align with One Another?

52. All of the following are true of training and development under the Loyal Soldier HR strategy EXCEPT: a) employees are selected mostly for organizational fit, so skills must be developed after they are hired b) training is general in nature rather than related to specific skills c) training is critical for success d) employees will likely rotate through a number of jobs during their career with the organization Answer: b Difficulty: Medium Page: 548-549 Ref: How Do HR Practices Align with One Another?

53. Compensation under the Loyal Soldier HR strategy: a) will likely have little pay at risk from pay period to pay period b) will have a great deal of pay at risk c) is likely to involve high levels of merit pay 13 of 20

d) is designed to significantly differentiate high and low performers Answer: a Difficulty: Medium Page: 549 Ref: How Do HR Practices Align with One Another?

54. Performance appraisal under the Committed Expert HR Strategy: a) will likely involve a parity based performance appraisal system b) will likely deemphasize differences in performance between employees c) will likely involve a merit based assessment system that encourages good performance d) will likely include a merit based system that creates internal competition to reward the highest performers Answer: d Difficulty: Hard Page: 551 Ref: How Do HR Practices Align with One Another?

55. Which of the following is NOT true about recruiting and selection under the Committed Expert HR strategy? a) The focus is on internal candidates b) The targeted skills approach, combined with external sourcing seeks to identify candidates with particular unique skills c) The focus is on identifying people who have specific skills and who are committed to advancing through the ranks within the organization d) The goal is to identify individuals with the potential to develop specific expertise over time Answer: b Difficulty: Medium Page: 550 Ref: How Do HR Practices Align with One Another?

56. Under the Committed Expert HR strategy, retention practices are most likely to include which of the following: a) employees who are not performing at a high level are reassigned or transferred b) employees who meet minimum performance standards are encouraged to stay c) employees who fit with the organization are encouraged to stay d) an emphasis on the retention of high performers and dismissal of low performers Answer: d Difficulty: Medium 14 of 20

Page: 551 Ref: How Do HR Practices Align with One Another?

57. Merit-based performance appraisals, employee comparisons, and/or forced distributions are most likely under which HR strategy? a) Committed Expert HR strategy b) Loyal Soldier HR strategy c) Bargain Laborer HR strategy d) Free Agent HR strategy Answer: a Difficulty: Medium Page: 551 Ref: How Do HR Practices Align with One Another?

58. Which of the following is NOT true about the Committed Expert HR strategy? a) The emphasis on long-term employment is compatible with labor unions b) Performance appraisal practices are consistent with labor unions c) Unions are often incompatible with the focus on innovation d) The overall pay level of employees is usually higher than at other organizations Answer: b Difficulty: Medium Page: 551-552 Ref: How Do HR Practices Align with One Another?

59. All of the following are true about the Free Agent HR strategy EXCEPT: a) human resource practices focus on locating external talent b) employees are more committed to a particular profession than to any one organization c) workers are frequently replaced by new employees who have up-to-date skills d) compensation is often based upon time employed with the organization Answer: d Difficulty: Medium Page: 552 Ref: How Do HR Practices Align with One Another?

60. Which of the following is NOT true about the Free Agent HR strategy? a) Recruitment focuses on locating talent outside the organization who clearly possess particular skills 15 of 20

b) Targeted recruiting seeks applications from a select few c) The emphasis is on assessing potential employees’ past achievements to determine whether they already have the skills needed for the job d) Fit with the organization takes precedence over fit with the demands of a particular job Answer: d Difficulty: Medium Page: 553 Ref: How Do HR Practices Align with One Another?

61. Retention for an organization with a Free Agent HR strategy: a) is critical given the specialized knowledge and skill employees bring to the organization b) is critical given the high costs involved in recruiting employees with specialized skills c) is not as important an issue as quickly removing low-performing employees d) is critical given the specialized training and development provided employees Answer: c Difficulty: Medium Page: 553 Ref: How Do HR Practices Align with One Another?

62. Performance management in an organization with a Free Agent HR strategy: a) is used to create a culture of competition and excellence by comparing employees with each other, so only a few receive the highest evaluations b) focuses on employee effort with consideration given to contingencies c) results in low performers being reassigned elsewhere in the organization where their talents can be used more effectively d) focuses on ensuring that the performance of all employees meets minimum performance standards Answer: a Difficulty: Medium Page: 553 Ref: How Do HR Practices Align with One Another?

63.Under the Free Agent HR strategy: a) base pay is emphasized and little pay is at risk b) wages are relatively low since employees hired are usually looking for employment c) commissions and bonuses are rarely used d) compensation is designed to provide immediate rewards for high contributions Answer: d 16 of 20

Difficulty: Medium Page: 554 Ref: How Do HR Practices Align with One Another?

64. Which of the following would be consistent with a turnaround organizational strategy? a) Employees who meet minimum standards for performance are retained b) Low performers are dismissed and new employees hired for their ability to change how work is accomplished c) Low performers are reassigned elsewhere in the organization where their talents can be used more effectively d) Either a Committed Expert or Bargain Laborer HR strategy would be appropriate Answer: b Difficulty: Medium Page: 555 Ref: What Are Some Other HR Issues?

65. Which HR strategy is most closely aligned with the global expansion competitive strategy? a) Free Agent HR Strategy b) Bargain Laborer HR Strategy c) Loyal Soldier HR Strategy d) Committed Expert HR Strategy Answer: a Difficulty: Easy Page: 555 Ref: What Are Some Other HR Issues?

66. Which of the following is NOT true for an organization pursuing the growth strategy? a) The organization is seeking to expand into new markets b) The organization is likely to use acquisition to achieve goals c) The organization is likely to use mergers to achieve goals d) The organization is unlikely to be interested in globalization Answer: d Difficulty: Easy Page: 555 Ref: What Are Some Other HR Issues?

17 of 20

Short Answer

67. _____________ deals with the fit between competitive strategy and human resource strategy.

Answer: Vertical alignment Difficulty: Easy Page: 541 and Figure 14.1 What are Two Basic Forms of Strategic Alignment?

68. Training employees how to perform specific job duties, with an emphasis on efficient operations, is the key focus of training for the _____________ HR strategy.

Answer: Bargain Laborer Difficulty: Medium Page: 545 Ref: How Do HR Practices Align with One Another?

69. Training that teaches specific skills for current jobs and continuous improvement of employees’ skills so they can produce goods and services superior to those produced by competitors are consistent with the _____________ HR strategy.

Answer: Committed Expert Difficulty: Medium Page: 551 Ref: How Do HR Practices Align with One Another?

70. A competitive business strategy that focuses on radical change to return a company to profitability is called a ______________ strategy.

Answer: turnaround Difficulty: Easy Page: 555 Ref: What Are Some Other HR Issues?

71. A variation of competitive strategy that focuses on growing an organization’s presence in foreign countries is called a ____________ strategy.

18 of 20

Answer: global expansion Difficulty: Easy Page: 555 Ref: What Are Some Other HR Issues?

Essays

72. Compare and contrast performance management and compensation practices in each of each of the four HR strategies.

Answer: A. Performance management practices 1. Bargain Laborer HR strategy: Primary concern is assuring that employee performance is above a minimally acceptable level. Assessments are based on absolute standards that do not compare employees with each other. Little emphasis is placed on identifying high performers.

2. Loyal Soldier HR strategy: Performance management is used to motivate employees.

Assessments are used to provide feedback and guidance for improvement. Parity-based assessments compare performance against absolute standards and allow everyone to be classified as a high performer. Cooperation and teamwork are emphasized over high individual performance.

3. Committed Expert HR strategy: Organizations use competition to encourage employees to stretch their efforts. High performers are identified by comparing employees with each other. Forced distributions ensure that only a few receive the highest ratings.

4. Free Agent HR strategy: Performance management is used to separate high and low performers. A culture of competition and excellence is created by comparing employees with each other and forcing distribution so only a few receive the highest evaluations. Assessments focus on outcomes rather than behavior.

B. Compensation practices 1. Bargain Laborer HR strategy: The desire to minimize labor costs means wage rates are set at the point necessary to attract workers. No premiums are used to attract or retain highly skilled workers. Pay differences are minimized among employees and usually pay is not contingent upon performance. Piece-rate compensation may be used in some cases.

2. Loyal Soldier HR strategy: Compensation focuses on rewarding long-term contributions. Base pay is a large part of compensation and little pay is at risk. Organizations seek to minimize pay differences between employees. Benefits may be offered to help strengthen the bond between employees and the organization.

3. Committed Expert HR Strategy: The overall level of pay is usually higher than the level at other organizations. High performers are acknowledged and paid more than average performers. A substantial amount of pay is at risk and high performers are paid a risk premium.

Long-term incentives such as profit sharing and stock options are used. Good benefits strengthen the ties between the organization and employees. Overall compensation is designed to provide high incentives to top performers who pursue long careers with the organization.

19 of 20

4. Free Agent HR strategy: Compensation rates are relatively high so the organization can hire and retain highly skilled employees. Top performers receive top compensation. Newly hired employees are paid top dollar. Commissions and bonuses are frequently offered.

Emphasis is on providing immediate rewards for high contributions.

Difficulty: Medium Page: 544-554 Ref: How Do HR Practices Align with One Another?

73. Discuss three of the key challenges identified that Human Resource professionals are likely to face in their careers.

Answer: See Figure 14.2 on page 558.

Difficulty: Medium Page: 558, Figure 14.2 Ref: What Might the Future of HR Look Like?

20 of 20

On-Line Human Resource Management Experiences The HR “Big Picture”: Building an HR Department at Mega Manufacturing As an HR Consultant, you’ll be assisting an established injection molding company, Mega Manufacturing, that is expanding significantly as a result of winning a new government contract.

Because of the company’s growth, the CEO plans to add a dedicated HR person to his management team, and he wants you to help build an HR department. As he tells you about his beliefs and vision of the company, you consider the organizational life cycle model, core HR functions, and critical HR roles. He then asks for your suggestions, and you realize that this assignment may be a great opportunity to align the new HR department with the company’s strategy.

What Action Do You Take?

A.

Recommend that Mega follow the goals and objectives of the Communal stage of the organizational life cycle model.

B.

Recommend that Mega follow the goals and objectives of the Formalization stage of the organizational life cycle model.

C.

Recommend that Mega follow the goals and objectives of the Elaboration stage of the organizational life cycle model.

Incorrect Responses B. Mega would not yet be considered stable and ready to develop clear practices and procedures for doing work. This focus on improving efficiency and finding better ways to accomplish tasks will come in the near future though for Mega.

C. Companies only go through the Elaboration stage when they need to adapt and renew.

This may seem like the correct choice as Mega is an established firm, however, since there are no established procedures, there are steps required before Mega reaches this stage.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The HR “Big Picture”: Building an HR Department at Mega Manufacturing Summary of Steps Taken: 1. Recommend that Mega follow the goals and objectives of the Communal stage of the organizational life cycle model.

With the upcoming expansion and innovation, Mega will need to build a sense of belonging and satisfy the needs of its employees. It will need to focus on developing and improving processes for effectively producing goods and services. Once effective HR practices are established, good employees can be hired and provided with training. As a result, employees will feel committed and both loyalty and job satisfaction will increase.

The CEO then wants your opinion on the most important function that HR can provide to help his company now and into the future.

What Action Do You Take?

A.

Respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of human resource development.

B.

Respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of workforce planning and employment.

C.

Respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of strategic management.

Incorrect Responses A. Human resource development is a very important function as it will allow employees to learn the knowledge, skills, and abilities needed for long-term success. It will also for employee performance to be measured.

However, there is a different choice here that will likely be more important to helping the organization function most effectively and that will gain acceptance of HR.

B. Workforce planning and development is also a very important function as the designing of jobs and placement of employees is of critical importance. This function also allows for the hiring or promotion of people with the necessary talents. However, there is a different choice here that will likely be more important to helping the organization function most effectively and that will gain acceptance of HR.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The HR “Big Picture”: Building an HR Department at Mega Manufacturing Summary of Steps Taken: 1. Recommend that Mega follow the goals and objectives of the Communal stage of the organizational life cycle model.

2. When asked about the most important function HR can provide to Mega, respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of strategic management.

Strategic management focuses on planning how the organization will produce and market goods and services. HR experts can provide extremely valuable information to a company’s strategic plan such as determining whether employees have the needed skills, helping to identify required training needs, finding and hiring the right applicants for open positions, as well as retention of key employees. To be successful here, HR people must be able to manage change and must be knowledgeable about the business to understand how activities and products fit within strategies.

The conversation then turns to whether HR can add value to both people and processes. The CEO mentions that he would like to see his new HR team focus on long-term contributions to organizational processes aimed at hiring and motivating talented workers. From this information, which of the critical roles for human resource professionals will be most important for Mega?

What Action Do You Take?

A.

Recommend that Mega’s HR team focus on the role of functional expert.

B.

Recommend that Mega’s HR team focus on the role of strategic partner.

C.

Recommend that Mega’s HR team focus on the role of human capital developer.

Incorrect Responses A. Almost. You’re on the right track as this option does focus on organizational processes aimed at hiring and motivated talented workers.

However, the functional expert role is focused on short-term activities rather than on longterm contributions.

C. Not quite. This choice does focus on longterm contributions but also emphasizes people rather than processes as the focus is helping employees improve their skills. This role is becoming increasingly important though in organizations today.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The HR “Big Picture”: Building an HR Department at Mega Manufacturing Summary of Steps Taken: 1. Recommend that Mega follow the goals and objectives of the Communal stage of the organizational life cycle model.

2. When asked about the most important function HR can provide to Mega, respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of strategic management.

3. Recommend that Mega’s HR team focus on the role of strategic partner because of the emphasis on long-term contributions to organizational processes aimed at hiring and motivating talented workers.

In the strategic partner role, HR works with various organizational leaders to implement strategy, knows a great deal about the other business activities and products and services of the company, as well as how these items fit with the company’s strategic objectives. This enables HR to provide assistance in guiding organizational decisions and actions.

As your meeting is about to wrap up, the CEO asks if you have any suggestions on important trends the organization will need to pay attention to in the future. While there are many possibilities, there is one that applies more than the others based on what you know about Mega Manufacturing.

What Action Do You Take?

A.

Describe recent labor force trends and the fact that the workforce is seeing many more minority and female employees.

B.

Describe recent education and training trends and the fact that on-the-job training is becoming as important as formal education in some industries.

C.

Describe recent population trends and the fact that the workforce is aging.

Incorrect Responses A. While it is true that the number of minority and female employees is on the rise, there is nothing from what we have heard about Mega’s strategies to suggest that this will be a concern. Some form of diversity training will be a good idea though.

B. This is a true statement but likely will not impact Mega as much as some other companies because of its focus on an external labor orientation and hiring experienced employees who are already trained. Some new and/or refresher training will of course be needed, but it will not be a major concern.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The HR “Big Picture”: Building an HR Department at Mega Manufacturing Summary of Steps Taken: 1. Recommend that Mega follow the goals and objectives of the Communal stage of the organizational life cycle model.

2. When asked about the most important function HR can provide to Mega, respond that while there are many important functions, you feel that the biggest contribution that can be made is in the area of strategic management.

3. Recommend that Mega’s HR team focus on the role of strategic partner because of the emphasis on long-term contributions to organizational processes aimed at hiring and motivating talented workers.

4. Describe how recent population trends and the fact that the workforce is aging is one trend that will be a major concern for Mega as attracting and motivating older workers will become a more important task.

Well done! The aging workforce will be a major concern to a company such as Mega Manufacturing. More people will be near the end of their careers and fewer will be in the middle so there will be a more limited number of experienced employees for Mega to hire. Not only will attracting these older workers be a challenge, but so will motivating them. You’re off to a great start and should be able to help Mega’s new HR team become aligned with the company’s existing business strategies. The strategic side of HR is very difficult for a lot of people to comprehend as it is only in recent years that HR is starting to be viewed as a strategic business partner. As you will see throughout this textbook and these exercises though, HR can be an asset to a company strategically while still significantly contributing to the traditional functional areas (staffing, training, compensation, performance management, etc.). Next will be a closer look at the basic HR strategies.

For More Information:_________________________________________________________ A number of Web sites are available for more information on the core HR functions, roles of HR specialists, and current trends affecting HR. • • • •

www.shrm.org - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. www.workforce.com – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. www.hr.com – Information on a variety of HR topics.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences HR Strategy in Action: Selling the HR Function at Mega Manufacturing While meeting with senior management at Mega, you try to convince other members of the management team that HR needs to have a “seat at the table” and function as a business partner within the company. The CFO, however, expresses the opinion that HR is just a “touchy feely” department that adds no legitimate business value. Your objective is to gain credibility and show that a strategic approach to HR can improve Mega Manufacturing. Based on previous discussions, you have learned that Mega believes that its products are better than those of its competitors. You also know that the company prefers to hire experienced people who won’t require much training. How will you defend the HR function to this CFO and others in the meeting who may share the same opinions of HR?

What Action Do You Take?

A.

Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Free Agent HR strategy.

B.

Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Bargain Laborer HR strategy.

C.

Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Committed Expert HR strategy.

Incorrect Responses B. While the Bargain Laborer strategy does have an emphasis on buying talent (hiring experienced employees), this answer is incorrect because it also emphasizes efficiency rather than the distinctiveness that comes from a differentiation philosophy.

C. While the Committed Expert strategy does have an emphasis on differentiation, it places more value on making talent by developing employees from within than on hiring experienced employees who will not need extensive training.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences HR Strategy in Action: Selling the HR Function at Mega Manufacturing Summary of Steps Taken: 1. Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Free Agent HR strategy.

The Free Agent HR strategy does align with Mega’s goals of differentiation (superior products) and external labor orientation (hiring experienced employees who can “hit the ground running”).

The main focus for this strategy is hiring people who have critical skills but who may not stay with the organization for the long-term. Employees will have extensive responsibility within their specific job areas. No efforts are made to encourage strong attachments between the employees and the organization though since long-term commitments are avoided.

As you know, it is important for organizations to combine competitive business strategy with human resource strategy to assure high organizational effectiveness. During the meeting, it becomes clear that one of the management members feels you should just implement HR practices that have worked at other companies.

What Action Do You Take?

A.

Suggest that Mega follow a corporate-level strategy.

B.

Suggest that Mega follow a contingency approach to HR.

C.

Suggest that Mega follow a universalistic approach to HR.

Incorrect Responses A. Corporate-level strategies are a type of competitive business strategy where decisions related to business types are made. They are of great importance but are not critical for dayto-day HR activities.

C. Under the universalistic approach, the goal is to find the one best way to manage HR that would be beneficial for all organizations. While there is some support for this approach in academic research, it tends to focus more on broad principles and results in a commitment strategy that does not align with Mega’s values.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences HR Strategy in Action: Selling the HR Function at Mega Manufacturing Summary of Steps Taken: 1. Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Free Agent HR strategy.

2. Suggest that Mega follow a contingency approach to HR to align the two strategies.

The contingency approach does indeed make the most sense for Mega as not all HR practices can be applied to all organizations. They will only work most effectively if the two strategies align and this approach seeks to align people management practices with competitive business strategies.

The Production Manager says that he’s starting to understand the potential value of HR. With the expansion coming soon, he wants to know in what manner HR can help him analyze Mega’s internal capabilities and assess the external environment. You start seeing the Strategy Formulation Process flow diagram in your mind.

What Action Do You Take?

A.

Explain the Analyzing Information and Making a Decision stage of the Strategy Formulation process.

B.

Explain the Gathering Information stage of the Strategy Formulation process.

C.

Explain the Implementing the Decision stage of the Strategy Formulation process.

Incorrect Responses A. While it may sound like examining the internal capabilities and external environment are a form of analyzing information, you must actually collect the data before you can analyze it.

C. You’re jumping ahead in the process a little too quickly. This will become a critical stage in the process soon enough, but first you must take care of a couple other items of importance.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences HR Strategy in Action: Selling the HR Function at Mega Manufacturing Summary of Steps Taken: 1. Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Free Agent HR strategy.

2. Suggest that Mega follow a contingency approach to HR to HR to align the two strategies.

3. Explain the Gathering Information stage of the Strategy Formulation process can be used to analyze internal and external positives and negatives.

The gathering information stage is where Mega will examine the environment to assess opportunities and threats as well as assess internal capabilities to determine strengths and weaknesses that they have. There will also be a focus here on making HR a rare resource that is difficult to duplicate by other companies.

More of the Mega management team is starting to see the value of HR. They’ve accepted that the Free Agent strategy does align best with their philosophies, primarily because of their focus on differentiation. They realize this will require hiring many people externally and that employee loyalty will never be a strength. You mention that it’s possible to have a more equal mix of two different strategies at times. If the CEO asks which other strategy may work for them in combination with their current strategy, how would you respond?

What Action Do You Take?

A.

Respond that the most likely choice is Bargain Laborer.

B.

Respond that the most likely choice is Loyal Soldier.

C.

Respond that the most likely choice is Committed Expert.

Incorrect Responses A. Not quite. Bargain Laborer does share the focus on external labor that the Free Agent approach follows, but it aligns more with Loyal Solider on the cost leadership strategy component.

B. Organizations with a cost leadership competitive advantage are expected to do best when they have either a Loyal Soldier or Bargain Laborer approach, so this answer is not correct.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences HR Strategy in Action: Selling the HR Function at Mega Manufacturing Summary of Steps Taken: 1. Based on Mega’s belief that its products are superior and preference to hire experienced people, recommend that Mega follow the Free Agent HR strategy.

2. Suggest the Mega follow a contingency approach to HR to HR to align the two strategies.

3. Explain the Gathering Information stage of the Strategy Formulation process can be used to analyze internal and external positives and negatives.

4. Respond that the most likely strategy to pair with the Free Agent strategy is that of Committed Expert.

Nice work! Organizations with a competitive business strategy of differentiation are expected to do best when they have either a Committed Expert or Free Agent HR strategy. The senior management team at Mega will almost certainly accept your recommendations because of the thorough display of knowledge you have shown them. You’ve completed the initial portion on the basic HR strategies and we will now turn to several of the individual HR functional areas.

Remember that to be successful in HR today and in the future, it will be crucial to think strategically and know the business so that you can contribute to the organization in many ways.

Just being an expert in the field of Human Resources is no longer enough. Don’t forget the concepts behind these basic HR strategies as we will build on them each chapter and in these exercises. Next up is Equal Employment Opportunity and Safety.

For More Information:_________________________________________________________ A number of Web sites are available for more information on the common competitive business strategies, basic approaches to human resource strategy, and common human resource strategies.

• • • • • •

www.shrm.org - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. www.workforce.com – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. www.hr.com – Information on a variety of HR topics. http://www.tutor2u.net/business/strategy/competitive_advantage.htm - Information on Porter’s Competitive Business strategies. http://www.associatedcontent.com/article/239501/business_strategy_creating_a_competitive. html - Information on creating competitive strategies.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Legal Side of HR: Handling Equal Employment Issues at Mega Manufacturing It’s Friday afternoon, and you’re looking forward to catching up on some leisure activities this weekend. You accompany the owner of Mega Manufacturing on a tour of the plant to meet some of the hourly employees. A female employee comes up to you and complains that a male coworker has been sexually harassing her. While you are talking with her, the owner receives a phone call. When he hangs up, he tells you that the caller was a former job applicant, who insists that he was not hired because he is a member of a minority group. The former applicant plans to file a claim with the EEOC. The owner asks for your advice on how to begin handling these issues. So much for that weekend of relaxation.

What Action Do You Take?

A.

Schedule a meeting with the female employee to discuss specifics of the incident. Then plan to do the same with the male employee who she claims is doing the harassing.

B.

Discipline the supervisor for the harassing behavior and warn him that additional acts will result in termination.

C.

Review the company’s formal policy on harassment with the female employee and demonstrate that the behavior could not have been harassment because she was still capable of performing her job.

Incorrect Responses B. This is an appropriate step that may come up as a result of the investigation, but it’s a bit premature to assume the supervisor is guilty at this point without doing a complete investigation of the incident(s). Re-visit this step if he is determined to be in violation of the company policy.

C. This will only make matters worse as the employee will likely think that either you don’t believe her or that you simply don’t care and want the issue to just disappear. Besides, victims need not show that the harassment made them incapable of doing their jobs, only that the environment had a negative impact on their psychological well-being.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Legal Side of HR: Handling Equal Employment Issues at Mega Manufacturing

Summary of Steps Taken: 1. Schedule a meeting with the female employee to discuss specifics of the incident. Then plan to do the same with the male employee who she claims is doing the harassing.

It will be critical to investigate rapidly in this case to determine what is really occurring. While there may or may not be harassment, it is important to not let the reputation of one of the employees shape your opinion of the truth. Remember that there are multiple types of sexual harassment and just because certain people may not be offended by some types of behavior, it does not mean that harassment didn’t occur.

During the investigation, you find out that the male employee was making a few unwelcome comments occasionally, but never told her that her future with the company depended on her willingness to engage in sexual activities with him. He is not even her supervisor. The owner thinks that the company is likely “in the clear” on this one and wants the matter dropped as soon as possible.

What Action Do You Take?

A.

Agree with the owner and act to drop the issue as a simple misunderstanding with the expectation that the behavior should probably stop.

B.

Schedule a meeting to reiterate the company policy on sexual harassment with a general warning to everyone present that this type of behavior is not and will not be tolerated at Mega.

C.

Respond that while there may be no quid pro quo case of harassment, the actions of the male employee could still be causing the female to feel that this is now an intimidating, hostile, or offensive work environment.

Incorrect Responses A. This would not be a wise choice. While it’s true that there is no quid pro quo case present, Mega needs to be concerned that the situation created a hostile environment. The investigation needs to be completed and appropriate discipline steps taken once a determination is made.

B. While this is a good decision, it is not the right choice here as Mega is not “in the clear” just because there is no issue of continued employment being based on sexual favors. Go ahead and do this, but it should come later (after the investigation has been completed because there are more pressing concerns).

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Legal Side of HR: Handling Equal Employment Issues at Mega Manufacturing Summary of Steps Taken: 1. Schedule a meeting with the female employee to discuss specifics of the incident. Then plan to do the same with the male employee who she claims is doing the harassing.

2. While there may be no quid pro quo case of harassment, the repeated comments by the male employee could still be causing the female to feel that this is now an intimidating, hostile, or offensive work environment.

It really doesn’t matter whether the person is a supervisor or not and the actions do not need to involve the request for sexual favors. Even having suggestive pictures hanging up could be enough to result in sexual harassment. This is an area that continues to grow in importance to organizations nationwide. Finish the investigation and then take the appropriate disciplinary actions up to and potentially including termination.

You didn’t forget about the disgruntled applicant who is filing the EEOC claim, did you? The owner tells you that the 44-year old applicant had strong skills for the job but was ultimately not hired because of his failing test scores on a mechanical ability test that the company uses for all applicants. The owner mentions he was shocked that the 52-year old white applicant did so much better on the test. It sounds like another Title VII issue under the 1964 Civil Rights Act. Which type of discrimination did you need to make the owner aware of and what should be the first step?

What Action Do You Take?

A.

Disparate treatment; explain to the owner that there is no issue as long as all applicants took the test.

B.

Adverse impact; ensure that the test is truly relevant to the job the person interviewed for.

C.

Age discrimination; advise the owner that may have a potential issue because the applicant who failed the test is older than 40 and therefore protected by the Age Discrimination in Employment Act.

Incorrect Responses A. While this choice is technically correct in that there was no specific practice of treating certain types of people differently than others, you’re not off the hook yet.

C. While 40 and above is the age where this becomes a protected class, you are not in violation of this act since the applicant selected was older than the person rejected.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Legal Side of HR: Handling Equal Employment Issues at Mega Manufacturing Summary of Steps Taken: 1. Schedule a meeting with the female employee to discuss specifics of the incident. Then plan to do the same with the male employee who she claims is doing the harassing.

2. While there may be no quid pro quo case of harassment, the repeated comments by the male employee could still be causing the female to feel that this is now an intimidating, hostile, or offensive work environment.

3. On the applicant discrimination issue, make the owner aware that this may be a case of adverse impact. Ensure that the test is truly relevant to the job the person interviewed for.

You do indeed have a potential adverse impact issue. Adverse impact is more subtle than disparate treatment and occurs when a company treats all applicants the same but their practices result in different employment opportunities for different groups. An important key will be whether the mechanical ability test in this case accurately identifies people who can do the job better.

Good news: the mechanical ability test has a high validity for this type of position. Bad news: 70% of white applicants are hired for this type of position, but only 24% of minority applicants are hired; it looks like you will fail the 4/5 rule.

What Action Do You Take?

A.

Tell the owner that it would be wise to choose a different job-related test that has no adverse impact even if the test is not quite as good of a predictor.

B.

Start hiring several minority applicants immediately. The 4/5 rule says that if you hire 70% of white applicants, you need to hire at least 56% of minority applicants (80% of 70%).

C.

Since the test is validated, you tell the owner not to worry about the 4/5 rule in this case.

Incorrect Responses A. While it would be nice to have a test that does not result in adverse impact, this one is validated. You do not want to sacrifice the validity of this test as a good predictor of future performance on the job just to lessen the potential adverse impact.

B. There’s nothing wrong with the decision to hire more minority applicants as long as they are qualified for the positions. Mega will violate the 4/5 rule in this scenario, but hasn’t necessarily violated Title VII as long as it can show that the selection procedures have validity.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Legal Side of HR: Handling Equal Employment Issues at Mega Manufacturing Summary of Steps Taken: 1. Schedule a meeting with the female employee to discuss specifics of the incident. Then plan to do the same with the male employee who she claims is doing the harassing.

2. While there may be no quid pro quo case of harassment, the repeated comments by the male employee could still be causing the female to feel that this is now an intimidating, hostile, or offensive work environment.

3. On the applicant discrimination issue, make the owner aware that this may be a case of adverse impact. Ensure that the test is truly relevant to the job the person interviewed for.

4. Since the test is job relevant and validated for this type of position, you tell the owner not to worry about the 4/5 rule in this case.

Great job! Even though Mega has violated the 4/5 rule, they are not in violation of Title VII since the selection test was validated. This exercise contained two tough issues that HR people face all too often in organizations. One of the best recommendations that can be made is to investigate quickly, but thoroughly and remember to document everything. We’ll return more to selection practices in Chapter 6. In terms of the potential discrimination claim, remember that Mega does now have to be concerned about the EEOC and Affirmative Action Plans under Executive Order 11246 because of its new status as a government contractor. Better start preparing those utilization studies. Next up is designing work that is both productive and satisfying. That’s not always as easy as it may seem.

For More Information:_________________________________________________________ A number of Web sites are available for more information on Title VII, Civil Rights Acts of 1964 and 1991, ADEA, ADA, EPA, FMLA, OSHA, and Worker’s Compensation: • • • • • • • •

http://www.shrm.org/law/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/03/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.dol.gov/ - Department of Labor website with links to all major employment laws. http://www.afscme.org/ - American Federation of State, County, and Municipal employees. http://www.elinfonet.com/ - Employment Law Information Network. http://www.osha.gov/ - Occupational Safety and Health Administration. www.eeoc.gov – Equal Employment Opportunity Commission.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Job Design: Creating New Positions at Graphics Design, Inc. Another of your clients is Graphics Design, Inc. (GDI), who produces display boards and signs.

The company is in the process of creating several new positions because of growth and a need for more efficiency. You recommend that some form of job analysis be used to design the features of the new jobs. One of the company’s managers tells you that job analysis isn’t necessary, since the new jobs will be similar to existing jobs. But in view of the company’s need for increased efficiency and its preference for employees with high levels of loyalty, you are not sure that the old job descriptions can or should be used. When the CEO asks for your input, how will you respond?

What Action Do You Take?

A.

Recommend that GDI follows a basic HR strategy of Bargain Laborer.

B.

Recommend that GDI follows a basic HR strategy of Loyal Soldier.

C.

Recommend that GDI follows a basic HR strategy of Committed Expert.

Incorrect Responses A. Bargain Laborer is a cost strategy that has an emphasis on efficiency and standardization, but it would result in a preference for an external labor orientation rather than employee loyalty.

C. Committed Expert is focused on employee loyalty but is a differentiation strategy that prefers innovation and experimentation to efficiency that GDI is seeking.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Job Design: Creating New Positions at Graphics Design, Inc. Summary of Steps Taken: 1. Recommend that GDI follows a basic HR strategy of Loyal Soldier because of its desire for increased efficiency and the fact that the company prefers employees with high levels of loyalty.

The Loyal Soldier HR strategy seems to align quite well with GDI’s philosophies. This strategy will result in increased efficiency, low autonomy, and a sequential processing form of interdependence. These items will correspond with improved performance when processes are fairly simple and require mostly physical inputs.

Let’s assume that you assist GDI complete a formal job analysis process to help clarify what is expected of workers. You’ve already received buy-in from senior management, chosen the jobs to analyze, found what has been written about the jobs, and chosen a sample of incumbents, supervisors, and subject matter experts (SMEs) to discuss the positions with. Consider what to do next.

What Action Do You Take?

A.

It’s now time to start creating the job descriptions through making a list of duties that use action words.

B.

It’s now time to begin creating job specifications by developing a list of characteristics needed to do the jobs.

C.

It’s now time to collect job information through the use of interviews, questionnaires, and observation.

Incorrect Responses A. It’s almost time to start the job description which will focus on the duties and responsibilities that employees in the job perform. While you may be able to write a portion of the job description already, it will be difficult to get very far without first going back to one of the other options.

B. Slow down! Job analysis is a very thorough and time-consuming process and you’re trying to get to the end a bit too quickly. Job specifications identify the knowledge, skills, and abilities that workers need to perform the identified tasks. This will be the last step in the job analysis process.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Job Design: Creating New Positions at Graphics Design, Inc. Summary of Steps Taken: 1. Recommend that GDI follows a basic HR strategy of Loyal Soldier because of its desire for increased efficiency and the fact that the company prefers employees with high levels of loyalty.

2. If GDI is completing a formal job analysis process to help clarify what is expected of workers and you’ve already received buy-in from senior management, chosen the jobs to analyze, found what has been written about the jobs, and chosen a sample of incumbents, supervisors, and subject matter experts (SMEs) to discuss the positions with, the next step is to collect job information through the use of interviews, questionnaires, and observation.

The collection of job information is a critical step in the job analysis process. Information can be obtained from mechanisms and can be obtained via any of the above methods. Three specific methods that can be used to collect the needed data are the task analysis inventory, critical incidents technique, and the Position Analysis Questionnaire (PAQ). For a more thorough form of job analysis that takes into account the strategic issues and a broader range of characteristics, it should be combined with competency modeling.

In terms of grouping work tasks together, you realize that GDI should use a mechanistic approach because of the emphasis on efficiency. As you explain that approach to the CEO, he tells you that GDI is also concerned about decreasing the number of errors employees can make. You can now recommend another approach to grouping work tasks.

What Action Do You Take?

A.

Recommend that GDI place some emphasis on the motivational approach.

B.

Recommend that GDI place some emphasis on the perceptual approach.

C.

Recommend that GDI place some emphasis on the biological approach.

Incorrect Responses A. The mechanistic approach and motivational approach are actually exact opposites of one another. This approach is concerned with designing jobs that are challenging, and thus will increase workers’ intrinsic motivation.

C. The biological approach can work well for companies with a Loyal Soldier HR strategy but the emphasis here is on designing jobs to prevent injuries, not on reducing the number of errors that employees make.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Job Design: Creating New Positions at Graphics Design, Inc. Summary of Steps Taken: 1. Recommend that GDI follows a basic HR strategy of Loyal Soldier because of its desire for increased efficiency and the fact that the company prefers employees with high levels of loyalty.

2. If GDI is completing a formal job analysis process to help clarify what is expected of workers and you’ve already received buy-in from senior management, chosen the jobs to analyze, found what has been written about the jobs, and chosen a sample of incumbents, supervisors, and subject matter experts (SMEs) to discuss the positions with, the next step is to collect job information through the use of interviews, questionnaires, and observation.

3. In terms of grouping work tasks together, you realize that GDI should use a mechanistic approach because of the emphasis on efficiency. Since they also have a concern about decreasing the number of errors employees can make, you also recommend placing some emphasis on the perceptual approach.

Job designers using the perceptual approach group tasks together in ways that help workers to process information better. The basic objective of this approach is to simplify mental demands on workers and thereby decrease errors which will also result in more safety and the prevention of accidents.

Lastly, you convince the company that they should consider some form of family-friendly scheduling alternative to help keep employees home with their families a little more often. The CEO’s not crazy about this idea, but asks for any suggestions you may have. Keep the Loyal Soldier strategy in mind.

What Action Do You Take?

A.

Recommend that GDI implement an alternative work location option (telecommuting).

B.

Recommend that GDI implement a flexible work schedule (flextime).

C.

Recommend that GDI implement a compressed workweek schedule (4-day workweeks).

Incorrect Responses A. Telecommuting (working from home) can be an attractive option for trusted employees in certain positions as advances in technology have made it very easy to stay connected with the office through voice and data services. It can work well with the motivational approach and therefore should not be considered further

by GDI.

B. Flextime is a nice feature in that employees have the freedom to decide when they arrive and leave work as long as they are present during core working hours. Flextime is most useful for organizations pursuing differentiation strategies and does not align well with GDI.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Job Design: Creating New Positions at Graphics Design, Inc. Summary of Steps Taken: 1. Recommend that GDI follows a basic HR strategy of Loyal Soldier because of its desire for increased efficiency and the fact that the company prefers employees with high levels of loyalty.

2. If GDI is completing a formal job analysis process to help clarify what is expected of workers and you’ve already received buy-in from senior management, chosen the jobs to analyze, found what has been written about the jobs, and chosen a sample of incumbents, supervisors, and subject matter experts (SMEs) to discuss the positions with, the next step is to collect job information through the use of interviews, questionnaires, and observation.

3. In terms of grouping work tasks together, you realize that GDI should use a mechanistic approach because of the emphasis on efficiency. Since they also have a concern about decreasing the number of errors employees can make, you can also recommend placing some emphasis on the perceptual approach.

4. To stay within their Loyal Soldier strategy, you convince the company that they should consider implementing a compressed workweek scheduling option to help keep employees home with their families a little more often.

Excellent! The compressed workweek alternative may be a good option for GDI as it will allow employees to work full-time hours in fewer than five days per week. Employees can be scheduled to work at the same time each day, and setup costs can be minimized by longer shifts.

You’ve now worked your way through the job analysis process. Although this may seem like a very tedious and time-consuming process, the organization will benefit greatly from the productive and satisfying work the employees will feel as a result. It can also help tremendously in keeping the number of potential legal hurdles to a minimum in terms of what knowledge, skills, and abilities truly are needed to perform specific jobs. Next up is recruiting talented employees.

For More Information:_________________________________________________________ A number of Web sites are available for more information on Job Analysis, Competency Models, and Work-Life Balance issues: • • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/index.html – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.job-analysis.net/ - Job Analysis Network. http://online.onetcenter.org/ - Occupational Information Network. http://www.opm.gov/studies/transapp.pdf - Competency Model example for HR professionals. http://www.worklifebalance.com/ - Work/Life balance issues.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Strategic Recruitment: Finding the Right People for Graphics Design, Inc. It’s time to start trying to attract potential employees to fill the newly created positions with GDI. You have many decisions to consider, including which recruiting sources to use, what skill scope is needed, and what type of message to convey to applicants. You also need to consider the HR planning process and the fact that the basic HR strategy of GDI is that of Loyal Soldier. What will be your first recommendation to the GDI management team when you meet with them in the next several days?

What Action Do You Take?

A.

Focus on finding employees who fit the organizational culture and who will stay a long time; strive for lots of applicants as no specialized skills are needed; promote from within when possible; provide realistic job previews.

B.

Focus on finding employees who fit the organizational culture and who will stay a long time; keep the number of applicants small since loyalty is a key; promote from within when possible; provide idealistic job previews.

C.

Focus on finding employees who have specialized skill sets and who will stay a long time; strive for lots of applicants; hire externally as often as possible to avoid taking proven resources from within promote from within; provide realistic job previews.

Incorrect Responses B. This answer has some correct components but the Loyal Soldier strategy would not want to minimize the number of applicants and would not provide idealistic job previews.

C. This answer has some correct components but the Loyal Soldier strategy would not want to focus on specialized skills sets at the expense of fitting the organization’s culture and would not want to hire externally if there are qualified employees internally who could be promoted.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Strategic Recruitment: Finding the Right People for Graphics Design, Inc. Summary of Steps Taken: 1. GDI should focus on finding employees who fit the organizational culture and who will stay a long time; strive for lots of applicants as no specialized skills are needed; promote from within when possible; and provide realistic job previews.

The above features are all in alignment with a basic HR strategy of a Loyal Soldier. This broad skill scope strategy seeks to recruit people with specialized skills and abilities and aligns with other cost strategies. Internal recruiting will help form long-term relationships with employees.

Realistic job previews will share both positive and negative information about the organization and job, thus helping employees develop accurate expectations and subsequently reducing turnover. Recruiting practices are shown to be more successful when they are aligned with the organization’s HR strategy.

In terms of the HR planning process, GDI has finished assessing the current employment levels.

The owner asks what they should do next.

What Action Do You Take?

A.

Recommend that GDI next predict employee movement.

B.

Recommend that GDI next begin planning external hiring.

C.

Recommend that GDI next predict future needs.

Incorrect Responses A. Predicting employee movement is the third step in the HR planning process. These predictions are based on the assumption that past patterns will be repeated in the future.

Historical data is assessed to determine how many employees in each job category can be expected to quit or be terminated in the near future.

B. While very important, planning external hiring is the fourth and final step in the HR planning process. It simply can’t come any sooner in the process as it combines the information from the first three steps. The difference between the number of people needed and the number available is the estimate of the number of external hires needed.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Strategic Recruitment: Finding the Right People for Graphics Design, Inc. Summary of Steps Taken: 1. GDI should focus on finding employees who fit the organizational culture and who will stay a long time; strive for lots of applicants as no specialized skills are needed; promote from within when possible; and provide realistic job previews.

2. In terms of the HR planning process, GDI has finished assessing the current employment levels. You recommend that the next step be for them to predict future needs.

The second step in the HR planning process is indeed to predict future needs. This process begins by assessing environmental trends. One common method for making employment predictions is to assume that HR needs will match expected trends for goods and services. The overall goal of the second step is to combine information from the environment with the organization’s competitive objectives in order to forecast the number of employees needed in particular jobs.

The GDI management team has completed the planning process and knows it must start the search for several external employees. Based on Loyal Soldier strategy, which type of person looking for work do you recommend they target?

What Action Do You Take?

A.

Recommend that GDI focus their searches primarily on people who have been in the workforce but are currently unemployed.

B.

Recommend that GDI focus their searches primarily on people entering the workforce for the first time.

C.

Recommend that GDI focus their searches primarily on people employed but seeking a different job.

Incorrect Responses A. There is a lot of academic research that explores the negative attitudes associated with being unemployed. This includes decreased physical and mental health, lower life satisfaction, and increased marital and family problems. Companies with a Bargain Laborer strategy who have a constant need for new employees willing to work for low wages may benefit from recruiting unemployed people.

C. People who search for alternative jobs while still employed tend to be intelligent, agreeable, open to new experiences, and less prone to worry. A constant need for people with highly specialized skills makes efforts to recruit people currently working an important target for companies with a Free Agent strategy. Be careful to avoid talent wars though and remember that the employees could leave you just as easily.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Strategic Recruitment: Finding the Right People for Graphics Design, Inc. Summary of Steps Taken: 1. GDI should focus on finding employees who fit the organizational culture and who will stay a long time; strive for lots of applicants as no specialized skills are needed; promote from within when possible; and provide realistic job previews.

2. In terms of the HR planning process, GDI has finished assessing the current employment levels. You recommend that the next step be for them to predict future needs.

3. When searching for external employees to fill open positions, recommend that GDI focus their searches primarily on people entering the workforce for the first time because of its Loyal Soldier strategy.

Although the Loyal Soldier strategy has a preference for filling open positions from within the organization, it’s simply not possible to do that with every open job. When they do need to look at external candidates, GDI should place considerable emphasis on people just graduating from school and entering the workforce for the first time. Applicants and organizations at this level are expected to carefully examine the potential fit that is critical for long-term relationships.

Not all open jobs needing external candidates can be filled by new graduates. When GDI needs to use other common recruiting sources to attract quality candidates, which approaches would you recommend that will most align with their Loyal Soldier strategy?

What Action Do You Take?

A.

Recommend a combination of print advertising and internal job postings.

B.

Recommend the use of private employment agencies and internal job postings.

C.

Recommend employee referral programs and internal job postings.

Incorrect Responses A. Internal job postings are obviously correct for the Loyal Soldier strategy, however, newspaper advertising works especially well for the broad recruiting associated with the Bargain Laborer HR strategy. Advertising in specialized journals, on the other hand, is most helpful for companies with a Free Agent strategy.

B. Internal job postings are obviously correct for the Loyal Soldier strategy, however, private employment agencies (search firms) specialize in being able to recruit people who are employed but not actively seeking new positions. Because of their targeted approach, these agencies can be quite helpful for organizations pursuing a Free Agent strategy.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Strategic Recruitment: Finding the Right People for Graphics Design, Inc. Summary of Steps Taken: 1. GDI should focus on finding employees who fit the organizational culture and who will stay a long time; strive for lots of applicants as no specialized skills are needed; promote from within when possible; and provide realistic job previews.

2. In terms of the HR planning process, GDI has finished assessing the current employment levels. You recommend that the next step be for them to predict future needs.

3. When searching for external employees to fill open positions, recommend that GDI focus their searches primarily on people entering the workforce for the first time because of its Loyal Soldier strategy.

4. Other common recruiting sources you can recommend to GDI to align with their Loyal Soldier strategy include employee referral programs and internal job postings.

Great work! Internal job postings can be a great source for either the Loyal Soldier or Committed Expert strategies because of their focus on internal recruiting strategies. A good possibility for recruiting success from outside the firm is the use of employee referral programs. In fact, a majority of HR professionals believe that employee referrals are the single most effective method of recruiting as it is assumed that employees will not refer someone that may make them look bad to their employer. Referrals can be effective for organizations pursuing any HR strategy, as can electronic recruiting for that matter. If recruiting efforts do not focus on the right types of applicants, it is hard for any organization to find success over the long-term. The person you hire is only as good as the applicants you attract for the open positions. Next up, we will return to selection practices.

For More Information:_________________________________________________________ A number of Web sites are available for more information on the HR planning process, types of job seekers, common recruiting sources, and measures of recruiting effectiveness: • • • • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/06/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. www.monster.com – Job search and employer recruiting website. www.careerbuilder.com – Job search and employer recruiting website. www.hotjobs.com - Job search and employer recruiting website. www.recruiting.com – Variety of recruiting resources. www.recruitersnetwork.com – Variety of recruiting resources. http://humanresources.about.com/od/recruitingandstaffing/Employee_Planning_Recruiting_S electing_Staffing_and_Hiring.htm - Recruiting and Selection website.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Employee Selection: Choosing the Best of the Best for Graphics Design, Inc. You have identified several potential candidates for the new positions at GDI, and it is now time to begin the selection process. In designing the appropriate selection system for the company, you must consider reliability, validity, utility, legality, and acceptability along with common testing methods, information- gathering sources, and interview types. Whatever system you choose, you know that you’ll need to gain buy-in from the managers who need these new employees. You know, too, that the system must support GDI’s basic HR strategy, the Loyal Soldier strategy.

Your recommendations on the appropriate selection program are due this afternoon. What will it look like?

What Action Do You Take?

A.

To align with the Loyal Soldier strategy, recommend that GDI select long-term generalists who will fit with the overall organization and who are projected to have high potential and motivation.

B.

To align with the Loyal Soldier strategy, recommend that GDI select short-term specialists who will fit the job well and who are projected to have high achievement.

C.

To align with the Loyal Soldier strategy, recommend that GDI select long-term specialists who will fit with the overall organization and the job, as well as who are likely to have specific expertise.

Incorrect Responses B. Short-term specialists align with the Free Agent HR strategy. Hiring these people allows firms to quickly acquire needed expertise as new hires bring unique knowledge and skills to the organization. When the expertise is no longer needed, the employment relationship is ended.

C. Long-term specialists align with the Committed Expert HR strategy. Hiring people who can develop specialized skills over time enables organizations to create and keep a unique resource of talent that other organizations do not have. Employees are given time and resources to develop the needed skill sets.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Employee Selection: Choosing the Best of the Best for Graphics Design, Inc. Summary of Steps Taken: 1. To align with the Loyal Soldier strategy, recommend that GDI select long-term generalists who will fit with the overall organization and who are projected to have high potential and motivation.

The Loyal Soldier HR strategy focuses on long-term generalists who can develop the skills and knowledge for how things are done within a specific organization. While the lack of specific expertise allows firms to reduce payroll costs, the skills and abilities the employees develop over time are specific to the organization which reduces the chances of them leaving the company for another employer.

GDI’s previous selection methods consisted of unstructured interviews and reference checks.

You have recommended they alter their selection practices to consist of cognitive ability tests, personality tests, and structured interviews. The owner wants to know if there is any evidence that this new selection method can increase productivity in the workplace.

What Action Do You Take?

A.

Explain the concept of reliability and how it is concerned with the consistency of measurement. Discuss aspects of the test-retest method, alternate-forms method, split halves method, and inter-rater method.

B.

Explain the concept of validity and the two main types (content and criterion). Also discuss how these tests are applicable to all positions because of validity generalization.

C.

Explain the concept of utility (cost effectiveness) and how it examines increases in validity, number of people selected, average tenure, performance variability, ratio of applicants to hires, and costs.

Incorrect Responses A. The first question to ask about any selection procedure is whether it is reliable. Knowing in general how high reliability estimates should be makes both managers and HR better consumers of selection procedures. While the various reliability methods are all important, this option will not likely convince the owner that productivity will increase.

B. Once reliability has been established, the selection method’s validity is examined.

Knowing the content and criterion validity is of critical importance, but will not be able to convince the GDI team that an increase in productivity is in the future.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Employee Selection: Choosing the Best of the Best for Graphics Design, Inc. Summary of Steps Taken: 1. To align with the Loyal Soldier strategy, recommend that GDI select long-term generalists who will fit with the overall organization and who are projected to have high potential and motivation.

2. You have recommended that GDI alter their selection practices to consist of cognitive ability tests, personality tests, and structured interviews. To convince the owner that this new selection method can increase productivity in the workplace, explain the concept of utility (cost effectiveness) and how it examines increases in validity, number of people selected, average tenure, performance variability, ratio of applicants to hires, and costs.

The concept of utility is one that can be very effective at showing managers about the gains that can be expected from an improved selection procedure. Not only can it demonstrate the percent and dollar increases in productivity, it can also be used to show the percent decrease in hires needed to sustain the current level of output, percent increase in top performers, and percent decrease in bottom performers.

The utility presentation has impressed the GDI senior management team. You’re now ready to discuss your ideas for the information gathering and interview processes.

What Action Do You Take?

A.

Recommend a package consisting of applications, resumes, and unstructured interviews.

B.

Recommend a package consisting of applications, biodata, and structured interviews assessing fit that will examine personality, motivation, and social skills.

C.

Recommend a package consisting of applications, resumes, reference checks, and structured interviews assessing achievement that will examine job experiences and certifications in specific skills.

Incorrect Responses A. Not a bad choice, but resumes are more appropriate for companies recruiting specialists rather than generalists. Unstructured interviews are preferred by managers, but historically have been found to have less reliability and validity than structured interviews (although some recent research has brought that into question).

C. You won’t be the only person selecting this option as this set reflects a very common process for many organizations. Resumes are more appropriate for companies recruiting specialists rather than generalists. References have very questionable validity. Structured interviews assessing achievement are for organizations recruiting short-term specialists.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Employee Selection: Choosing the Best of the Best for Graphics Design, Inc. Summary of Steps Taken: 1. To align with the Loyal Soldier strategy, recommend that GDI select long-term generalists who will fit with the overall organization and who are projected to have high potential and motivation.

2. You have recommended that GDI alter their selection practices to consist of cognitive ability tests, personality tests, and structured interviews. To convince the owner that this new selection method can increase productivity in the workplace, explain the concept of utility (cost effectiveness) and how it examines increases in validity, number of people selected, average tenure, performance variability, ratio of applicants to hires, and costs.

3. You recommend an information gathering and interview process consisting of applications, biodata, and structured interviews assessing fit that will examine personality, motivation, and social skills.

Applications provide valuable information about work experiences, utility, and information about past achievements, potential, and fit. Biodata covers core traits and values and is good for longterm employees and measuring potential. Structured interviews assessing fit are for long-term generalists.

The last step in the selection process is to determine how to make the final decision. Remember that your primary selection methods are a cognitive ability test, personality test, and a structured interview. Recommend the method with the fewest potential problems.

What Action Do You Take?

A.

Recommend a multiple hurdles approach to also take advantage of the minimum cutoffs method.

B.

Recommend using banding which uses statistical analysis to identify scores that not be meaningfully different.

C.

Recommend using predictor weighting where statistical methods are used to determine the best set of weights.

Incorrect Responses A. This process requires that applicants have at least a minimum score on each assessment method before moving on to the next one. If inexpensive tests are given first, this approach can increase utility. However, decision makers may eliminate applicants without knowing how they would score on all tests.

B. While banding accounts for the fact that employment tests are not totally reliable and that slightly different test scores may just be the result of measurement error, banding is somewhat controversial as utility may be decreased because people with lower test scores (and lower potential to succeed) are hired.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Employee Selection: Choosing the Best of the Best for Graphics Design, Inc. Summary of Steps Taken: 1. To align with the Loyal Soldier strategy, recommend that GDI select long-term generalists who will fit with the overall organization and who are projected to have high potential and motivation.

2. You have recommended that GDI alter their selection practices to consist of cognitive ability tests, personality tests, and structured interviews. To convince the owner that this new selection method can increase productivity in the workplace, explain the concept of utility (cost effectiveness) and how it examines increases in validity, number of people selected, average tenure, performance variability, ratio of applicants to hires, and costs.

3. You recommend an information gathering and interview process consisting of applications, biodata, and structured interviews assessing fit that will examine personality, motivation, and social skills.

4. In terms of the final decision on which candidate(s) to select, recommend using predictor weighting where statistical methods are used to determine the best set of weights.

Great work! The process of predictor weighting is helpful for assuring that managers and HR people give appropriate attention to the information obtained from each of the selection methods.

It also allows for an applicant’s strength in one area to compensate for weakness in another area as well as for the most important selection methods to have a stronger influence on the final decision. You’ve now completed the challenging world of recruiting and selection. Just finding the best applicants isn’t enough. You’ve got to be able to select which ones are most likely to have the best performance on the job. Then once they are on board, you must be able to retain them. Speaking of which, we will now turn to the issue of employee retention and turnover.

For More Information:_________________________________________________________ A number of Web sites are available for more information on testing and employee selection methods: • • • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/06/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.hr-guide.com/selection.htm - Portion of the above website dedicated solely to selection. http://www.job-interview.net/ - Guide to interviewing. www.recruiting.com – Variety of recruiting resources. www.recruitersnetwork.com – Variety of recruiting resources. http://humanresources.about.com/od/recruitingandstaffing/Employee_Planning_Recruiting_S electing_Staffing_and_Hiring.htm - Recruiting and Selection website.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Turnover: Dealing with the Good, the Bad, and the Ugly at Global Telecommunications Another of your clients is Global Telecommunications. Global has adopted a Committed Expert HR strategy. Unfortunately, it has some potential turnover problems. In a few minutes, you will meet with a key member of senior management who has posted her resume on-line and is actively looking for a new job. How will you handle this discussion? Another problem concerns an employee who, in management’s view, is a detriment to his department and truly needs to be fired. He can be very emotional and is viewed as having a bad temper. Before this person can be fired, you will need to make sure all appropriate steps have been taken. This will be a challenging assignment. As you begin reviewing his file, the senior management member arrives for her meeting with you. Good luck – she doesn’t look happy to be here.

What Action Do You Take?

A.

Based on the Committed Expert HR strategy, you will recommend that the senior management member should leave because her loyalty is broken and that the problem employee be encouraged to leave or terminated because of his performance.

B.

Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be encouraged to leave or terminated because of his performance.

C.

Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be given another chance to improve his performance.

Incorrect Responses A. This would be the approach for a company following the Free Agent strategy where there is low emphasis on retaining high performers and high emphasis on removing low performers.

C. This would be the approach for a company following the Loyal Soldier strategy where there is high emphasis on retaining high performers and low emphasis on removing low performers.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Turnover: Dealing with the Good, the Bad, and the Ugly at Global Telecommunications Summary of Steps Taken: 1. Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be encouraged to leave or terminated because of his performance.

The Committed Expert strategy places high emphasis on retaining high performers as well as on removing low performers. Retaining top performers helps build a workforce with unique skills that employees of other organizations do not have. Meanwhile, quickly identifying and removing individuals who do not fit the organizational culture or who are unable to develop the needed skill and motivation reduces the cost of bad hiring decisions.

In the meeting with the senior management member, you discover that she has been thinking of leaving the organization for some time now because she was passed over for a promotion and that she has considered both the positives and negatives of staying with the firm. Which path to voluntary turnover can be used to describe her decision-making process?

What Action Do You Take?

A.

The path she has used in making her decision is that of a comparison with other alternatives.

B.

The path that she has used in making her decision is that of a sense of dissatisfaction.

C.

The path she has used in making her decision is that of a calculated decision to leave.

Incorrect Responses A. This question is tricky as all the answers have some level of correctness to them. The incorrect issue with this choice though is that it implies that the decision was made after a careful comparison between the current job and a specific job elsewhere.

B. This question is tricky as all the answers have some level of correctness to them. The incorrect issue with this choice though is that in this path, no specific event can be identified as causing the employee to begin thinking about quitting.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Turnover: Dealing with the Good, the Bad, and the Ugly at Global Telecommunications Summary of Steps Taken: 1. Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be encouraged to leave or terminated because of his performance.

2. In the meeting with the senior management member, you discover that she has been thinking of leaving the organization for some time now because she was passed over for a promotion and that she has considered both the positives and negatives of staying with the firm. The path to voluntary turnover you use to describe her decision-making process is that of a calculated decision to leave.

In this path, the decision to leave begins with an event that causes an individual to begin thinking about leaving the organization. The person does not make a quick decision though as options are weighed and the positives and negatives of leaving the company are examined. This decision is not influenced by alternative job opportunities. Potential items that may convince her to stay with the organization include specifying a career path, education programs or other learning, or maybe offering her a sabbatical.

Now it’s on to the problem employee. The company has done a good job of documenting his performance issues and appears to have followed the principles of due process. He was given a verbal warning about his performance a couple weeks ago. You get to determine the next level of discipline now that his performance has not improved.

What Action Do You Take?

A.

Suspend the employee without pay for 2 weeks and give him a final written warning.

B.

Give the employee a written warning that will be placed in his personnel file for 6 months.

C.

Terminate him from the organization immediately because the proper documentation is in order, he’s had plenty of chances, and because Global follows the Committed Expert strategy in which low performers are terminated quickly.

Incorrect Responses A. Depending on the organization’s policy, this may be the chosen approach but it is likely that there would be a step before this one would be chosen.

C. This may seem like the right answer because it is in line with the Committed Expert strategy; however, it seems a little harsh to terminate the employee already.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Turnover: Dealing with the Good, the Bad, and the Ugly at Global Telecommunications Summary of Steps Taken: 1. Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be encouraged to leave or terminated because of his performance.

2. In the meeting with the senior management member, you discover that she has been thinking of leaving the organization for some time now because she was passed over for a promotion and that she has considered both the positives and negatives of staying with the firm. The path to voluntary turnover you use to describe her decision-making process is that of a calculated decision to leave.

3. Now it’s on to the problem employee. The company has done a good job of documenting his performance issues and appears to have followed the principles of due process. He was given a verbal warning about his performance a couple weeks ago. His performance has still not improved and you determine that the next level of discipline will be to give the employee a written warning that will be placed in his personnel file for 6 months.

The written warning definitely seems like the right approach as there may still be hope for the employee. A suspension without pay may result in financial hardship and termination is even more extreme at this stage.

Two months later, the employee has been suspended and after a few days back on the job starts a fight with a co-worker in the breakroom.

What Action Do You Take?

A.

Document the incident and give him one final chance since this offense was not related to his prior performance problems.

B.

Decide to terminate the employee but wait until Friday afternoon to let him collect pay for a few more days before informing him of his dismissal.

C.

Hold the dismissal meeting immediately, give the employee his final check, and escort him off the premises.

Incorrect Responses A. Not even the most compassionate employee advocate is going to support keeping this employee around after this latest incident.

It’s time for him to go.

B. Not a bad decision, but why wait and give him a chance to do some real harm. Plus, the sooner you terminate him, the sooner he can start trying to find another job. Give him some type of severance if you’re that concerned.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Turnover: Dealing with the Good, the Bad, and the Ugly at Global Telecommunications Summary of Steps Taken: 1. Based on the Committed Expert HR strategy, you will recommend that the senior management member try to be retained and that the problem employee be encouraged to leave or terminated because of his performance.

2. In the meeting with the senior management member, you discover that she has been thinking of leaving the organization for some time now because she was passed over for a promotion and that she has considered both the positives and negatives of staying with the firm. The path to voluntary turnover you use to describe her decision-making process is that of a calculated decision to leave.

3. Now it’s on to the problem employee. The company has done a good job of documenting his performance issues and appears to have followed the principles of due process. He was given a verbal warning about his performance a couple weeks ago. His performance has still not improved and you determine that the next level of discipline will be to give the employee a written warning that will be placed in his personnel file for 6 months.

4. Two months later, the employee has been suspended and after a few days back on the job starts a fight with a co-worker in the breakroom. Hold the dismissal meeting immediately, give the employee his final check, and escort him off the premises.

Excellent! Go ahead and end the employment relationship immediately. Many states require that terminated employees be given their final paychecks on their last day of employment so that would be a wise decision. Because of his recent aggressive behavior and temper, have a security person escort him out of the building and to his car. You’ve now successfully handled a couple difficult retention and separation issues and followed the right steps. While keeping the right employees around, remember that sometimes turnover is good for both the employee and the organization. Know when to try to salvage the relationship and when to part ways.

Next up is measuring performance and providing feedback.

For More Information:_________________________________________________________ A number of Web sites are available for more information on employee retention and separation, layoffs, and discipline: • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://humanresources.about.com/od/retention/Retention_of_Employees_Tips_and_Tools_for _Employee_Retention.htm - Website dedicated to employee retention. http://humanresources.about.com/od/layoffsdownsizing/Downsizing_and_Layoff_Strategies.h tm - Website dedicated to downsizing and layoffs.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Performance Appraisal: Delivering Positive and Negative Feedback at Global Telecommunications It is performance appraisal time for Global Telecommunications. In the past, the company has had problems with several managers who either failed to complete appraisals of their employees, failed to distinguish among employees in any meaningful way, or failed to evaluate the appropriate information. The company has asked you to modify its appraisal program and to train managers on the benefits and techniques of good performance management programs. In particular, top management wants you to help the company better achieve its Committed Expert HR strategy. How will you modify the program and gain the needed buy-in from individual managers?

What Action Do You Take?

A.

Recommend that Global implement a parity-based performance management program where people are compared to standards (rather than to each other) because evaluating most employees highly encourages the development of long-term relationships and a sense of loyalty.

B.

Recommend that Global implement a merit-based performance management program where success is best accomplished by employees stretching to accomplish high goals and poor performers are encouraged to leave.

C.

Recommend that Global implement a merit-based performance management program where people are compared with others on relative measures and promotions depend on achieving results and performing better than others (outcomes).

Incorrect Responses A. The type of strategy described here is that of organizations aligned with the Loyal Soldier mentality. Committed Expert strategies call for the organization to use a merit-based system that distinguishes between the accomplishments of employees rather than trying to reward everyone equally.

B. You’re very close. The only real issue with this option is that it does not take into account that promotions are specifically based on performing better than others (outcomes). This option is aligned more with the Free Agent HR strategy.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Performance Appraisal: Delivering Positive and Negative Feedback at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global implement a merit-based performance management program where people are compared with others on relative measures and promotions depend on achieving results and performing better than others (outcomes).

Merit-based systems use relative measures and encourage competition and stretch goals to foster innovation, creativity, and high quality. Promotions are indeed based on someone performing better than their peers. Outcomes are the key rather than the activities of employees (behavioral processes). Also, keep in mind that elements of job performance to be evaluated in any situation include task (declarative and procedural knowledge), citizenship behavior (organizational and interpersonal), and also counterproductive behaviors.

As you review last year’s performance appraisals, you notice that a couple managers tend to rate people either quite high on all categories or quite low on all categories. This makes you wonder if there is some type of rater bias taking place. Which type of rater error will you caution the managers about?

What Action Do You Take?

A.

Train the managers about the concept of central tendency error.

B.

Train the managers about the concept of halo error.

C.

Train the managers about the concept of primacy error.

Incorrect Responses A. Central tendency error occurs when the rater places almost everyone in the middle of the scale rather than distinguishing between them. This occurs when the rater dislikes separating people into categories.

C. Primacy error is the opposite of recency error. It is when a rater places too much emphasis on behavior that is first observed.

The rater makes an initial judgment and fails to account for later contributions that should alter the initial observation.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Performance Appraisal: Delivering Positive and Negative Feedback at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global implement a merit-based performance management program where people are compared with others on relative measures and promotions depend on achieving results and performing better than others (outcomes).

2. As you review last year’s performance appraisals, you notice that a couple managers tend to rate people either quite high on all categories or quite low on all categories. This makes you wonder if there is some type of rater bias taking place and you train the managers about the concept of halo error.

Halo error occurs when a rater provides similar ratings for an employee on all the different dimensions of performance based on a general impression rather than on specific contributions.

The general impression in halo error can result in either very high performance ratings or very low ratings. While there are many methods for increasing rating accuracy, the most effective method is to help raters develop a consistent view of what represents good and bad performance. This approach is called frame-of-reference training and provides instruction and practice to help raters see different performance episodes in the same way.

There are many rating formats which exist for assessing performance of employees. The key to successful appraisal is to choose the format that best accomplishes the purpose of the appraisal.

The Global management team asks you which format you recommend to stay consistent with their Committed Expert strategy.

What Action Do You Take?

A.

Recommend that Global use the forced distribution rating format.

B.

Recommend that Global use the narrative ratings format.

C.

Recommend that Global use the forced rankings format.

Incorrect Responses B. Organizations that use narrative ratings ask raters to simply provide a written description of performance. This type of system makes it very difficult to compare the performance of different individuals and is therefore best for companies that don’t use employee comparisons in making decisions on training, promotions, and compensation.

C. Forced ranking occurs when a rater is required to rank all employees. This technique eliminates central tendency error and clearly distinguishes the top performers. Many supervisors are uncomfortable with ranking though so there is a better choice for Global considering some of the supervisors have failed to complete their appraisals in the past.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Performance Appraisal: Delivering Positive and Negative Feedback at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global implement a merit-based performance management program where people are compared with others on relative measures and promotions depend on achieving results and performing better than others (outcomes).

2. As you review last year’s performance appraisals, you notice that a couple managers tend to rate people either quite high on all categories or quite low on all categories. This makes you wonder if there is some type of rater bias taking place and you train the managers about the concept of halo error.

3. There are many rating formats which exist for assessing performance of employees. The key to successful appraisal is to choose the format that best accomplishes the purpose of the appraisal. You recommend to the Global management team that they use the forced distribution rating format to stay consistent with their Committed Expert strategy.

The forced distribution format combines the numerical features of graphic ratings with the forced rating approach. This format requires that a certain percentage of employees be placed in each rating category. It allows the rater to give groups of employees the same rating but also forces the separation of employees into categories. Because they encourage competition, forced distribution formats emphasize merit and are most suitable for firms focusing on differentiation.

You recommend a 360-degree rating process where ratings are obtained from supervisors, peers, subordinates, employees themselves, and possibly even certain key customers. You’re asked for your recommendation on providing positive and negative feedback to employees.

What Action Do You Take?

A.

Develop a culture of ongoing feedback that encourages continuous learning and development; have leaders communicate high expectations to increase performance; be specific about communicating the best way to complete tasks.

B.

Develop a culture of ongoing feedback that encourages continuous learning and development; have leaders communicate high expectations to increase performance; avoid providing clear examples to support your points if they are negative.

C.

Develop a culture of ongoing feedback that encourages continuous learning and development; have leaders communicate high expectations to increase performance; be specific if communicating how to do clearly defined tasks.

Incorrect Responses A. The only error in this option is that specific feedback should not be given if it will discourage employees from seeking better ways to do something.

B. The only error here is that providing clear examples to support your points should always be done. When negative, focus the comments on the task though (not the employee).

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Performance Appraisal: Delivering Positive and Negative Feedback at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global implement a merit-based performance management program where people are compared with others on relative measures and promotions depend on achieving results and performing better than others (outcomes).

2. As you review last year’s performance appraisals, you notice that a couple managers tend to rate people either quite high on all categories or quite low on all categories. This makes you wonder if there is some type of rater bias taking place and you train the managers about the concept of halo error.

3. There are many rating formats which exist for assessing performance of employees. The key to successful appraisal is to choose the format that best accomplishes the purpose of the appraisal. You recommend to the Global management team that they use the forced distribution rating format to stay consistent with their Committed Expert strategy.

4. You recommend a 360-degree rating process where ratings are obtained from supervisors, peers, subordinates, employees themselves, and possibly even certain key customers. In terms of providing positive and negative feedback to employees, you recommend developing a culture of ongoing feedback that encourages continuous learning and development; having leaders communicate high expectations to increase performance; and being specific when communicating how to do clearly defined tasks.

Great work! Providing positive feedback will increase performance when linked to goals for continuous improvement. Negative feedback will increase performance when individuals receiving the feedback are confident in their abilities and the feedback is presented in a way that decreases negative emotions. It’s also important to combine feedback with goals for improvement. The next chapter will examine how training can improve performance.

For More Information:_________________________________________________________ A number of Web sites are available for more information on performance management systems, dimensions of job performance, types of performance measures / ratings, and giving feedback to employees: • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://humanresources.about.com/od/performancemanagement/Performance_Management_ Evaluation_Review_Improvement.htm - Website dedicated to performance management. http://www.managementhelp.org/perf_mng/perf_mng.htm - Website dedicated to performance management. http://www.opm.gov/perform/overview.asp - US Office of Personnel Management website.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Art of Training: Finding the Right Program for Global Telecommunications Global Communications also wants your help in improving its training programs. One of the department managers is complaining that his employees “just don’t get it so they must need more training”. It doesn’t seem that this manager has very good communication skills, and you can understand why the employees may not be learning from him. To make matters even more challenging, the manager tells you he doesn’t have much of a budget for training, and he can’t afford to let his employees miss work for more than a few hours anyway. You start thinking about what can be done. Global really wants to use training to support the Committed Expert HR strategy. How should the training program be developed and carried out?

What Action Do You Take?

A.

Place an emphasis on hiring new employees who already possess the desired skills.

When training does occur, focus on providing superior service and innovation.

B.

Place an emphasis on training existing employees and have the training focus on providing superior service and innovation.

C.

Place an emphasis on training existing employees and focus the training on reducing costs and improving efficiency.

Incorrect Responses A. This action aligns with the Free Agent HR strategy rather than Committed Expert, which places an emphasis on training existing employees rather than hiring new ones.

C. This action aligns with the Loyal Soldier HR strategy rather than Committed Expert, which places an emphasis on training that focuses on providing superior service and innovation.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Art of Training: Finding the Right Program for Global Telecommunications Summary of Steps Taken: 1. Place an emphasis on training existing employees and have the training focus on providing superior service and innovation.

Consistent with the Committed Expert focus on an internal labor orientation and on differentiation, this strategy places emphasis on current employees and on creativity and innovation. To have successful training programs, organizations must have managers, employees, and HR staff working in partnership and must use a systematic process for the design and development of training programs. This systematic process will consist of needs assessment, design and delivery, as well as evaluation.

If the decision is made that the needs assessment should include competency modeling, what type of needs assessment are you recommending and at what stage of that needs assessment does the competency modeling take place?

What Action Do You Take?

A.

Competency modeling can take place in organizations conducting a proactive needs assessment and takes place at the organization analysis stage.

B.

Competency modeling can take place in organizations conducting a reactive needs assessment and takes place at problem definition stage.

C.

Competency modeling can take place in organizations conducting a proactive needs assessment and takes place at the task analysis stage.

Incorrect Responses A. While competency modeling can take place in organizations conducting a proactive needs assessment, it occurs later in the process than the organization analysis stage.

B. As you may recall from Chapter 4, competency modeling results in broader, more worker-focused training. Thus, it would be a form of proactive (rather than reactive) needs assessment.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Art of Training: Finding the Right Program for Global Telecommunications Summary of Steps Taken: 1. Place an emphasis on training existing employees and have the training focus on providing superior service and innovation.

2. If the decision is made that the needs assessment should include competency modeling, you recommend that Global conduct a proactive needs assessment in which the competency modeling serves as a variation of task analysis.

Competency modeling is a form of task analysis that can take place in proactive needs assessment. One benefit is lower cost. While it aligns the values of the employees with those of the organization, one concern is that it does not involve determining specific competencies for each job within the organization. Needs assessment is a critical component of the training process as it determines who should be trained and what the training should include. Whether proactive or reactive, it just needs to be done.

A few weeks have passed and needs assessment is done and you have started developing a training program based on theory and research from the academic literature. If Global wants to effectively train these employees on knowledge, skills, and attitudes and have the best of chance of transfer (regardless of cost), what method will you recommend?

What Action Do You Take?

A.

Recommend that the training method be a simulation.

B.

Recommend that the training method be a case study.

C.

Recommend simple classroom style presentation as the best training method.

Incorrect Responses B. Case analysis is an active training method in which trainees discuss, analyze, and solve problems based on real or hypothetical situations. A case study can teach knowledge, but skills and attitudes are not always trainable through this approach. Also, the likelihood of transfer is only medium.

C. Presentation is the primary passive method of instruction. While lectures have a bad reputation, research suggests that people do learn from them. Also, they are an efficient way for many learners to receive the same content and gain the same knowledge.

Likelihood of transfer is quite low however and learners are not given an opportunity to apply what is being learned.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Art of Training: Finding the Right Program for Global Telecommunications Summary of Steps Taken: 1. Place an emphasis on training existing employees and have the training focus on providing superior service and innovation.

2. If the decision is made that the needs assessment should include competency modeling, you are recommending that Global conduct a proactive needs assessment in which the competency modeling serves as a variation of task analysis.

3. A few weeks have passed and needs assessment is done and you have started developing a training program based on theory and research from the academic literature. If Global wants to effectively train these employees on knowledge, skills, and attitudes and have the best of chance of transfer (regardless of cost), you recommend that the training method be a simulation.

Simulations are active methods that reproduce events, processes, and circumstances that occur on the job. It gives the trainees the opportunity to experience at least some aspects of their job in a safe controlled environment and build skills relevant to those aspects of the job. They can be used to train knowledge and skills and possibly even attitudes. While the cost of development is high and cost of administration is medium, the likelihood of transfer with this approach is high.

Several months later, training is now completed. Global did a nice job of enhancing transfer before training (preparation), during training (relapse prevention and generalizability back to the job), and after training (opportunity to perform). If they want to capture as much data as they can about the three primary purposes of evaluation (feedback for designers and trainers, input about whether to continue the program, and information that can be used to market the program), what would you recommend be their primary target of evaluation?

What Action Do You Take?

A.

Recommend that Global collect and analyze data about training content and design.

B.

Recommend that Global collect and analyze data about changes in learners.

C.

Recommend that Global collect and analyze data about organizational payoffs.

Incorrect Responses A. Training content and design can be assessed to provide feedback to designers and trainers that help improve the training program.

It can be examined before, during, or after training has been completed. There is a more thorough choice though.

B. Changes in learners can be measured to provide feedback and make decisions about whether or not to continue providing the training. There is a more thorough choice though.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences The Art of Training: Finding the Right Program for Global Telecommunications Summary of Steps Taken: 1. Place an emphasis on training existing employees and have the training focus on providing superior service and innovation.

2. If the decision is made that the needs assessment should include competency modeling, you are recommending that Global conduct a proactive needs assessment in which the competency modeling serves as a variation of task analysis.

3. A few weeks have passed and needs assessment is done and you have started developing a training program based on theory and research from the academic literature. If Global wants to effectively train these employees on knowledge, skills, and attitudes and have the best of chance of transfer (regardless of cost), you recommend that the training method be a simulation.

4. Several months later, training is now completed. Global did a nice job of enhancing transfer before training (preparation), during training (relapse prevention and generalizability back to the job), and after training (opportunity to perform). To capture as much data as possible about the three primary purposes of evaluation (feedback for designers and trainers, input about whether to continue the program, and information that can be used to market the program), you recommend their primary target of evaluation be to collect and analyze data about organizational payoffs.

Nice job! Collecting and analyzing data about organizational payoffs can be collected and used for all three primary purposes of evaluation. The full training evaluation process typically consists of four steps (determining the purpose of evaluation, deciding on relevant outcomes, choosing an evaluation design, as well as collecting an analyzing the data and reporting the results). Training can boost employees’ commitment and motivation. It can also help employees perform work more effectively and efficiently, as well as help organizations meet their overall strategic objectives. Your next journey will be into the world of employee and career development.

For More Information:_________________________________________________________ A number of Web sites are available for more information on training strategies, needs assessment, design and delivery, methods and media, and training evaluation: • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/11/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://humanresources.about.com/od/training/Training_Development_and_Education_for_Em ployees.htm - Website dedicated to training and development. http://www.managementhelp.org/trng_dev/basics/reasons.htm - Reasons for training employees. http://www.allbusiness.com/human-resources/careers-job-training/1465-1.html - Tips for employee training.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Career Development: Building a Workforce for Long-Term Success at Global Telecommunications Global has been quite impressed with your work. Now top management has asked you to help the company with the issue of career development. Members of the top management team have decided to try using a competency model program to attempt to align the values and vision of Global’s employees with those of the organization. They feel that this will lead to better employee retention and higher commitment. They would like you to evaluate whether this plan aligns with Global’s basic HR strategy – that of a Committed Expert. You should also be prepared to discuss with them any other critical career management dilemmas that they may encounter.

What Action Do You Take?

A.

Recommend that Global focus on developing skills of existing employees and focus on developing skills needed for high level service and innovation.

B.

Recommend that Global focus on developing skills of existing employees and focus on low-cost alternatives to development.

C.

Recommend that Global focus on attracting experienced employees from the external labor market (such as from competitors) and focus on developing skills needed for high level service and innovation.

Incorrect Responses B. Global would focus on developing skills needed for high level service and innovation, not on low-cost alternatives to development.

The approach described here aligns with the Loyal Soldier HR strategy.

C. Global would focus on developing skills of its own internal employees rather than on attracting external employees (even if they were from a competitor). The approach described here aligns with the Free Agent HR strategy.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Career Development: Building a Workforce for Long-Term Success at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global focus on developing skills of existing employees and focus on developing skills needed for high level service and innovation.

Companies that rely on the Committed Expert strategy rely on internal supplies of labor to fill positions whenever possible to do so. They have more extensive development programs because they must create the pool of employees that they’ll use in the future (even if the industry and company change). Firms pursuing a differentiation strategy also must use development to foster high-quality service and innovation. They are less concerned with controlling costs than with gaining a competitive advantage by offering superior products or services. And to answer the initial question, a competency model program would work fine in the Committed Expert HR strategy.

In terms of how organizations can help employees develop, Global plans to implement a developmental relationship program through mentoring new employees when they join the organization. The management team wants your recommendations on what the mentoring program should look like.

What Action Do You Take?

A.

Recommend that program encourages proximity, provides an orientation that trains both mentors and protégés, and assigns a mentor similar in age to the new hire so that the new employee will feel comfortable with the person.

B.

Recommend that the program encourages proximity, provides an orientation that trains both mentors and protégés, and chooses someone from a department from which there would normally be little interaction to gain insight into other parts of the business.

C.

Recommend that the program encourages proximity, provides an orientation that trains both mentors and protégés, and allows them to have an input on the type of person with whom they are matched.

Incorrect Responses A. The early portion of this answer is correct but the phrase on age may be an issue as Global’s plan should be to end up with a less experienced person paired with a more experienced person who can contribute to personal and professional growth.

B. The early portion of this answer is fine but the part about choosing someone from a department they will never interact with does not make much sense as career advice and sponsoring of the new employee may be irrelevant in this situation.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Career Development: Building a Workforce for Long-Term Success at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global focus on developing skills of existing employees and focus on developing skills needed for high level service and innovation.

2. In terms of how organizations can help employees develop, Global plans to implement a developmental relationship program through mentoring new employees when they join the organization. You recommend that the program encourages proximity, provides an orientation that trains both mentors and protégés, and allows them to have an input on the type of person with whom they are matched.

Academic research has found that providing high-quality training to mentors and protégés and allowing them to have an input on the type of person with whom they are matched contributes to participants reporting that the program was effective. Mentors can greatly assist new employees by providing career benefits (such as offering challenging work experiences, providing advice, and sponsoring the employee for promotions and other opportunities). The mentor can also provide psychological and social benefits by helping the new employee build a sense of identity and personal competence.

Forward-looking companies help employees to manage their development using the career development process. This is a series of steps that helps employees identify and pursue career goals and the developmental goals to help them achieve those career goals. At which stage of the career development process would you recommend that Global have employees create milestones or achievements for the future?

What Action Do You Take?

A.

Global should have the creation of milestones or achievements come during the action planning stage of the career development process.

B.

Global should have the creation of milestones or achievements come during the goal setting stage of the career development process.

C.

Global should have the creation of milestones or achievements come during the self assessment stage of the career development process.

Incorrect Responses A. You’re jumping ahead a bit in the process.

During the action planning stage (the last stage), employees make plans for how they will accomplish their goals. In most cases, action planning means selecting developmental opportunities appropriate to the goal.

C. Self-assessment is actually the first phase in the career development process. During that stage, employees determine their interests, values, personalities, and skills. This stage often involves psychological tests like the Self-Directed Search (SDS) which helps employees gain insight into their interests, skills, and desired working conditions.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Career Development: Building a Workforce for Long-Term Success at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global focus on developing skills of existing employees and focus on developing skills needed for high level service and innovation.

2. In terms of how organizations can help employees develop, Global plans to implement a developmental relationship program through mentoring new employees when they join the organization. You recommend that the program encourages proximity, provides an orientation that trains both mentors and protégés, and allows them to have an input on the type of person with whom they are matched.

3. Forward-looking companies help employees to manage their development using the career development process. This is a series of steps that helps employees identify and pursue career goals and the developmental goals to help them achieve those career goals. You recommend that Global have employees create milestones or achievements for the future during the goal setting stage of the career development process.

Examples of items covered in the goal setting stage (third stage) include positions to achieve, skills to be gained, and development efforts to pursue. By the way, the second stage of the goal setting process is the reality check. During that stage, employees gather information to determine whether their self assessments are realistic and how they fit with opportunities in the labor market and with their current employer’s future labor needs.

As you know there are many career development challenges. One of them is new employee orientation (the process of bringing people into the organization and helping them adjust so they can perform their work effectively). You’ve been asked to modify Global’s existing program.

What Action Do You Take?

A.

Design a new hire orientation program that consists of the first full day of employment spent in HR covering paperwork, benefits, vision, mission, values, history, and philosophies of the company and ending the day with a tour of the facility.

B.

Design a new hire orientation program that includes the above features but adds the ability to meet with key members of the new employee’s own department too.

C.

Design a new hire orientation program that keeps the features above but makes the process a series of ongoing events that includes HR, the new employee’s own department, as well as other key members of the organization.

Incorrect Responses A. This option is a good start to the HR portion of the program, but needs to include other departments as well, especially some representation from the department the new employee will be working in.

B. This option is even better but is forgetting that the orientation process is not a one-day event, but an ongoing process that may include several sessions (even if it does take the employees away from performing the job functions they were hired to complete).

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Career Development: Building a Workforce for Long-Term Success at Global Telecommunications Summary of Steps Taken: 1. Recommend that Global focus on developing skills of existing employees and focus on developing skills needed for high level service and innovation.

2. In terms of how organizations can help employees develop, Global plans to implement a developmental relationship program through mentoring new employees when they join the organization. You recommend that the program encourages proximity, provides an orientation that trains both mentors and protégés, and allows them to have an input on the type of person with whom they are matched.

3. Forward-looking companies help employees to manage their development using the career development process. This is a series of steps that helps employees identify and pursue career goals and the developmental goals to help them achieve those career goals. You recommend that Global have employees create milestones or achievements for the future during the goal setting stage of the career development process.

4. One of the many career development challenges is new employee orientation, the process of bringing people into the organization and helping them adjust so they can perform their work effectively. In modifying Global’s existing program, you design a new hire orientation program that consists of the first full day of employment spent in HR covering paperwork, benefits, vision, mission, values, history, and philosophies of the company and ending the day with a tour of the facility. It also includes the ability to meet with key members of the new employee’s own department and makes the process a series of ongoing events that includes HR, the new employee’s own department, as well as other key members of the organization.

Excellent work! Research has found that employees who attend orientation programs have significantly higher levels of affective organizational commitment than those who do not attend.

In addition to orientation, other career development challenges that may well need to be addressed include preventing employee burnout, helping employees balance work with personal lives, and developing a diverse workforce. Failing to meet these challenges may be enough to cause employees to leave the organization. An organization’s employee development practices are strategic when they help the organization maintain a continual supply of talented and committed employees. Next up is using compensation to motivate the workforce.

For More Information:_________________________________________________________ A number of Web sites are available for more information on the employee / career development and critical career management challenges that organizations face: • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://humanresources.about.com/od/careerplanningandadvice1/Success_in_Career_and_Pe rsonal_Development_and_Management.htm - Website dedicated to career development. http://www.managementhelp.org/career/career.htm - Website dedicated to career development.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences How Much to Pay: Finding the Right Balance at SuperFoods Word of your consulting success is spreading rapidly, and SuperFoods has retained your services to help management evaluate the company’s compensation strategy and practices. The basic HR strategy of SuperFoods, a producer of dairy products, is to keep pay levels low but to ensure fairness. As you talk with the top managers about their beliefs concerning pay, it becomes quite clear to you how you can help them align the company’s compensation strategy with its overall competitive strategy. The management team has asked for your input on various aspects of compensation. What will you include in your recommendations that will allow the company to retain its current HR strategy?

What Action Do You Take?

A.

Recommend that SuperFoods follow the Free Agent (Variable Transactional) HR strategy.

B.

Recommend that SuperFoods follow the Bargain Laborer (Uniform Transactional) HR strategy.

C.

Recommend that SuperFoods follow the Loyal Soldier (Uniform Relational) HR strategy.

Incorrect Responses A. The Free Agent approach suggests high pay levels and short-term incentives so that does not align with SuperFoods’ goal of low pay levels and consistent processes.

C. The Loyal Soldier approach suggests similar pay levels for everyone and rewards for employee loyalty so that does not align with SuperFoods’ goal of low pay levels and consistent processes.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences How Much to Pay: Finding the Right Balance at SuperFoods Summary of Steps Taken: 1. Recommend that SuperFoods follow the Bargain Laborer (Uniform Transactional) HR strategy.

The SuperFoods’ goal of low pay levels and fair, consistent processes aligns very well with the Bargain Laborer (Uniform Transactional) HR strategy. Uniform compensation seeks to build a sense of teamwork by paying employees similarly regardless of performance level. Transactional commitments emphasize short-term pay and bonuses. Uniform transactional compensation fits with a Bargain Laborer HR strategy by reducing labor costs. Because pay is lower than it probably should be, an important aspect of compensation in these organizations is to develop fair and uniform practices that increase perceptions of fairness.

The SuperFoods’ senior management team wants you to recommend any theories of motivation that will work for them while still following their Bargain Laborer HR strategy.

What Action Do You Take?

A.

Recommend that SuperFoods can use the reinforcement theory to increase employee motivation.

B.

Recommend that SuperFoods can use the expectancy theory to increase employee motivation.

C.

Respond that while there are many theories of motivation, SuperFoods will likely not have much luck getting any of them to significantly increase employee motivation because of the low pay approach of the Bargain Laborer.

Incorrect Responses A. Reinforcement theory suggests that people engage in behavior when they receive desirable consequents. These consequents only motivate behavior though when they are contingent. In terms of compensation, this suggests that higher pay should be given if and only if performance is high (i.e. pay for performance plans). This theory will likely not provide significant benefit to a Bargain Laborer.

B. Expectancy theory asserts that people are motivated when they have three beliefs: valence, instrumentality, and expectancy.

Valence is belief that a certain reward is valuable. Instrumentality is the belief that the reward will be given if the desired outcome is met. Expectancy concerns people’s belief that they can actually achieve the desired outcome.

This theory will likely not provide significant benefit to a Bargain Laborer.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences How Much to Pay: Finding the Right Balance at SuperFoods Summary of Steps Taken: 1. Recommend that SuperFoods follow the Bargain Laborer (Uniform Transactional) HR strategy.

2. The SuperFoods’ senior management team wants you to recommend any theories of motivation that will work for them while still following their Bargain Laborer HR strategy.

Unfortunately, you have to let them know that they will likely not have much luck getting any of them to significantly increase employee motivation because of the low pay approach of the Bargain Laborer.

While one or more of the theories of motivation (reinforcement, goal setting, justice, expectancy, and agency) may provide some increased motivation to the SuperFoods’ employees, uniform compensation practices are not nearly as effective as variable compensation practices for encouraging high motivation. The goal with uniform practices is instead to create a culture of fairness and cooperation. Incentives that encourage high individual performance can lead to sabotage, which reduces the performance of the group as a whole. With a Bargain Laborer strategy seeking to pay the lowest possible wages, employees are likely to move from organization to organization depending on which organization is willing to pay the most.

The conversation next turns to pay level strategies and how the compensation structure is determined. The SuperFoods’ management team is looking for more positive news with this set of recommendations (but still wants to keep their current strategy).

What Action Do You Take?

A.

Recommend that they continue to focus on the lag-the-market pay strategy but strive to reach the meet-the-market level. In terms of compensation structure, recommend a skillbased pay approach.

B.

Recommend that they continue to focus on the lag-the-market pay strategy but strive to reach the meet-the-market level. In terms of compensation structure, recommend a jobbased pay approach.

C.

Recommend that they move to a lead-the-market pay strategy to attract top-quality workers. In terms of compensation structure, recommend a job-based pay approach.

Incorrect Responses A. The pay strategy in this choice is fine, but skill-based pay does not make much sense as it uses differences in employee skills as the basis for determining pay. In that approach, employees are given an opportunity to earn more as they develop more skills (very inconsistent with SuperFoods’ Bargain Laborer strategy).

C. While a move to a lead-the-market pay strategy would indeed attract better quality applicants, this approach simply does not make sense to a company focused on maintaining a Bargain Laborer HR strategy. The job-based pay approach in the second half of this answer is correct though.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences How Much to Pay: Finding the Right Balance at SuperFoods Summary of Steps Taken: 1. Recommend that SuperFoods follow the Bargain Laborer (Uniform Transactional) HR strategy.

2. The SuperFoods’ senior management team wants you to recommend any theories of motivation that will work for them while still following their Bargain Laborer HR strategy.

Unfortunately, you have to let them know that they will likely not have much luck getting any of them to significantly increase employee motivation because of the low pay approach of the Bargain Laborer.

3. The conversation next turns to pay level strategies and how the compensation structure is determined. Recommend that they continue to focus on the lag-the-market pay strategy but strive to reach the meet-the-market level. In terms of compensation structure, recommend a job-based pay approach.

While a lag-the-market pay strategy probably makes the most sense for a company such as SuperFoods, it is possible for Bargain Laborers to be at meet-the-market in terms of pay (average level for other organizations). With job-based pay, each job is assigned a point value based on various characteristics of the job, and people working in jobs worth more points receive a higher pay. Since Bargain Laborers usually don’t seek to hire people who have developed specific skills, this strategy can be an attractive option.

You are still meeting with the SuperFoods’ management team and start talking about the Fair Labor Standards Act (FLSA). Knowing what you do about SuperFoods, which of the compensation practices governed by FLSA is likely to be the biggest concern you need to make sure they are aware of?

What Action Do You Take?

A.

Remind them of the FLSA regulations concerning minimum wage laws.

B.

Remind them of the FLSA regulations concerning exempt vs. non-exempt employees.

C.

Remind them of the FLSA regulations concerning overtime.

Incorrect Responses B. This is a possibility with a company like SuperFoods (Bargain Laborer) as they may try to classify their hourly employees as exempt just to avoid paying them overtime. We need to assume they are not unethical though.

C. This is also a possibility with a company like SuperFoods (Bargain Laborer) as they may try to avoid paying the overtime rate of 1.5 times the normal wage rate because of their emphasis on reduced labor costs. More likely though is them simply not allowing OT hours at all.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences How Much to Pay: Finding the Right Balance at SuperFoods Summary of Steps Taken: 1. Recommend that SuperFoods follow the Bargain Laborer (Uniform Transactional) HR strategy.

2. The SuperFoods’ senior management team wants you to recommend any theories of motivation that will work for them while still following their Bargain Laborer HR strategy.

Unfortunately, you have to let them know that they will likely not have much luck getting any of them to significantly increase employee motivation because of the low pay approach of the Bargain Laborer.

3. The conversation next turns to pay level strategies and how the compensation structure is determined. Recommend that they continue to focus on the lag-the-market pay strategy but strive to reach the meet-the-market level. In terms of compensation structure, recommend a job-based pay approach.

4. You are still meeting with the SuperFoods’ management team and start talking about the Fair Labor Standards Act (FLSA). Knowing what you do about SuperFoods, you remind them of the FLSA regulations concerning minimum wage laws.

Great job! The relatively low skill level of the SuperFoods’ workforce suggests that the wage rate for the employees will be very near the minimum wage that is allowed under the law because of the emphasis on reducing labor costs. Keep in mind that effective organizations have compensation practices that motivate employees to do things that help increase their firm’s productivity. Strong compensation and benefits packages attract better employees who are more likely to stay and are more highly motivated, which leads to higher levels of performance (as we will discuss in the next chapter).

For More Information:_________________________________________________________ A number of Web sites are available for more information on compensation practices, theories of motivation, pay level strategies, pay structures, and FLSA: • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/02/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.hr-guide.com/compensation.htm - Website dedicated solely to compensation issues. http://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonu ses_Profit_Sharing.htm - Website dedicated to compensation issues. http://www.dol.gov/esa/whd/flsa/ - DOL website dedicated to the FLSA.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Is It All about Base Salary? Explaining Compensation Issues at SuperFoods One of the managers at SuperFoods informs you that, at least in her department, the main motivator for the employees is their base salary. The rest of the compensation package, she says, is “just details”. She insists that giving the employees in her department big pay increases will make all of them very happy, regardless of the rest of the compensation package. Your solid HR education and your years of diverse experience as a consultant, however, tell you that statement is likely not true, even though the company’s HR strategy has always been that of Bargain Laborer. How should you respond to the manager’s comments?

What Action Do You Take?

A.

Agree with her and work to push the pay strategy minimally to meet the market, but take away some of the paid time off and medical insurance benefits as a result to try to keep within the current strategic framework as much as possible.

B.

Explain that the base salary is only part of the total compensation package and that a strong benefits package and at-risk incentives that motivate employees could make significant improvements to the current pay philosophies. You can also point out that base pay is already a very large percentage of the current compensation package as a Bargain Laborer.

C.

Try to convince the company that they could do much better by converting to the Committed Expert strategy for their HR practices.

Incorrect Responses A. Some employees may feel this would be a good trade if they never take vacation and are not covered by the company’s health care plan.

Overall though, the decreases in the benefits element could very well lead to a reduction in morale and thus increase turnover and decrease productivity in the process.

C. While this may seem on paper like a good plan, there is a potential issue in doing so.

This approach would mean that the company’s competitive business strategy and HR strategy are no longer aligned. You would also need to be successful in getting SuperFoods to change its overall business philosophy for this plan to show a significant increase in outcomes.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Is It All about Base Salary? Explaining Compensation Issues at SuperFoods Summary of Steps Taken: 1. Explain that the base salary is only part of the total compensation package and that a strong benefits package and at-risk incentives that motivate employees could make significant improvements to the current pay philosophies. You can also point out that base pay is already a very large percentage of the current compensation package as a Bargain Laborer.

Although it will likely not result in any improvements, this option is probably the best strategy. It points out that there may be alternatives available to make some improvements without you having to be too critical of SuperFoods’ strategy.

If SuperFoods were to agree to add one type of voluntary employee benefits to its current compensation package that includes only health care coverage and minimal paid time off, which type would you recommend as making the most impact to employees while not straying too far from their HR strategy?

What Action Do You Take?

A.

Recommend the addition of lifestyle benefits such as concierge services and some form of flextime.

B.

Recommend the addition of more paid time off.

C.

Recommend the addition of a retirement savings package (defined contribution plan such as a 401 (k) with a minimal employee match).

Incorrect Responses A. This option may have some potential for SuperFoods as it is really not about having to pay the employees any additional money.

Work/life balance items would likely be most appealing to younger employees though. With the company’s focus on an external labor orientation, they are always hiring experienced workers who may not fall into the younger generation who this is so appealing to.

B. This plan may sound good, but likely makes no sense considering the Bargain Laborer HR strategy. With a focus already on reducing labor costs as much as possible, the odds of SuperFoods agreeing to pay the employees to be away from the job more often is slim to none. This approach may work well though for a Loyal Soldier or Committed Expert strategy.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Is It All about Base Salary? Explaining Compensation Issues at SuperFoods Summary of Steps Taken: 1. Explain that the base salary is only part of the total compensation package and that a strong benefits package and at-risk incentives that motivate employees could make significant improvements to the current pay philosophies. You can also point out that base pay is already a very large percentage of the current compensation package as a Bargain Laborer.

2. If SuperFoods were to agree to add one type of voluntary employee benefits to its current compensation package that includes only health care coverage and minimal paid time off, the type you would recommend as making the most impact to employees while not straying too far from their HR strategy is the addition of a retirement savings package (defined contribution plan such as a 401 (k) with a minimal employee match).

The benefit of adding the defined contribution plan is that it would likely not be all that costly to the company. Because of the Bargain Laborer HR strategy, turnover is fairly high and so the matched portion of the retirement plan will likely not get paid out because most employees won’t stay employed long enough to receive vesting. Employees may still see this as a nice addition though because the plan is portable and they can roll their contributions over to another employer if they leave SuperFoods. The burden of investment rests with the individual employees.

If also adding one of the common individual incentives, which one makes the most sense and are you most likely to get approved by the senior management team?

What Action Do You Take?

A.

Recommend the implementation of commissions.

B.

Recommend the implementation of piece-rate incentives.

C.

Recommend the implementation of merit pay increases.

Incorrect Responses A. As commissions apply primarily only to sales people, this is a strategy that makes very little sense to try to implement. These systems tend to be most appropriate for organizations that adopt Free Agent or Committed Expert HR strategies.

C. It’s likely that a company like SuperFoods is currently only providing cost of living increases each year and not merit pay increases which represent an increase based on individual performance. Merit pay increases normally represent a very small proportion of total pay though and are not likely to be seen as an extra to the employees. Since they are designed to recognize ongoing contributions, they make more sense in a Committed Expert strategy.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Is It All about Base Salary? Explaining Compensation Issues at SuperFoods Summary of Steps Taken: 1. Explain that the base salary is only part of the total compensation package and that a strong benefits package and at-risk incentives that motivate employees could make significant improvements to the current pay philosophies. You can also point out that base pay is already a very large percentage of the current compensation package as a Bargain Laborer.

2. If SuperFoods were to agree to add one type of voluntary employee benefits to its current compensation package that includes only health care coverage and minimal paid time off, the type you would recommend as making the most impact to employees while not straying too far from their HR strategy is the addition of a retirement savings package (defined contribution plan such as a 401 (k) with a minimal employee match).

3. If also adding one of the common individual incentives, recommend the implementation of piece-rate systems as the one that makes the most sense and is most likely to get approved by the senior management team.

This one should have been fairly easy as piece-rate systems are a common feature of the Bargain Laborer strategy. Piece-rate systems are where employees are paid a fixed amount for each piece of output they produce. These systems can also be powerful motivators as there is a strong pay-for-performance link. They can sometimes create problems though in that employees may focus too much attention and effort on the actions that get rewarded and ignore other important tasks (such as safety practices) in the process.

As a final addition to its compensation plan, SuperFoods is willing to consider adding either a common group or organizational benefit. Once again, you get to recommend the one that makes the most sense and is most line with the Bargain Laborer HR strategy.

What Action Do You Take?

A.

Recommend that SuperFoods consider implementing a gainsharing plan.

B.

Recommend that SuperFoods consider implementing a profit sharing plan.

C.

Recommend that SuperFoods consider implementing a stock option plan.

Incorrect Responses B. Profit sharing occurs when employees receive incentive payments based on overall company profits. Profit sharing has the potential to align the interests of employees with those of the owners. Many times though, employees don’t feel their personal efforts will impact the firm’s profits. There may be a better option for SuperFoods.

C. Stock options give employees the right to buy company stock at a given price on a future date. It is likely that the employees of SuperFoods do not feel enough loyalty in the company to buy the stock and would not be able to afford to purchase the options anyway (due to the low wages) if they did want them.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Is It All about Base Salary? Explaining Compensation Issues at SuperFoods Summary of Steps Taken: 1. Explain that the base salary is only part of the total compensation package and that a strong benefits package and at-risk incentives that motivate employees could make significant improvements to the current pay philosophies. You can also point out that base pay is already a very large percentage of the current compensation package as a Bargain Laborer.

2. If SuperFoods were to agree to add one type of voluntary employee benefits to its current compensation package that includes only health care coverage and minimal paid time off, the type you would recommend as making the most impact to employees while not straying too far from their HR strategy is the addition of a retirement savings package (defined contribution plan such as a 401 (k) with a minimal employee match).

3. If also adding one of the common individual incentives, recommend the implementation of piece-rate systems as the one that makes the most sense and is most likely to get approved by the senior management team.

4. As a final addition to its compensation plan, SuperFoods is willing to consider adding either a common group or organizational benefit, you recommend that they implement a gainsharing plan as the one that makes the most sense and is most line with the Bargain Laborer HR strategy.

Excellent work! You’ve made it through the compensation and benefits section of the textbook.

Work is increasingly being structured around teams rather than individuals and the potential addition of a gainsharing plan to SuperFoods’ compensation package may make a significant difference to the employees. Gainsharing occurs when groups of workers receive a portion of the financial return from reducing costs and improving productivity. This practice is especially common in manufacturing organizations where costs and productivity gains can be objectively measured. Effective organizations develop compensation packages that align the overall HR strategy with base pay, employee benefits, individual incentives, as well as group or organizational incentives. Next up is how to work effectively with labor unions.

For More Information:_________________________________________________________ A number of Web sites are available for more information on types of compensation packages, employee benefit plans, and incentive plans: • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/section/02/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.hr-guide.com/compensation.htm - Website dedicated solely to compensation issues. http://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonu ses_Profit_Sharing.htm - Website dedicated to compensation issues. http://www.benefitnews.com/ - Employee benefits resource.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Unions: Negotiating a New Labor Contract for Mega Manufacturing The collective bargaining agreement at one of Mega Manufacturing’s plants will expire soon, and you’ve been hired to help with the contract negotiations. Recall that Mega follows a Free Agent HR strategy with an external labor orientation and a focus on differentiation. Mega’s management has several concerns about the upcoming negotiations. For one thing, a major increase in health care costs needs to be passed along to the employees, at least to some extent.

In addition, the union and its members will expect bigger raises in this contract due to the current labor market. Both sides have traditionally bargained in good faith, but these contract negotiations will be especially challenging, and rumblings of a strike have already surfaced. To make matters worse, the employees at another of Mega’s plants are starting a union organizing campaign. What bargaining approach will you recommend that Mega follow in the contract negotiations?

What Action Do You Take?

A.

Have a strong plan regarding the potential issue of short-term relationships of employees that places emphasis on recognizing performance differences across employees.

B.

Have a strong plan regarding the misfit between labor unions and innovation.

C.

Have a strong plan regarding how to handle having so many long-term employees and too much equality.

Incorrect Responses B. Companies using a Committed Expert HR strategy can have problems with unions because of innovation issues even though they emphasize long-term relationships that unions strive for. These organizations tend to invest less of their profits back into the business, spend less on new construction, and spend less on R&D which can be a problem for companies seeking to innovate and differentiate.

C. Companies using a Loyal Soldier HR strategy are most compatible with labor unions so there is generally not a big issue in working with them. Even though the union may result in higher labor costs, a stable workforce can increase quality. Cost-focused organizations can thus achieve higher productivity by working with unions to reduce costs and create more efficient processes to better satisfy customer needs.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Unions: Negotiating a New Labor Contract for Mega Manufacturing Summary of Steps Taken: 1. Have a strong plan regarding the potential issue of short-term relationships of employees that places emphasis on recognizing performance differences across employees.

Unfortunately, the Free Agent HR strategy utilized by Mega Manufacturing is the least compatible with labor unions because these companies combine a desire for short-term relationships with an emphasis on recognizing performance differences. Mega may truly be in for a very challenging set of contract negotiations in order to successfully avoid the strike that has been rumored.

Knowing what you do about the Bargain Laborer strategy, which of the mandatory topics would you recommend to Mega as the best place to start the negotiations with if they want to begin with the easiest topic?

What Action Do You Take?

A.

Encourage Mega to begin with the negotiations regarding wages (base pay, bonuses, and employee benefits).

B.

Encourage Mega to begin with the negotiations regarding hours (schedules, shifts, and paid time off).

C.

Encourage Mega to begin with the negotiations regarding working conditions (safety, promotions, layoffs, and grievance procedures).

Incorrect Responses A. This is definitely not the category to begin the negotiation process on if Mega is hoping to get off to a quick resolution on something.

Because of the focus on reducing labor costs and knowing that big raises are already expected due to the labor market and that they have a benefits increase to pass along to the employees, this will be by far the toughest of the three mandatory topics to reach an agreement on. The outcome of the negotiations in this category will likely determine whether the strike indeed occurs.

B. This category will likely not be nearly as difficult to reach agreement as the wages will be, but there are still a few potential problem areas in the area of paid time off due to the emphasis on reduced labor costs. Paying employees for additional time away from work will only lead to Mega having to pay overtime to current employees or bring in temporary workers (neither of which is cost-effective).

The schedule and shift topics may be okay though since their focus on short-term relationships means there are constantly new employees who can be placed on 2nd and 3rd shifts.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Unions: Negotiating a New Labor Contract for Mega Manufacturing Summary of Steps Taken: 1. Have a strong plan regarding the potential issue of short-term relationships of employees that places emphasis on recognizing performance differences across employees.

2. Knowing what you do about the Bargain Laborer strategy, you encourage Mega to begin with the negotiations regarding working conditions (safety, promotions, layoffs, and grievance procedures) to have the best chance of starting the negotiations with a topic that is likely to go fairly smoothly.

Mega is likely to have the most success on the dealings with the labor union regarding the working conditions topic (safety, promotions, layoffs, and grievances). Simplified work tasks and hiring experienced workers should limit the number of potential injury situations they’ll have to deal with. Having employees frequently leaving the company will likely mean that there are several opportunities for promotion that can be determined by seniority since there is an emphasis on limiting employee differentiation in performance. Layoffs are not likely to be a concern as Mega could simply institute a hiring freeze and not replace outgoing employees if it needs to cut back on workforce. The emphasis on consistent and fair processes will limit the number of potential grievance situations that Mega may encounter.

In order to try to influence cooperation in the negotiations, Mega does a good job of focusing on trust developed between management and the union from prior negotiations, relying on the expertise and style of its negotiators, and its ability to use problem-solving techniques. It also plans to conduct an interest-based negotiation where each side explains the factors they consider to be most important. You’re asked to recommend which step of that process is the most critical.

What Action Do You Take?

A.

Convince Mega that the most important step will be how they open the negotiations at the bargaining table.

B.

Convince Mega that the most important step in the process is the preparation for negotiations that will be done prior to meeting with the labor union.

C.

Convince Mega that the most important step will be the actual back-and-forth negotiation itself.

Incorrect Responses A. This stage will start with each side presenting an opening statement that lists its major interests. It also clarifies the scope of problems that need to be addressed. Clearly defining issues is also very important here.

While the opening statement is of significant importance, it is likely not the most critical step.

C. You may be right, but it’s quite possible that this is not the best choice for a Bargain Laborer. This step will include discussing interests behind the issues, brainstorming, setting standards, and arriving at a consensus.

What if adequate preparation was not done in the very beginning though?

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Unions: Negotiating a New Labor Contract for Mega Manufacturing Summary of Steps Taken: 1. Have a strong plan regarding the potential issue of short-term relationships of employees that places emphasis on recognizing performance differences across employees.

2. Knowing what you do about the Bargain Laborer strategy, you encourage Mega to begin with the negotiations regarding working conditions (safety, promotions, layoffs, and grievance procedures) to have the best chance of starting the negotiations with a topic that is likely to go fairly smoothly.

3. In order to try to influence cooperation in the negotiations, Mega does a good job of focusing on trust developed between management and the union from prior negotiations, relying on the expertise and style of its negotiators, and its ability to use problem-solving techniques. It also plans to conduct an interest-based negotiation where each side explains the factors they consider to be most important. You recommend that the most critical step of that process is the preparation for negotiations that will be done prior to meeting with the labor union.

If adequate preparation is not done in advance, Mega will have no way to know whether they may have left more at the bargaining table than they should have or whether they had very unrealistic expectations. Interest-based negotiations rely on accurate data to identify key concerns, so an important step is to collect as much data as possible. The data should include information about the interests of both sides. It can be gathered through formal surveys or informal conversations.

Once gathered, it will be shared with the other side.

Great news! The strike was avoided as both sides reached a win-win in the negotiation process.

But wait. Did you forget about that other plant which is starting a union organizing campaign?

Nearly half the workers signed authorization cards and the petition for election has been filed with the NLRB. If you want to avoid having to work with another labor union, recommend a strategy.

What Action Do You Take?

A.

Issue wage increases immediately in hopes that it will discourage the employees from feeling that a labor union is necessary.

B.

Ask employees about union activities that have been going on to see if the company even has anything to worry about.

C.

Recommend that management attempt to thwart unionization by grouping employees who are sympathetic to a union with employees who are not.

Incorrect Responses A. While it may sound like a good plan, this action is actually an unfair labor practice as set forth by the Wagner Act. It will be enforced by the NLRB.

B. While it may sound innocent enough, this action is actually an unfair labor practice as set forth by the Wagner Act. It will be enforced by the NLRB.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences Unions: Negotiating a New Labor Contract for Mega Manufacturing Summary of Steps Taken: 1. Have a strong plan regarding the potential issue of short-term relationships of employees that places emphasis on recognizing performance differences across employees.

2. Knowing what you do about the Bargain Laborer strategy, you encourage Mega to begin with the negotiations regarding working conditions (safety, promotions, layoffs, and grievance procedures) to have the best chance of starting the negotiations with a topic that is likely to go fairly smoothly.

3. In order to try to influence cooperation in the negotiations, Mega does a good job of focusing on trust developed between management and the union from prior negotiations, relying on the expertise and style of its negotiators, and its ability to use problem-solving techniques. It also plans to conduct an interest-based negotiation where each side explains the factors they consider to be most important. You recommend that the most critical step of that process is the preparation for negotiations that will be done prior to meeting with the labor union.

4. Great news! The strike was avoided as both sides reached a win-win in the negotiation process. You still have to deal with that other plant which is starting a union organizing campaign. Nearly half the workers signed authorization cards and the petition for election has been filed with the NLRB. To try to avoid having to work with another labor union, recommend that management attempt to thwart unionization by grouping employees who are sympathetic to a union with employees who are not.

Well done! Because large groups of employees are often difficult to organize, this is a legitimate strategy for Mega. It is also permissible for supervisors to make employees aware of factual information about the union (frequency of strikes, cost of dues, etc.). The other two choices listed were both unfair labor practices as are threatening employees with loss of job or benefits if they join, threatening to close the plant, and spying on union gatherings. Keep in mind that a primary objective of unions is to provide employment security and long-term employment as well as to secure fair wages and benefits for all workers. Effective organizations manage relationships with labor unions to ensure high productivity and fair treatment of all workers. Only one more stop left on your journey through Strategic HR. The last step will align strategy with practice and recap what you’ve learned along the way.

For More Information:_________________________________________________________ A number of Web sites are available for more information on labor unions, legislation, union trends, negotiation and collective bargaining, and the grievance process: • • • • • • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics. http://www.unions.org/home/ - Union Directory. http://www.aflcio.org/ - American Federation of Labor website. http://www.nlrb.gov/ - National Labor Relations Board. www.flra.gov – Federal Labor Relations Authority. www.nrtw.org – National Right to Work

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences A Final Journey: Communicating the Strategic Importance of HR Through your diverse consulting experience, you have learned a great deal about how HR should align with competitive strategy (vertical) and how HR practices should align with each other (horizontal). While traveling to an HR conference, you meet a corporate executive who has a very negative opinion of HR as a whole. He tells you that HR is the same in every company, that it adds no value to organizations, and that HR people are unable to think strategically. You recall what you’ve learned about the four basic HR strategies and the four companies you’ve recently helped – Mega Manufacturing, Graphics Design, Global Telecommunications, and SuperFoods.

How will you convince the executive that he’s wrong about HR?

What Action Do You Take?

A.

Agree with him for the most part and let the opportunity pass by just assuming that this person has always been stuck with poor HR people in the companies he’s worked for.

B.

Explain the two basic forms of strategic alignment (vertical and horizontal) and the four basic HR strategies (Bargain Laborer, Free Agent, Committed Expert, and Loyal Soldier).

C.

Share with him your own views on why the field of HR is actually the most important department in the vast majority of organizations today.

Incorrect Responses A. HR people get criticized by many people in many organizations. Although some of the criticism may in fact be legitimate at times, HR departments for the most part add a tremendous amount of value and HR professionals in many firms can and do think strategically each day in their jobs. Take the opportunity to set this person straight.

C. OK, we fully admit this option is a bit extreme. It may well be closer to the truth though than what this executive originally told you on the plane. Take the opportunity to tell him about some of the various HR strategies and how they can differ across organizations.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences A Final Journey: Communicating the Strategic Importance of HR Summary of Steps Taken: 1. Explain the two basic forms of strategic alignment (vertical and horizontal) and the four basic HR strategies (Bargain Laborer, Free Agent, Committed Expert, and Loyal Soldier).

Good choice. This approach should clearly show the executive how HR departments can differ and still perform effectively and strategically no matter what the competitive business strategy of the company may be. The core HR concepts can be adapted to help an organization achieve whatever strategy it is pursuing. The key is to begin by thinking about what types of worker inputs are needed to carry out the strategy successfully. Once these inputs have been identified, the company can usually modify one of the core HR strategies to help it acquire and motivate the types of workers it needs. The four basic HR strategies thus provide a good foundation for thinking about ways to successfully manage people, but they may need to be adapted to meet the needs of a specific organization.

The executive is intrigued by your views and describes his ideal company as one that has broad work responsibilities, recruits based on high potential and organizational fit, retains high performers and dismisses low performers, provides skill training for the current job and development for future positions, and uses variable pay to reward its best performers. He asks if this set of practices aligns with any of the HR strategies that you have described.

What Action Do You Take?

A.

Respond that this set of HR practices appears to be aligned very well with the Free Agent HR strategy and that the company likely would have an emphasis on an external labor orientation and on differentiation.

B.

Respond that this set of HR practices appears to be aligned very well with the Loyal Soldier HR strategy and that the company likely would have an emphasis on an internal labor orientation and on cost leadership.

C.

Respond that this set of HR practices appears to be aligned very well with the Committed Expert HR strategy and that the company likely would have an emphasis on an internal labor orientation and on differentiation.

Incorrect Responses A. The Free Agent strategy would be one that has complex tasks, recruits based on job fit, dismisses low performers, attracts good employees by offering development opportunities, provides high compensation for top performers, and makes rewards contingent on performance.

B. The Loyal Soldier strategy would be one that has standardized procedures, recruits based on organizational fit, keeps loyal workers, teaches specific skills, provides continual learning, rewards long-term contribution, and limits pay differences among employees.

On-Line Human Resource Management Experiences Back to HRM Home

Back to Beginning

A Final Journey: Communicating the Strategic Importance of HR Summary of Steps Taken: 1. Explain the two basic forms of strategic alignment (vertical and horizontal) and the four basic HR strategies (Bargain Laborer, Free Agent, Committed Expert, and Loyal Soldier).

2. The executive is intrigued by your views and describes his ideal company as one that has broad work responsibilities, recruits based on high potential and organizational fit, retains high performers and dismisses low performers, provides skill training for the current job and development for future positions, and uses variable pay to reward its best performers. He asks if this set of practices aligns with any of the HR strategies that you have described.

Respond that this set of HR practices appears to be aligned very well with the Committed Expert HR strategy and that the company likely would have an emphasis on an internal labor orientation and on differentiation.

At this point in the course, you likely recognized this strategy as that of Committed Expert right away. In addition to the above characteristics of the Committed Expert strategy, there is also a recruiting focus on predicting high potential employees, merit-based performance assessments that encourage good outcomes, long-term employee benefits and employee ownership, as well as the potential negative impact of labor unions on innovation.

The conversation then turns to the future of HR. The executive is curious as to what you think is likely to be the biggest change or development to the HR field in the future.

What Action Do You Take?

A.

Respond that in terms of organizations, the biggest issues will be dealing with constant changes in employment and labor law, as well as in dealing with increased diversity in the workplace.

B.

Respond that in terms of organizations, the biggest developments will be the growing importance of HR, greater prominence of strategic issues, and an increased emphasis on measuring the value of HR.

C.

Respond that in terms of organizations, the biggest developments will be finding creative compensation, training, and performance appraisal programs that help to position companies for long-term success.

Incorrect Responses A. The issues of employment and labor law and diversity in the workplace are all important and will continue to be that way in the future, but there is a choice that is likely to be of even more importance.

C. This is a good choice as the areas of compensation, training, and performance management are all important and will continue to be that way in the future, but one of the choices is likely to of even more importance.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences A Final Journey: Communicating the Strategic Importance of HR Summary of Steps Taken: 1. Explain the two basic forms of strategic alignment (vertical and horizontal) and the four basic HR strategies (Bargain Laborer, Free Agent, Committed Expert, and Loyal Soldier).

2. The executive is intrigued by your views and describes his ideal company as one that has broad work responsibilities, recruits based on high potential and organizational fit, retains high performers and dismisses low performers, provides skill training for the current job and development for future positions, and uses variable pay to reward its best performers. He asks if this set of practices aligns with any of the HR strategies that you have described.

Respond that this set of HR practices appears to be aligned very well with the Committed Expert HR strategy and that the company likely would have an emphasis on an internal labor orientation and on differentiation.

3. As the conversation turns to the future of HR, the executive is curious as to what you think is likely to be the biggest change or development to the HR field in the future. You respond that in terms of organizations, the biggest developments will be the growing importance of HR, greater prominence of strategic issues, and an increased emphasis on measuring the value of HR. Great answer. Due to the upcoming labor shortage, HR will only grow in importance. Also, the emphasis on strategic aspects of HR in organizations is expected to expand significantly. Finally, there will be an increased emphasis on HR metrics and measuring the value that HR adds to organizations.

The captain announces that the plane is about to begin descent and you have time to discuss one final topic. It seems like the executive is actually starting to see the benefits of a strong HR department that aligns with a company’s competitive strategy. He asks what you feel are the two biggest challenges faced by HR professionals. If you want to avoid stating any potential weaknesses about HR, which answers are appropriate?

What Action Do You Take?

A.

Respond that HR people have a lack of power and can feel overwhelmed.

B.

Respond that HR is vulnerable to workforce reductions and is normally paid lower wages than other key departments.

C.

Respond that HR must constantly balance between employees and managers and that they have to deal with skeptical people who don’t see the value in HR.

Incorrect Responses A. While these answers are indeed challenges faced by HR professionals, this response will likely leave the executive with the feeling that maybe HR people are not as much of an asset as you tried to convince him they were.

B. While these answers are likely both true (at least in a number of organizations), admitting vulnerability and complaining about low pay are likely not the right response to end what has been a very positive experience.

Back to HRM Home

Back to Beginning

On-Line Human Resource Management Experiences A Final Journey: Communicating the Strategic Importance of HR Summary of Steps Taken: 1. Explain the two basic forms of strategic alignment (vertical and horizontal) and the four basic HR strategies (Bargain Laborer, Free Agent, Committed Expert, and Loyal Soldier).

2. The executive is intrigued by your views and describes his ideal company as one that has broad work responsibilities, recruits based on high potential and organizational fit, retains high performers and dismisses low performers, provides skill training for the current job and development for future positions, and uses variable pay to reward its best performers. He asks if this set of practices aligns with any of the HR strategies that you have described.

Respond that this set of HR practices appears to be aligned very well with the Committed Expert HR strategy and that the company likely would have an emphasis on an internal labor orientation and on differentiation.

3. As the conversation turns to the future of HR, the executive is curious as to what you think is likely to be the biggest change or development to the HR field in the future. You respond that in terms of organizations, the biggest developments will be the growing importance of HR, greater prominence of strategic issues, and an increased emphasis on measuring the value of HR. 4. It seems like the executive is actually starting to see the benefits of a strong HR department that aligns with a company’s competitive strategy. He asks what you feel are the two biggest challenges faced by HR professionals. To avoid stating any potential weaknesses about HR, respond that HR must constantly balance between employees and managers and that they have to deal with skeptical people who don’t see the value in HR. Terrific work! You were able to answer the question honestly without showing any potential weaknesses in the HR profession. You were even able to use a little humor to make the executive see the irony in his initial logic. By the way, you now have a new client as a result of this conversation. You have now successfully navigated your way through the full course and several challenging decision trees dealing with HR’s role in strategic management. Whether you pursue a career in HR or go into management where you will deal with many of these issues on a daily basis, you now know a great deal about the field of Human Resources. Most great leaders acknowledge the importance of surrounding themselves with highly skilled people who are motivated to succeed. The strategic principles and practices that we have discussed can help you do the same by more effectively managing people at work. Good luck on your own journey.

For More Information:_________________________________________________________ A number of Web sites are available for more information on future HR issues and trends: • • •

http://www.shrm.org/ - Society for Human Resource Management (SHRM) website that provides information on a variety of HR disciplines. http://www.workforce.com/ – Information on a variety of HR functional areas and employment law topics. www.hr-guide.com – Information on a variety of HR functional areas and employment law topics.

Back to HRM Home

Back to Beginning